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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