Social Media and Banking
Erin Handel Managing Director Education
J. Michael Beird Managing Director Financial Services,
Overview of Today’s Presentation What is social media? Is Social Media a Fad? Why should I even bother…and should I even bother?
What are other banks like yours doing with social media What works and what doesn’t What’s the future of social media for banks? How are banks like mine getting it done (time, resources, money) How can I convince my bank to support the adoption of social media Reasons banks are and are NOT doing it – voice of the banker A five step plan to get started now
What is Social Media?
Social Marketing
Leverages the value that customers place on sharing among each other and the bank
Provides for two-way communication between customers and the bank
What is Social Media?
Is it a Fad?
Social Media is now the
activity on the Internet
If
Was a Country….
1. China 2. India
3. Facebook (950 Million) 4. United States
5. Indonesia
5 Primary Ways in Which Customer Interact with Social Media Channels 1. Obtaining information or assessing recommendations 2. Finding apps or downloads 3. Asking a question or addressing an issue 4. Seeking discounts or rebates 5. Responding to a good/bad experience
7
Most banks, however, are still NOT involved in Social Media sites like Facebook or LinkedIn
Of the most common venues, banks use Facebook the most, but lesser-known or private channels dominate
Presidents and Marketers are the Main Decision Makers around Social Media
Well, should you or shouldn’t you?
Why some banks utilize social media and others do not….
Reasons for why banks choose to participate in Social Media vary widely Score
Ranking
It doesn't cost anything to do it
1135
1
To be perceived as being 'with it'
1064
2
A channel for fielding customer service questions
1063
3
Facilitation of referrals
827
4
Your competitors are there
714
5
Cross-selling products and services
670
6
Customer/member acquisition
612
7
Avenue for communicating news and events
606
8
Making a stronger connection with your community
538
9
Customer/member retention
527
10
Note: Score is weighted sum of all rank counts.
Cost – It’s FREE!
It's free advertising. It would be crazy not to It's free (except for your time) Why would you not participate? It is a free marketing avenue.. a good way to let people know of our banks community involvement & etc.
Perception of “coolness”
Because it is the trendy thing to do right now We do for our younger customers ...appealing to the younger generations
able to reach the "new" computer generation
Helps Customers
Concerned about customer security, but feel the need to participate One more way to connect to customers
Reasons why banks choose NOT to participate in Social Media also vary widely
Score
Ranking
It's a place where FI's don't belong
1000
1
There are no hard business metrics against the investment
959
2
You don't know enough about it
747
3
We're afraid that we can't sustain what we started
735
4
You'd be creating a venue for customers and prospects to air grievances
730
5
It would consume too much time and human resources
658
6
The fear of appearing too risky or frivolous
622
7
Being perceived as exploiting your customers/members through their personal space
617
8
The idea that you'd be putting your customers/members at risk
520
9
Note: Score is weighted sum of all rank counts.
FIs Don’t Belong There
We have decided it is probably not something we should get tangled up in
I have more important things to do than continually check to see what messages I have received when I have actual people beside me that I can converse with
No Hard Business Metrics
We can not agree on the pros and cons - I personally can see some benefits but also see some problems We do not see any business advantage to participating in social media
Don’t Know Enough About It
Don't know anything about it UNCERTAINTY
There are many unknowns that we are not comfortable with at this time, we are taking a wait and see approach
What Doesn’t Work? Doing everything
Having no specific, measurable goals Having no plan, no roadmap Inconsistency Always selling and telling
What Does Work? •
Not reinventing the wheel
•
Being consistent
•
Listening to the conversation
•
Engaging and responding
•
Not overpromising
•
Providing value
Any Social Media policy requires the right players HR IT Compliance Marketing Board of Directors
What Treasury Professionals should do NOW!
What do you need to get started?
What if you DON’T want to do anything in Social Media?
Pick your social media team
Watch trends
Find out what customers are saying
Learn more
Pick your Top 5 SM goals
Assess the competition
Outline a policy
Stay opened minded
Get Started!
Questions?
Erin Handel, Managing Director – Education Bankerstuff, a cbanc Network Company 312.316.0305
[email protected] J. Michael Beird, Managing Director – Financial Services Bankerstuff, a cbanc Network Company 781.588.3147
[email protected]