Wednesday, April 22, 2015

Retail Banking and Consumer Generated Media

Retail Banking and Consumer Generated Media


Social media presents a valuable opportunity for retail banks. As internet access and smart phone adoption increase, a growing number of internet users are becoming involved with social networking. Banks are changing their business models and product offerings to be able to cater to the ballooning market of social media users. Banks and other financial institutions are engaging customers with social media, which is shaping up as a strong channel to promote new schemes, identify customer needs and receive feedback. Although the use of social media remains risky territory for many banks, internationally some have started to explore opportunities in this channel and have set out many best practices examples that can act as guiding principles for other banks and financial institution.

A great analytical tool is Nielsen Buzzmetrics.  It offers the following :

  • How consumers feel about your brands?
  • How online discussions and postings can power or deflate your brand?
  • Specific issues being discussed around your brand or organization.
  • Events, trends, issues and people influencing the buzz around your brand.
  • How online and offl ine marketing campaigns resonate with consumers?

Insights from Nielsen Buzzmetrics services help clients develop solid practices and take action for:

  • Driving brand advocacy
  • Protecting brand reputation and credibility
  • Developing new products and monitoring product launches
  • Evaluating customer services and satisfaction
  • Positioning manufacturing changes and product recalls
  • Developing online content strategies that connect with consumers

Banks can use this tool to gain insights into customer sentiment by analyzing the mass of data generated on social platforms to improve their customer engagement strategies. It also provides a facility to keep a tab on fraudulent practices.

Banks have started to use various parameters such as unique visitor numbers, likes and followers to quantify the success of social media campaigns. Although these parameters do not necessarily reflect changes in profitability, negative and positive feedback, repeated visits and site conversion rates can indicate if, and how, a bank’s investment in social media is influencing customers. The advancement of analytical tools and the increasing maturity of banks on social platforms will open up more quantifiable measures to assess the impact of social media strategies adopted by banks over the next five years.

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