Nowadays, the finance industry has less control over the reputation of their products, and services as consumers are increasingly taking over their share of selling. Through the use of social media, customers and prospects are entitled a prompt platform for discussion of their customer experience, whereas decision-makers are doing their best to integrate social media in their marketing strategy.
Social media growth in 2015
According to Social Media Today, there are currently more than 2.2 billion active users in social media, accounting for a global penetration of 30%, and nearly 3.74 billion unique mobile users in the third quarter of 2015, accounting for a global penetration of 51%. At the same time, according to Smart Insights, the three more popular social media sites, Facebook, Twitter, and Instagram, have maintained their leading position, with Facebook being the most popular in terms of active users and frequency. In addition, Google+ and YouTube are becoming increasingly important as more and more users are engaging in their services although both social networks are not that actively promoted as their peers. On the other hand, social networks vary in the level of usage in different countries and demographics.
Social Media in the finance industry
Social media networks have a significant impact on the way the finance industry conducts business. Banks and other financial institutions have recognized that using Twitter or Facebook can help them deliver outstanding customer service, as queries and complaints can be resolved within minutes. From connecting directly to end customers to collaborating with partners or engaging with employees, social media networks provide an exceptional value proposition, which can help financial institutions accelerate their growth and unleash their full potential.
In addition, following the 2008 financial crisis, consumer confidence in the financial institutions has been compromised. Social media networks have been used as a prominent marketing tool to develop solid customer relationships and rebuild public trust in the long-term. At the same time, the strict regulations imposed by the Financial Conduct Authority (FSA) regarding the conduct of financial institutions on social media, have made it harder for banks to engage online.
Benefits derived from social media exposure
When used properly, social media can be a great tool to help the finance industry tap into new markets and reach potential customers. But there are a few things that need to be clear so that companies get the most out of social media as well as their online presence.
The main benefits derived from social media exposure include, but are not limited to:
The finance industry uses social media platforms as a prominent marketing tool to promote their products and services and inform their customers about new developments, special offers, and competitive moves. Through regular interaction with their customer base, banks, and financial institutions can raise customer satisfaction and build brand loyalty.
- Connecting with customers
Through social media monitoring, financial services can generate great content to give their customers a voice. By including customers in the business process, companies offer a personalized service that meets individual needs. In addition, they receive instant feedback on their business and identify areas that potentially need improvement. An organization should ensure constant quality of content so that customers are always interested in the company’s updates.
- Effective marketing
Social media marketing is a cost-effective solution that gives faster and better results than the traditional methods of advertising. To achieve those results, companies develop a social media marketing plan that can meet their social media goals. For instance, if a bank plans to establish a strong web presence, they should develop a social media marketing plan that capitalizes on social media networking and guarantees brand recognition over the Internet.
- Social media integration
Integrating social media into a marketing plan involves employee training to ensure timely and responsible communication with customers online. People who represent a business on the social media platforms should keep up with high-end customer service to avoid delays that can make an organization look unreliable.
Conclusively, social media can considerably help the finance industry gain exposure, provided some basic rules are cherished and understood. Banks and financial institution should understand their target audience in order to offer them products and services that suit their needs. Also, as there is a range of social media platforms available, it makes sense to use the right social platform that best serves a company’s marketing needs. Besides Facebook, Twitter, and Instagram or LinkedIn, there are also bookmarking websites and blogging communities that can give exposure, thus strengthening brand visibility, awareness, and loyalty for a finance company.
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