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A Top US Social Media App

Source: Facebook Revenue and Usage Statistics (2022), Business of Apps, 11/12/21

Hewlett-Packard (HP) could have produced what ultimately became the first Apple computer. In 1975, after attending his first computer club meeting, Steve Wozniak began creating the computer that would eventually make him famous: The Apple I. A loyal HP employee at the time, he felt it was important to offer the design to the company. HP declined. Wozniak tried again and again, but HP didn’t see why the average person would have any use for a computer. They turned down “Woz,” one of the pioneers of the personal-computer revolution, five times because they were hesitant.

Similarly, we can be hesitant to embrace new concepts, especially when we don’t see the possibilities. While Facebook has been around for 17 years, Facebook marketing is a new concept for many financial professionals. As a result, many are missing its potential to reach prospects in a way that would be nearly impossible using traditional methods.

 

First, Why Facebook?

Facebook has almost 3 billion users worldwide, with 190 million in the US.1 Oechsli found that 57% of affluent investors said it’s their favorite social media app, and 58% of them use it multiple times a day.2 Why’s it so popular? It’s an app that easily lets users share photos, videos, or text in their newsfeed so friends can see what they’ve been up to and vice versa. That’s the personal side of Facebook. It’s fun, and it’s free. 

But there’s another side of Facebook: the business side. It’s how Facebook makes money. And it has powerful, but often overlooked, prospecting potential because it can help you reach prospects you’d likely never reach through traditional prospecting methods (e.g., asking for referrals, seminars, email marketing, etc.).

 

Second, the Business Side of Facebook

Facebook advertising allows individuals and companies to post messages and content into people’s news feeds. Let’s explore how this works and why it could be important to your marketing efforts.

Prospective clients in your area have financial challenges that you could help them solve (e.g., concerns about taxes in retirement, market anxiety, Social Security decision-making, etc.). If you had the opportunity to connect with them, you could turn these strangers into friends, and, ultimately, clients.

For example, imagine you have an informative article, video, or educational seminar on Social Security that’s helped many of your clients. And suppose you’d like to share those resources with a broader audience. How would you do it? You probably don’t have email addresses for all of them. Door-knocking won’t work. You don’t have their phone numbers, and they’d probably block your call anyway.

 

You Could Reach Them With Facebook.

Facebook can increase prospecting efficiency by helping you target a specific group. For example, let’s say you’d like to find prospective clients by sharing a Social Security article. Using Facebook advertising, you could create a post that offers your article, which could include a free consultation offer, in the newsfeeds of people who are within 25 miles of your location; between the ages of 60-75; and who’ve shown interest online about Social Security. Some of those people may download the article. If they like it, they might see the free consultation offer in the article and give you a call. Even if they don’t contact you, you’ve provided something valuable. They’re likely to remember this if they see another post from your practice.

 

Facebook offers choices to target your audience. In this example, we chose location, age, and interest.

Third, Don’t Just Dabble

According to Oechsli, many financial professionals who try Facebook marketing end up frustrated by lackluster results. Their approach goes something like this: They create a Facebook business page, occasionally post content, and wait for quick, dramatic results. And they keep waiting.

Why don’t they get better results? Facebook marketing success takes a well-orchestrated, long-term strategy to achieve success. In our Facebook workbook, we share best practices for posting content, generating engagement, and, ultimately, turning prospects into clients. By learning these essentials, you’ll have a much better chance of success.

 

“Can’t I Just Do Facebook Marketing by Posting Valuable Content? After All, That’s Free.”

If you’ve created a Facebook business page, posting valuable content is a good idea. However, because of the way the Facebook algorithm works, not many people will see your posts. For example, if you were to do a post about a Social Security article, you might think that all your Facebook followers would see it. But on average, only 5.2%3 of them will. That statistic is called your “organic reach,” and it’s quite low because Facebook doesn’t make any money on free, non-advertised posts.

To increase your reach and get your posts to show up in your audience’s news feeds, you need to pay to promote your posts. This is how Facebook makes money—by companies paying to promote posts.

 

Remember Three Things About Facebook Marketing

First, Facebook is used by 190 million people in the US and is a favorite social media app of affluent investors. Second, many financial professionals are missing out on using the business side of Facebook to build awareness, engage prospects, and convert them into clients. Third, stellar returns aren’t achieved just by dabbling and posting occasionally.

 

Your Competition Is Already Marketing to Your Clients

As more people use Facebook, more of your competitors will try to target them. As a result, for you, Facebook advertising may become less an issue of “if” but “when” for your practice. Don’t be like HP. Embrace the power of Facebook marketing and use it to enhance your prospecting efforts.

 

1 Facebook Revenue and Usage Statistics (2022), Business of Apps, 11/12/21

2 Oechsli, 2021

3 Organic Reach is in Decline—Here’s What You Can Do About It, Hootsuite, 8/4/20.

Oechsli is not an affiliate or subsidiary of Hartford Funds.

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.

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