Cover Image
Market Research Report - 245838

Gauging the Effectiveness of Social Media in Financial Services

Published by Timetric
Published Content info 154 Pages
Price
Back to Top
Gauging the Effectiveness of Social Media in Financial Services
Published: June 22, 2012 Content info: 154 Pages
Description

Synopsis

Examining the suitability of social media for financial service providers, this report:

  • Provides insight into social media practices
  • Details the demographics of current social media users
  • Examines the potential costs, and ROI, of social media strategy
  • Examines different platforms and methods of engaging with customers
  • Includes case studies including American Express, Jyske Bank, Bank of America and BBVA

Summary

Social media and Web 2.0 are characterised by

  • Access to direct contact with virtually anyone, person or institution, connected to the Internet
  • Access to print/publication and wide potential dissemination
  • Quick responses
  • Permanency (all content published at any date and by any publisher can easily be found through simple research)

These factors have generated

  • A new code of social interaction and communication
  • By extension, because social media is becoming the predominant medium of interaction between people, new demands from customers

Scope

  • A best seller from 2011, this report has been updated to take account of the frenetic activity in social media into 2012
  • It examines the future use of social media in financial services, as well as prospective trends
  • A wealth of data and case studies are provided
  • This report examines in detail the difference between Web 2.0 and 1.0 which preceded it
  • The elephant in the room is also discussed - can social media ever become profitable?

Reasons To Buy

  • Be brought up to speed on the latest thinking, data and trends in this highly visible, specialist area of social media
  • Social media is consumer led. Find out how consumers and financial institutions are reacting to each other
  • See what direction the interaction is heading with tablets and smart phones
  • Find out what the key metrics should be
Table of Contents

Table of Contents

Executive Summary

Table of Contents

Table of Figures

List of Tables

1. Introduction: What is social media?

  • 1.1. Definition
  • 1.2. Penetration
  • 1.3. Categories
    • 1.3.1. Blogs / Wikis
    • 1.3.2. Social networking
    • 1.3.3. Case study: Facebook
    • 1.3.4. Case study: LinkedIn
    • 1.3.5. Case study: Twitter
    • 1.3.6. Case study: YouTube
  • 1.4. Is Web 2.0 a Revolution?
    • 1.4.1. Web 1.0
    • 1.4.2. Web 2.0
  • 1.5. Summary

2. The risk of financial disintermediation

  • 2.1. Arrival of newcomers - social banking
  • 2.2. Creative start-up examples
    • 2.2.1. Leveraging collective intelligence to provide curated financial information
    • 2.2.2. Case study: seeking alpha
    • 2.2.3. Ex. SumZero
    • 2.2.4. Why contributing / sharing?
    • 2.2.5. Proven efficiency?
    • 2.2.6. Case study: Fool.com
    • 2.2.7. Case study: value investors club
  • 2.3. Direct competition with traditional institutions
    • 2.3.1. Case study: theflyonthewall.com
    • 2.3.2. Social money
    • 2.3.3. Peer-to-Peer lending
    • 2.3.4. Currency exchange P2P
    • 2.3.5. The big players
  • 2.4. Causes
    • 2.4.1. Transparency
    • 2.4.2. The customer is more knowledgeable
    • 2.4.3. Technological progress and adoption rate
  • 2.5. Limits of the Porter model in terms of distribution channels and the innovator's dilemma
    • 2.5.1. Porter model perspective
    • 2.5.2. Innovator's dilemma perspective
    • 2.5.3. Characteristics
  • 2.6. What could stop these newcomers?
    • 2.6.1. FS regulated, risk disintermediation limited
    • 2.6.2. Customer retention: What they say and what they do
  • 2.7. Conclusion: how can banks face the challenges newcomers propose?

3. Estimation of ROI

  • 3.1. Introduction
  • 3.2. ROI measurements
    • 3.2.1. Social ROI: measure what matters
    • 3.2.2. Finding the right key performance indicators
    • 3.2.3. Quantitative measurements
    • 3.2.4. Qualitative measurement
    • 3.2.5. Competitive measurement
  • 3.3. Budgeting a social media project
    • 3.3.1. Case study: social media project basic budget
    • 3.3.2. Internal changes and ROI
  • 3.4. Sales and ROI
  • 3.5. Advocacy and ROI
  • 3.6. A study of "The true value of social media"
  • 3.7. ROI and cost savings
    • 3.7.1. ROI and PR/advertisement
  • 3.8. ROI and communication costs
  • 3.9. ROI roadmap
    • 3.9.1. Establishing a baseline
    • 3.9.2. Create activity timelines / compare with sales revenues and number of transactions
    • 3.9.3. Measure transactional precursors - Analyse sentiment
  • 3.10. Overlay for analysis and look for patterns
  • 3.11. Conclusion: leveraging relationships creates ROI

