Nine out of 10 advisers admit their marketing strategies need to change in the light of current economic conditions, according to research by Matrix-Data.
The research found that while nearly half of IFAs rely on traditional advertising, only 1 per cent of firms say they receive significant business from this source, with 91 per cent of new business coming from referrals.
FinQS sales director Sim Sangha says: “If your clients are using new media to interact and socialise, shouldn’t you be building your marketing strategy around these trends?
“Once you can identify who to approach, get them to Twitter or Facebook their experience or even post their positive comments yourself. Word will quickly spread.”
Paladin Financial Services managing director Tim Purdon considers that IFAs have to embrace all media in the current climate.
But he adds: “There are certain demographics that will use social networking sites to find IFAs but its effectiveness depends on what type of client the adviser is targeting.”