social media leaders in asset management - 2011 excerpt
DESCRIPTION
As part of this whitepaper on Social Media in the Asset Management Industry, I researched, analyzed and wrote about which firms were best using Social Media to reach their audiences - Advisors and Customers. This excerpt shows the overall breakdown and the segment on Blogs. In the full report, I studied, rated and quantified the relative strength of over 40 firms' activities on Facebook, LinkedIn, Youtube, Twitter and their blogs.TRANSCRIPT
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© 2011 kasina®
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Executive Summary ____________________________________________________________
Social networking has evolved from a social connection tool for college kids to a powerful platform leveraged by leading companies to connect with customers and employees. But social network users are discerning when it comes to professing affinity for a business online, such as a “like” on Facebook or a “follower” on Twitter. On average, users friend only 5 companies online.1 Most users that engage with companies on social platforms:
Share information about the company with their networks Feel a stronger connection to the company Feel better served by the company Purchase the company’s products or services.2
Asset managers that are not actively harnessing social media to connect with advisors and investors lack a critical tool to connect with their most loyal and vocal customers, build advocacy for their brands, and drive business results. Advisors and Investors Use Social Media Social media is well-‐integrated in the daily lives of consumers as well as business professionals in the asset management industry. According to a report from Spectrem Group, 77% of investors who read blogs are likely to consult them for information on new financial products and services. More than two-‐thirds of LinkedIn users are likely to consult their LinkedIn networks on investment issues. Nearly half of users consider seeking investment information from YouTube and Facebook networks.3
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MORE THAN TWO-‐THIRDS OF LINKEDIN USERS are likely to CONSULT THEIR LINKEDIN NETWORKS on INVESTMENT ISSUES.
………………………………………………………………………………… Findings from kasina’s study on What Advisors Do Online reveal that more than three-‐fourths of advisors are using social media, 22% of them daily. More than half of advisors use LinkedIn and YouTube. Nearly three-‐fourths of advisors say that an asset manager’s online capabilities influence their use of a firm’s products. Whether distributing directly or through intermediaries, firms must leverage social media to remain connected with their most loyal customers, build advocacy for their brands and manage their reputations.
1 2010 Consumer New Media Study. Nov. 2, 2010, Cone LLC. 2 Ibid. 3 Social Media and the Investor. Spectrem Group. May 4, 2010.
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What Asset Managers Are Doing with Social Media Asset managers recognize the importance of social media in expanding reach to retain and increase assets. Last year, only 48% of firms were active on one or more of several social platforms including LinkedIn, Facebook, Twitter, YouTube or blogs. In 2011, 80% of firms are active in social media.
Approximately one-‐third of asset managers have developed branded pages on more than one social site and are well beyond the experimental stages of using social media. Their efforts reflect a solid strategy, understanding of the opportunities social media provides and a level of partnership with company stakeholders that allow them to begin measuring value and return on investment. But nearly half of firms are not even participating on popular social sites. While these firms on the sidelines may be planning to evaluate opportunities, early movers are using the experience and insights gained to secure executive commitment and funding for integrated digital strategies.
© 2011 kasina®
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TOP BLOGS
Firm kasina Score #1 85 #2 82 #3 80 #4 80 #5
iShares Russell Investments American Century Investments Wells Fargo Funds Management Group Vanguard 77
The top 5 firms on Facebook share fun, yet thoughtful posts that elicit responses and engagement from their fans.
TOP FACEBOOK PAGES Firm kasina Score
#1 92 #2 87 #3 86 #4 82 #5
Fidelity Investments TIAA-‐CREF Vanguard The Hartford MainStay Investments
80
In addition to broadcasting news and information to their followers, leaders on Twitter also use their feeds to communicate with and learn from their followers and other users.
TOP TWITTER FEEDS Firm kasina Score
#1 94 #2 90 #3 90 #4 89 #5
TIAA-‐CREF Vanguard Fidelity Investments The Hartford Putnam Investments 85
While firms overall do not effectively leverage LinkedIn, the top 5 attempt to leverage some of the capabilities of the professional networking site to connect with customers.
TOP LINKEDIN PAGES Firm kasina Score
#1 80 #2 77 #3 75 #4 75 #5
MFS Investment Management Prudential The Hartford iShares ING 74
The top 5 firms on YouTube offer visually appealing, interesting and varied content that is clearly organized and easy to find.
© 2011 kasina®
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Why Social Media is Important for Asset Managers _____________________________________________________________
Social networking has evolved from a social connection tool for college kids to a powerful platform leveraged by leading companies to connect with customers and employees. But social network users are discerning when it comes to professing affinity for a business online, such as a “like” on Facebook or a “follower” on Twitter. Users friend only an average 5 companies online.4 Users that are able to engage with companies on social platforms are more likely to:
Share information about the company with their networks Feel a stronger connection to the company Feel better served by the company Purchase the company’s products or services.5
Regardless of whether their key audience is institutions, advisors or investors, asset managers need to harness social media to manage their reputations, forge connections with coveted customers and drive business results. Who Uses Social Media Social media is well-‐integrated in the daily lives of consumers as well as business professionals in the asset management industry. According to a report from Spectrem Group, 77% of investors who read blogs are likely to consult them for information on new financial products and services. More than two-‐thirds of LinkedIn users are likely to consult their LinkedIn networks on investment issues. Nearly half of users consider seeking investment information from YouTube and Facebook networks.6 Asset managers such as Vanguard and TIAA-‐CREF leverage this interest with key audiences on branded Facebook and Twitter pages.
…………………………………………………………………………………
MORE THAN TWO-‐THIRDS OF LINKEDIN USERS are likely to CONSULT THEIR LINKEDIN NETWORKS on INVESTMENT ISSUES.
