The Affluent Digital Code - Oechsli · 2019-11-06 · Engagement matters. Our studies showed that 82% of the affluent notice when someone likes or comments on their posts. Below are

1 FOR FINANCIAL ADVISOR OR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH THE PUBLIC.

The Affluent Digital CodeOnline Strategies to Acquire High Net Worth Clients

FOR FINANCIAL ADVISOR OR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH THE PUBLIC.Built in collaboration with The Oechsli Institute


Hartford Funds has collaborated with The Oechsli Institute to bring you The Affluent Digital Code. The Oechsli Institute, founded in 1978, is the leading provider of social media outsourcing for financial advisors. The foundation of this report is the Oechsli Institute’s 2019 research on 403 investors with $500,000 or more in investable assets.

Prior to implementing any of the strategies referenced in this presentation, please consult with your firm’s legal and compliance teams about social media policies and required participation in social media programs.

FOR FINANCIAL ADVISOR OR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH THE PUBLIC. 3

Love It or Hate It, Technology Is Changing Advisor/Client Relationships at an Accelerating PaceSocial media and online search now impacts everything from first impression to first interactions and from advisor selection to deepening relationships.

The Oechsli Institute conducts ongoing research to determine how investors with $500,000 or more in investable assets use emerging technologies in their interactions with financial advisors. The findings are insightful in general, but even more so when viewed through a generational lens. In this study, we split participants into three age groups (Under 45, 45-65, and Over 65).

What You Do With These Findings Will Mostly Likely Depend on Your Growth StrategyYou may choose to focus on the over 65 group (they typically have the most investable assets). Our research indicates that while the over 65 group may not spend the same time and resources on technology as the younger groups, they are still quite different than they were 10 years ago, and these trends are worth watching.

Many advisors need to balance building a practice that’s well aligned to their current clientele, while embracing

an approach that’s attractive to the next generation of clientele as well. In particular, the preferences of the under 45 group foreshadow a big change in how advisors use technology to engage and build relationships with clients and prospects.

Regardless, it’s important to recognize the digital preferences of each age group and build your digital presence accordingly.

What We’ll Cover:

1. How Affluent Consumers Use Social Media

2. How Affluent Consumers Search for an Advisor Online

3. How Advisors Can Build Awareness Online

Many Financial Advisors Haven’t Taken the Time to Learn and Build Their Digital PresenceHowever, they’d be well-served to not only be mindful of the actions needed to keep up with these emerging technologies, also to become a frontrunner in their usage. There is a significant first-movers advantage in digital marketing.

39% 43%Ask friends and family for recommendations

Search online

People 45 and Younger Now Start Their Advisor Search Online1

Method people 45 and under surveyed used for starting a search for a financial advisor


Let’s start by taking a look at how the affluent use social media in general. Saying the affluent are well-connected to their phones is a bit of an understatement. 43% of those younger than 45 report being on social media for more than an hour a day. Significantly, 74% of the over 65 group log into social media at least once per day.2 This showcases how today’s target market for financial advisors is online and active.

Time Spent per Day on Social1

<45 45-65 >65

None 5% 12% 27%

Less than 15 minutes 15% 26% 30%

15-60 minutes 38% 35% 26%

1-2 hours 12% 17% 9%

More than 2 hours 31% 10% 8%

How Affluent Consumers Use Social Media

Take Action:Engagement matters. Our studies showed that 82% of the affluent notice when someone likes or comments on their posts.

Below are ways to engage clients or prospects on Facebook.

• Make a list of your top 25 relationships on Facebook. Block off time each week to purposely engage with them in the app.

• Ideas for your Facebook business page posts: interesting articles, suggestions for podcasts you like, or original content you’ve created (think white papers, blog posts, or tips for your clients)

• On your facebook personal page, keep it personal, e.g., kids pictures and vacation photos. Comment on clients’ posts and send personalized messages.


Favorite Social NetworkNow let’s look at where the affluent are spending time online. Knowing their preferences can provides direction to your digital marketing plan.

