Social media for financial companies is important, especially when it comes to communication with younger clients who are more likely to turn to social media channels for financial information. And when engaging in financial social media marketing, building relationships with consumers — and with Gen Z in particular — is key, as it enables you and your company to become a more trusted source of financial information.
As many young professionals begin saving for retirement, financial services companies can use the following six methods to leverage social media to build a rapport with them — and to build more trust with prospective clients of all ages, as well:
1. First, know the rules — and make sure to abide by them.
Because the financial services industry is among the most regulated in the marketplace, it’s critical that financial services companies know the local and federal compliance rules before creating a social media strategy, then find a way to ensure that all associates follow the rules when posting on social media on behalf of the company. This Hootsuite article does a good job of outlining these rules, plus includes links to more information on the compliance rules that financial institutions must follow. All that said, while the abundance of strict compliance rules may seem intimidating, financial services companies shouldn’t let these rules keep them from leveraging the many benefits that social media can deliver for them — they just must be especially careful to ensure that they stay compliant.
2. Build and strengthen existing relationships.
Building trust is critical when clients are counting on financial companies to help them with financial decisions. One way to boost that trust is to build personal relationships with those clients.
A Hootsuite article describes the practice as social selling, or using a brand’s social media channels to develop a connection with prospects. Another phrase the article uses to describe the concept is “modern relationship-building.” Sharing content that establishes your company as an industry thought leader is another aspect of social selling, and that could mean sharing industry news that could be of interest to the client. It shows clients that you want to give them something and not just sell them something.
Social selling can also involve direct messaging to both prospective and current clients, and one form of personalization would be to follow clients on social media and send them a congratulations message when they hit a milestone such as getting a new job or launching a new business. When implementing this tactic, focus on the client’s accomplishment and avoid the urge to try and sell them something.
Another tip to build relationships is to put a human touch on your brand by encouraging your company’s leaders to engage on social media. That includes TikTok and Instagram to appeal to younger clients, as well as Facebook to connect with the older, more established ones.
Still another method financial companies can use to humanize their brand is to show they care about the bigger picture and not just financial returns. To do this, many financial companies are responding to younger clients who are interested in “sustainable investing,” or investments based on environmental, social and governance factors.
3. Find new audiences.
Back to that younger crowd, members of Gen Z tend to be especially heavy users of TikTok, Instagram, YouTube and Snapchat. And according to research, over half of Gen Z’ers average at least four hours per day on social media, with nearly 40% of consumers in this age group exceeding even that figure. Considering this, social media represents a clear way for brands of all types to reach Gen Z consumers. But financial services companies should use social media to connect with new audiences of all ages, as statistics also show that over 70% of internet users in general perform brand research via social media.
4. Provide service where customers spend their time.
Clients want to communicate with financial services providers where they already spend their time: on social media. Social customer service tools are available to help financial services companies coordinate their customer service efforts across various channels. Hootsuite Inbox and Sprout Social are strong options that allow financial services companies to manage all of their social media messages in one place.
5. Seize the opportunity to educate.
For the typical consumer, topics related to financial services can often be challenging to understand, and sometimes even downright intimidating to take on. And for financial services companies, this presents an opportunity to educate consumers on a treasure trove of finance-related topics on social media — from how credit scores are calculated and how to apply for a home mortgage to how to lower the risk of credit card fraud, how to better manage their personal finances and much more. Further, for financial brands that take on this role, it can provide the opportunity to deliver an important service for their prospects and customers while, at the same time, building trust among these consumers and showcasing their expertise in the subject matter.
6. Share success stories.
People love to hear a good success story, especially one they can relate to. And financial services companies work with clients who have compelling first-person success stories to share every day, particularly in the area of home loans and small business loans. Be on the lookout for such stories worth telling and sharing with your brand’s followers on social media (with the subject’s express permission, of course) — and don’t hesitate to share the successes of your business (such as awards and honors) and your team members (such as promotions and life milestones) on your social media accounts, too.
Expert social media guidance for your financial services company
Brandon helps financial services companies gain new accounts, grow account balances, and cross-sell their products and services. The agency also helps those companies convert new customers and boost relationships with their existing customers. Contact Brandon today to see how our fully integrated approach uses modern digital marketing tools to help financial services companies like yours compete in a rapidly changing landscape.