What does Uber, AirBnb, and your asset management firm have in common?

Digital marketing, which includes social media, has been a serious strategy for client engagement in the mutual fund industry for several years now. It is now more important than ever that your firm not only understand the value of digital, but also be actively engaged in it. Digital interfaces have changed the way that people interact with each other and allow them to share product reviews, information, and network more quickly than ever before.  Two industry executives made the case at our recent client conference.

“People are armed with tools, support and knowledge like never before,” says Sanjay Shamdasani, Co-Founder of Spring Studio. Popular brands like Amazon, Uber and AirBnB all provide users with multiple entry points into their sales process, and—more importantly—allow them to own the sales experience. Shoppers on Amazon can read the reviews of hundreds of previous purchasers before pulling the trigger, while Uber riders are able to personalize their taxi experience by selecting the type of car service they want and leaving reviews for drivers. It is now a rare product that comes without the opportunity for users to interact with and shape their experience.

What does this mean for asset management firms? “If you don’t adapt to these changes and new expectations, someone else will,” says Victor Gaxiola, Senior Customer Advocacy Manager at Hearsay Social. “Strong customer relationships are paramount, and companies that enable and invest in new technologies will be prepared to meet the demands of the new era head-on,” he continues.

This goes beyond having profiles on LinkedIn, Facebook, Twitter, or Google+. True digital integration comes from creating customer-centric products like apps, websites, and tutorials that serve clients’ needs as well as allowing them the opportunity to interact with your firm.

Rather than a single, linear mode of communicating with advisors such as pushing out a commentary, consumers now demand a variety of resources at their fingertips, and often would prefer to keep face-to-face interaction to a minimum. Embracing digital marketing and finding ways to make it work for your firm will enable your company to get ahead of customer expectations and create new products and services as investors need them.

What digital strategies do you use to engage your audiences?