High Net Worth Investors Pt. 1 - Social Media’s Influence Among Affluent Investors This deck takes a closer look at new research from LinkedIn and Cogent Research about how affluent investors use social media to inform their finance decisions. By Marie Rice and Chris Savio from Cogent Research and Jake Raroque from LinkedIn.

1. Financial Services Webinar Series
High Net Worth Investors Pt. 1
Social Media’s Influence Among Affluent Investors
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2. Today’s speakers
Jake Raroque
Research Consultant
LinkedIn
Marie Rice
Practice Director
Custom Research
Cogent Research
Chris Savio
Project Director
Cogent Research
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3. Agenda – High Net Worth Investors, Part 1
§ The Research Approach
§ Today’s High Net Worth Investors
§ Social Media and the High Net Worth Investor
§ Social Media and the Financial Services Industry
§ Recap
§ Q & A
§ Next event – June 19
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4. Methodology
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5. Methodology
Partnered
with
Cogent
Research
Strategic
consultancy
specializing
in
the
investor
popula4on
Online
survey
among
608
respondents
in
the
U.S.
and
Canada
At
least
$100K
investable
assets*
*
Excludes
primary
residence
and
vaca4on
property
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6. Today’s High Net Worth Investors
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7. High Net Worth Investor profiles
Mass Affluent Affluent Ultra Affluent
($100k < $1M) ($1M < $5M) ($5M+)
0
Gen Y/X
(<47 yrs) 5% 2%
24% 16%
Boomers 42% 39%
(47 – 64 yrs)
52% 59%
Retirees 59%
(65 yrs+)
0
Male 23%
36%
52% 48%
Female 64%
77%
0
18% 28%
Advised
46%
54%
Unadvised 72%
82%
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8. Ultra Affluent are more likely to research their
investments...
Investing Style
Does not rely 23% 28%
on Advisor 34%
Use Advisor & 46%
do own 35% 51%
research
Completely 31% 31%
rely on Advisor 21%
Mass Affluent Affluent Ultra Affluent
($100k < $1M) ($1M < $5M) ($5M+)
Base: HNW Investors
Which of the following statements best describes you when it comes to your investing style?
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9. ... and Ultra Affluent are considerably more likely to be
active in their investing
Investing Philosophy
4% 6%
8%
23%
Heavy Active traders 22%
(10+ trades/month)
19%
Light Active traders
(3-9 trades/month) 89%
72%
58%
Non-Active traders
(<3 trades/month)
Mass Affluent Affluent Ultra Affluent
($100k < $1M) ($1M < $5M) ($5M+)
Base: HNW Investors
In a typical month, how many times do you buy or sell stocks, mutual funds, bonds, ETFs or
options using a self-service online trading system ?
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10. With increased affluence comes greater investment
product diversity
Product Ownership
Mass Affluent Affluent Ultra Affluent
Average Investment Products Owned: 5.2 8.0 9.1
Investment Accounts:
401(k), 403(b), 457, or other defined 71% 52% 41%
contribution accounts
IRA 60% 72% 80%
Brokerage account 55% 95% 95%
Investment Products:
Corporate stock 47% 80% 93%
Mutual funds 74% 83% 76%
ETFs 7% 31% 46%
Base: HNW Investors
▲/▼ = Significant difference
Which of the following investment accounts do you currently have?
Which of the following investment products do you currently own?
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11. Social Media and the
High Net Worth Investor
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12. Who uses social media?
Social Media Non-Social Media
Users Users
0
Gen Y/X (<47 yrs) 7%
22% 16%
Boomers (47 – 64 yrs) 28%
65%
Retirees (65 yrs+) 62%
0 2%
Mass Affluent ($100k < $1M) 1%
8% 8%
Affluent ($1M < $5M)
Ultra Affluent ($5M+) 91% 90%
0
Soloists
17%
28% 35%
Validators
52%
32%
Delegators
37%
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13. Social media users are engaged with their finances
% OF ASSETS MANAGED WITHOUT AN ADVISOR
+120% 57%
26%
82% are 54% are
advised advised
Non-Social Social Media User
Media User
Base: Advised HNW Investors
What percent of your total investable assets are managed in each of the following ways?
