5 (new) tips for using social media

Using social media is easier than you think, says Ted Wernham, owner of Wernham Wealth Management in London, Ont.

“I’ve always followed the highest-tech method of involving my clients and being in touch with them frequently,” says Wernham, who owned a car phone in the early 1980s and adopted a computerized data system before it was fashionable. “With social media, I’m able to be present in my client’s lives in a practical and non-intrusive way.”

Wernham first started using social media five years ago when he launched his blog. He uses the platform to present real case studies about clients (names and identifying details are changed) and to discuss new financial policies. Wernham also has LinkedIn, Facebook and Twitter accounts.

“With social media, you have be careful [that] it’s not an invasion,” says Wernham. “The message must be presented as an invitation, rather than a pursuit, which people have a tendency to reject.”

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While he monitors his accounts daily to keep on top of clients’ personal lives, Wernham is careful not to post messages too often. And he never sells services. Rather, he tries to weave himself into ongoing conversations.

With Facebook, he can send a timely birthday message or a friendly reminder about RRSP deadlines. With Twitter, Wernham looks for interesting conversations with potential new clients—and they often have nothing to do with finance.

“I’m not going to announce to the world what I had for breakfast. But I am going to respond and re-Tweet others’ posts as a first step to building a relationship.”

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One of the mistakes people make with social media is treating it like a top-down marketing tool, rather than a forum for conversation, says business consultant Kneale Mann. He recommends networking in the virtual world the same way as you would in the physical world.

“If you walk into a business event with 100 people and [give away] 100 business cards, how many of those people are actually going to call you after the event?” says Mann. “But if, instead, you take the time to have a conversation with five or six of them at the event, follow up with maybe three of them on the phone, you’re likely to see a much better result. It’s the same thing with Twitter.”

Compliance has been a big question mark for advisors. But social media can be used as effectively and legally as any traditional advertising media.

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“Social media offers another tool in the overall marketing and sales strategy, but it shouldn’t be viewed as a replacement for the traditional sales practices of getting to know your client and sitting across the table,” says Susan Allemang, manager of regulatory affairs at the Independent Financial Brokers of Canada (IFBC).

Last December, the Investment Industry Regulatory Organization of Canada (IIROC) issued guidelines to help dealers understand compliance and monitoring aspects of sites like Twitter and Facebook.

“The bottom line is that advisors should not be making any investment recommendations online,” says Allemang.

Top five tips for using social media

• Treat Twitter and Facebook like virtual networking events. Monitor ongoing conversations respond with relevance. Twitter can be a great way to meet new people, while Facebook is a good platform for maintaining contact with current clients.
• Don’t overdo it. Although he monitors his Twitter account daily, Wernham only posts items once or twice a week. “I don’t want to cross the threshold of the automatic delete,” says Wernham.
• Budget time spent on social media and be consistent. “There are no rules to how often you need to go online to make an impact,” says Mann. “It’s really about managing your own objectives and expectations.” If you are using multiple platforms, find ways to integrate them.
• Be compliant. “It’s a great way to reach out and introduce yourself to a wider range of clients,” says Allemang, “but this should only be a first step to setting up a face-to-face introductory meeting.”
• Choose which sites you use. You don’t have to use every platform to be effective.