4. Are social media platforms made for financial services

  • 4.1. Is social media made for the corporate world, especially financial services?
  • 4.2. Do customers really want a relationship?
  • 4.3. The top 150 banks on Facebook
  • 4.4. Financial services on Web 2.0
    • 4.4.1. Reluctance
    • 4.4.2. Inexperience
    • 4.4.3. Global objectives
    • 4.4.4. Actions taken

5. The New customer of social media

  • 5.1. Demographics of social media users
    • 5.1.1. Gen Y is not the largest segment
    • 5.1.2. Social media in banking
    • 5.1.3. Private banks lagging behind in social media
  • 5.2. Look for Gen X, Boomers, and Seniors
    • 5.2.1. A few key findings on social media by Nielsen, May 2011
    • 5.2.2. The rise of women
  • 5.3. Why are social media users drawn to financial services online?
    • 5.3.1. Reasons to look for financial services online: information
    • 5.3.2. Reasons to engage with companies: discounts and promotions
  • 5.4. Gender differences
  • 5.5. Reasons for buying online: a better price
  • 5.6. A multichannel approach: ROPO effect
  • 5.7. Other key facts
    • 5.7.1. Google is the portal
    • 5.7.2. Familiarity matters
    • 5.7.3. Trust and customer advocacy
  • 5.8. The social world and the reality: customer loyalty and retention

6. Uses of social media for financial services

  • 6.1. Image
    • 6.1.1. Live image management
    • 6.1.2. Corporate communication
  • 6.2. Branding
    • 6.2.1. Case study: Smartypig.com
  • 6.3. Smaller players fare better
  • 6.4. Jyske Bank: Differences - how to create a strong brand identity
    • 6.4.1. Empowered branch staff for empowered customers
    • 6.4.2. Branch design
    • 6.4.3. Building brand awareness - Jyske Bank
    • 6.4.4. Jyske: A cultural overhaul
  • 6.5. Customer engagement / advocacy
    • 6.5.1. Advocacy
    • 6.5.2. Case study: Facebook
  • 6.6. Real-time market research
    • 6.6.1. Case study: Procter & Gamble
    • 6.6.2. Case study: Bankrate.com
  • 6.7. Product Development
    • 6.7.1. Case study: Priority Club rewards credit card product.
  • 6.8. Support & customer relations
    • 6.8.1. Complaint resolution
  • 6.9. Community support and "crowdsourcing"
    • 6.9.1. Case study: E*TRADE
    • 6.9.2. Case study: American Express OPEN small business online community
  • 6.10. Sales
    • 6.10.1. Improvement of sales channel
  • 6.11. Disintermediation of sales channel
    • 6.11.1. Case study: Myrate.com
  • 6.12. Innovation of sales channel
    • 6.12.1. Case study: tu cuentas BBVA
    • 6.12.2. Case study: Kasasa
  • 6.13. Networking and Information Sharing
    • 6.13.1. Case study: Investment banking IM / Twitter
    • 6.13.2. Case study: Twitter and farmers
  • 6.14. Human resources
    • 6.14.1. Foster innovation and improvement
  • 6.15. Recruitment
    • 6.15.1. Case study: UPS
  • 6.16. Conclusion

7. Difficulty of implementation of social media for financial services

  • 7.1. Limited appeal
    • 7.1.1. Boring content - limited audience
    • 7.1.2. Time constraints
  • 7.2. Poor fit with a web 2.0 environment
    • 7.2.1. Loss of control
    • 7.2.2. Trust
  • 7.3. UK branches are a powerful customer-retainer for banks
  • 7.4. Compliance limitations
    • 7.4.1. Case study: Twitter
    • 7.4.2. Case study: Bank of America Merrill Lynch
  • 7.3. No vision of social media
    • 7.3.1. Wrong perception of social media
    • 7.3.2. Lack of consistency
    • 7.3.3. No long term vision.

