By: Joe Gillen
The financial industry was slow to recognize the value of social media for marketing and customer service, but it seems it has since caught up. Despite the fact that many banks and credit unions have incorporated Facebook, Twitter and other�outlets�into their banking strategies, a recent article shows that they may not be maximizing its full potential.�
A study conducted by Pitney Bowes found that many financial institutions are lacking enthusiasm in regards to the effectiveness of their social media campaigns. Roughly 31 percent said they don't believe their social media campaigns are effective. However, this may be the result of the way banks and credit unions are utilizing social media. Separate studies reveal that businesses must follow a certain set of guidelines in order to keep consumers engaged, rather than frustrated, with their social media platforms.�For example, 65 percent of consumers said they would stop using a brand or product if they became annoyed with the bank's social media campaign, according to the Financial Brand.�
Building a strong social media campaign
Facebook, Twitter and other portals can be a positive way to measure customer satisfaction, provide customer service, promote new products and build relationships with customers. However, it's important that banks toss out a broad approach, and instead try to personalize their social media apps to ensure they are relevant to consumers, the Financial Brand reports. For instance, many banks are now using Twitter to respond to customer complaints, questions and inquiries. When consumers voice opposition to poor service or fees via Twitter feeds, some institutions are ready with a helpful response that works toward a solution. In fact, some even direct customers to contact a specific representative who can help them work through an issue.�
As a complement to this customer service step, it may also be an effective idea to use social media to monitor customer sentiment and knowledge. For example, many Facebook users rely on this channel to ask other members questions about banking products or to seek recommendations. Monitoring these discussions can educate banks and credit unions on the products and services upon which they can educate their members.
In addition, institutions may also consider personalizing their pages toward certain customer demographics. For example, banks and credit unions that are focusing on younger, more affluent customers for their mobile banking products may customize their Facebook and Twitter messages and posts specifically to these customers, while catering other categories toward different demographics.