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One expert has issued a warning about shunning social media as new research confirmed it is generating increasing business for brokers.
The Adviser’s annual Software & Technology Report found that 65 per cent of the respondents used social media for business purposes compared to 54 per cent the year before.
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The share of respondents who said social media had directly improved their bottom line jumped 50 per cent – from a share of 18 per cent in 2013 to 27 per cent in 2014.
Of those respondents who did use social media, 32 per cent said they mostly interacted with clients, 28 per cent with prospects and 11 per cent with referral partners.
Facebook was the favourite channel of 55 per cent of the respondents who used social media, followed by LinkedIn on 41 per cent and Twitter on 2 per cent.
The survey also found that 73 per cent of those brokers used it for networking, 65 per cent as part of a marketing strategy, 53 per cent for attracting new clients and 49 per cent for news updates.
Sandra Pigram from Social Media Business Boosters said it was vital for brokers to have a social media presence because most prospective customers now conduct online background checks.
Ms Pigram, who was formerly chief executive of New Zealand firm Mike Pero Mortgages, said there is a three-step process for brokers on social media: “see me, then believe me, then pay me”.
She told The Adviser that there are no “quick wins” on social media because it takes time to establish an online presence.
She also warned that brokers who don’t have a social media presence would have to move fast to avoid losing business to their rivals.
“It’s not something you can sit back and check out for the next five years, otherwise you’ll be well behind,” she said.
Ms Pigram said LinkedIn is the best way to reach other professionals such as referral partners, while Facebook is the best way to connect with clients.
[Related: Aggregator reveals pros and cons of social media]
The findings of the Software & Technology Report are revealed in greater detail in this month’s issue of The Adviser magazine