Facebook is the clear favorite overall, with over half of respondents reporting it to be their network of choice. LinkedIn is the runner up, while Instagram takes second position in the under 45 group. Therefore, even if LinkedIn is a natural first step for many advisors using social media, Facebook deserves the bulk of their energies.

Interactions with Advertising (Sponsored Posts)So, we know where the affluent spend time on social media, now let’s analyze their behaviors. In particular, with more and more advisors getting into social media advertising, we wanted to know if the affluent are willing to engage with digital ads.

What’s Your Favorite Social Network?1

<45 45-65 >65

Facebook 48% 57% 55%

LinkedIn 10% 11% 8%

Instagram 23% 7% 5%

Pinterest 7% 7% 3%

Twitter 8% 7% 1%

Other 2% 1% 1%

None of the Above 3% 10% 28%

57%: Spend less than 1 hour12%: Spend 1-2 hours 31%: More than 2 hours

12% 31%

43%43% of those younger than

45 report being on social media for more than an hour a day

Those Under 45 Spend More Than an Hour a Day on Social Media1

Does anyone click on Sponsored Ads? More people do than you might think. 62% of those surveyed under 45 years old have clicked on a sponsored post.1

85% of advisors use social media for business3

85%


Interactions With Digital Ads Largely Depends on Age62% of those under 45 have engaged with an advertisement on Facebook, LinkedIn, or Instagram, compared to 18% of those over 65. Those numbers suggest that affluent investors are willing to engage with digital ads.

Consider that advertising on these networks is relatively inexpensive when compared to traditional advertising. Also note that we expect the effectiveness of these ads to rise as younger investors increasingly reach the level of assets needed for professional money management. Now is a great time to learn how they work.

Many social media advertising campaigns follow a similar formulaThe formula is: I’ll give you something of value if you give me your contact information. This often comes in the form of a white paper, webinar, ebook, video, or other “lead magnet.” A lead magnet is an incentive marketers offer prospects in exchange for their email address or other contact information. What percentage of investors have taken part in this?

Once again, age plays a factor; 61% of those under 45 have provided their email to get a white paper, versus 20% of those over 65. To make this a worthwhile investment, it makes sense for advisors to target younger investors.

Take Action:If you’re new to Facebook ads, start by completing Facebook’s course entitled Facebook Blueprint. This course is free and a great foundation if you’d like to learn how to build effective Facebook ads.

62%

Ad

of ages <45

42% of ages 45-65

18% of ages >65

Survey Question: Have you ever engaged with an advertisement

on social media?

Surprisingly, People Click on Sponsored Posts1

Have You Ever Engaged With an Advertisement on Social Media?1

<45 45-65 >65

Yes 62% 42% 18%

No 36% 53% 74%

Unsure 2% 5% 9%

<4562%

>6518%

45-6542%

Ad Ad

��

?

https://www.facebook.com/business/learn


Take Action:The following steps can help you develop a strategy for your lead-magnet (an incentive that you offer to potential buyers in exchange for their email address or other contact information) ad.

1. Do your prospecting efforts target:

� Under 45

� 45-65

� Over 65

2. What resources do you have available that would be appealing to your target market?

� White paper:

� Recorded Webinar:

� Articles:

� Book:

� Other:

3. What information will you ask for in exchange for your giveaway?

� Email

� Phone

4. What lead-magnet ads have you seen in the past that have caught your attention? Why? Use this information to help you design your own ad.

5. How do you plan to follow-up with prospects who download your white paper? (e.g., phone call, email, etc.)

Have Given an Email Address in Exchange for a White Paper1

<45 45-65 >65

Yes 61% 40% 20%

No 34% 55% 71%

Unsure 5% 5% 9%

<4562%

>6518%

45-6542%

Ad Ad

��

?

