Do the Affluent Respond to LinkedIn Messaging?
The pandemic has given an explosion to digital marketing. Younger investors are more enthusiastic about it than older ones. Digital marketing has bombarded financial advisors over the past few months. We have seen firsthand demand at Oechsli. Social ads, premium content, and video marketing are the latest domain of advisors.
The feature which gets the most attention is LinkedIn messaging. You can directly message your clients. It is so fascinating. The idea is direct, traceable, and similar to the cold calling of the recent past. It is one thing that provides instant pleasure when there is a right time.
Here, firstly we will try to figure out whether the affluent are open to this approach or not and we will also talk about some common messaging techniques which are frequently used by financial advisors.
Are the Affluent Receptive to LinkedIn Messaging?
A question was asked to 403 investors who had a minimum of $500,000 if they would reply to a LinkedIn message from a financial advisor or not. The investors were categorized according to their age.
<45 45-60 >65
Very Likely 39% 11% 4%
Likely 36% 28% 18%
Unlikely 16% 33% 28%
Not Likely 8% 28% 51%
Looking at the overall picture, the affluent are inclined in the favor of responding to a LinkedIn message. The numbers shown in the above chart are contradictory if we compare them to real-life experiences. This is so because, in reality, the response rate is very low than what is shown above, specifically when there is a low level of personalization or it is altogether absent. Whatever it is, it can be very well observed that the affluent especially the younger ones are ready to respond to this approach.
What should be your focus, Volume, or Personalization?
Only two variables are there excluding messages The first one is volume. Do you plan to send a few messages or hundreds of messages in a month? The second one is personalization. How much personalization will you do to the message which you will send to your client?
It is explained in a pictorial form below:
HIGH VOL LOW PERS
HIGH VOL HIGH PERS
LOW VOL LOW PERS
LOW VOL HIGH PERS
1. High Volume, High Personalization
This idea would have definitely worked if we lived in a perfect world. You are sure of finding an opportunity when you send out remarkable and targeted messages to thousands of clients using LinkedIn. Some advisors can make this a reality, most of them don’t have time.
2. High Volume, Low Personalization
High volume increases your chances of success, even without personalization, but there are risks involved in this approach. The most noteworthy risk associated with this approach is the risk of losing reputation. You can be regarded as a spammer in your networking circle. You can be flagged by your message receivers as someone they don’t know. You can be banned by LinkedIn if this occurs frequently. It has become very common these days as LinkedIn has tightened its restrictions around mass messaging.
3. Low Volume, Low Personalization
Save your time and energy if you are planning to send occasional cold messages. What you sow so shall you reap. This is what will exactly happen to you. You sow nonseriousness, you reap non-serious results.
4. Low Volume, High Personalization
This strategy is very useful and manageable. This strategy aims to establish strong relationships with future clients through a sequence of personalized messages. It is all about engaging them in a conversation that is beneficial for both of you and later on you can transform this social connection into the business. The secret here is finding a common ground; it can be anything like shared contacts, same university, or anything of that sort. This makes your approach more successful and real.
Select the Method that Best suits You
For most advisors, method no.4 (low volume, high personalization) is the best way to take off. You have to learn what works for you and what doesn’t. You will probably select method no.2 if you plan to approach masses. You can select a bot to reach out to the masses.
Here is some useful information for you
It is a LinkedIn automation tool. Users who have experience of using it claim it to be very easy and friendly. It runs in the background of your computer and you don’t have to do anything. This saves you a lot of your time.
If you are serious about getting results, step up to LinkedIn Message Ads. You choose your target audience through their ad platform and pay LinkedIn so that it delivers your message. It is proven to be a white hat solution that delivers volume, targeting, and reporting- without risks. The result is the same (LinkedIn messaging your future clients) but in a manner approved by LinkedIn.