………………………………………………………………………………… Findings from kasina’s study on What Advisors Do Online reveal that more than three-‐fourths of advisors are using social media, 22% of them daily. More than half of advisors use LinkedIn and
4 2010 Consumer New Media Study. Nov. 2, 2010, Cone LLC. 5 Ibid. 6 Social Media and the Investor. Spectrem Group. May 4, 2010.
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allow users to comment. Firms that block comments severely handicap the blog’s potential because readers disengage if they cannot respond to postings. Positive comments let readers build a feeling of friendship and solidarity with the blogger. Negative comments allow them to vent frustrations, rather than direct them at firms in some other way. And constructive comments can also provide valuable insights on how to improve content or serve as catalyst for creating positive change within an organization.
Customize the Layout Unlike other social media, blogs permit firms to exert complete control over the design and user interface. Firms should ensure easy navigation and a clear, appealing layout. They should also allow for a high level of interaction including rating posts, commenting and sharing with friends. Sites that do so promote longer stays and additional page views. American Century’s blog (americancenturyblog.com) for advisors and investors is attractive, easy to navigate and has top-‐notch functionality. The firm categorizes posts and includes a search tool to make finding articles on topics of interest easy. It integrates tweets from its feed, adding another dimension to the content. American Century also enables users to share and rate blog posts—one of the only asset managers to do both. This level of interaction allows the firm to see which posts appeal to its audience and to consider their preferences when planning future content. One of the key tenets of blogs is subscription—receiving posts regularly via RSS or e-‐mail. American Century excels here as well, with an RSS feed prominently displayed on the top right of the page. Less tech-‐savvy readers can subscribe to the “Weekly Market Update” and receive the posts via e-‐mail. Subscription helps form a closer relationship between company and customer.
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Tailor Content The best blogs tailor relevant content to specific audiences. Firms should provide links to archived blog postings and features that provide additional insights into a given post. Russell Investments has separate blogs for investors (conversation.russell.com) and advisors (blog.helpingadvisors.com), a great strategy to reach each audience with relevant, appropriate content. The investor blog focuses on insights on the economy and current events.
The
American Century’s blog includes features that improve the user experience and integrate its social media efforts.
Russell’s blog for investors features investment insights and research.
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advisor blog gives concrete tools and statistics for advisors to use with clients and articles created especially for them such as “Can Basketball Make You a Better Advisor?” An advisor blog is a valuable marketing tool, but, even more importantly, it helps firms understand what data, insights and tools advisors look for and use.
Russell’s blogs feature over twenty writers. Readers are encouraged to rate each posting and the rating is clearly visible. Both sites offers RSS links in the header or readers can sign up for e-‐mail delivery of the postings. The advisor site has phone and e-‐mail links which can easily be used to contact the firm for additional information. Integrate or Separate? Whether a firm integrates its blog on its Web site or creates a separate identity on a new domain depends on the goal for the blog. A firm with limited resources may find it easier to manage the blog as part of its Web site because content can more easily be updated. The personality of the blog is subordinated to the Web site. If the blog is separate, a unique URL such as theretirementsavingschallenge.com or helpingadvisors.com can help brand the new space and provide an expanded range of options for communicating with the firm’s audience. Having a separate site also allows for a discussion of a particular topic (e.g. retirement savings, Roth IRAs) outside of the context of an individual firm’s products/marketing messages.
Russell’s blog for advisors focuses on education and support.
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Best Practices Blogs are powerful branding vehicles and opportunities for in depth, intelligent engagement of customers and advisors. To maximize their potential, firms should:
Enable commenting, rating, and sharing on other social media and via e-‐mail. Read user comments, respond to them, and learn from them to guide content
Use charts, video, podcasts, or images to illustrate ideas. These are particularly useful to advisors as they communicate with clients
Identify bloggers and use first person narrative to foster a personal connection Make content searchable, organize it using categories and use tags to increase search results Link to the firm Web site and identify what topics drive readers there Encourage subscription via RSS and e-‐mail
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Best in Facebook _______________________________________________________________
TOP FACEBOOK PAGES Firm kasina Score
#1 92 #2 87 #3 86 #4 82 #5
Fidelity Investments TIAA-‐CREF Vanguard The Hartford MainStay Investments
80
Facebook has over 500 million users—130 million in the U.S. alone. By 2013, over 47% of the U.S. adult population will be on Facebook.7 Fifty percent of users log on every day, cumulatively spending over 700 billion minutes per month on the site.8 The growth in usage is also evident among investors and advisors. Between January and May, 2011 Vanguard gained approximately 3,000 Likes, bringing the total number of people that like Vanguard on Facebook to nearly 18,000. Dozens of people comment on just one post, which enables Vanguard to garner feedback from posts in real time. These same fans will share interesting content with friends, attracting more Likes and new interest to the firm. The growth is multiplicative. The more users a firm has, the more new users it can attract. While firms that started early on Facebook have a leg up, new entrants with a strong message can quickly raise their profiles using interesting campaigns and paid advertising. Although people use Facebook to interact with friends, families and games, they also integrate brands and news into their conversations, just as in daily life. Brands that provide content to fuel these conversations can engage these massive numbers of users. Facebook is best used for:
Community Building: Facebook lets companies host a nationwide consumer engagement event every day at little cost. Pages with large followings touch hundreds of customers daily.
Content Dissemination: Every time a fan Likes or comments on something, it is noted on his or her page. The fan can distribute interesting content to hundreds or thousands of friends.
7 http://www.emarketer.com/%28S%28oycqhobimqfr41rms1ut4s55%29%29/PressRelease.aspx?R=1008250. 8 http://www.facebook.com/press/info.php?statistics.