Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on April 26, 2013, at 1:52 pm
By Mark Zmarzly, SVP of Financial Services at ACTON Marketing
A few weeks back I decided it was time to write a blog post on “How Banks Can Best Use LinkedIn.” But then Jeffry Pilcher at TheFinancialBrand.com wrote this great post: 12 Steps Financial Marketers Can Take To Get The Most From Their LinkedIn Page.
Like most things at TheFinancialBrand.com, it was very comprehensive and informative. So there went my post. I guess I’ll just write about Grumpy Cat again.
But then I thought, do banks belong on LinkedIn? I don’t mean that from a simplistic point of view, I meant that from a philosophical stance. Have they earned the right to be involved in social selling? The answer is no…not yet.
As I have more and more conversations with bankers, investment peeps, realtors, and others in consultative sales, I’m convinced that bankers don’t understand the power of LinkedIn. I don’t believe they know what it means to have a holistic brand that is consistent online and offline and that is centered on delivering focused, relevant, buyer-centered content and assistance. That’s what social selling is about. That’s what LinkedIn is about!
Forgive me if my soapbox is too high, but I’ve been involved with the selling and marketing of banking products for eight years – holy crap? Is that right? I’m not that old!!!! – and it seems as if many, many, many bankers out there like to believe that the Internet was never invented. They seem to think of themselves as keepers and disseminators of information. And by this I mean they tell people about their products and hand out brochures.
They say they “get mobile” but most think of these channels as new methods to disseminate info, not as part of a revolutionary shift in the balance of sales power and processes.
If you want to better understand how much the sales process and environment has changed in the last decade, please read To Sell is Human by Daniel Pink. One of Pink’s main points is the value of content curation within the new sales environment.
If you don’t understand curation, you don’t know the true value of LinkedIn. And if you don’t curate, you’re missing out on an unmet need in today’s financial customer. Quite frankly, most of you are missing this.
Your bank must embrace the role of curating financial information in the lives of its customers and prospects before you can fully realize the power of LinkedIn. Until then, you will only be able to establish a presence but never a meaningful impact.
I’ll talk more about this in a future post and upcoming webinar. If you have specific questions (or gripes) please connect with me before then.
About Mark Zmarzly:
Mark Zmarzly is SVP of Financial Services at ACTON Marketing, and an accomplished marketing, business development, banking, and creative professional with demonstrated success solving customer acquisition, marketing, and profitability problems. He has worked with financial institutions from 1 branch up to 1,700+ branches in the areas of marketing, copywriting, account management, consulting, teaching, social media, and business development.
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on April 18, 2013, at 7:57 am
Overall customer satisfaction with retail banks improved significantly from 2012, largely a result of improvements made by big banks,(1) according to our J.D. Power and Associates 2013 U.S. Retail Banking Satisfaction StudySM released today.
“Many of the big banks have made great strides in listening to what their customers are asking for: reducing the number of problems customers encounter and, more importantly, improving satisfaction with fees,” said our own Jim Miller, senior director of banking here at J.D. Power and Associates
Below are a few highlights from the study:
- Fees have begun to stabilize and banks have helped their customers better understand their fee structures. Satisfaction in this area has begun to rebound, and is up by 14 points this year from 2012.
- One-third (33%) of customers say they “completely” understand their fee structure, compared with 26 percent in 2012.
- Fees also have been a major source of customer problems and complaints. The stability in fees, coupled with banks placing more emphasis on preventing problems, has lowered the proportion of customers experiencing a problem by 3 percentage points year over year, to 18 percent in 2013.
- While customers appreciate the personal service they receive at their branch, such transactions are slowly declining, while the numbers of online, ATM and mobile banking transactions are increasing.
- As banks roll out envelope-free ATM deposits and deposits by mobile phone, customers are finding it easier to handle routine transactions without needing to visit their branch.
“Successful banks are not pushing customers out of the branch, but rather providing tools that make it easier to conduct their banking business when and where it is convenient for them,” said Miller. “Customers are quickly adopting mobile banking, making it a critical service channel for banks, not just a ‘nice to have’ option.”
For study results by region, view retail banking satisfaction rankings at JDPower.com
For more information on this 2013 U.S. Retail Banking Satisfaction Study, please contact Holly Zagresky at (248) 680-6319 or via email at Holly_Zagresky@jdpa.com
(1)Big banks are defined as the six largest financial institutions based on total deposits as reported by the FDIC, averaging $180 billion and above. Regional banks are defined as those with between $180 billion and $33 billion in deposits. Midsize banks are defined as those with between $33 billion and $2 billion in deposits.
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on March 7, 2013, at 5:22 pm
Do you understand the connection between customer satisfaction and financial performance?
In case you missed our J.D. Power and Associates complimentary webcast last week, we examined how the links between customer experience and business results – and their drivers – vary by product.
We explored the revenue drivers in retail banking, credit card and mortgage, and revealed answers to some of the most frequently asked ROI questions like:
- What is the impact of problem reduction on costs?