61% of those surveyed

under 45 would give an

email in exchange for a

white paper.1

� Address

� Assets


Sites Used in Advisor SearchWhen an affluent investor decides to search for an advisor online, they tend to start with a basic Google search. Younger investors tend to use a wider array of sites including Facebook, Yelp, Angie’s List, and so on. With the Over 65 group, it’s Google, LinkedIn, or virtually nothing.

Sites Used to Research Advisors1

<45 45-65 >65

Google 67% 67% 57%

LinkedIn 16% 12% 11%

Facebook 7% 1% 1%

Other 10% 9% 4%


Have Ever Engaged With an Advertisement on Social Media1

<45 45-65 >65

Ask friends and family for recommendations 39% 46% 45%

Ask another professional for recommendations 13% 21% 34%

Search online 43% 27% 10%

None of the above 5% 6% 11%

How Affluent Consumers Search for Advisors Online

Let’s explore the role that technology plays in the search for financial advisors. It’s easy to predict, based on what we’ve covered thus far, that younger investors are more likely to lean on technology in their search process. However, the speed at which this shift is taking place is remarkable.

Primary Method for Advisor SearchIn the under 45 category, more investors would start their search online than ask their friends and family for recommendations. Take that in for a moment. More of them, when faced with a need for financial advisor, simply pull out their phone and run a quick search.


Sponsored Listings

Local Listings

Organic Listings

3 Types of Google Search Results


Take Action:Run a Google search with “financial advisor” and your location. What are the results? It’s important to know where you stand in this ranking as more and more people use Google as a starting point for their advisor search.

Count the number of listings before your business appears. Where do you rank? ________

Sponsored Listings: Who are the top three sponsored listings at the top of the page? Look for the box labeled “Ad” to identify them.

1. _________________________________________________

2. _________________________________________________

3. _________________________________________________

Local Listings:Who are the top three listings in the map section?

1. _________________________________________________

2. _________________________________________________

3. _________________________________________________

Organic Listings:Under the local listings, you’ll see a list of organic search results, which means they didn’t pay for placement. They appear because Google’s algorithm deems them most relevant. Who are the first three?

1. _________________________________________________

2. _________________________________________________

3. _________________________________________________

Improve Sponsored Listings:To improve in the Sponsored section, the process is straightforward, but get ready to pay up. These listings come at a premium, and larger firms typically have an advantage here because they have larger budgets.

Improve Local or Organic Listings:If you want to improve in the local or organic sections, it’s important to have some help with search engine optimization. Experts in this field can help you optimize your website so that it’s Google friendly. That’s likely to elevate your rankings over time. Producing quality content helps. You may be able to leverage existing content from your firm or other though-leadership providers such as the MIT AgeLab.

It can also help to have a high density of the keywords you wish to target (e.g. financial advisor, city name) in the text of your site. Finally, make sure your Google My Business profile is complete so you can manage what Google users see when they search for your business, plus it can improve your local search rankings.

https://www.hartfordfunds.com/investor-insight/mit.html

https://www.google.com/business/


Take Action:Run a Google search including your name and the words “financial advisor.” This is basically Googling yourself. Why do this? So you can see what your prospects see if they Google your name.

Review the search results. Make notes below of the sites that populate, the quality of information presented, and any action steps necessary to improve them. Even if you get referred, prospects will likely research you online. So you need to ensure your personal online presence is stellar.

Name of Site Quality of Information Action Step Needed

If an Affluent Investor Gets Referred to You, Will They Still Look You Up Online?The answer is pretty much “yes” across the board. Why? It’s easy. They can run a quick search and gather valuable insights about your background, mutual connections, and viewpoints on important topics.

How To Connect with Clients and Prospects Using LinkedIn MessagesLinkedIn can be a great source for connecting the dots between existing connections and prospective clients. However, sometimes there’s no mutual connection who can provide an introduction. In these cases, we’re seeing advisors have success by sending a connection request to a prospect. If they accept your request, then you can send them a LinkedIn message directly.

