Social Media Return on Influence in Financial Services


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Joint presentation by a independent broker dealer and a member of one its advisor\'s firms

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  • Welcome audience Housekeeping- Go over presentation length and advise there will be time for questions at the end of the presentation Questions may be asked online In addition, we will be doing a few polls though out and encourage participation to get the best results Mention White Paper availability Follow up opportunity?
  • Introduce presenters and provide quick bio of bothIn addition to Victor Gaxiola’s role as a Social Media Strategist for the Gaxiola Financial Group, he is the Owner/Social Media Coach and spokesperson for Red 7 Marketing. He frequently participates as a commentator on social media in the financial services industry, and was recently selected to serve as an Advisory Board Member of linkedFA, a social network for financial and insurance professionals. Victor has over 17 years of experience in sales, marketing, and project management with various companies such as Westin Hotels, United Airlines, and Wells Fargo Advisors. As a Financial Advisor, he co-founded the Gaxiola Financial Group with his wife Kim and increased engagement, retention and dialogue with clients through the successful use of social media tools. Mark H Cohen offers over 20 years experience in digital media. His career highlights begin with a decade in traditional advertising, including a role as Executive Vice President for CCM, Inc. In those early years he was active in the industry trade group, the PMA, where he was a founding member of the New York Chapter. He also taught promotion marketing, and later, the first web marketing class at NYU’s School of Continuing Education. In 1994, after co-producing the first concert broadcast on the web – The Rolling Stones live from Dallas, TX – he co-founded one of the first interactive marketing agencies in New York, Premiere Interactive Media – which he later sold to his partner when he was recruited to become Janus Capital’s first Webmaster. Mark joined Cambridge in January 2011 following a year of engagement with the firm as a digital media consultant on behalf the firm he founded, Colloquy Digital.
  • Presentation agenda and overview of what is to come- will appear with mouse clickRead off each one and explain that they will be covered in more detail in the presentation.
  • Concept of social networking is not new Neither is influenceTrust economy based on who you know- share marketplace example People were/are brands- continues today Advisors are currently building business in the same way We are not suggesting a new concept, just a new platform New technology is making it possible to reach a bigger audience quicker
  • Given the competitive landscape of our business, what are you doing to stand out from the rest of the crowd to make an impact and influence? How do you differentiate your services to clients/prospects?It is far better to be a big fish in a small pond than a small fish in a big pond, and Social Media provides a way to scale your market and find the audience that is likely to want to hear your messageExample: Focusing on Doctors, Dentists, building relationships with CPAs, and attorneys.
  • OUR CURRENT LANDSCAPEIn our current landscape there are a number of challenges for advisors that are looking to engage with clients and potential prospects using social media.The first one is REGULATIONSValidate concern over what can and cannot be done, and the lack of a policy in some firms that address social networks.Given the ineffectiveness of other marketing methods (cold calling, direct mail, advertising) social media provides a new channel that is based on the power of relationships and word of mouth
  • The current attention to social media is reminiscent of the early days of websites that trace back to the early digital media of the mid-1990s.In those early days of digital media, we grappled with a very similar environment. The value of websites was questioned and regulatory treatment applied existing rules to the new media – much like the experience we see today with social media. We think we can take pointers from the past experience with websites and develop a practical, compliant approach to use of social media
  • NEXT CHALLENGE- Return on InvestmentAny business venture has another roadblock- The need to answer the potential return on the investment both in time and moneyThis is often a demand of senior leadership- and rightly so. Resources are scarce and we can appreciate the need to have metrics in placeWe think a practical approach is not only based on the classic ROI (Return On Investment) but includes a view on Return On Influence, or ROinf.
  • Instead of having ROI stand for Return of Investment
  • We propose the financial services industry consider the return on influence.
  • It is our contention that influence is based on five factors: Trust, Value, Engagement, Reciprocity, and Advocacy. Simply put, the more an advisor has of each of these five factors, the greater the odds of achieving a positive Return on Influence, Let’s expand on each
  • Trust- read slide bullet points and include examplesAn advisor's personal brand is crucial to gaining influence. Chances are that you have a strong personal brand based on trust established after numerous personal interactions.Trust stems from offline influence and will need additional care to extend it to the creation of online influence. Being genuine, establishing your credibility, and respecting the attentiveness of your audience are just some of the aspects of online trust you’ll need to consider.You also need to recognize that regardless of how long you’ve had your practice or how influential you may be, it will take time before you gain a similar level of influence in social networking mediums. Example: Prospect who became a client over time and continuing to add value.