- What are the biggest reasons for attrition, and what can you do to avoid it?
- What is the relationship between satisfaction and switching?
- What improvements in satisfaction will have the biggest impacts on share of wallet and retention?
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on February 14, 2013, at 8:51 am
 Businesses can no longer adopt a trial-and-error approach to social media as all-new research finds a link between social media and business metrics such as consumers’ likelihood to purchase or interact with companies through leading social channels, according to the J.D. Power and Associates 2013 Social Media Benchmark Study,SM released today.
The inaugural study is based on responses from more than 23,200 U.S. online consumers who have interacted with a company via the companies’ social media channel. Fielded from November to December 2012, the study measures the overall consumer experience in engaging with companies through their social platforms for both marketing and servicing needs across more than 100 U.S. brands in six industries: airline, auto, banking, credit card, telecom and utility. The study establishes performance benchmarks and industry best practices that provide insights to companies to help them maximize their social media efforts.
Social Media Servicing vs. Social Media Marketing
The study focuses on two types of social media engagements, marketing and servicing, and provides best practices for each. Marketing engagements include connecting with consumers to build brand awareness and affinity, in addition to promoting coupons and deals. Servicing engagements include answering specific consumer questions or resolving problems.
The study finds that social marketing engagements vary by age group. Nearly one-third (39%) of consumers 30-49 years old and 38 percent of those 50 years and older interact with a company in a social marketing engagement context, while only 23 percent of consumers who are 18-29 years old interact with companies. In contrast, 43 percent of consumers who are 18-29 years old use social media for servicing interactions, while 39 percent of consumers who are 30-49 years old use social for servicing needs. Only 18 percent of consumers who are 50 years and older interact with a company via social for a service-related need.
Key Findings
- 67% of consumers have used a company’s social media site for servicing, compared with 33% for social marketing.
- Younger consumers (18-29 years old) are more likely to use brands’ social media sites for servicing interactions (43%) than for marketing (23%).
- The automotive industry balances marketing and servicing engagements better than any other industry included in the study.
- Consumer expectations for social interactions vary across industries, although quality content and responsive service representatives are keys to higher satisfaction levels.
Want to learn more about our J.D. Power and Associates 2013 Social Media Benchmark Study,SM including banking and credit card brand performance?
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on January 22, 2013, at 1:53 pm
THE CHALLENGE
While the abundance of interactions that occur in social media provide a unique opportunity for banks to engage with their customers, many are struggling to keep up. Institutions that utilize social media are challenged in many areas:
- Measuring social media efforts within their industry and comparing them across industries
- Identifying whether the right amount and type of social content is being shared with customers
- Learning which best practices are used by the highest performers within their industry and across industries, and identifying how to adapt them
- Tracking social media performance efforts over time
- Demonstrating the value of social media to internal stakeholders
THE SOLUTION
The J.D. Power and Associates 2013 Social Media Benchmark StudySM, publishing late this month, measures the consumer experience in engaging with companies via social media. The study explores consumers’ social media experiences with both marketing and service across 100 US brands in a number of industries including some of the following:
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Retail Banking: Bank of America, Chase, and Citibank
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Credit Card: American Express and Wells Fargo
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Telecommunications: T-Mobile, Verizon, and AT&T
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Airline: American Airlines, Delta Air Lines, and Virgin America
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Automotive: Toyota, Ford, Kia, Dodge, and Mercedes-Benz
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Utilities: Southern California Edison and Duke Energy
Join our J.D. Power research team for a complimentary preview webcast and be among the first to hear the J.D. Power and Associates 2013 Social Media Benchmark StudySM results.
Register now to learn:
- How do retail banking and credit card brands perform in their social media efforts relative to other brands within and across industries?
- What are the biggest challenges holding financial service companies back from better social performance?
- How do top performing companies across industries “do what they do” to deliver customers the best social experience possible?
WEBCAST DETAILS
DATE: Tuesday, January 29, 2013
TIME: 2:00-3:00 pm ET
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on January 9, 2013, at 1:58 pm
 Social novices and mavens, what goals are you setting in 2013 to strengthen your social relationship with consumers? Consumers know what they want from their social media interactions with brands, but do you know how they are looking to engage?
To better understand this challenge, J.D. Power and Associates recently hosted an online research community. Based on that research, three goals emerged that companies should focus on in 2013.