LinkedIn Messaging—It’s More Enjoyable Than Cold CallingAs with any “cold” contact strategy, this method’s success is dependent on the numbers involved, the target audience, and the approach used. But it’s a much more enjoyable strategy than cold calling.

Why? Instead of tense phone conversations or meetings with gruff prospects, you send highly targeted and personalized LinkedIn messages to people who’ve responded to your connection request.

Overall, there is a solid percentage of the affluent who say they’re willing to respond to a LinkedIn message. In reality, we find the response rate to be a bit lower than the numbers shown in the chart, but they’re trending upward.

Would Respond to a LinkedIn Message From an Advisor1

<45 45-65 >65

Very Likely 39% 11% 4%

Likely 36% 28% 18%

Unlikely 16% 33% 28%

Not Likely at All 8% 28% 51%

Likely to Research a Referred Advisor Online1

<45 45-65 >65

94% 94% 83%


Would Respond to a Personalized Video Message from an Advisor1

<45 45-65 >65

Very Likely 36% 16% 11%

Likely 36% 43% 37%

Unlikely 18% 33% 34%

Not Likely at All 10% 8% 19%

Take Action:There are a number of services that specialize in personalized video messaging. Do some research on BombBomb or Soapbox. Also, think about the types of personalized videos you might shoot. Here’s some topic examples:

• Follow-up to a prospect through LinkedIn

• Follow-up to a prospect who reads your newsletter

• Follow-up to a prospect who downloads your lead-magnet

• Pre-meeting with a prospect

• Post-meeting with a prospect

• Following up with a prospect who is no longer responsive

Video MessagesOne strategy that’s becoming increasingly more popular is the personalized video message. This is essentially a quick video shot from the advisor’s desk and sent by email to prospective clients. The data suggests this is an approach that’s best focused on younger investors.

Because these videos are so personalized, they typically have a short shelf life. They are commonly 1-3 minutes in length and usually don’t require the help of a professional.

Take Action:LinkedIn Messaging can be very effective, but it must be targeted at the right audience, especially an audience with whom you have commonality. For example, if you went to a certain school or have specialized in working with a certain profession, start there with your messaging campaign.

1. Below, identify criteria you may have in common with prospects

University:

Occupation:

Mutual Connection:

Geography:

Company:

Company Size:

Hobbies:

Key Phrases:

Other:

2. Then do a LinkedIn search for prospects using two or three items from you list

3. Next, click “Connect” beside their names

4. For those who accept your connection request, send them a message

LinkedIn message example:

Thanks for connecting [name]. I hope I’m not interrupting your day, but here’s the reason for my contact.

We help senior management at [company] with their retirement options. I wanted to shoot you over a helpful guide we’ve created on the topic. Can I email it to you?

Also, great to connect with a fellow U of M grad. Go Blue!

https://bombbomb.com/

https://wistia.com/soapbox


With all the excitement around advertising, messaging sequences, and sales funnels, it’s easy for financial advisors to get into the “leads, leads, leads” tunnel vision. However, there are other strategies worth considering. Some might call them awareness strategies—those designed to gain impressions and reach, are even more powerful (and cheaper).

Why more powerful? Not everyone responds to lead-generation ads, but everyone is influenced by seeing an advisor repeatedly. Over time, awareness ads build thought leadership and help prospects understand your differentiators.

Why is it cheaper? Lead generation is the most expensive advertising strategy. You have to put your message in front of thousands of people to get a few that “take the bait.” What if there’s no bait to take? What if simply putting the message in front of prospective clients is the objective? That’s why awareness and brand-building strategies are less expensive.

Awareness of Advisor Facebook PostsMany financial advisors fear “over-posting” or inundating their clients’ news feeds. In light of the data below, this is highly unlikely to happen. There are a significant number of affluent investors (see table below) who don’t see financial advisor posts at all on Facebook.

From our vantage point, most advisors aren’t posting very often, and when they do post, they don’t put an advertising budget behind those posts. The organic reach within Facebook (the number of people who see your posts without any advertising push behind it) has gone down significantly over the years. As you develop a posting strategy, we suggest ramping up the frequency and the budget in order for the content to be seen.

