Social media & the us banking industry upo
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1. Social media provides an opportunity for US banks to regain customers' trust after the financial crisis through transparent communication. 2. In 2011, top US banks like Chase and Bank of America had millions of Facebook fans, showing social media's potential. However, privacy concerns around mixing personal finances and social media remain. 3. This case study will examine Citibank's social media strategy to address customer problems and questions, gather feedback, and turn negative comments into opportunities for customer support.
Social media & the us banking industry upo
- 1. conseil organisation management Réussir ensemble Social media & the US banking industry csa consulting 80, avenue de la Grande Armée, 75017 Paris Tél. : +33 (0)1 56 60 20 00 Fax : +33 (0)1 56 60 20 70 www.csaconsulting.fr
- 2. UPO Students & Social Media How many of you… - Have a account ? - Are fans of a brand on facebook ? -Are fans of a bank on facebook ? -Would prefer to connect through facebook or twitter to their bank instead of e mail, phone or branch ? -Would like to learn more about customers’ needs, expectations and fears on social media ? -Would like to learn more about how to design and implement a strategy on social media ? 30/09/12
- 3. If you have questions, we will have time to discuss further after the presentation…. But during the conference, you can connect to Twitter to @yvonmoysan and start to ask your first questions ! 30/09/12
- 4. Social media & the US banking industry in 2011 Facebook Focusing on financial institutions, 9 US brands are in the top 10 in terms of fans on facebook ! Focusing on commercial brands, Chase with 3 millions … of fans is currently ranked at the 700th world position… far behind Coca Cola (14th position with 24 millions of fans). Twitter Focusing on financial institutions, 3 US brands are in the top 10 in terms of followers on Twitter. Focusing on commercial brands, there are no financial institutions in the top 1 000 on Twitter. 30/09/12 Source : Social bakers, Juillet 2011 et Website-Monitoring, Avril 2010. Visible Banking Facebook & Twitter Watch, Août 2011. Twitaholic. 30/09/12 4
- 5. In the United States of America, in 2011 and after the financial crisis, banks regain customers’ trust. About 57 % of American bank customers trust their bank, compared to 47% of French bank customers… … However, a couple of months ago, American banks were in a completely different situation… 30/09/12 Source : Etude Deloitte pour l’Institut Harris Interactive, 2011. 30/09/12 5
- 6. Social media as an opportunity to regain customers’ trust ? After the financial crisis, trust in banks 58 decreased in the US. Regional Bank % Bank of America 31% Ing Direct 46% Chase 31% Wells Fargo 43% Capital One Bank 29% Primary objective : to rebuild 26 customer’s trust US Bank 37% Citibank % Charles Schwab 34% HSBC 16% On facebook or Twitter, a lot of negative comments were posted by customers. But, these new communication channels allowed banks to answer and customers to notice, in return, their satisfaction. Social media, a useful tool to regain customers’ trust ? 30/09/12 Sources : Forrester Research. Citi Bank, Building the social bank, Social media strategies, Mai 2010. 30/09/12 6
- 7. Social media & financial institutions, a real opportunity. 1 An opportunity 84 % of Internet banking customers use social media, and among them, 11 % use social media to connect to their bank. 2 A new way to reinforce customer relationship For all generations, primary motivations to connect are relational and not transactional. 3 A lack of awareness Among the customers who wanted to connect in the next future, 71 % declared that they did not know that this way of communication exists. 4 Online privacy and security: the fear factors Customers are uncomfortable with private life and personal finance mix. 5 The customer add value is not perceived Customers do not perceive the reason why they should connect to their bank through social media. 30/09/12 Source : Fiserv, Financial institutions and Social Media, Août 2010. Etude réalisée auprès de 3000 clients représentatifs de la population internautes américaine. 30/09/12 7
- 8. Social media could be an opportunity for US financial institutions to reinforce customers relationship… … but there are still some constraints and challenges to manage. Case study 30/09/12 30/09/12 8
- 9. Citibank social media strategy Problems / Complaints Questions 1 By seizing the opportunity ! Ratings / Reviews / Feedback Customer-to-customer support Negative comments Listen Misperceptions Kudos Determine Fix systemic issues response Reengineer Develop comms. processes Adapt Analyze approach Improve usability Apply policy / Enhance offerings procedure Page hits Comments Servicing Active users, Followers, Publish content Influencers Measure Engage Educate Favorites, Pass-alongs Enter dialogue Sentiment Target marketing Conversions Establish community Enhance Relationship 30/09/12 Source : Citi Bank, Building the social bank, Social media strategies, Mai 2010. 30/09/12 9
- 10. Citibank social media strategy 2 By designing a roadmap to reinforce customer relationship ! S1 2010 S2 2010 S1 2011 S2 2011 Preparing Activating Scaling Winning Consumer Listening Dialog Engagement Advocacy Best practice Competitive Challenger Industry parity Industry Leader Leader Organization Decentralized Centralized Centralized Distributed 3 By engaging customers and employees. By integrating Facebook and Twitter icons in customers ads. By launching Citi 2.0, an internal social media website allowing to 50 000 employees all around the world to share information on projects and to work together 30/09/12 Source : Citi Bank, Building the social bank, Social media strategies, Mai 2010. 30/09/12 10
- 11. Citibank social media strategy 4 To Reassure customers By communicating on potential risks … and by personalizing the customer relationship (in progress) 30/09/12 Source : Citi Bank, Building the social bank, Social media strategies, Mai 2010. 30/09/12 11
- 12. Citibank social media strategy 5 To deliver a clear add value to the customer A unique « bank » page 30/09/12 30/09/12 12
- 13. Citibank social media strategy 5 To deliver a clear add value to the customer To provide personalized offers To reach the customer service platform through Twitter To interact with customers who have the same interests To support a cause 30/09/12 fun To have 30/09/12 13
- 14. Citibank conclusion « It takes time to develop a strategy on social media, because you have to convince people internally and it requires open-mindedness. At Citi, it was a real cultural revolution, facilitated by our internal social media website Citi 2.0. It requires also to adapt to the customers needs and expectations, as an example we are currently developing ‘‘click to chat” and “click to call’’ solutions to allow private communications. In the near future, we imagine that our customers will use Twitter to communicate with their personal financial advisor and to manage their bank account.» Senior VP Social Media What about the other US financial institutions ? 30/09/12 30/09/12 14
- 15. What could be the future of social media in the US banking industry ? «Social media allow us to target a specific customer category like students or customers of a specific branch. We think that social media will allow us to develop a more targeted and more local communication». Senior VP Retail Payment Solutions & Internet Strategy «Our youngest customers do not reach their bank through physical channels like the branch, they also do not use so much phone or e mail compare to older customers. We think that social media will become a major communication channel for the millennium generation». Senior VP Experiential Marketing «We consider American Express as a best practice. Their social media campaign had a direct impact in terms of purchases volume. We think that social media will become a tool to develop sales in the next future». Senior VP Internet Managing Director 30/09/12 Source : Interviews réalisées auprès des différents experts Média Sociaux, Août 2011. 30/09/12 15
- 16. Let’s connect ! Questions & Discussion welcome ! fr.linkedin.com/pub/yvon-moysan twitter.com/yvonmoysan viadeo.com/fr/profile/yvon.moysan 30/09/12