How social media makes client acquisition smarter and cheaper

By Alex Khassa

Forget the old marketing funnel. Today's big idea for financial advisors is all about direct targeting on social media. This means using LinkedIn, Facebook and Instagram's smart algorithms to find and connect with people already thinking about financial advice. It's faster and more direct than the old way, where you would try to appeal to everyone and hope the right people notice.

Why social media wins on cost

Well, you might think, if we’re using direct targeting, why not just advertise on Google? Here’s why that’s a bad idea and why you should use social media platforms instead.

Social media platforms can be more cost-effective than Google for getting new clients. Google charges you every time someone clicks on your ad. This can get expensive fast, especially if there's a lot of competition. Plus, you don't have much room to stand out — your ad is mostly just text.

On the other hand, Facebook and Instagram charge you for showing your ad to people, not for clicks. Meanwhile, LinkedIn can be set for either clicks or impressions. Also, keep in mind that if your ad has a strong message and eye-catching visuals, you can get even more attention for your money. You can have the same ad budget as your competitors but end up winning more clients because your ad connects better with people. So, not only can you reach the right audience, but you can also do it more cheaply if your ad is better than the competition's.

Why the old way doesn't work anymore

Traditional marketing funnels don't cut it on social media. People want to see stuff that's relevant to them, not just any ad. And the algorithms on platforms like Facebook and Instagram are good at showing them just that. So, using a broad approach where you try to attract everyone and then narrow it down simply doesn't work as well.

With direct targeting, you use data to find people who are already looking for financial advice or fit the profile of your ideal client. This way, you're talking directly to people who are more likely to be interested in what you have to offer, making it more likely they'll become clients.

Data: Your best friend in targeting

Using data smartly means you can target ads to people similar to your current clients. This makes your ads more effective because they're reaching the people most likely to be interested in your services. For example, you can upload a .csv file of previous interested prospects and clients into the Meta ads manager (which works for both Facebook and Instagram), and create a lookalike audience from that. Please note that the file must have more than 1,000+ prospects for this to work. But LinkedIn announced it has discontinued its lookalike audiences feature as of Feb. 29. As an alternative, LinkedIn recommends advertisers use its newer “Predictive Audiences” and “Audience Expansion” features instead.

Education still matters

Although this article is focused on the benefits of using direct targeting and compelling ads on social media platforms such as LinkedIn, Facebook and Instagram, it's also important to keep building out your organic social media posts and to create an authentic, human presence for yourself as a business professional online. Being seen as an educator and a subject matter expert is especially important for financial professionals who want to be seen as contributors to society and trusted advisors to their clients.

Switching to direct targeting on social media means you can find and connect with potential clients more efficiently and often at a lower cost. by understanding how to use data, focusing on the right audience and creating ads that really speak to people, advisors can make their marketing smarter, not just more expensive.

Alex Khassa is founder and CEO of Clients Blackbox. Contact him at [email protected].