8. Social media strategy

  • 8.1. Introduction: The range of a social media strategy
  • 8.2. Before venturing into social media
    • 8.2.1. Listen
    • 8.2.2. Engage and organize conversations
    • 8.2.3. Set up a communications policy
    • 8.2.4. Prepare for a variety of content and an efficient handling
    • 8.2.5. Set correct expectations on the users' side
  • 8.3. Optimize the communication channels
    • 8.3.1. Blogging
    • 8.3.2. Social networking
    • 8.3.3. Rating and reviews
  • 8.4. Acquire new skills
    • 8.4.1. Accept to cede some control
  • 8.5. Counteract the anonymity
    • 8.5.1. Adopt a new tone
    • 8.5.2. Case study: National Australia Bank
  • 8.6. Propose different kinds of participation
    • 8.6.1. Give exclusive content
    • 8.6.2. Give entertainment and/or prizes
    • 8.6.3. A word of caution
  • 8.7. Projects involving entertainment should be carefully conceived
    • 8.7.1. The right team
    • 8.7.2. Overcome the silos
    • 8.7.3. Protect and comply

9. Suggested Roadmap

  • 9.1. Several levels to social media action
    • 9.1.1. Minimum presence: public relations / CRM (basic)
    • 9.1.2. Raise visibility and profile: become a news provider
    • 9.1.3. Start conversations to get to know customers: business intelligence /marketing /product development
    • 9.1.4. Immersion in social media: advanced social media use
  • 9.2. Elements to concentrate on in developing a social media strategy
  • 9.3. Considerations to keep in mind

10. Trends to come

  • 10.1. Introduction: 3 phases of behavioural disruption
  • 10.2. The move to mobile and tablets
    • 10.2.1. Smartphones
    • 10.2.2. Tablets
  • 10.3. Mobile and tablet-based innovation in service
  • 10.4. Sales and marketing merge
  • 10.5. Values of social media

List of Tables

  • Table 1.1: Facebook subscriber growth between 2011 and 2012
  • Table 3.1: Leading banks with Facebook likes

