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CEB TOWERGROUP RETAIL BANKING

May 22, 2013

Let Them Talk: Using Social Media to
Engage Your Customers
ROADMAP FOR THE PRESENTATION

The
Engagement
Opportunity

CEB TowerGroup
© 2013 The Corporate Executive Board Company. All...
Feelings About Personal Finances Are
Improving in North America
Feelings About Personal Finances
Percentage of North Ameri...
Yet Confidence in Financial Providers Remains
Low
Confidence in Financial Services Providers
Percentage of North American ...
THE YOUNG ARE MORE CONFIDENT IN FINANCIAL
INSTITUTIONS
Average Confidence Level
North American Consumers Ages 18 and Older...
AND ARE SHIFTING QUICKLY TO THE ONLINE CHANNEL

Channel Preference to Learn About Financial Products and Services
Divided ...
CUSTOMER EXPERIENCE IS DECLINING FOR TECHORIENTED CUSTOMERS
Engagement Indicators by Channel Preference
Percentage of Cust...
IMPROVING THE DIGITAL EXPERIENCE PROVIDES
PAYOFF
Impact of Engagement on Loyalty Among Tech-Oriented Customers
Percentage ...
IMPROVING THE DIGITAL EXPERIENCE STARTS WITH
LISTENING TO CUSTOMER NEEDS AND FEEDBACK
Impact of Engagement on Loyalty Amon...
ROADMAP FOR THE PRESENTATION

The Engagement
Opportunity

CEB TowerGroup
© 2013 The Corporate Executive Board Company. All...
BANK CUSTOMERS ARE SOCIAL MEDIA USERS
How Would You Characterize Your Use of Social Media?
Percentage of Respondents, 2013...
BUT THEY DON’T KNOW IF THEY CAN INTERACT
WITH THE BANK
Can You Contact This Bank / Insurance Company Through Social Media?...
SOCIAL MEDIA RESEARCH OFTEN EQUALS ACTION
You Indicated That You Used Social Media To Do Some Sort of Investigation or Res...
VENTING TAKES A BACK SEAT TO VALIDATION
Which of the Following Describes the Ways You Have Used Social Media as a
Customer...
PRODUCT RATINGS & REVIEWS IN THE CUSTOMER
DECISION JOURNEY ADD SOCIAL VALIDATION
How do you provide social validation to p...
PRODUCT RATINGS & REVIEWS IN THE CUSTOMER
DECISION JOURNEY ADD SOCIAL VALIDATION
How do you provide social validation to p...
AS EXPECTED, USAGE TRACKS WITH AGE
How Would You Characterize Your Use of Social Media?
Percentage of Respondents, 2013

6...
AND THAT TIES TO BASIC RESEARCH, TOO
How Have You Used Social Media to Help You Over the Past Six Months?
Percentage of Re...
GEN Y MOST ENGAGED IN BANK INTERACTION
THROUGH SOCIAL MEDIA
Which of the Following Describes the Ways You Have Used Social...
POSITIVE EXPERIENCES ARE A HIT
Which of the Following Describes the Ways You Have Used Social Media as a Customer of the B...
CUSTOMERS SHARE STORIES ABOUT POSITIVE
EXPERIENCES AND ADVOCATE FOR THE BRAND
How can you get customers to advocate for th...
CUSTOMERS SHARE STORIES ABOUT POSITIVE
EXPERIENCES AND ADVOCATE FOR THE BRAND
How can you get customers to advocate for th...
GEN Y MOST ENGAGED IN BANK INTERACTION
THROUGH SOCIAL MEDIA
Which of the Following Describes the Ways You Have Used Social...
REMOVE BARRIERS TO CONVERSION AND IMPROVE
PRODUCT SELECTION
How can social experiences remove barriers to conversion and d...
REMOVE BARRIERS TO CONVERSION AND IMPROVE
PRODUCT SELECTION
How can social experiences remove barriers to conversion and d...
SOCIAL CAN ENGAGE THE MASS AFFLUENT, TOO
How Have You Used Social Media to Help You Over the Past Six Months?
Percentage o...
CUSTOMER WORD-OF-MOUTH IS THE FOUNDATION
OF AN EARNED MEDIA ASSET
How can you develop an Earned Media Asset that pays divi...
QUESTIONS?

