Purely Entertainment
Social media now dominates our lives, but how credible is it perceived to be and can it be used as a tool for attracting new advice customers?
NAB’s bold use of social media to engage existing customers and attract new customers shone a light on the tools being employed by financial services companies to reach out to their target markets.
Interim findings from CoreData’s latest Investor Sentiment Index reveal that usage doesn’t necessarily translate to credibility, and that companies attempting to use social media to drive referrals may be wasting their time.
While there are an estimated 750 million Facebook members and 200 million twitter users worldwide, very few trust the sites as credible information sources.
CoreData’s Investor Sentiment Index for Q3 included a new section on the credibility of social media sites, to complement the existing sentiment data. The interim findings were based on a sample of 488 people.
The below word cloud shows the social media sites that are considered to have the most credibility in terms of being able to trust the opinions that are expressed. The bigger the word, the more respondents voted for that site or medium.
Which social media sites do you think have the most credibility in terms of being able to trust the opinions that are expressed?
The number of those who would consider choosing a financial adviser or recommending a financial adviser based on comments or recommendations on social media sites was very low.
Approximately three quarters have not considered choosing a financial adviser based on comments in social media in the past, and would not consider doing so in the future. A further three quarters said they wouldn’t consider recommending an adviser this way either.
Less than 2% have or would consider choosing a financial adviser based on comments or recommendations on social media sites, suggesting very few people view social media sites as a credible source for choosing a financial adviser.
Have you ever, or would you consider, choosing a financial adviser based on comments or recommendations on social media sites? Have you ever, or would you consider, recommending a financial adviser through social media sites?
Reaching customers through social media sites may be the way of the future but careful consideration must be paid to the type of social media platform used as not all social media sites are created equal when it comes to perceived credibility.
*For more information about the Investor Sentiment Index Report contact CoreData on 02 9376 9600.
4 Comments on “Purely Entertainment”
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burningpants says:
OK, you win! We are on Twitter and Facebook – check us out here:
CoreDataAust (Twitter)
CoreData (Facebook)
Not Convinced says:
Again I have to disagree (and sorry to keep beating you up about this!).
You have assumed (like most) that social media is a Gen Y & Z phenomenon. It is not. Would it surprise you to know that the fastest growing demographic on Facebook is the 50+ age group? Facebook advertising works exceptionally well for my business.
I operate a business in the financial services space aimed at the 65+ market demographic (check out http://www.findmyretirementhome.com.au) and I actively use social media to connect with my market – blogging, Twitter, YouTube, Facebook, etc. Using these channels to provide quality information to prospective clients is what it is all about. The Web 2.0 space is not about having a website that sits there like a brochure on a rack. Forget “brand awareness” – it is about building trust and credibility, no different to financial media commentators. The financial services industry is way behind the ball on this one…
One guy in the sector who does it well is the Barefoot Investor. Good active social media presence.
BTW, I couldn’t find you guys on Twitter or Facebook…?
burningpants says:
Perhaps we should clarify – yes, social media is an important tool for getting in front of prospects. This research was looking at it from the perspective of consumer-to-consumer referrals ie do they view the forums and chats that ensue as credible? Would they read a positive comment from a fellow Facebooker about a financial adviser and act on it?
From a company perspective, the brand awareness is no doubt valuable (here at BP we actively pursue a social media strategy), and to reach Gen Y and Z customers it will be absolutely critical. But at the moment, consumers are more content talking about what they ate for breakfast than having meaningful conversations about financial services consumption.
Not convinced says:
You have completely missed the point on social media! It is not about recommendations, it is about having conversations with potential clients and building trust through offering quality information.
Instead of looking at research you should speak with companies in the sector who are using social media properly and effectively.