Many social media advertising campaigns follow a similar formula. I’ll give you something of value if you give me something. These ads dangle the proverbial “carrot” in exchange for contact information. Oftentimes this “carrot” comes in the form of a whitepaper, webinar, or another “lead magnet” that’s enticing enough to justify someone providing their email address.
Here’s a Facebook example we designed for a client in our Social Media Outsourcing Program….
The prospect clicks “download” and is then prompted to input their email address. So, what percentage of investors have taken part in this?
In a recent study, we asked investors with $500K or more in investable assets if they’ve ever given their email address in exchange for a lead magnet.
What we found is what you’d expect. Age plays a factor; 61% of those under 45 have participated, versus 20% of those over 65. When financial advisors want high response rates, they would be well-served to target younger investors. That said, a 40% rate for investors 45-65 is still substantial.
(*$500k investable assets, n = 403)
What does this mean? This is a great strategy if you target this type of investor. A large percentage are willing to offer their information in exchange for an appealing offer.
It’s also a strategy that should continue to increase in effectiveness over time. As our data show younger generations are more open to providing their information.
Keep in mind that the more information you require, the lower your conversion rates may be. For example, if you request email and phone number, you can expect your conversion rates to decrease. So, only ask for information you plan to use. The information you request should correspond with your plans to nurture this lead.
In our opinion, this strategy is money well spent. It provides brand awareness, education and captures contact information all in one. Just remember, you’ll have to play the long game. Just because someone downloads your whitepaper doesn’t mean they are eager to speak with you. You’ll need a strategy to nurture these contacts over time. If you haven’t already, make sure you read our article Nurturing Digital Leads 101 for Financial Advisors.