FINANCIAL SERVICES PRACTICE
CEB TOWERGROUP, RETAIL BANKING & CARDS
© 2012 The Corporate Executive Board Compan...
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Using social media to engage financial services customers

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Watch the webinar: http://bv-url.com/zc6z

Over 75% of financial customers utilize social media and 26% indicate that they talk about their FSI on social networks. Yet 1/3 of consumers still indicate that they lack confidence in financial providers, signifying that credit unions need to take additional steps to fully regain the public trust.

Engaging customers in a social conversation, allowing them to talk with one another, can be the most powerful tool in your advertising arsenal.

Click through to watch the webinar and get the answers to:

- What are the keys to rebuilding trust between banks and consumers?
- Is it possible to leverage social media to build my brand?
- How can I get fast, authentic feedback on the products and services we offer?

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Transcript of "Using social media to engage financial services customers"

  1. 1. CEB TOWERGROUP RETAIL BANKING May 22, 2013 Let Them Talk: Using Social Media to Engage Your Customers
  2. 2. ROADMAP FOR THE PRESENTATION The Engagement Opportunity CEB TowerGroup © 2013 The Corporate Executive Board Company. All Rights Reserved. Bank Customer Usage of Social Media 2
  3. 3. Feelings About Personal Finances Are Improving in North America Feelings About Personal Finances Percentage of North American Consumers Ages 18 and Older Who Report Positive or Negative Feelings in Aspects of Their Personal Finances, Q1 2013 38% 37% 29% 36% 35% 30% Negative Feelings Positive Feelings -32% -33% -37% -37% -37% Debt Feelings About Personal Finances (North America) Feelings About Personal Finances (Global) -46% Progress Toward Achieving Financial Goals Income Savings FINANCIAL SERVICES PRACTICE CEB TOWERGROUP, RETAIL BANKING & CARDS © 2012 The Corporate Executive Board Company. All Rights Reserved. n = 2000 Source: CEB TowerGroup 3
  4. 4. Yet Confidence in Financial Providers Remains Low Confidence in Financial Services Providers Percentage of North American Consumers Ages 18 and Older Who Feel Confident in the Capabilities of Financial Services Providers, Q1 2013 28% Little or No Confidence 26% 20% -26% 20% 20% 16% 18% 21% 13% Complete or a Lot of Confidence -25% -32% -30% -37% -33% -39% -39% -47% Keeping the Ensuring Keeping their Providing Caring about Sharing the Offering clear Overall money of their reliability and commitments helpful their value of their and simple Confidence customers consistency of and promises guidance and customers customers policies and (North safe transactions advice fees America) FINANCIAL SERVICES PRACTICE CEB TOWERGROUP, RETAIL BANKING & CARDS © 2012 The Corporate Executive Board Company. All Rights Reserved. Overall Confidence (Global) n = 2000 Source: CEB TowerGroup 4
  5. 5. THE YOUNG ARE MORE CONFIDENT IN FINANCIAL INSTITUTIONS Average Confidence Level North American Consumers Ages 18 and Older1 by Age Segment, Q1 2011 to Q1 2013 20% -1% 0% -12% -19% -20% -40% Q1 2011 Q3 2011 Ages 18-29 Q1 2012 Ages 30-46 Q3 2012 Q1 2013 Ages 47-65 n = 9,998 1Confidence in financial services providers represents the average across seven trust factors on a scale of (100) to 100. Note: Numbers at the end of the line graph represent figures for Q1 2013. CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. 5
  6. 6. AND ARE SHIFTING QUICKLY TO THE ONLINE CHANNEL Channel Preference to Learn About Financial Products and Services Divided by Age, 2011 and 2013 33% 53% 19% 38% 42% 33% 45% 40% 38% 43% 35% 36% 63% 43% 28% 22% 2011 2013 In-Person 2011 2013 Online 6
  7. 7. CUSTOMER EXPERIENCE IS DECLINING FOR TECHORIENTED CUSTOMERS Engagement Indicators by Channel Preference Percentage of Customers in Top Two Categories on a Five-Point Scale for Each Indicator by Channel Preference, 2010 60% Clear Understanding of Who and How to Contact Bank Bank Willing to Accept Feedback High-Quality Product Guidance When Purchasing Bank Cares About Customers 30% 0% Personal Only Personal Leaning Balance Multichannel Technological Leaning Technological Only n = 3,044 Source: CEB TowerGroup Retail Banking CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. 7
