Can Social Media help IFAs battle new competitors and the effects of the upcoming Retail Distribution Review?
The new rules will bring about a radical change in the financial services industry. For the first time, IFAs will need to collect fees directly from their clients.
It is likely that IFA’s will prefer to deal with wealthier clients to achieve higher consultancy fees, leaving the general public with and increasing knowledge gap and no obvious place to turn for independent financial advice.
So what can financial services companies do to engage directly with their customers? Social Media can help, and here’s how.
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IFAs are not only vying with one another but with the burgeoning field of innovative financial services companies such as short-term loan site Wonga and price comparison aggregators that are already engaging consumers in new and rewarding ways. Moreover, with less than 15 percent of consumers seeking out professional financial advice, charging for what was once considered “free” services won’t help.
IFAs can take control of their conversations with customers through social media—the intersection of PR, marketing and product and customer service done in full view of the public. Done poorly, it can damage the brand, done properly it is a direct conversation with the consumer that can help solve issues, identify areas for product improvement and development and create loyalty. And, with 43 percent of consumers buying financial products based on recommendations from friends and family, satisfied customers can help bring in more clients.
With the social consumer maturing, the appetite exists for financial services companies to reclaim and extend their market.
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