The Value of Social Media – And How to Measure it

The potential benefit of using social media is broad: Asset and wealth managers can enhance their reputation, building client relationships, boost retention and support interaction. Different KPIs help to measure Social Media campaigns during the client life cycle.

The Value of Social Media for Investment Managers

Investment Managers can use Social Media to promote their business activities on a large scale, interact with potential customers, convert these to actual clients, keep them from leaving and upsell into additional products and services - a set of activities that Ernst & Young refers to as the “Client Life-Cycle”:

Source: Ernst & Young (2017)

Promote: Wealth managers can build brand awareness and perception by publishing content on Social Media. The goal is to get the world about the brand to the target audience. More about the advantages of using Social Media to reach audiences can be found in one of my older posts.
Engage: Social Media can be used to listen for activities and trends, monitor brand mentions and respond to content – all with the goal to inform customer relationship management and create new leads. Please find more about engaging users and leveraging word of mouth on Social Media in Seval Dogan's blog.
Acquire: Converting new leads to clients, Social Media can support existing sales and marketing channels.
Retain: Social Media can be used to inform and engage existing clients to keep them from leaving. Product and market updates as well as responding to queries on them can, for example, be leveraged to form stronger relationships and trust.
Grow: Finally, Social Media can be used to acquire insights in additional client interest and cross-sell adjacent products and services.

Measuring Success – KPIs for Each Life-Cycle Stage

However, an essential component of all Social Media campaigns is continuous improvement. Investment managers need to spend their given Social Media budget most efficiently. Companies should try different strategies and measure the impact tactical changes had on achieving the stage’s goal. A diverse range of key performance indicators can be helpful depending on the client life-cycle stage:

Client Life-Cycle Stage


Promote – Maximise amount of buzz associated with the brand

  • Brand Awareness
  • Impressions
  • Website Traffic, Clicks
  • Fans, Followers, Friends
  • (Changes in) Search Engine Ranging
  • Share of Voice, Net Promoter

Engage – Generate new leads and prospects

  • User-Initiated Views, Comments
  • Likes and Favourites, Shares
  • Demographics/Geography of Audience Engaged
  • Interaction Rate, Engagement Rate
  • New Leads Generated

Acquire – Convert prospects to clients

  • Conversion Rate
  • Impact on Online Sales
  • Impact on Offline Sales

Retain – Keep clients from leaving

  • Clients Assisted, Issues Resolved
  • Queries on Published Content, Comments
  • Client Retention Rate
  • Client Satisfaction Index
  • Support Costs

Grow – Upsell into additional products and services

  • Impact on Products per Client
  • Impact on Client Lifetime Value
  • Transaction Value per Customer
  • Share of Repeat Customers

Ernst & Young, 2017. To tweet or not to tweet – Investing in social media for wealth managers. Available at:$FILE/EY-to-tweet-or-not-to-tweet.pdf

Über den Autor

  • Martin Lycko

    Martin Lycko

    Content Manager bei altii

    Martin is responsible for altii’s online content and social media channels. He manages articles that are produced by clients, third party providers and items created by himself. Moreover, he is responsible for publishing and distributing content on altii's social media platforms.

    RSS-Feed abonnieren