Social Media Isn’t Just for Servicing

cut up debit cardIn addition to servicing, social media is an important forum for regular communication and marketing….especially among those customers looking to switch banks.

According to our J.D. Power and Associates 2013 Social Media Benchmarking StudySM, after interacting with a bank’s social media site (e.g. Facebook, Twitter, or YouTube), 45% of customers had a more positive impression of their bank, while just 4% had a more negative impression. Banks should be cognizant of the negative effects their social marketing efforts (or lack there of) may have on consumers’ perceptions of the brand, and also on the bank’s bottom line.  

Did You Know that……

Of the customers that are using social media during the shopping process, 75% are comparing multiple brands while only 25% are considering a new account with their primary bank?   

20% of all switchers are more likely to use social media info to drive their overall selection?

In the study, we also asked respondents “How did social media impact your decision to open a new account/product with your primary bank?  Below are some verbatim responses we collected:

  •  ”Social media gave me an outlet to look at recommendations from my friends for other financial institutions that I normally would not have considered.” - Community Bank customer
  • “Gave a new perspective on what people liked/did not like about their local branches” - Large Bank customer
  • “My bank has offers on Facebook, it not offers just information about their services.” - Large Bank customer
  • “Good comments from friends on Facebook and good comments in blogs about my bank convinced me to try them.” - Large Bank customer 
  • “I tried to reach out to the bank through this channel and they promptly responded to my question- Community Bank Customer
Want to learn more about our J.D. Power and Associates 2013 Social Media Benchmark Study,SM  including banking and credit card brand performance? 
Contact Karen Licker at karen_licker1@jdpa.com
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Your Bank Hasn’t Earned the Right to be on LinkedIn

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.
You can find his insights on issues facing the financial industry at http://ihelpbanks.com/ and on Twitter @BankMarketing. You can also connect with him on LinkedIn at http://www.linkedin.com/in/markzmarzly.
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Poor Social Media Practices can Negatively Impact a Bank’s Bottom Line

dislikeBusinesses 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? 
Contact Karen Licker at karen_licker1@jdpa.com
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Three Social Media Goals Banks Can’t Ignore in 2013

social mediaSocial 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.

Download this complimentary J.D. Power Insight to  learn:

  • 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

download now

 

 

 

 

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Interact Better with Your Customers via Social Media – Coming Soon in the 2012 Social Media Usage Study

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?

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A Few Post Halloween Banking Tips &Treats

In case you missed a few of our recent online events and complementary research reports, we’re including them for you here.  We promise, just like the day after 1/2 price Halloween candy, it’s not a trick. Just a heartfelt way for us to treat you, our loyal banking fiends and fans for your continued supportEnjoy!

What Do Small Business Owners Expect From Their Bank?

This exclusive webcast provides an inside look into the results of our J.D. Power and Associates 2012 US and Canadian Small Business Banking Satisfaction Study that will be released next week.  Below are only some of the many issues discussed during the webcast:

  • How customers’ perceptions have changed since 2011
  • The latest trends emerging in the small business banking industry
  • Which factors are having the biggest impact on customer satisfaction

Download the full webcast

The Dividends of Improving Best Practices for Social Media Research

In this whitepaper, we’ll show you that without well-established and proven guidelines on query construction and data extraction, very different results and conclusions can be obtained by different analysts attempting the same social media data search.

In extreme cases, analysts can create such highly divergent queries that the associated data leads to different answers to even simple questions, such as:

  • Which brand is my main competitor?
  • Is Product1 more of my brand’s conversation this month centered around product?
  • Is the sentiment expressed toward my brand this month more or less positive than the sentiment expressed toward my brand last month?

Download the full whitepaper

Using Voice of the Customer Information to Improve Business Performance: 5 Keys to Success

This presentation explores how clients use J.D. Power and Associates and other Voice of the Customer data with ROI or other business metrics to analyze under-performance to drive improvement.

Download the full presentation Continue reading ›

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Are Bankers Ready For The Bank 3.0 Reality?

A Guest Post By:   Jim Marous, SVP of Corporate Development at New Control
In an exclusive interview about his newest book, Bank 3.0, Brett King discusses how change occurring in the banking industry is inevitable, speeding up and disruptive. From the mobile wallet wars to the impact of social media, tablets and the ‘de-banked’ and digital consumer, Bank 3.0 shows why banking is no longer a place you go to, but something you do.

____________________________________________________________________

A great deal has happened since Brett King wrote Bank 2.0 in 2010. Two years ago, banks were under siege as the foundation of the banking system was close to collapse and the image of the industry as a safe and secure environment was being challenged. The impact of social media was just beginning to be understood by the financial services industry and mobile technology as we know it today was in its infancy. Heck, King even referenced his (now long gone) Blackberry in the first chapter of Bank 2.0.

With Bank 3.0, King discusses how consumers are less likely to view their retail banking provider in terms of capital adequacy, branch network, products and rates. Instead, customers are more likely to determine their banking partners by how easily they can access their accounts when they need to, and how much they trust their provider to execute business on their behalf. For those who read Bank 2.0, King’s new book retains some of the foundation and case studies, but updates several areas based on what has occurred (and will be occurring) relative to digital delivery, payments, social media, and the power of ‘big data’.