List of Figures

  • Figure 1.1: Years for technology to reach mass adoption
  • Figure 1.2: Social Media: Technologies & Trends
  • Figure 1.3: Facebook/Twitter - Growth of users (In millions)
  • Figure 1.4: Number of visitors Facebook/MySpace/Twitter/LinkedIn
  • Figure 1.5: Region wise growth of Facebook over past five years (2007-2011)
  • Figure 1.1: Obstacles and solutions for online payment in Russia
  • Figure 1.2: Lending via bank or P2P
  • Figure 1.3: Worldwide examples of social lending - past & present
  • Figure 1.4: Currency Fair advertisement
  • Figure 1.5: Hyves Payment logo
  • Figure 1.6: Do you shop around for financial products? EU customers
  • Figure 2.1: What percentage of your financial institution's budget is allocated to online/digital marketing?
  • Figure 2.2: To what extent are the following business objectives of your firm's social media efforts in 2010 and 2012?
  • Figure 2.3: Does your strategy include business fundamentals like cost saving and revenue generation
  • Figure 2.4: The Social Media Measurement Compass
  • Figure 2.5: Methods of Measuring social Media Marketing
  • Figure 2.6: Social media programs and metrics can demonstrate ROI
  • Figure 2.7: What metrics are you using to measure the value of your social marketing activities
  • Figure 2.8: Example of Conversion Metrics
  • Figure 2.9: Return on Investment
  • Figure 2.10: Organize digital actions by categories
  • Figure 2.11: Partition of customers' actions
  • Figure 2.12: % of those who initiated conversations about the brand
  • Figure 2.13: Where people talked
  • Figure 2.14: How much they talked
  • Figure 2.15: How much they talked - Results
  • Figure 2.16: How they influenced purchases
  • Figure 2.17: The number of purchases influenced by 100 consumers
  • Figure 2.18: Example of cost savings through social media
  • Figure 2.19: Diagram of communication channels
  • Figure 2.20: Baseline establishment
  • Figure 2.21: Measure transactional precursors - 1
  • Figure 2.22: Measure transactional precursors - 2
  • Figure 2.23: Overlay all timelines
  • Figure 2.24: Percentage of Firms that Consider the Following to be a Strong Objective of their Social Media Efforts
  • Figure 3.1: How often do you tweet
  • Figure 3.2: When did you first sign up
  • Figure 3.3: How often do you log on to read tweets from those you follow
  • Figure 3.4: How many accounts do you follow
  • Figure 3.5: Wikis, forums and blogs have popular appeal
  • Figure 3.6: Top 25 industries on the Netprospex Social Index
  • Figure 3.7: Top reasons for defection from banks in 2011
  • Figure 3.8: The most satisfactory channel of banking
  • Figure 3.9: Why did you become a fan of Facebook?
  • Figure 3.10: Why did you become a fan of Twitter?
  • Figure 3.11: If your financial advisor invited you to be a friend on Facebook, how likely would you be to do so?
  • Figure 3.12: Top 20 jobs on the Netprospex Social Index
  • Figure 3.13: Which statement best describes your firm's experience regarding social media
  • Figure 3.14: Which statement best characterizes your financial institution's online marketing efforts
  • Figure 3.15: In what two areas do you believe external social networks can provide the biggest boost to your organization in the future?
  • Figure 3.16: Which of the following marketing tactics does your financial institution actively deploy
  • Figure 3.17: Web 2.0 and Social Media applications your financial institution actively deploy?
  • Figure 3.18: Type of industries most active on Twitter
  • Figure 4.1: Frequency of using social media sites - by age
  • Figure 4.2: Age distribution on social network sites
  • Figure 4.3: Social Networking Penetration among Worldwide Demographic Groups
  • Figure 4.4: the male and female population of social media sites
  • Figure 4.5: Top countries Facebook users
  • Figure 4.6: Top countries Linkedin users
  • Figure 4.7: Top 10 online categories by share of total Internet time >>Home and Work
  • Figure 4.8: Average Hours per Visitor on Social Networking by Region
  • Figure 4.9: Social Networking Engagement among Worldwide Demographic Groups
  • Figure 4.10: Top 10 US Social Networks and Blogs >>Unique Audience (000s), Home and Work
  • Figure 4.11: Top 10 US Web Brands by Total Minutes, in Billions, Home and Work
  • Figure 4.12: Reach of Top Categories in Europe for Web browsing
  • Figure 4.13: Average number of webpages visited during online research process
  • Figure 4.14: Number of financial search queries launched by customer on average, by product category or contract
  • Figure 4.15: What is the primary reason you are a Facebook fan
  • Figure 4.16: What is the primary reason you are a Twitter follower
  • Figure 4.17: Reasons for Engaging in Social Media with your Bank
  • Figure 4.18: Number of brands followed on Facebook
  • Figure 4.19: New contracts by sales channel
  • Figure 4.20: Share of new contracts, by sales and research channel
  • Figure 4.21: Online channel is of fundamental importance
  • Figure 4.22: Mean number of pages visited/search queries made
  • Figure 4.23: Share of online research processes
  • Figure 4.24: Share of search queries by customer with new contracts, by type of keyword used
  • Figure 4.25: Shares of search queries, by type of keyword and time of search process
  • Figure 4.26: Switching behaviour comparing data
  • Figure 5.1: Capture screens of negative tweets about banks
  • Figure 5.2: Which of the following marketing tactics does your financial institution actively deploy?
  • Figure 5.3: Probability of buying/recommending a brand product since becoming a fan/follower
  • Figure 5.4: Screenshot of BofA Twitter page
  • Figure 5.5: Screenshot of Citibank Twitter page
  • Figure 5.6: USAA screenshot
  • Figure 6.1: Duration of visits to financial websites
  • Figure 6.2: How much do you trust the following industries to do what is right?
  • Figure 6.3: Social Media Strategy is not Digital Marketing Strategy
  • Figure 7.1: First direct live screenshot
  • Figure 7.2: Does your organization have a formal policy regarding employee use of external social network sites such as Facebook, Twitter and LinkedIn?
  • Figure 7.3: Has your organization's reputation ever been negatively affected as a result of employees' use of social networking sites?
  • Figure 7.4: Social Media Strategy Model
  • Figure 7.5: Characteristics of linkbuilding sites
  • Figure 7.6: Google search for "Wainwright Bank"
  • Figure 7.7: NAB advertising board
  • Figure 7.8: Comparison of assets and mentions for financial services companies as resensed on Social Media
  • Figure 8.1: The Brand Reality
  • Figure 8.2: Forrester vision of the future of digital financial services
  • Figure 9.1: Behavioural disruption for banking due to new technologies
  • Figure 9.2: Smartphone operating systems
  • Figure 9.3: E-commerce and Related Services Accessed by % of Smartphone Users
  • Figure 9.4: Smartphone Penetration in EU5 and US by Market Reach
  • Figure 9.5: Number of Mobile Phone Global Users
  • Figure 9.6: Top Activities Performed in a Retail Store by % of Smartphone Users
  • Figure 9.7: Percent of Mobile Owners That Also Own Tablet in EU5
  • Figure 9.8: Share of Connected Device Traffic in EU5
  • Figure 9.9: Share of Device Page Traffic over a Day in EU5
  • Figure 9.10: Wells Fargo ATM finder screen capture
Back to Top