Posted by Penny Phillips on 18 March 2021
Why financial advisors should care about GameStop
Don’t underestimate the power of social media and its ability to mobilize, organize, motivate and influence people, including clients, says Penny Phillips, President and co-founder, Journey Strategic Wealth.
When I ask advisors how recent headlines are impacting their communications with clients, the typical response is, “My clients don’t care about Tesla or Bitcoin. They’re not focused on what people say on the Internet. They know we have a sound, long-term plan in place.”
I asked that question in March, when most of us went into mandatory lockdowns because of COVID-19, and again, a few weeks ago, when a mob stormed Congress and sent Washington, D.C. into chaos. I asked again yesterday, when a Reddit subgroup called r/WallStreetBets drove up the price of GameStop, AMC and Blackberry by nearly 1,000%, collectively, and eviscerated hedge funds across Wall Street.
But my question now is, if your clients aren’t engaging with you about the current events dominating news cycles and social media feeds, then who are they engaging with? Because they’re talking, listening and exchanging information with someone.
If we’ve learned one thing from the historic “run up” of GameStop or Bitcoin this month, it is: do not underestimate the power of social media. Don’t underestimate its ability to mobilize, organize, motivate and influence people. Don’t underestimate the power of online communities and the feeling of “being part of something greater than you.” The game has changed.
No more excuses
And those clients are, in fact, the Gen-Z, Reddit-using, Robinhood-trading child of your very, best baby boomer clients. And chances are they are currently home, quarantined with those parents right now.
Before you start getting anxious about how you’re going to figure out TikTok and Instagram, know that you actually don’t need a complex social media campaign.