Why well-to-do families should be less shy about using social media

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To maintain a positive image, discretion is often the preferred choice. But wealthier individuals and families also need to know that when it comes to reputation management, effective branding and business awareness, social media can be a helpful tool.

Indeed, when Stonehage Fleming works with a high-net-worth client, social media plays a role in the overall strategy, says Guy Hudson, partner and head of marketing for the firm, which is based in Britain. Stonehage Fleming works in 11 countries and is the largest family office operating in Europe, the Middle East and Africa.

“We talk about social capital – essentially the family brand – and their engagement with their communities, and what that would look like,” Hudson explains.

These days, when nearly everyone searches online for people they’re meeting or doing business with, having a social media presence can benefit families and their businesses.

Establishing a narrative strategy is a must when posting online, says Marie-Pierre Lépine, senior business strategy consultant and co-founder of Kairos Global Inc., a boutique business consulting firm in Montreal.

“When you’re a high-net-worth individual, I think you have to be conscious of who you are, and I think most of them are super-conscious,” she explains. “That’s why they are also very private about what they disclose.”

This includes ostentatious displays of wealth that can open them up to criticism, especially during times of high inflation and acknowledged wealth inequality.

Be aware of possible damage

Hudson says, “When we talk with clients, we’re asking, ‘Are you aware of what your digital footprint looks like for not just you but also for all of the family members? Is there a consistent way you would like the family to be represented and positioned?’

“Our role is to encourage them to think about reputation, make sure that they are treating it with due care and attention, and be aware of some of the things that can damage reputations.”

Aggressive tax planning is a good example. The practice of vigorously structuring one’s finances and business operations to ensure the bare minimum payment of taxes is perfectly legal, but it has negative optics with the general public. Several families have come under scrutiny in recent years through leaks from the Panama Papers, for example, which laid bare 11.5 million confidential documents detailing the financial information of thousands of entities.

Granted, incorporating social media into an overall media strategy can sometimes backfire, through oversharing and the like. So why do it at all?

While many families prefer to shun the limelight and are very discreet with their social media presence, that discretion can impair their ability to do business, Hudson says. He cites one family that posted no profiles of its family members, very little online about their business, and no consistent family or business narrative.

Posting such information online can help build trust. Lépine says that as you become more familiar with people, even if you just see them numerous times on social media, the more trust you hold in them. It is almost a parasocial relationship, she says.

That trust can make it easier for families to showcase their foundation and charity work, attract investors or open discussions for future acquisitions.

Constructing the narrative

Families can take the opportunity to construct said narrative about themselves with a single set of messages that can be adopted by all family members. That way, they can have a social media presence but remain fairly low key.

The ideal narrative usually focuses on family and philanthropic legacy and community initiatives, say both Hudson and Lépine.

“Many are highly involved and engaged in the community through their foundation or through the work they do,” says Lépine. Social media can highlight the results and show the good work that’s done through consistent messaging from the family.

Developing that messaging starts with everyone in the family sitting down and deciding what they want their family to stand for and to be recognized for, she explains. It’s also an opportunity for the next generation to have their say, not just the parents or the head of the family.

Questions to suggest include, “What do we strive for? What is it that is very important for us?” Lépine recommends.

Families can use the answers to define their vision and mission and then adapt that to create their social media messaging.

Being safe online

Of course, clients must consider safety and security issues, too. Both Lépine and Hudson say they’ve had to remind clients not to post pictures of their homes because that could lead to theft, especially if the homes are empty.

Even if a social media strategy could be helpful in fulfilling family goals, both experts say that if clients aren’t comfortable with it, they shouldn’t be obliged to follow through.

More from Canadian Family Offices: 

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• At sixth-generation egg farm, women crack the code for success

But if clients decide to leverage social media for brand and reputation management, they must educate themselves on how to use it. They need to decide which information to share and how often they should post.

Social media success depends on frequency. If clients start using social media, they need to know how it works and how they can increase their reach and engage with the community, says Lépine.

“We know the algorithms,” she says. “They want consistency, they want frequency. You have to play that game, too.”

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