Is Social Media catching banker’s attention?  It should be. 

Social Networking is becoming critically important in managing a company’s brand, getting product feedback, and communicating with customers.  Unfortunately, many bankers are viewing Social Media with the same skepticism with which they viewed the Internet 10 years ago.  Executives across all industries are starting to realize the extent to which Social Networking is revolutionizing the way people communicate and the speed in which information (good or bad) can spread across the Web. 

Today, more than 75% of Americans participate in some form of social networking through blogs, online forums, and networking websites.  There are over 200 million blogs, and Social Networking sites alone represent a staggering number of users:  Facebook (350 million users), Twitter (21 million users), LinkedIn (45 million users).  Social networks are also popular abroad: China’s QZone has over 300 million users.  Social networks and blogs have become the most popular online activity in the world.
 

To give bankers a feel for the opportunity or threat that Social Media represents, below are some statistics from Facebook:

• Facebook has more than 350 million active users
• 50% of their active users log on to Facebook in any given day
• More than 3.5 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) are shared each week – some of this represents product reviews or customer service experiences
• The average user has 130 friends on the site
• The average user spends more than 55 minutes per day on Facebook

Consider how quickly a person’s experience (good or bad) can be communicated when a Social Networking site has millions of users and interconnectivity with an average number of 130 “friends” per member.  The term “going viral” should come to mind.  This is especially relevant to younger banking customers.  By the end of 2010, Gen Y will outnumber Baby Boomers and 96% of them have joined a Social Network.
 

What does this mean to companies from a “brand” perspective?  It means that companies are no longer firmly in control of their brand; consumers are.  Twenty five percent of search results for the World’s top 20 largest brands are links to user-generated content (not company-approved advertising).  What customers are posting matters, and companies need to understand what’s driving conversations about their brand.
A good or bad customer experience can be posted within seconds from anywhere: cell phones, PDAs, or portable computers. And 78% of consumers trust those “peer” recommendations (only 14% trust advertisements) … imagine what that means for a bad customer experience? 

Likewise, customers can now search, via their Social Media interfaces, for products and services from anywhere, at any time.  There are applications that link a GPS to Social Media devices, allowing the tracking of movements and understanding the marketing dimension of physical location (e.g., advertising based on store proximity).  In the near future, consumers will no longer search for products and services; they will find us via Social Media and our communication devices.
 

What’s a bank to do?

Profit Technologies can help.  We can help you leverage Social Media, allowing you to:

1. Listen to what your customers are saying
2. Analyze and understand what you hear
3. Participate in Social Media conversations

We can help you leverage new tools to get early feedback on product launches, protect your brand, understand the customer, monitor the competition, engage customers that are influencers (either supporters or detractors), and identify sales leads.  In short, we will help you develop a Social Media strategy and select the right tools to allow you to be part of the revolution that is sweeping the world.
 

We know banks and we know technology….let us help.