The financial services industry is continuously evolving, and it is essential to optimize collections strategies to maintain liquidity and minimize risk. One of the most critical choices for credit un...
It’s no secret social media has made its way into millions of Americans’ everyday lives. These days, it’s basically essential that businesses have a social media presence—and for good reason. Your consumers—current and future—are actively using social media to engage with their favorite brands, make purchases, and seeking for social proof from their peers on products and services they are considering. According to Hootsuite, there are currently 4.2 billion active social media users, and that number is only expected to grow.
With the expected growth of social media users—and platforms—your institution has access to exponential opportunities to build a stronger brand, foster relationships, and increase product penetration. Here are four reasons why financial institutions should be using social media:
1. Increase Consumer Interactions
One of the factors that separates companies from one another is the level of customer service they provide to their consumers. According to Hubspot, “93% of customers are likely to make repeat purchases with companies who offer excellent customer service.”
Social media opens a new door to providing excellent customer service by acting as an additional communication channel to quickly resolve issues. It also allows you to easily gather consumer opinions and better understand what they come to expect from a financial institution by posting a simple question. Responding to both good and bad consumer comments can lead to a better business relationship, and it shows that you care about what is said of your brand and service.
2. Public Relations and Communication Tool
Social media is a great platform for public relations efforts and to use as a communication tool. News about your financial institution or local communities can be posted on social media as well as new products and services being offered. Like never before, your messaging has the potential for immediate amplification the more followers you have on your social networks. Remember, anyone who has chosen to follow your social channels has done so voluntarily, so you stand to make a greater impact because they have opted in to hear your message and receive your updates. Focus on providing valuable content and information that your consumers and followers will find helpful and worthwhile
3. Become a Go-To Resource for Financial Advice
According to HubSpot’s Annual State of Marketing Report, 89% of marketers leveraged blog posts in their 2020 content strategy. Blogs are a great way to share your knowledge and educate your consumers, but there are many other mediums your institution can deploy, such as video and case studies. Creating different types of content gives you a variety of information to share on your social media channels. Depending on your organization’s demographics (and the demographic you’re trying to attract), you should create and share content across the financial literacy spectrum—everything from basic budgeting to retirement planning. Your membership may vary, so it’s important to provide resources and information to reach a wide variety of consumers. When you display the wealth of knowledge that your institution has to offer, consumers will begin to see you as a resource for all of their financial needs.
4. Increase Networking Opportunities
According to an annual study conducted by the University of Massachusetts Dartmouth Center for Marketing Research, 95% of the 2019 Fortune 500 companies have Facebook pages and 96% have Twitter accounts. This is a good indicator of future adoption and emerging social trends. Networking doesn’t always have to be a face-to-face conversation; social media networking is more active than ever, and it can be attributed to social media helping to segment audiences based on commonalities. It is a great way for both employees and consumers to interact professionally. Plus, it helps develop more business opportunities for your financial institution. Referrals that once may have found their way to you by "word of mouth" advertising can now be attributed to today's "word of mouse" phenomenon. In essence, thanks to online connections, the networking that one person could do in an hour-long networking event, can now be done in mere seconds online—and with a greater reach.
With the billions of active social media users in existence, it's not a choice of whether or not you want to incorporate social media into your financial institution’s marketing mix, it's a matter of when and how you will incorporate it, if you're not already. With new social networks constantly emerging, it really is a necessity to keep up with consumers’ growing needs and wants. It is important for your consumers to feel connected with your institution. Many of life’s biggest events involve their finances, so it’s important to be there—when and where they need you.
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