  • Read slide and provide examplesThis is a concept that is not foreign to financial advisors. Your clients stay with you because of the value you add You bring them your unique perspective and overall value proposition – your competitive differentiators. Although “value” may be gained differently in social media, you’ll find value goes hand in hand with trust in social networkingIt must be consistent and ongoing to build over timeExample: Japanese Tsunami announcement and impact of client portfolios. Provided ability to scale.
  • Read Slide and provide examplesThe more engaged your clients are, the more inclined they are to deepen their relationship with you. Technology makes frequent and higher levels of engagement possible which drives higher expectations from users of social media. It is important this be perceived to come from an authentic voice – your voice – not a canned or corporate voice. Done well, your interactions will encourage dialogue and feedback with you from your social network connection.This level of engagement implies a meaningful time commitment, but we believe the fruits of labor for online engagement are worth the time.Example: Client baby birth
  • Read Slide Means responding to a positive action with another positive actionThey won’t just read the commentary you posted on your website; they point others to it via their own social media interactions. This element of reciprocity does present a challenge to those of us engaged in a heavily regulated industry such as financial services. Content must be considered in terms of applying existing regulatory guidelines to this new social medium. Reciprocity is also a double-edged sword. Negative sentiment often spreads more quickly in social media than positive views, so it is critical to keep those interactions as positive possible.
  • Read slide Over time, your advocates will step forward. Prospects can also be social media advocates and help raise awareness of your business and added value – increasing the number of meaningful interactions within your social network and building new opportunities
  • The breadth of social networks and connections provides a broadcast medium that can amplify any message or position beyond first tier of clients or prospects.Thought leadership takes on new meaning and you have an opportunity to reach potential clients that you may not have had access before in a medium preferred by them.Good content will be shared and illustrate the value you add to client relationships
  • Sharing of ideas is powerful and as engagement grows so does influenceThe more meaningful your influence is on your social networking connections, the greater the size of your social network. The more positive the return on influencebecomes, the greater the odds of achieving your goals for customer retention, advocacy, and ultimately, new customer acquisition.
  • LinkedIn provides its users a graphic Illustration of your network using its MAPS application. Here is an illustration of my LinkedIN Map showing the variouls connections I have in my network with concentrations around specific niche’sIt also illustrates how one individual can have multiple connections and influence
  • Metrics are important, and its important to recognize that you’ll want to know that the effort is worth it and there is a return on the investment in time, money and or attention.
  • We suggest that each has to create a metric that works for them based on their goals and objectives. Set metrics that can be easily measured. For example- A net gain in fans and followers is an indication of an increase in trust and value.You can measure increases in website traffic based on social media channels.Times your content is shared, comments and reactions gainedAnalyzing your network to determine who the most highly engaged individuals are and then track the number of times they take some action on your behalf and multiply that by the number of connections in their network.
  • In light of everything we’ve talked about.. We will now share our suggestions for advisor best practices for increase social media engagement and influence
  • First step is to create a strategy that is based on the followingRead slide and provide examplesAudience- Niche targets, Women in Technology, Doctors, Attorneys, CPA’s, retired boat owners, etc. It is important to understand which form of social media your audience uses as different social mediums appeal to different audiences based on generational preferences or other factors.Objectives- what are you trying to gain? More awareness, clout, contacts? Part of this is also determining what social media network will provide the best exposure to meet your objectiveResources- What kind of time commitment will this require, and what social networks do you have access to use for this purpose
  • Listen- importance of listening. At first may be best approach to social media. Especially if you are not ready to dive in or can’t.Listening provides insight on what is important to your audience. Listening also means responding to their inquiries in a timely fashion.Example: Listening to reaction to news.
