Why Do Banking and Financial Services Need to Embrace Social Media In Order to Survive?
Posted by Ajay Tejwani | Posted in Social Media | Posted on 29-07-2012
Tags: social media consulting, social media financial services, social media for banks, social media strategy, social media tools
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Social media has become a cultural phenomenon that’s shifting the way all businesses operate, as a result of an all-time high usage of company websites, smart phones,blogs, wikis, Facebook, Youtube, Twitter, LinkedIn, Google+, forums, etc, A New York Time’s article revealed that “ more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” With that said, Assetinum’s survey of the top 50 banks found that the majority of banks are behind the curve in their social media strategy and use.
Banks that listen to the demand by utilizing social media will inevitably gain a competitive edge for their brand. For banks that are willing to innovate, it’s an immense opportunity!
Simply put, social media is a way for banks to gain deeper insight into customers, to innovate with the times, to build communities by strengthening relationships and to differentiate from competitors. “Community building is something that banks should be doing more of because many of the most important touch points in our lives from attending college, to buying our first cars and building a home, to starting a business and saving for retirement all involve a relationship with a bank.”
Social Media offers banks an inexpensive way to connect with consumers, to promote events, to draw attention to sponsors, to collect research, to provide transparency, and to strengthen their brand. “Social media provides the large banks an opportunity to ‘get small’ and engage in the individual communities they serve. Smaller banks, on the other hand, tap into the power of social media to extend their reach, empower their communities and continue to differentiate their capabilities in relation to the big banks that are ‘too big to care.’”
Case Study: Wells Fargo
Embracing change since 1852, Wells Fargo (WF) now have 5 blogs, 3 twitters, multiple Facebook accounts, a website and mobile sites and applications. They are cited across the board as a huge success story and even are noted as a top brand among Forbes. As a result of their social media presence, “Wells Fargo estimates it has reached millions of visitors, and has hosted thousands of conversations.”
They have integrated social media into their entire organization, and there have been many positive, tangible results in their media campaign.
Measureable success has been reported on various platforms:
- WF receives over 2,500 tweets a month from eager to interact customers, and with Twitter as a tool they were able to increase positive sentiment by 38% and incorporate it as their most effective customer service tool.
YouTube
- They posted a ‘flash mob’ to announce WF’s presence in Manhattan and, they were able to gain more than 1.8 million views up to date. “ By using this integrated multichannel customer experience (i.e., Youtube), Wells Fargo was able to create value for the customer while reinforcing brand objectives.”
Blogosphere
- They have strengthened customer relations. In order to further illustrate, an anecdote from one of their many blogs (the Student LoanDown), is provided below:
We had a comment from a mother who was having problems because her daughter had reached her student loan limit. She asked us if we could help. We contacted that particular school and provided them with guidance based on our experience with other schools. The school ended up raising that student’s loan limit. Because the school got so much value from us, we were put on its preferred lender list (Wells Fargo Hitches Its Wagon to Social Media).
- In the very near future, Wells Fargo is going to pilot the use of the social network to its advisor force, by having about 40 WF advisors test the network.
- “’You have the opportunity to learn and grow in relationship with clients and customers in a deeper way.’His team’s Facebook page emphasizes images and content intended to help foster a personal connection with their followers. That includes posting pictures from when one partner attended the recent air show in Baltimore, Md. and when another partner had a baby. One prospect who saw the baby’s pictures on Facebook stunned that advisor when he congratulated him at the start of a phone conversation, Armstrong recalled.‘It’s evolved into this fantastic story telling tool, without it looking like a contrived story telling medium for business,’ Armstrong said. ‘The story that you tell on Facebook with pictures and posts is very genuine and very personal.’ ”
- Not only maintain a profile but also cultivate relationships through wealth management interaction
- For example, in order to better connect with small businesses, they provided a free, 1 hour webinar for small businesses on the impacts of social media on business and methods to improve their usage of LinkedIN.
Impact on Stocks
- In an attempt to give stock investors a better idea of WF’s social media campaign impact on stocks, Social Media Analytics (SMA) have started monitoring WF’s complete social media signature through their use of a complex algorithm, and in that week “the bank is up 2.85% net.”
With well-orchestrated social media marketing, WF has been able to increase company worth and also strengthen the company. If WF’s 160 years in business has anything to teach it’s that, the most important tools to maintain a sustainable company and social media campaign will likely be adaptability, innovation, leverage of resources and the ability to change strategy as changes arise!
A paradigm shift among banks is currently taking place, so don’t get left in the past! Let your customers know that their demands are being heard! Let us help you build a social media campaign specific to your needs so that you can harness the power of social media platforms.