How Advisors Can Build Awareness Online

See Posts From Financial Advisors on Facebook1

<45 45-65 >65

Yes 62% 42% 18%

No 36% 53% 74%

Unsure 2% 5% 9%

<4562%

>6518%

45-6542%

Ad Ad

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?


Awareness of Advisor LinkedIn PostsLinkedIn is a different animal than Facebook with regards to organic reach—it’s much better. So when a financial advisor posts on LinkedIn, more of their network sees it. 71% of those under 45 are sure they’ve seen financial advisors’ posts on LinkedIn, with another 13% saying they’re unsure if they have.

We’d surmise this means they’ve seen the posts, they just don’t remember them specifically. Fewer of those in the over 45 category have noticed advisor posts, which tells us advisors might want to skew their content toward a younger audience.

The fact that LinkedIn posts are more prevalent doesn’t mean advisors should limit their posts on LinkedIn for fear of saturating their audience. Why? Most affluent investors have hundreds of LinkedIn connections, and advisor posts are often just a blip in their news feed.

We suggest posting at least once a day on LinkedIn and, if possible, multiple times a day (using a scheduling service of course). Thought leadership takes time and consistency. Also, don’t forget that you can recycle content! Not every post you put out has to be brand new. When you notice a post getting good engagement, make a note to post it again in the weeks ahead.

3 Benefits of Awareness Strategies

Awareness happens when you regularly post helpful content through your website, social networks, and content networks (YouTube, podcasts, etc.). Why is this important? We see three reasons:

1. Providing Social Proof If you have a big following, you must be good, right? Social proof was popularized by Dr. Robert Cialdini in his book, The Psychology of Influence. Basically, it’s a good thing for a prospect to see that other people, who seem like them in some way, are using your services. Time to build up those page likes.

2. Building Trust The more people become exposed to your content, the more they build trust in your viewpoints. Over time, through articles, videos, or podcasts, people get to know you well in advance of coming into your office.

3. Being Top of Mind When people in your community think “advisor to the affluent,” who comes to mind? Probably those who they see most often. Put yourself in the news feed of the affluent with a robust content marketing and posting strategy.

See Posts from Financial Advisors on LinkedIn1

<45 45-65 >65

Yes 71% 32% 16%

No 16% 49% 64%

Unsure 13% 19% 20%

<4562%

>6518%

45-6542%

Ad Ad

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?

https://www.amazon.com/Influence-Psychology-Persuasion-Robert-Cialdini/dp/006124189X


Educational Content PreferencesEducation is something every advisor does, but with varying levels of depth and effectiveness. Think about this for a moment: How can an advisor educate to such an extent that it becomes a differentiator?

The way we educate matters. Some clients and prospects prefer to learn from articles, while others will want to receive information through audio or video.

As the data show, the over 45 group places a premium on articles, while the under 45 group prizes their video content. The dispersion of responses across these categories speaks to the need for a comprehensive approach to client education. It’s nice to have articles, videos, podcasts, and webinars available for those who want them.

Take Action:Now that you have a better understanding of how affluent consumers view advisor posts on social media, answer the following questions to help define your content strategy.

Step 1: Define Your Target Audience Who are you trying to reach? e.g., (business owners, pre-retirees, dentists, etc.)

Step 2: Set GoalsWhat are you trying to accomplish with your posts? e.g., (impressions, engagement, conversations, etc.)

Step 3: Define Content ThemesWhat types of content do you want to post? e.g., (personal posts, inspirational posts, financial education, business principles, etc.)

Step 4: Define Content TypesWhat types of posts will you use to deliver your content? e.g., (third-party articles, quote-cards, infographics, blogs, podcasts, webinars, videos, photos, etc.)

Step 5: Determine Your FrequencyHow often will you post on each platform? e.g., (daily for LinkedIn personal account, 3 times a week for Facebook business page).

