FACT: around 92% of consumers read testimonials and online reviews and 88% of people trust online reviews as much as they would a personal recommendation from someone they know.
And what does it mean? These numbers clearly mean that having positive customer testimonials are almost as effective as having a friend speak highly of your business.
It’s undeniable—people trust client testimonials more than any other type of marketing because they come from real people who have actually used the product or service and can vouch for its quality.
With the rise of social media and video content, it’s never been easier for businesses to get feedback from their customers—which is why it pays off (literally) to invest time into collecting and promoting testimonials for your business (whatever niche you’re in).
What Does the New SEC AD Rule Say?
The Securities and Exchange Commission has released new rules which modernize and amend the Investment Advisers Act of 1940 to “create a merged rule that will replace both current advertising regulations as well as those for cash solicitations.”
The amendment aims to improve the quality and authenticity of the information offered to investors amidst the continual evolution of technology and advertising.
SEC’s Rule About Using Endorsements and Testimonials
The updated SEC ad rule is a complicated but important update in which companies deal with their investors. As of now, five different types of disclosures must be made when advertising certain investment-related material: three of these are “clear and prominent” disclosures while the other two are “required” disclosures.
Clear & Prominent Disclosures
For this type of disclosure, the client should clearly state the following:
- The current client provided the endorsement or testimonial or if it’s another person other than the latter
- Compensation provided for the testimonial or endorsement (cash or non-cash)
- A short statement that describes any material conflict of interest to avoid biases on both parties (promoter and adviser)
Required Disclosures
For required disclosures, it’s obligatory to disclose:
- Material terms of the compensation arrangement (describing the compensation offered) or should be provided to the promoter directly or indirectly
- Description of any material conflicts of interest of the promoter and any compensation agreement made
- It’s important to note that the amendment practically means that an advisor doesn’t have the power to use any endorsements or testimonials under the new SEC rule until they’re ready for full compliance with all the aspects of this rule.
The Power of Positive Reviews & Testimonials
People trust what their friends, family, and peers say about a product or service more than any form of traditional advertising. And naturally, we gravitate toward positive customer reviews when making purchasing decisions.
Social networks have made it easier than ever to find out what people think about certain products or services before investing in them yourself. In fact, Bright Local found that 89% of consumers read businesses’ responses to reviews and 84% form an opinion after reading between 1-6 reviews.
That means that if you don’t have any customer reviews at all—or worse yet, if you only have negative ones—you’re missing out on potential customers who would otherwise be interested in what you have to offer!
The Rise of Video Testimonials
Video testimonials are becoming increasingly popular because they provide potential customers with an up-close look at how satisfied previous customers were with their experiences.
Research from Wyzowl found that 79% of users prefer watching video content to reading text and 64% are more likely to buy a product after watching a video about it.
So if you want your business to stand out in the digital age, consider investing in video testimonials!
The Keys to a Successful Video Testimonial for Financial Advisors
As the popularity of video content continues to rise, financial advisors are taking advantage of the medium to advertise their services. Video testimonials are an effective marketing tool for advisors, but they need to be executed properly in order to be successful.
Let’s take a closer look at what makes a successful video testimonial.
Authenticity and Realism
The goal of any video testimonial is to show potential clients that your services are worthwhile. To do this, you need authenticity—prospective clients want to see real people talking about real experiences with your firm.
You mustn’t try to fabricate a situation or create an artificial experience. If the video looks too scripted or staged, viewers will lose interest quickly.
Client Experience
A great video testimonial offers insight into what working with a particular financial advisor is like. You want the client in the video to provide real-life examples of how the advisor helped them achieve their goals and why they would recommend working with this particular professional.
Look for stories about how the financial advisor took the time to understand their client’s individual needs and tailored a plan that was specific to those needs. This personalization will show that they’re willing to go above and beyond what other advisors might offer.
Length Matters
It’s also important to keep your videos short and sweet. Most viewers won’t watch longer than two minutes, so make sure you get your key points across in that timeframe. You can always link to longer videos for those who want more information, but it’s best to keep the main video short and concise.
Highlight Benefits & Results
The most effective financial advisor videos will focus on results—what were the tangible benefits clients saw from working with you? What were their returns? Was their experience better because of how you worked with them? Focus on these benefits rather than just talking about yourself; prospective clients will be more interested in what they can get out of working with your firm than anything else.
When done right, financial advisor video testimonials can be a powerful way to attract new clients and showcase your firm’s success stories. Remember: focus on authenticity and realism, keep the videos short and sweet, and highlight tangible benefits and results whenever possible!
With these tips in mind, you’ll be well on your way toward creating an effective video testimonial that will help boost your business.
Talk to us if you want to learn more!