Should Banks Be Trending?

Pin it, post it, share it, snap it, tweet it, yelp it! Social media may be a trending topic, but does it make sense for financial institutions to include it as an integral part of their marketing strategy?

The answer according to Brenna Keough, Digital Strategist at ZAG Interactive and a myriad of other digital strategists is a resounding yes! [1] 

Here are two reasons why.

1. Stronger customer relationships
2. Increased sales

Social media offers a unique ability to establish and maintain two-way relationships with customers. For example, banks can use social media as a platform to provide industry insight, increasing confidence in the bank’s dedication to a consumer’s financial well-being. Customers can respond and give feedback on ideas and products in the form of comments and likes.

Customers also enjoy the added convenience of having access to customer support via social media. In fact, a study performed by McKinsey & Company found that some consumers actually prefer to connect with customer service via social networks. Importantly, a substantial percentage of these consumers represent the affluent Gen Y population. [1]

Furthermore, 44% of mass affluent consumers (those with $100K to $1 million of liquid financial assets or those with a household income over $75K) that use social media, interact with financial institutions on social media. [2] 

So, how does smart social media marketing translate to increased sales? 
LinkedIn’s Grazel suggests that “Buyers are not informed or persuaded by advertising alone and are using the web and social networks to educate themselves on potential purchases. This is especially true in the financial sector.” [2]

Case in point, a study performed by LinkedIn found that 63% of mass affluent consumers were motivated to take action after learning about financial products and services on social media specifically. [2]

Social media may also affect the leads your institution is able to generate. Google’s algorithm ranks businesses with reviews higher in search engine results than businesses with no, or few endorsements.  Google considers product reviews as one indication of popularity. If your institution has few reviews, your organic ranking will be downgraded. [3]

If you are a financial institution aiming to strengthen customer relationships and drive sales, consider starting or expanding your social media marketing efforts today. If you’d like to learn more about how Micronotes leverages social media to drive deeper relationships – contact us!