Step 6: Determine the Times When will you schedule your posts? e.g., (8 a.m. and 12 p.m. for LinkedIn personal account, etc.)

Step 7: Allocate a Budget (if needed)Remember, organic reach on Facebook is at an all-time low. You’ll need to allocate a small monthly budget to your Facebook business page to boost posts that receive the best engagement.

Preferred Medium for Educational Content from Financial Advisors1

<45 45-65 >65

Article 26% 38% 39%

Video 44% 23% 13%

Seminar 3% 11% 12%

Live Webinar 10% 14% 4%

Podcast 12% 3% 1%

Other 2% 3% 12%


Sources:1The Oechsli Institute Consumer Digital Research, 20192 10 facts about Americans and Facebook, Pew Research Center, 5/16/193How to Use Social Media in Financial Planning, FT Advisor, 4/5/18

Hartford Funds Distributors, LLC, Member FINRA. The Oechsli Institute is not an affiliate or subsidiary of Hartford funds.

Links from this paper to a non-Hartford Funds site are provided for users’ convenience only. Hartford Funds does not control or review these sites nor does the provision of any link imply an endorsement or association of such non-Hartford Fund sites. Hartford Funds is not responsible for and makes no representation or warranty regarding the contents, completeness or accuracy or security of any materials on such sites. If you decide to access such non-Hartford Funds sites, you do so at your own risk.

The information in this presentation is provided for informational purposes only. Hartford Mutual Funds may or may not be invested in the companies referenced herein; however, no endorsement of any product or service is being made. Hartford Funds is not associated with the entities referenced in this presentation.MAI200 1019 214186

hartfordfunds.com 800-456-7526

To Capitalize on Today’s Digital Affluent Opportunity, Time Is of the EssenceMarketers tend to exploit opportunities until they are no longer opportunities. At some point, messaging campaigns on LinkedIn will be obsolete, advertising on Facebook will be cost prohibitive, and we’ll yearn for the days when things were much simpler.

Now’s the Time for You to Build the Digital Foundation to Connect With the Next Generation of InvestorsThis next wave of younger investors are deeply wired to social media. Moreover, look back at the data presented for the 65 and older crowd—they’re engaging with social media at a healthy clip as well.

Most advisors would benefit from playing the long game with social media. In almost every case, it takes a number of interactions before someone decides to select a financial advisor.

How much time? It depends upon the urgency of your prospect and the quality of the outreach. From a digital marketing standpoint, the goal is to stay in the palm of a prospective client’s hand until the timing is right for a meeting.

Next StepComplete the action step on page 7 to begin building your online presence while attracting new affluent prospects.

Optimal Times to Schedule Your Posts If you’re going to take the time to curate and create content to post on social media, make sure it gets the most mileage (aka eyeballs). The algorithms used by the social networks play an essential role in your ability to get your content distributed, so it’s important to get engagement within the first few hours of a post. Simply put, if you get engagement, the algorithms will distribute your post to more of your audience. Posting at the right times will help you accomplish this.

Sprout Social’s study on this topic is fascinating. Their data science team crunched the numbers based on their huge array of clients to determine how to “fish where the fish are biting.” They found that most social networks have a reported best time to post, and they vary greatly. Here are the most optimal times to post on each network.

Facebook: Wednesday at noon and 2 p.m. and Thursday at 1 p.m.

Instagram: Wednesday at 3 p.m., Thursday at 5 a.m., 11 a.m., 3 p.m., and Friday at 5 a.m.

LinkedIn: Wednesday from 3 p.m. to 5 p.m.

Twitter: Friday from 9 a.m. to 10 a.m.

These times aren’t iron-clad since everyone’s network is a little different, but it does help you test intelligently and avoid the “spray and pray” method.

FOR FINANCIAL ADVISOR OR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH THE PUBLIC.

Documents

The Affluent Digital Code - Oechsli · 2019-11-06 · Engagement matters. Our studies showed that 82% of the affluent notice when someone likes or comments on their posts. Below are