In the Company of Strangers

Transcription

1 In the Company of Strangers Social Media, Trust, & Financial Advice Continuing Education 1 Important Information The information included herein is being presented by Hartford Life Distributors, LLC, a subsidiary of The Hartford Financial Services Group, Inc., ( Hartford ), for educational purposes only and is not intended to be legal or tax advice. Clients should consult their financial advisor, tax professional, or attorney regarding their specific situation. 1

2 Mandatory Class Announcements A) Conduct of insurance or other business during this instructional period No conduct of insurance or other business by any means whatsoever or the reading of newspapers or publications unrelated to the course may occur during the instructional period. All pagers and cell phones must be set so as to not disturb the class during class instruction. B) Attendance Policy State regulations require that all licensees must attend 100% of the approved credit hours given today. Accordingly, licensees arriving late to class or returning late from meal breaks or scheduled breaks will be denied course credit. Provider Organizations are required to establish an attendance policy to maintain attendance records. Failure to enforce attendance rules or to maintain proper attendance records could result in disciplinary action against the Provider. Therefore, adherence to the Provider s attendance requirements is mandatory. Please provide a picture ID for verification when signing the roster. This is a recent policy required by Hartford Life Distributors, LLC, which applies to all states. C) Roster When signing the roster please be certain to sign in at the beginning of class and sign out upon departure, including the times in the column as well as signing out upon return from meals. Departure to meals need not be signed for. You do not need to sign in and out upon return of breaks. All attendees must legibly write their state-issued insurance license number. Attendees must include: street, city, state and zip code, the respective state for which the CE certification is requested. Continuing Education Requirements Complete the Sign In/Out sheet and Request for Certificate of Completion Sign in at the beginning of the session Sign out at the end of the session Turn off cell phones In order to receive credit, you must remain in the room for the entire session Some states have a state-specific Sign In/Out form Some states and CPAs require an evaluation form be distributed: AL, DE, MN, NH, NY, TX, VA, WY Please place photo ID on desk for ID verification CFP certificates will be distributed at the course location 2

3 Objective Description: Groundbreaking MIT AgeLab research explored consumers' online discussions of financial planning, and found that their perspectives shifted significantly throughout the course of the economic downturn. This presentation discusses that research and its implications for the financial services industry and financial advisors. Objective: This white paper offers a unique perspective on clients attitudes toward various aspects of retirement planning. Using 16 key terms, color-coded word graphs illustrate the change in clients emotions from before the market downturn, to after it. Five key implications stem from this research, and awareness of them is essential to the role of a financial advisor, striving to meet the evolving needs of clients today. Outline 1. Introduction 2. The Decline of Trust a. Whom do we trust? b. Who is seeking advice via social media? c. How are financial advice seekers using social media? d. The advantages of listening via social media 3. How MIT AgeLab Listened a. What MIT AgeLab looked for b. What MIT AgeLab heard 4. Implications for Our Industry a. Re-engaging the disenchanted b. Putting services back into financial services c. Retiring retirement d. Writing a new story e. Joining the conversation 5. Questions 0:00 5:00 6:00 20:00 21:00 30:00 31:00 50:00 51:00 60:00 3

4 MIT Collaboration Collaboration with MIT AgeLab & Dr. Joseph F. Coughlin MIT is world-renowned for producing some of the world s top scientists and engineers. MIT founded the AgeLab in 1999 to take the technology and engineering for which the university is famous and translate it into practical solutions that help people continue to live the best possible life throughout their lives. The Hartford became a founding partner of the MIT AgeLab in 1999; our relationship with the AgeLab provides research-based insight into consumer attitudes and behavior. Dr. Coughlin s research focuses on how the convergence of baby boomer expectations and technology will shape the future of public policy and drive innovation across global industries. The Death of the Newspaper Have you read this one? The scissors-and-paste journalism of the country will be annihilated. James Gordon Bennett, editor, New York Herald May How did newspapers survive? By adapting and remaining relevant. How can we apply this to our business? 1 Network effects, The Economist,12/17/09, retrieved 3/24/

5 The Decline of Trust Most people can be trusted Agree Numbers indicate percentage of those interviewed who are in agreement with this statement. Disagree Source: Brown, M. and Uslaner, E. (2002). Inequality, Trust, and Political Engagement," paper presented at the 2002 Annual Meeting of the American Political Science Association, Boston, MA, August 29 - September 1. 9 So Whom Do We Trust? People like us : CaféMom: Groups are the best place to meet and chat with other moms who share your interests and lifestyle. Yelp: Real people. Real reviews. Angie s List: 40,000 new reviews monthly in home, outdoor, health Patients Like Me: Find patients just like you. 10 5