On the eve of the introduction of Bank 3.0 in the U.K. (introduction in the U.S. is scheduled for early November), I interviewed Brett King about his new book and about how he views the banking industry today. 

_____________________________________________________________

What has occurred in the marketplace that warranted the publishing of Bank 3.0 just 2 years after your successful book, Bank 2.0?

Brett King: The marketplace has changed significantly around how consumers are engaging with their financial institutions. Compared to two years ago, traditional banks are challenged more than ever from a distribution perspective because of the movement to mobile and digital channels, and because they are not well positioned with their current bricks and mortar networks for a positive customer experience. The philosophy of banks, with their secure firewalls, operational structure and compliance mindset, is counter to how any other industry engages with customers in the digital space. Since Bank 2.0, the competitive environment has also changed a great deal, with partnerships being developed, alternative players and new bank start-ups being introduced, underbanked segments emerging, and social media merging with bank service engagement. People are beginning to take a functional and utility view of banking, which is why I say in the subtitle of the new book, ‘banking is no longer a place you go to, but something you do’

Continue reading ›

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Satisfaction With Social Media Interaction

Social media, a non-traditional method of customer interaction is clearly becoming increasingly important for banks to understand.

It’s no longer just a vehicle for customers to vent about poor experiences, praise their bank for exceeding expectations, or read about other customers’ positive or negative experiences—it has now become a legitimate service channel!

Social media sites not only allow customers to interact with their bank, but also provide another medium to converse with representatives, get questions answered, and resolve problems. For example, data from our 2012 J.D. Power and Associates US Credit Card Customer Satisfaction Study shows that during the past 12 months, 5% of credit card customers have contacted their issuer through their social media site to ask a question, resolve a problem, or make a request.

Although many questions or problems may need to be handled outside of the social media site that was the initial contact, it is important for banks to show they are listening to their customers’ “pain points” by providing an actual response to the social media posting.

Did you know that only 60% of customers who contacted their credit card issuer via social media received a reply?

Needles to say, the impact of replying to a posting on overall satisfaction is profound, as Interaction satisfaction among customers who have received a reply to their social media contact is notably higher than among those who did not receive a reply (802 vs. 748, respectively). Findings from our recent study also revealed that optimizing customer satisfaction with their social media experience does not end at merely responding to the request, but that issuers should continue to focus on the following:

  • Resolving the initial issue at hand
  • Offering additional assistance
  • Thanking the customer for their business

When each of these best practices are met, Interaction satisfaction increases to 839, which is 91 points higher than when they are not met.

Source: J.D. Power and Associates 2012 US Credit Card Satisfaction StudySM    

The Bottom Line:

With the continued advancement of technology shifting the way customers interact with financial institutions, it is vital for banks to proactively respond to the changing demands of their self-service channels and understand the importance of being responsive to feedback posted on social media sites.

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Complementary Whitepaper: The Dividends of Improving Best Practices for Social Media Research

Social media is continuing to gain traction in the world of market research. While this is an exciting development that offers new opportunities for data collection, there is a potential downside. With so many tools available to so many different types of users, the “wild west” approach to social media data access may be leading us to questionable results. The ability to trust social media data that is delivered by market researchers will be called into question once stakeholders become aware of this issue. Without methodological rigor, results from social media research can at best simply be unreliable, and at worst lead decision-makers to draw wrong conclusions.

In this complementary whitepaper, we’ll show you that without well-established and proven guidelines on query construction and data extraction, very different results and conclusions can be obtained by different analysts attempting the same social media data search.

In extreme cases, analysts can create such highly divergent queries that the associated data leads to different answers to even simple questions, such as:

  • Which brand is my main competitor?
  • Is Product1 more of my brand’s conversation this month centered around product?
  • Is the sentiment expressed toward my brand this month more or less positive than the sentiment expressed toward my brand last month?

 

 

 

 

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Social Efforts in Financial Services

Did you know that consumers don’t single out social media as a separate experience with a company?  Instead, they expect social media to be a fully integrated and seamless  part of the overall brand experience.

This is one of the many insights shared with us over the past 90 days while we were engaging with FSI leaders about social media, Social CRM, social monitoring and intelligence, social within the internal organization and much more!  We hosted roundtables, had ad hoc conversations with existing clients and asked for direct feedback about their social media successes, failures and ongoing challenges.   As a result of our efforts, we’ve assembled a wealth of first hand insights and strategies on social media that we’d like to share with you!

Join us for a complimentary interactive webcast and we’ll provide the following:

  • Examples of how financial service institutions are using social intelligence
  • A gauge for where your organization falls in the journey to integrate social efforts into the business, marketing and research operations
  • Tools and tips to help you take the next step in your social media efforts
  • The opportunity to connect with others who are facing the same challenges you are

WEBCAST DETAILS

Date:  Wednesday, August 1, 2012

Time:  2:00-3:00 pm ET

 

 

Stay connected and join the other bankers following us!

    

 Use hashtag #jdpasocialFS to interact with us on Twitter during the webcast
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