In the financial world, it’s understood that with every opportunity comes risk. This law is applicable to most aspects of business—including social media marketing. Because of the open and interactive nature of social media, there are several risk factors that financial advisors must be mindful of and prepared for when engaging on social media.
Negative comments: I know businesses as great as yours are never deserving of negative comments, but there may come a time when a people post negative comments, thoughts, or opinions on your social media platforms. This may come in the form of @mentions on Twitter, posts to your Facebook wall, comments on your posts, group pages, or blog posts, etc.
What to do if this happens? Upon seeing these comments, you may feel inclined to lash back or click “delete.” But you cannot do this. Instead, you must take the high road and respond with poise and maturity. Promptly (within 24 hours max) acknowledge the negative feedback and offer a resolution to the issue. If the situation is too complex for social media, offer an email address or phone number for the individual to reach out to. Remember: On social media, everyone silently eavesdrops and oversees everything you do. Knowing this, it’s important to handle difficult situations in a way that makes a good impression on your business.
Inappropriate comments: Unlike “negative comments,” inappropriate comments come in the form of profanity, offensive or threatening language. While it’s unlikely your business will face this problem, it’s always important to be prepared.
What to do if this happens? Any posts or comments containing rude, offensive or threatening language must be deleted as soon as possible. Regardless, you should politely reach out to the individual (via personal message and/or email) to explain why the post was removed. Ultimately, everything posted on your social media platforms is your responsibility—and any posts containing inappropriate sentiments will reflect negatively on your brand.
Compliance: Allow me to reiterate. “Everything posted on your social media platforms is your responsibility.” Your posts and your fans’ posts must adhere to the compliance policies set forth by FINRA and the SEC.
What to do if this happens? If somebody violates a compliance policy, it must be removed. This can be handled similar to the way inappropriate comments are handled. Get in touch with the individual personally or publicly to politely explain why the post had to be removed.
Spam: Spam messages can be harmful to your company accounts in many ways. First off, they’re extremely unattractive and reflect poorly on your brand. Secondly, they put your accounts and the accounts of those involved at risk for viruses.
What to do if this happens: Delete posts that…
Errors in Posts: I used to panic upon realizing I posted something with errors. But let’s face it: everybody is susceptible to error. Breathe. It’s okay! While you should take every measure you can to prevent error (re-read posts, be cautious of not confusing personal and business profiles), there are many ways to turn error into opportunity.
What to do if this happens? The action depends on the type of error:
Competitors: There may come a day when you notice your competitors are following you. Don’t be bamboozled. They are simply trying to assess why you are so successful. If and when this happens, there are a few things you should consider:
As you delve deeper into the social media realm, it is essential to have an understanding of the major risks so you can have a game plan in place. As always, if you have any questions, please reach out to us.