- How consumers are looking to engage with brands
- Which social efforts most grab consumers’ attention
- How you can begin to make the most of your social efforts in 2013
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on January 4, 2013, at 11:45 am
Original post by Banking.com Staff on December 28, 2012
 As announcements go, it wasn’t a very big deal when the British Bankers’ Association said at the end of the year that it is urging its 200 member banks to participate in a broad, two-pronged initiative to boost the industry’s image. Part of the plan is to monitor “people’s concerns before they become massive scandals”—a worthy goal, to be sure. But this wasn’t an isolated symptom of the problem. At around the same time, a Financial Times survey of 93 Members of Parliament revealed that fully two-thirds of the legislators believe British banks should be required to create a stronger barrier between investment banking and what’s known as ‘high-street’ operations. More worryingly, this wasn’t a liberal push for more regulation—the number of Conservative MPs backing the idea is actually higher than their Labour counterparts. There’s already a proposal to create a ‘ringfence’ around retail banking, but the new research indicates that many think the changes don’t go far enough.
That’s really the recurring theme here. If 2012 was a year of major change for banking institutions and individuals around the world, then 2013 will require even more.
A tsunami of bad news throughout the year was capped off by the news late in December of massive fines levied against UBS. The Swiss banking conglomerate ponied up $1.5 billion to global regulators, including $700 million to the Commodity Futures Trading Commission (CFTC) alone, the largest such settlement in the agency’s history. The fines stemmed from the charges of manipulation directed primarily at the bank’s Japanese securities subsidiary, all part of the mushrooming Libor scandal. Continue reading ›
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on December 6, 2012, at 7:07 am
Original post by Banking.com Staff on December 4, 2012
In a recent blog on Banking.com, we explored how small businesses don’t always get the respect they deserve from the banking world. There’s no question that this sector of the economy is always vital, and increasingly optimistic. In fact, the number of businesses that report being ‘better off’ jumped from 16 percent in 2009 to 33 percent in 2012. This is also a market rich with possibility: on average, small businesses hold deposits four times greater and loan balances 15 times greater than retail banking customers.
And yet, this market continues to rank near the bottom in banking satisfaction. So what’s going on—and what can the industry do to make thing better? The new J.D. Power and Associates 2012 US Small Business Banking Satisfaction Study, a comprehensive research report that identifies and highlights the situation described above, digs deeper into the problems and identifies many of the pain points.
As mentioned in the previous blog, credit is still the primary issue, but it’s not the only one. The J.D Power study lays out more fundamental problems too. In particular, while small businesses are sometimes lumped in with retail banking, there are major differences between the two. Continue reading ›
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on November 29, 2012, at 11:21 am
J.D. Power is committed to helping companies understand and navigate the rapidly changing landscape of social media. To that end, the 2012 Social Media Usage Study has been piloted to examine how consumers are currently using social media to interact with companies and to understand the current social media practices companies employ. To continue looking at how companies interact with consumers via social media, we will be releasing the comprehensive study, collaborating directly with businesses and consumers, in January 2013 that fully examines why and how consumers engage with companies via social media.
In the meantime, take a look at the topline findings from the study pilot in the whitepaper titled “Understanding the Impact of Social Media on Companies.”
Download the Whitepaper
What else would you like to see out of this study?
Posted By Karen Licker, Financial Services Social Media & Marketing (Independent) at J.D. Power and Associates, on November 21, 2012, at 7:12 am
By Jeffrey P. Marsico, Executive Vice President of The Kafafian Group, Inc
This post originally appeared on Jeff for Banks
I had a very interesting conversation with a bank client today. He called me to discuss, among other things, his bank’s expansion strategy. During the discussion, I mentioned that I had recently driven by one of his branches and that it was the biggest in town. What he said about it inspired this post.
Being the biggest branch in town, in terms of square footage, is not something cheered among industry pundits these days. Indeed, if I were to summarize the sentiment, it would be that future branches would be much smaller, but with big a** signs. Those were another bank consultant’s words, not mine.
This CEO isn’t buying it. He said that since that branch underwent a $1.5 million renovation, its deposits grew by 40%. In prior years its deposit totals had remained in a relatively tight band. He opined that it is “amazing what visibility, access, and egress” does for a branch. He also said that his business owner customers demanded a nearby branch.
But he did not think the branch had to be in the same town as the business. The next town over would due.
Now that makes sense to me. If it costs, on average, $600,000 per year in operating expenses to run a standard branch, wouldn’t it make sense to build a large, marquis-type branch in every other town that cost $800,000 per year? By abandoning the every town strategy, you effectively save $400,000 per year. Continue reading ›
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U.S. Financial Services Study Release Dates for 2013 JANUARY
Social Media Benchmarking Study
APRIL
Retail Banking Satisfaction
Financial Advisor Satisfaction
MAY
Customer Switching & Acquisition
Full-Service Investor Satisfaction
JUNE
Self-Directed Investor Satisfaction
JULY
Primary Mtg Servicer Satisfaction
Dealer Finance Satisfaction
AUGUST
Credit Card Satisfaction
OCTOBER
Credit Card Website Evaluation
NOVEMBER
Small Bus Banking Satisfaction
Mtg Originination Satisfaction
Consumer Auto FI Satisfaction
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FOR MORE INFO regarding these studies, please contact: Holly Zagresky at (248) 680-6319 or via email at Holly_Zagresky@jdpa.com
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