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Asset Managers Must Ramp Up Social Media Initiatives to Reach Key Relationships

By Julia Binder

Recent announcements regarding use of social media by advisors at key distributors should spur asset managers still dragging their feet on social media initiatives. Morgan Stanley Smith Barney (MSSB), the largest U.S. wirehouse brokerage, revealed that its 17,600 advisors soon will be able to use LinkedIn and Twitter to communicate with each other and clients. Now LPL Financial, the largest independent broker-dealer in the U.S., has decided to enable its 12,000 to use LinkedIn, Facebook and Twitter to connect with customers. Commonwealth Financial made a similar decision this spring. Other distributors will surely follow suit in short order.

Asset managers without robust social media initiatives will be at a competitive disadvantage. MSSB, LPL and Commonwealth are key relationships for asset managers that have assigned national account managers and wholesalers to support them. Without branded, interactive presences on Twitter, LinkedIn and Facebook, firms constrain their sales teams in their ability to communicate with the advisors of these key relationships. kasina's FA Vision research shows that a majority of advisors prefer to communicate with asset managers by phone and online, rather than schedule in-person visits from wholesalers.

Without interactive access to major social media networks, the relationship management and networking skills critical to success for both advisors and wholesalers are impaired. Asset managers need to leverage recent announcements from key distributors to ramp up commitment and support for robust social media engagement.