JHS Capital Embraces Social Media For Business Growth

Eliane Chavagnon

16 August 2012

At a time when social media is playing an increasingly large part of clients’ lives, JHS Capital Advisors has linked up with Socialware to boost client relationships and attract new business by embracing new technology and communication channels.

Following an enthusiastic response from advisors during a pilot program, JHS now offers Socialware to its advisors - enabling strategic and measurable social media campaigns via Facebook, Twitter and LinkedIn.

The move comes just after a poll by SEI revealing that an overwhelming 94 per cent of advisors plan to increase their use of social media in the coming year.

“Successful advisors recognize that the financial services business is heavily focused on interaction with individuals and firms rely on their advisors to cultivate and maintain those valuable relationships,” said Chad Bockius, chief executive of Socialware, the business technology firm.

JHS also explained how it is using social media to locate and recruit more advisors. “By harnessing social media, we have built additional lines of communication between ourselves and other professionals in the financial services sector,” said Amy Whittington, director of business development for the Midwest and western regions.

Advisors “tiptoeing” into social media

According to the SEI poll, advisors are already reaping business benefits from social media, even though many are “only beginning to understand” how to use it effectively.

While nearly 80 per cent of advisors surveyed said they have “some business presence” on social media, over half said they were only “tiptoeing into it.” However, almost one in five respondents said they have secured a new client as a result of their social media activity.

SEI said the survey shows that - although most advisors are using social media in some way - they recognize there is more to learn. For example, just under one quarter said they were “mildly active,” while 19 per cent admitted they have yet to establish a social media presence.

“Savvy advisors are beginning to realize social media is as much a business development tool as it is a communications vehicle,” said John Anderson, head of practice management at SEI. “What the survey shows is that advisors have the opportunity to see real business returns if they can begin to put social media plans, processes, and policies in place, rather than just using it sporadically.”

Reservations

The survey also brought to the surface some of the issues that might be holding advisors back from fully embracing social media.

The top concern cited by 37 per cent of respondents was “coming up with frequent and relevant content,” while nearly one-third referred to “broker-dealer” concerns and 15 per cent admitted to being anxious about the “future regulatory environment.”

Despite these findings, “most advisors have moved past their initial concerns about social media,” said Tim Shanahan, CEO of Compass Capital in Braintree, MA. “We, like many advisors, now realize that social media is a powerful tool that can help us target specific groups and individuals to uncover business opportunities - especially, younger clients.”

The survey involved 185 participants and was conducted as part of SEI’s monthly practice management webinar series for financial advisors.