6 Who is Seeking Advice Via Social Media? Active social network audience (U.S.): 149 million 1 Tech-savvy growing in numbers: Cell phones: 85% of adults (48% of 75+) 2 Laptop computers: 59% of adults (28% of 75+) 2 59% access the Internet wirelessly with a laptop or cell phone 3 34% have apps 4 1 Social Media and Financial Services, LIMRA, Tracking Survey, Pew Internet & American Life Project, 2010, retrieved 3/29/11. 3 Mobile Access 2010, Pew Internet & American Life Project, 7/7/10, retrieved 3/29/11. 4 The Rise of Apps Culture, Pew Internet & American Life Project, 9/14/10, retrieved 3/29/ Who is Seeking Advice Via Social Media? College-educated 1 Decision-makers: 1 in 4 say social media likely to influence healthcare decisions 2 After using search engine, 40% turn to social media 3 Female: Fastest-growing segment: married women, Outnumber men 57% to 43% on Facebook, Twitter & Yelp 4 Use it for communication, not recreation 5 1 Social Media Demographics All in One, 4/12/10, retrieved 3/25/11. 2 Social media sites help patients make healthcare decisions, 3/22/11, retrieved 3/29/11. 3 Shoppers Combine Search, Social Media to Fuel Decisions, Inc.com, 2/25/11, retrieved 3/29/11. 4 Women Outnumber Men on Social-Networking Sites, The Wall Street Journal, 10/7/09, retrieved 3/29/11. 5 How Women and Men Use the Internet, Pew Internet & American Life Project, 12/28/05 [latest statistics available], retrieved 3/29/

7 How are Financial Advice Seekers Using Social Media? Do you know? What s changed in the last few years? What are they saying about: What s important to them when looking for a financial advisor? How they feel about advice and retirement planning? How the economic downturn affected how they think and talk about retirement planning? 13 The Advantages of Listening Via Social Media Traditional research methods have limitations: Survey questions restrict responses Focus groups only as good as their moderators Social media provides an unbiased view into: How consumers are spending their time What they re most concerned about How they re talking about investing, financial planning, and advice How they re framing their problems (what language are they using?) If you're a registered representative, remember to follow your firm's rules on social media use. 14 7

8 In the Company of Strangers: How MIT AgeLab Listened Reviewed financial services websites and discussion boards Looked for these characteristics: Extensive user community Highly trafficked Hundreds of discussion boards Discussions within the Finding a Financial Advisor forum examined over a four-year period: March 1, 2006 February 29, 2008 March 1, 2008 February 28, In the Company of Strangers: What MIT AgeLab Looked For Observed what words consumers used, how often they used them and how they felt about them Examined words in those two time periods for: - Prominence: How frequently was a word used? - Usage: What words were most relevant? - Valence: What emotion was assigned to a word or activity? Visualized findings with word cloud software: Prominence = size Usage = 16 most relevant words Valence (emotions) = color Red = negative Green = positive Gray = neutral 16 8

9 In the Company of Strangers: What MIT AgeLab Heard 16 Most Relevant Words 17 In the Company of Strangers: What MIT AgeLab Heard March 1, 2006 February 29, 2008 March 1, 2008 February 28,

10 In the Company of Strangers: What MIT AgeLab Heard Advice & Advisory Services March 1, 2006 February 29, 2008 March 1, 2008 February 28, 2010 Advice Commission Expense Fees Help Manage Planner Service Advice Commission Expense Fees Help Manage Planner Service 19 In the Company of Strangers: What MIT AgeLab Heard Retirement Products & Outcomes March 1, 2006 February 29, 2008 March 1, 2008 February 28, 2010 Asset Cash Income Insurance Investment Money Plan Retire Asset Cash Income Insurance Investment Money Plan Retire 20 10

11 In the Company of Strangers: Implications for Our Industry We must: Re-engage the disenchanted. Put services into financial services. Retire retirement. Write a new story. Join the conversation. 21 In the Company of Strangers: Re-Engaging the Disenchanted Consumers have disengaged: Decrease in financial advice chatter : - March 1, February 29, 2008: 627 observations - March 1, February 28, 2010: 132 observations (83% ) General decrease in advice-seeking, : 1-60% in agreement: creating a retirement income source is important - 25% in agreement: would seek advice before making investment decisions What it means for you: Traditional referral sources disappearing Find new ways of: - Re-engaging current clients - Finding prospective clients Learn from other industries: - Proactive, targeted campaigns - Push, not pull 1 Nationwide,

12 In the Company of Strangers: Putting Services Back Into Financial Services Consumers still value advice, but not only advice Your value proposition must evolve Don t focus on management and investments Instead, offer your clients: Service: On their terms, on their schedule, personalized for them Fluency: What does the product do? What will the product do for them? Help clients visualize Access: Resources Products 23 In the Company of Strangers: Retiring Retirement Retirement has disappeared as a goal Focus on being: Realistic Responsive Relevant 24 12

13 In the Company of Strangers: Writing a New Story Need a brand-new narrative to become more relevant Be relevant = the jobs of longevity: Marriage, mortgage, memories Grandparent 2 nd (3 rd, 4 th ) career Caregiving Maintaining independence Managing chronic conditions 1 Making a difference Help clients see the big picture: How will their plan create a sustainable lifestyle in future years? 2 Showing rather than telling 3 1 National Health Interview Survey, Centers for Disease Control, [most recent data available], retrieved 6/9/ Retirement Confidence Survey, EBRI, 3/11. 3 Meet 'Future You.' Like What You See? The Wall Street Journal, 3/26/ In the Company of Strangers: Joining the Conversation Listen in on social media: LinkedIn, Twitter (try searches), Facebook Bulletin boards on popular finance sites Finance blogs professional and amateur Understand new technology: Devices that employ it Staff who understand it Know your audience (Dr. Joe Coughlin, MIT AgeLab) Suggest helpful apps: Mint CNBC Real-Time Wall Street Journal, Bloomberg, or other financial news source 26 13

14 Questions 27 The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries, including the issuing companies of Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company. The MIT AgeLab is not an affiliate or subsidiary of The Hartford. All information and representations herein are as of 5/11, unless otherwise noted. STRANGERS_CFP_CE 9/