Fund Firms Finding Digital Voice
Mutual Funds Get Hip to Social Media 2/6/2011 Mutual fund firms are finally on Twitter and Facebook. WSJ Reporter Emily Glazer discusses why the firms hesitated to join the social media spectrum and how they’re spreading their digital voices.
A growing number of mutual-fund companies are finding their digital voices.
Though they were initially slow to join the social-media party, these firms increasingly are using Twitter, Facebook and YouTube to build brand loyalty, educate investors and help with customer service.
“It’s an initial attempt to plug into what’s happening in society and technology,” says James McGovern, vice president for consulting services at Corporate Insight, which recently reported that some 46% of the asset-management firms it regularly analyzes are now communicating via social media. While Corporate Insight says that’s up from “zero involvement” in 2008, it’s still less than the 76% usage rate reported among the banks and credit-card issuers it tracks. See WSJ story: Fund Firms Cautiously Tweet Their Way Into a New World.
Retail banks have a relatively long, established history using a full suite of social media, especially Twitter. Mutual fund companies are catching up, as are other financial services companies. Social media offers companies added distribution channels to reach constituents, with a positive impact on SEO (search engine optimization).