About 90 percent of mass affluent consumers use social media, according to a recent LinkedIn study.
The study, Influencing the Mass Affluent, classifies the mass affluent as consumers who have investable assets between $100,000 and $1 million. LinkedIn says that this group is active on social media and could prove a key market for financial institutions.
Of that 90 percent of the mass affluent that use social media, 44 percent engage with financial institutions on social media. LinkedIn reports that another 34 percent actively engage with financial institutions' content through social networking.
LinkedIn found that the mass affluent use social media primarily for professional reasons. The firm's study reported that one out of every two surveyed use social media to connect with other professionals. While one in three use social media to engage with professional content.
"Members on our platform have a value exchange and sense of trust with the platform. Because of that we have seen financial firms really adopt [LinkedIn] beyond just display advertising," said LinkedIn's lead executive in financial services, Jennifer Grazel.
According to the report, 36 percent of the mass affluent use social media for discovery and consideration. LinkedIn classifies discovery as learning about trends, products, and services, while the firm denotes that consideration as actively seeking advice on the things they've learned through social media.
LinkedIn classifies the mass affluent in three categories. The firm says that the mass affluent is either acquiring wealth, about to retire, or already retired. According to the research, financial institutions must tailor their social networking campaigns differently for each group.
"The key that struck a cord with us was the types of information mass affluents are getting through social media," Grazel saud.
For those accumulating wealth, relevant content is the most important factor for financial companies using social media. Those soon to retire find that timely updates are the most important factor when using social media. While retired consumers care more about strong customer support through social media.
Across all consumer types, information about new product information was found to be very important. Those surveyed said that they would like to see new product information posted on social media for both brokerage firms and credit/debit card companies.
LinkedIn also recommends that financial institutions must be mindful to drive conversation through social media. The company says that proper discussion on social media leads to greater influence and improved lead generation.