Social Media has penetrated every sector and banking is no exception. Banks are smartly utilizing social media tools to enhance brand value, drive revenues, develop customer relationship, and enhance customer experience, giving personal touch to the services offered, and promoting their offerings or products.
To be successful in any business, it is important to know where your customers are, what their likes, dislikes and needs are. The future is clearly to be in touch- Online, as the world rapidly becomes “wired”. There is a constant increase in the number of banks using social media platforms for communication. Gone are the days where customers had to either wait in long queues to know about fixed deposit schemes or wait on phone to talk to the customer care. Social media offers a new way of creating value and mutual benefit for the companies and customers.
Around 40% of the banks use some type of social media (blogs, twitter, community, video cast, bookmarking etc.). Figures depicting Bank’s Customers usage of Social Media. (Source – Global Trends)
As stated in the figure around 18% users have expressed dissatisfaction on social media. These figures are quite alarming and need to be addressed intelligently. Everything has its benefits and drawbacks and this holds good with banking domain as well and the latter requires more attention.
Apart from various benefits of social media, banks also have to take care of risks associated with it. Social Media if not used carefully can have an adverse effect. Security is probably the biggest concern, with the perception that social media sites are vulnerable to hacking and compromise. Banks have to take reasonable measures to address this problem by educating the users online, writing blogs, sharing brochures, technology they are using at the bank etc. Also banks can educate users online about the fraud that might happen and the precautionary measures they should take. Focus of banks should move from being present on all the channels to addressing customer problems by utilizing the available social media tools.
The Banking sector is well aware of the potential value of engaging with social media, and also is aware that in the present wired world, consumer behavior is increasingly influenced by social media as the percentage of people “online” is increasing rapidly. Using social media analytics smartly is the way to go forward.
By Sheetal Sharma
Sheetal is Assistant Manager-Marketing at CustomerXPs. She can be reached at firstname.lastname@example.org
CustomerXPs offers real-time, intelligent products that empower banks with instant insights enabling influenced outcomes of deeper customer engagement and fraud-free transactions.