Too much time and effort is dedicated to building fans and creating engagement, but this is not the goal. The goal is to build awareness, consideration, purchase intent and advocacy. As such, fans and engagement are a means to an end, but too many social media strategies today focus only on luring fans--any fan--and creating comments and likes--any comment or like. Facebook's EdgeRank provides us a guide, but it's important to remember that it is Facebook's equation, not marketers. The social media marketing equation must be more expansive and include luring the RIGHT FANS and building BRAND VECTOR into our engagement. And the problem of meaningless fans and empty engagement is not merely one on Facebook but all social networks. The problem is that brands seem to think they can collect a disinterested fan, create engagement and build trust, but this is not the way social networks (or the human mind) works. Instead, you have to build trust FIRST, then collect fans and finally build engagement that matters. How do you do that? Five methods are briefly presented using examples from Wealth Management, including programs and strategies from Zurich, Fidelity, Ameriprise and Vanguard.

1. Rising Above the Noise:
Facebook’s EdgeRank and
Solving the Trust Gap
Augie Ray
Director of Social Media Strategy
Prudential

2. Look! A Fan Surge!
170,000
160,000
Bank Transfer Day
150,000
140,000
11/19
130,000 159,577
120,000
110,000
100,000
10/22
90,000
66,353
80,000
70,000
10/20 10/23 10/26 10/29 11/1 11/4 11/7 11/10 11/13 11/16 11/19
@augieray #bdi1

3. All Fans are Not Created Equal
High Value Fans Low Value Fans
+$ -$
@augieray #bdi1

4. The Simple Facebook Equation
FansA * ∑ Ue We De = Success
@augieray #bdi1

5. The (Slightly Less)
Simple Facebook Equation
FansA * ∑ Ue We De * b = Success
@augieray #bdi1

6. Look! Lots of Engagement!
Total Insurance Conversation Percentage of Social Media
Volume by Brand Conversations by Topic
Company #1
Use/Choose/
Company #2 Recommend
Switch
Company #3
Not use/Drop/
Not Want
Company #4
0% 20% 40% 60% 80% 100%
@augieray #bdi1

7. It’s Not Just a Facebook Issue
You’re followed, but are you on Twitter lists?
You’re followed on LinkedIn, but who cares?
It’s easy to forget that the goal isn’t to be liked or
followed or to get engagement…
The goal is to earn
attention, consideration, awareness and
advocacy. @augieray #bdi1

8. Chicken or egg?
1. Follow/Like
2. Engagement
3. Trust
@augieray #bdi1

9. The trust gap
55% say “It’s hard for me to know who to trust for
financial advice.” (2012 Household Financial Planning
Survey, Certified Financial Planner Board of Standards &
Consumer Federation of America)
Millennials are four times more likely than baby boomers
(28 percent vs. seven percent, respectively) to say they
are unwilling to act on the advice of a financial advisor
without first consulting other sources. (Accenture)
@augieray #bdi1

10. The trust gap
Choosing a new advisor: HHs w/ $100k to $1mm
Offers products from a variety of companies
Depth of products & services
Fees or commissions charged
Investment track record
Individual provides transparency & keeps me…
Individual is honest and trustworthy
0% 20% 40% 60% 80% 100%
Source: National Association of Personal Financial Advisors
@augieray #bdi1

11. Use trust that already exists
@augieray #bdi1

12. Borrow peer-to-peer trust
Fidelity’s Stock Plan Services communities
allow sponsors to discuss with peers:
• New regulations and industry trends
• Opinions of Fidelity’s products and services
• Administrative best practices
45% of Fidelity's SPS client base registered to
use the site
@augieray #bdi1

13. Become more transparent
@augieray #bdi1

14. Build trust with content
Goal: Increase followers of Christopher Taylor, head of Financial Institutions.
• Posted content
• Banner Ads
• Targeted InMail to VPs, Owners, Partners
& C-level in FinServ
• 700,000 ad impressions
• 850+ ad clicks
• 1,000 new connections in six weeks
• Email had open rate of 14% & CTR of 15%
@augieray #bdi1

15. Build one-to-one relationships
Source: July 2012 “Collaborative Advice,” Forrester Research by Bill Doyle
@augieray #bdi1

16. “
Out of an abundance of
caution, many mutual funds and
other investment companies may file
materials on their social media
sites with FINRA unnecessarily.
”
“
Will not recommend enforcement
action to the U.S. Securities and
Exchange Commission under Section 15
(a)(l) of the Securities Exchange Act of
1934 (the "Exchange Act") against
FundersClub.
”
“
…use social media to engage in
lending, deposit services, or
payment activities… originate new
accounts… facilitate a consumer’s use of
payment systems… match products
and services to users’ needs
@augieray
”
#bdi1

17. Thank you!
Augie Ray
@augieray