New kasina study reveals variability in use of social media by asset managers, and presents best practices for developing strategies and tactics to maximize impact.
New York, (January 28, 2010) – While 84% of asset management firms believe social media is here to stay and will have a lasting impact on financial services, only 48% of firms engage in some form of social media today, according to a study released today by kasina, a leading strategy consulting firm. kasina surveyed sixty-four executives at forty-eight leading asset management firms and conducted extensive secondary research to produce The Asset Manager’s Guide to Social Media.
According to Julia Binder, primary author of the study, “As social networking has entered the mainstream, firm Web sites are becoming a less significant part of company marketing efforts. Why? Because people ‘customers’ want to talk. They want to know what other people think and what their experiences with a product, service, or company representative have been. They cannot do that on most corporate Web sites, but they do in social communities.” Firms not fully engaged with social media are missing important opportunities to:
- Connect with customers where they are,
- Research customer needs and preferences,
- Deliver improved customer service,
- Manage their brand, and
- Enhance their reputation of expertise.
Thirty-nine percent of firms are on LinkedIn, while between 20-25% are on Facebook, Twitter, or YouTube. Seventy-three percent of respondents feel that compliance concerns inhibit their ability to pursue social media, yet there are a few leading firms who have surmounted this barrier and are barreling full steam ahead.
While all firms recognize that social media is not going away, they differ widely in their approaches. Many firms are taking cautious and limited steps, while others are participating as fully as possible in social media sites. It’s not dissimilar from the early attempts of firms to use the Web as a marketing and sales tool. Some embraced it immediately. Others took a long time to understand the benefits and opportunities of supporting business online.
Lee Kowarski, kasina Principal, and sponsor of the study, says “In an industry like asset management, where trust is vital, customers are seeking sounding boards, forums, friends, and experts online to validate, challenge, or question. Asset managers who can progressively take advantage of this movement instead of fight it will have a competitive leg up when it comes to customer loyalty and, ultimately, cash flows.”
In this paper, kasina reviews:
- why asset management firms should participate in social media;
- developing a social media strategy;
- how firms are using social media and sites to consider;
- best practices for monitoring and compliance; and
- trends and implications for asset management firms.
kasina’s commitment to innovating distribution in the financial services and insurance industries has made it one of the most influential strategy consulting firms in its sector. kasina works with a wide variety of clients from five continents, including firms representing 90% of the U.S.’s total assets under management. An overview of services offered by kasina is available at www.kasina.com.