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14. Investors are on different platforms... but for different
reasons
% of High Net Worth Investors using...
75%
71%
24%
Base: HNW Investors
How long ago did you start using each of the following social media sites/services?
For what purposes do you use the following social media sites/services?
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15. Social Media and the Financial
Services Industry
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16. Social networks, and LinkedIn specifically, are
invaluable finance resources
5 Million Investors with $100K+ assets who use social
media to research and make financial decisions
73%
53%
29%
Topic-specific discussion boards Other social platforms combined
SOCIAL PLATFORMS USED FOR RESEARCHING AND MAKING FINANCIAL DECISIONS
Base: HNW Investors using Social Platforms for Financial Research
What
external
resources
do
you
use
when
researching
and
making
financial
decisions?
Which
of
the
following
social
media
pla@orms
do
you
use
for
researching
and
making
financial
decisions?
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17. Social platforms are used to both research and review
investments
Seek advice or information to help me make
43%
an investment decision
Pre- Gather preliminary information about
39%
investing, products, or companies
Purchase
“Double-check” something my advisor
26%
suggested
Evaluate or re-think an investment decision
44%
I have already made
Post
Share a negative experience 17%
Purchase
Share a positive experience 14%
Base: HNW Investors using Social Platforms for Financial Research
At which of the following points do you turn to social media?
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18. Social media adoption can have a favorable impact on
brand perception
% that would perceive a financial company as “innovative,”
“a leader,” or “cutting edge” if they offered social media tools
44%
31%
24%
Overall Among those who use Among those who DO
social media for NOT use social media
financial reasons for financial reasons
Base: HNW Investors
To what extent do you agree or disagree with each of the following statements?
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19. With a social media presence comes increased
expectations for information and connection
Because of social media, I expect more:
Relevant and timely
52%
content and updates
Greater transparency of
46%
information
Real-time interaction/
45%
conversation
Improved customer
38%
service
Base: HNW Social Media Users
Because of social media, I expect from financial services companies:
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20. Investors want both market and company information
via social media
Information Expected on Social Media
Market and economic trends and 73%
commentary
New product information 62%
Company background 59%
Product performance updates 54%
Best practices, Case Studies / 38%
Thought leadership pieces
Moderating a group discussion 21%
Base: HNW Social Media Users
If a financial services company were to use social media, what types of
information would you expect to receive from it?
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21. Investors aren’t interacting with their advisors via
social media, but a majority would value it
Disconnect in Advisor Social Media
Interaction
87%
Of advised use
social media
4%
Currently interact
with their advisor via
social media
52%
Would find value in
doing so
Base: Advised HNW Investors
Do you currently interact with your financial advisor via social media?
In which of the following would you find value in interacting with your financial advisor via social media?
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22. Investors would most value news and market updates
from their advisors
Types of Desired Interaction
Staying informed about timely
69%
news updates and market trends
Receiving more frequent
44%
communication
Participating or listening to
discussions regarding financial 40%
topics
Engaging in interactive
conversation via screen sharing/ 19%
webex session
Base: HNW Investors Who Want Advisors to Use Social Media
In which of the following would you find value in interacting with your financial advisor via social media?
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23. Recap
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24. Today’s High Net Worth Investors …
– In distinct segments, yet similarities
– Engaged in finances
– Are on a financial continuum
– Use social media as a financial resource
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25. Financial Services Industry …
– Vary strategies by social media platform
– Establish a presence and actively engage
– Educate, not sell, to build relationships
– Build your brand for the next generation
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26. Next event:
High Net Worth Investors Pt. 2
June 19
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27. Thank you for attending part one of our
Financial Services Webinar Series
Learn how marketers have successfully met their objectives:
http://marketing.linkedin.com/success-stories
Learn how you can reach this audience:
MktgSolutions@linkedin.com
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