Being sociable

Leaders in finance and technology should embrace social media with gusto.

This is an extract from last week's IMTW .

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Issue № 101 | London, Sunday 9 June 2024

Read on to learn why:

① A large, devoted social media following is one of your most powerful weapons.

② Social media programmes demand permission, content and framework.

③ In our digital age, there’s still huge value in physical, experiential marketing.

④ Big banks all want in to fintech but are adopting different entrance strategies.

⑤ AI is now delivering tangible cost reductions for marketing functions.

⑥ HR desperately needs sound communications expertise but rarely has it.

⑦ Communications can save you or damn you.

What's new

The New York Times speculated this week whether Bill Ackman’s soaring profile on social media could help him grow Pershing Square, his financial empire.

In short:

• “Ackman rose to fame as an activist investor who profited by shaking up companies, a strategy that made lots of money — but also lost a lot. He now focuses more on a few concentrated bets. That approach has paid off, with a 26 percent return last year. Ackman’s firm also has a big advantage over rivals: Its publicly listed fund, which trades in Amsterdam and London, has permanent capital, where those who buy in can cash out only if someone buys their stake.”
• “Pershing Square’s stock has also risen as Ackman has grown more outspoken on social media, especially after he criticised Harvard’s efforts to combat antisemitism following the Oct. 7 Hamas-led attacks on Israel. He has also publicly criticised diversity initiatives and President Biden. Wall Street has speculated that Ackman’s more outspoken social media presence is aimed at courting retail investors. If so, the strategy appears to be working: Amsterdam-traded shares in the fund are up 44 percent over the past seven months.”
• “Will his followers flock to his future growth initiatives? Pershing Square is expected to open a closed-end fund in the U.S. this summer — which Bloomberg reports could reach $25 billion. Like the European fund, it would be open to retail investors. If those plans come to fruition, Pershing Square would manage at least $45 billion, catapulting it into the top 10 biggest U.S. hedge funds by assets.”

Why it matters

The best advice used to be to build your network (you’ve heard ‘your network is your net worth’, right?) and that holds true but the NYT’s reporting on Ackman matters because it illustrates how that principle has evolved in the age of social media. To steal from James Clear (again - see The Last Word below too),

“Who knows you is more important than who you know. Build a brand.”

① Many of us - particularly Brits, particularly those of us working in the more conservative realm of finance - feel a natural discomfort at the notion of a ‘personal brand’. Promoting ourselves in public feels a little grubby. But the evidence is overwhelming: a large, devoted social media following is now one of the most powerful weapons in any leader’s arsenal. Just ask Elon Musk - he famously has never spent a dime on advertising Tesla and goes without communications, PR or marketing teams. Instead he is so convinced of the power of a social media presence that he spent $44 billion buying Twitter.

Another adage you’ve heard me parrot before is that people buy people . And nowhere is that more evident than on social media. Of course, your brand needs a social media presence but the real magic happens when your leadership team is comfortable representing the company from their own accounts and with their own perspectives.

What to do about it

Take action

I’m going to repeat myself. Your marketing team doesn’t need to actually ‘do’ all your social media but it should certainly be your firm’s centre of excellence on the topic, enlisting and empowering your senior leaders to help.

② Do they have what they need? It comes down to three things:

1. Permission: Step 1 is saying it’s okay. Your social media policy needs to be clear and enabling. I am always surprised by how many firms still have blanket bans - because it’s so much easier to say ‘no’ than to explain ‘how to’. What a waste when every single one of your employees is a potential advocate. Authenticity is essential so your employees need to feel empowered but you shouldn’t aim to coordinate too much, let alone dictate how they should share.
2. Content: Ensure your Marketing team has made your messages succinct and crystal clear to your own employees. They need to understand what you stand for before they’ll want to share it with their networks so internal communications is important. Marketing should then be producing high-quality content that your employees will want to share - whether because it’s creative, funny or (my favoured approach) it is genuinely valuable.
3. Framework: Your staff should be led by example but also with a framework of support and training for those that need it. Their level of familiarity and therefore comfort will vary enormously. Some will need guidance with the basics, others will simply want to know what to share and where to find it.

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To learn why:

③ In our digital age, there’s still huge value in physical, experiential marketing.

④ Big banks all want in to fintech but are adopting different entrance strategies.

⑤ AI is now delivering tangible cost reductions for marketing functions.

⑥ HR desperately needs sound communications expertise but rarely has it.

⑦ Communications can save you or damn you.

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About

Written for senior leadership teams in finance and technology, InMarketing This Week is a showcase for news likely to impact you - delivered with insight on why it matters and ideas on what to do about it. It’s published every Sunday at six to give you a head start on the week. Read extracts?here, or subscribe to?have each full issue delivered straight to your inbox, before it's available anywhere else.