  • Social media tools make it easy to find and be found. Use tools to increase connections, also use example of traditional connection/mediums that can lead to a digital connection (ie. Chamber mixers, trade show, client events)Status updates as connection points for business and non-business interest. Technique used to endear a prospect/client with you based on common likes/dislikesExample: posting about sporting events or film you enjoyed. Sharing can also be used to promote activities-Example- attending a conference, receiving an award .Content is reflective of personality and taste- will provide opportunity to connect with clients/prospects on another level.It is surprising what you may learn .Example: Wipeout
  • Add Value by providing quality contentWhat it means to add value, the 4 e’s of contentEducateEnrichEngageEntertainProvide examples of eachEducate- links to website content, how to’s and newsEnrich- ensure that whatever you provide is going to be worth the time to review itEngage- present it as a conversation, encourage dialogue, ask questionsEntertain- balance information with levity. Not all posts need to be business focused and your audience will appreciate knowing the person behind the message.Share content- links, photos, videos, research etc.
  • What is on the horizon is hard to tellWe know that Social Media is not a fad and likely to take on more importance in the brand/consumer relationship going forwardNote: recent MSSB announcement as validation of mediumWord of mouth and the speed of distribution Heavily influences buying behaviorExamples- Review of movies, books, restaurants, airlines, hotels, etc
  • Technology will take on a more active role in the relationship between advisor and client and although the human touch will continue to be critical to the relationship it could be supplement by new tools
  • Connect through a webcast- share reports, SKYPE connectionsExample of use for out of state clients, or with limited resources
  • Another trend that is likely to take on more importance are mobile devices. Handheld phones are now small computers and last year the use of cell phones for data usage surpassed phone call uses.
  • Mobile desktops with tolls like ipads and other tablets provide advisors the tools to take their office with them. Example: use of tablet for prospect presentation.
  • Summarize main points
  • Invite to connect…move to Q/A
  • Social Media Return on Influence in Financial Services

    1. 1. Social Media ROI<br />Return on Influence in Financial Services<br />Presentation by :<br />Victor Gaxiola, Social Media Strategist, Red 7 Marketing<br />Mark Cohen, Assistant Vice President, Digital Media, Cambridge Investment Research <br />
    2. 2. Presenters<br />Victor Gaxiola<br />Social Media Strategist<br />Red 7 Marketing<br />Mark Cohen<br />Assistant Vice President, Digital Media<br />Cambridge Investment Research <br />
    3. 3. Presentation<br />The fundamentals of social networks and influence<br />The five factors of influence <br />Value, Trust, Engagement, Reciprocity, and Advocacy<br />Social Media amplification of influence<br />The Return on Influence<br />The Next Generation of Advisors and Investors<br />
    4. 4. Social Networking<br />
    5. 5.
    6. 6. Regulations<br />
    7. 7. Websites<br />
    8. 8. ROI<br />Return on Investment<br />
    9. 9. Return on INVESTMENT<br />
    10. 10. Return on INFLUENCE<br />
    11. 11. Trust<br />Value<br />Engagement<br />Reciprocity<br />Advocacy<br />
    12. 12. Trust<br /><ul><li> Personal Brand
    13. 13. Built on Interactions
    14. 14. Offline influence
    15. 15. Establishing credibility
    16. 16. Takes time </li></li></ul><li>Value<br /><ul><li> Provide a unique perspective
    17. 17. Competitive differentiators
    18. 18. On-going</li></li></ul><li>Engagement<br /><ul><li> Deepens relationship
    19. 19. Frequency of connection
    20. 20. Authentic voice
    21. 21. Encourages interaction
    22. 22. Time commitment</li></li></ul><li>Reciprocity<br /><ul><li> Positive actions
    23. 23. Share your value proposition
    24. 24. Regulatory concerns
    25. 25. Positive and negative feedback</li></li></ul><li>Advocacy<br /><ul><li> Your biggest fans
    26. 26. Raise awareness of your brand
    27. 27. Increased interactions
    28. 28. New opportunities</li></li></ul><li>Amplification<br />
    29. 29.
    30. 30.
    31. 31. metrics<br />
    32. 32. unique<br />metrics<br />
    33. 33. Best Practices<br />
    34. 34. Develop a strategy based on:<br />Audience<br />Objectives<br />Resources<br />
    35. 35. listen<br />
    36. 36. connect<br />
    37. 37. add value<br />
    38. 38. next generation<br />Prospecting<br />
    39. 39. Traditional<br />
    40. 40. Next <br />Generation<br />
    41. 41. Mobile<br />
    42. 42. Mobile<br />
    43. 43. summary<br />
    44. 44. Thank you!<br />Connect<br /><br /><br />
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