In 2013 research showed that the financial services industry in the UK had become the most “socially devoted” business sector: banks in the UK have embraced social media with open arms.
While some are focusing on delivering information about products and trying to generate leads, others are providing transactional services and engaging with their customers, providing a truly personalized service.
There are 5 key reasons why social media should be used in finance & banking as an important way to connect with customers:
1. Online image and reputation
Social media gives you a unique opportunity to connect with your target markets, be perceived as more genuine and authentic, win back angry customers and even turn them into brand advocates.
More and more financial institutions are also leveraging social media as a way to engage with students and young professionals and reach the attractive and elusive Generation Y market – not just as a banking strategy, but as an HR strategy.
Sooner or later, the wealth management industry will also have to engage with an increasingly knowledgeable and demanding market, in a more transparent way. Social media is a great way to do so.
2. Customer Service
Social Media is a great way to provide an excellent customer service, by responding promptly and openly to customers’ questions and keep the conversations going, creating strong relationships in the process.
Tesco Banking became a leader in Twitter for customer service last year winning the CCA Excellence Award for Best Use of Social Media.
With 188,00 followers, Tesco Banking is one of the companies that provides the quickest answers to customer’s questions.
3. Inform customers
Barclays is a great example of how they inform and take care of their customers online.
They update their customers about news and apps, and everything they need to know. Especially with the Barclays Digital Eagles, the new service to help people with digital services.
This is a great way to provide real value to customers, anticipating their needs and desires and keeping them informed, whilst connecting and keeping them engaged.
4. Show their human side
Banks and financial businesses have traditionally a very formal image, but this is changing with social media.
They’re showing their human side on social media through open communication. Depending on your company, you could even post images and videos of staff, offices and all the “behind-the-scenes” situations to show the faces behind the financial institution.
Engaging in normal, natural conversations via social media portrays your business as approachable and relatable.
5. Tactical Targeting
Enabling financial marketers to define their audience based on meaningful criteria, targeting can help institutions connect with the right consumers.
Social targeting permits users to distribute messages to individuals based on highly specific criteria, including geographic location, age, gender, career, education and interests — among other significant user information.
Such specificity increases the relevance of a given communication, improving the effectiveness of your financial institution’s efforts.
The ability to target consumers based on these fine details is particularly valuable for banks and credit unions, as they often operate in defined geographic areas with goals of attracting a specific demographic.
How does your financial institution fare on social media? Could it benefit from a more social, open approach? Let us know your thoughts, concerns and success stories in the comment section below.