Social Media and Banking

Report
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]

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