Date post: | 27-Jan-2015 |
Category: |
Business |
Upload: | si-krishan |
View: | 108 times |
Download: | 2 times |
Social Media: Opportunities and Challenges for Banking
Ishwar K Sethi
Oakland University, and Integrated Knowledge Solutions
Outline
• Introduction
• How Can Social Media Help Banks?
• Social Media Analytics
• Social Media Adoption Challenges
• Summary
2
INTRODUCTION
3
What is Social Media?
“media for social interaction, using highly accessible and scalable communication techniques. Social media is the use of web-based and mobile technologies to turn communication into interactive dialogue.” Wikipedia
4
5
Social Media is About Conversations
6
What Makes Social Media Attractive?
Traditional media is one to many while social media is many to many
Instant low cost communication
7
What Makes Social Media Attractive?
• No distinction between media producers & consumers
• User generated content • Free borrowing and sharing of content • Rich user interaction
8
Social Media Characteristics
• Great variation in quality • Immediate consumption • Long tail characteristic
9
10
11
12
13
Why Social Media?
14
Why Social Media?
15
Why Social Media?
16
SOCIAL MEDIA & BANKS
17
How Can Social Media Help Banks?
• Monitor their brand identity
• Test new products and get feedback
• Develop conversations and build trust
• Find good quality employees
18
19
Social Media Usage Examples: Virtual Branch on Facebook
Auckland Savings Bank offers a virtual branch on facebook. With just one click you can start chatting with one of the bank’s agent.
20
Young & Free credit union of Alberta created a community of its target audience and gave them a platform to connect and discuss not only finances but other issues of interest as well. Result: Over 2000 new customers and over US$ 4M new deposits
Social Media Usage Examples: Community Building
21
Social Media Usage Examples: Marketing via Blogging
blog.wellsfargo.com/ StudentLoanDown
Wells Fargo has six other blogs or microblogs. These are working well to build their customer base and brand loyalty.
22
Social Media Usage Examples: Customer Service via Twitter
23
Social Media Usage Examples
• Product Research: 1st Mariner Bank (in Maryland) created a new type of checking account using customer feedback through social networking
• New social services:
– Peer to Peer Lending
– Personal Finance Management
24
Social Media Use at Indian Banks
25
Social Media Use at Indian Banks
26
SOCIAL MEDIA ANALYTICS
27
Social Media Analytics
• The goal of social media analytics is to provide meaningful insights to an enterprise from social media conversations. It involves for example, measuring and tracking customer sentiments, identifying “influential authors” etc. to gauge ROI.
28
Analytics Example
29
Analyzing Tweets
30
Analyzing Tweets
31
Sentiment Analysis
32
Sentiment Analysis
33
Sentiment Analysis: Another Example
Week 1
Estimated Approval Gallup Approval Estimated Disapproval Gallup Disapproval
43.10% 43% 43.50% 48%
Week 2
Estimated Approval Gallup Approval Estimated Disapproval Gallup Disapproval
45.3 43% 43.2 49%
Results of a class project on using Twitter to estimate President Obama’s approval 34
http://monitor.wildfireapp.com/
Tracking Likes on Facebook
35
36
http://tweet.grader.com/
Locating Influencers
37
A Framework for Social Media Measurements
38
Aligning Social Media Measurements with Business Goal
39
SOCIAL MEDIA ADOPTION CHALLENGES
40
Social Media Adoption Challenges
• Factors inhibiting effective social media adoption
– Strategic
• Many banks view social media as another channel for corporate communication and not as a collaborative medium. Thus limiting social media’s effectiveness
– Financial
• Not enough funds
• Not convinced about ROI
41
Social Media Adoption Challenges
• Factors inhibiting effective social media adoption
– Regulatory
• Many of the regulatory, compliance and legal issues are new, causing banks to move slow
– Organizational
• Effective social media use transcends traditional organizational boundaries calling for organizational changes that are difficult to implement
42
Social Media Adoption Challenges
43
Social Media Adoption Challenges
44
Approach to Social Media Adoption
• Must be customer centric – Understanding how customers use social media and their preferences is crucial
• Clear goals and metrics – Social media initiatives’ objectives must align with the bank’s business objectives
• Strategy – Must be guided by an enterprise vision and must encompass objectives, market analysis,
governance, performance metrics etc.
• Technology – Social media platforms must be integrated with bank’s analytics, CRM, marketing, and
security applications
45
SUMMARY
46
Take Home Message
• Social media growth is unstoppable; the platforms might change
• Banks can ignore social media only at their own peril
• Employing social media with well defined business objectives has shown to yield success
• Although social media deployment can be outsourced, initial implementation should be in-house to better understand social media’s usage and organizational issues that might crop up
47
48