  8. 8. IMPROVING THE DIGITAL EXPERIENCE PROVIDES PAYOFF Impact of Engagement on Loyalty Among Tech-Oriented Customers Percentage of Technology-Leaning or Technology-Only Customers Who Took Indicated Actions Within the Past Year by Level of Engagement, 2010 65% 31% 30% 27% 27% 21% 15% 7% Recommended Firm Added or Purchased Product n = 1,348 5% Considered Switching Banks Disengaged 12% Closed an Account Moved Savings and Investments to Another Bank Engaged 1 1Engaged customers are defined as customers who agree or strongly agree with each of these engagement indicators: that they have a clear understanding of who to contact and how to contact their bank, that their bank is willing to accept feedback, that they receive good or excellent advice during the purchase process, and that their bank cares about its customers. Disengaged customers are defi ned as customers who are neutral, disagree, or strongly disagree across each of the same engagement indicators. Source: Customer Experience Survey 2010, CEB TowerGroup Retail Banking CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. 8
  9. 9. IMPROVING THE DIGITAL EXPERIENCE STARTS WITH LISTENING TO CUSTOMER NEEDS AND FEEDBACK Impact of Engagement on Loyalty Among Tech-Oriented Customers Listening to customer needs and feedback and facilitating open and transparent business practices rank highly in restoring trust and loyalty amongst customers. Investment in foundational voice-of-customer programs completes the digital experience, particularly for tech-oriented customers Selling Brand-assisted experiences Connected Customer Experience Selfassisted experiences Servicing CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Customerassisted 1 experiences Validating 9
  10. 10. ROADMAP FOR THE PRESENTATION The Engagement Opportunity CEB TowerGroup © 2013 The Corporate Executive Board Company. All Rights Reserved. Bank Customer Usage of Social Media 10
  11. 11. BANK CUSTOMERS ARE SOCIAL MEDIA USERS How Would You Characterize Your Use of Social Media? Percentage of Respondents, 2013 46% 78% 32% Contribute Do Not Contribute Note: Contribute includes “I often read or follow them and contribute occasionally” and “I actively read, follow, and contribute to them.” Do Not Contribute includes ““I sometimes read or follow them but do not personally contribute ” and “I often read or follow them but do not personally contribute to them.” Responses indicating no use have been excluded. N = 1,630 FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 11
  12. 12. BUT THEY DON’T KNOW IF THEY CAN INTERACT WITH THE BANK Can You Contact This Bank / Insurance Company Through Social Media? Percentage of Respondents Who Are Unsure Across All Demographics, 2013 73% 73% 74% All Respondents All Age Responses All Investable Asset Responses N = 3,542 FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 12
  13. 13. SOCIAL MEDIA RESEARCH OFTEN EQUALS ACTION You Indicated That You Used Social Media To Do Some Sort of Investigation or Research in the Past Six Months. Which of the Following Describes How Your Use of Social Media Influenced You? Percentage of Respondents Who Indicated Yes, 2013 I told someone else about what I had learned 39% I chose a product or service other than what I originally planned to buy 33% I asked more questions from the salesperson when I purchased the product or service 25% None of the above I did not buy or use any service 21% 13% N = 440 FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 13
  14. 14. VENTING TAKES A BACK SEAT TO VALIDATION Which of the Following Describes the Ways You Have Used Social Media as a Customer of the Bank? Percentage of Respondents, 2013 I like when others share positive experiences with the bank using social media 29% I discuss my experiences with the bank using social media 26% I recommend the bank to others using social media 24% I use social media to see how others feel about the bank 20% Social media helps me make decisions about purchasing the bank products and services I express my frustrations with my experiences at the bank 18% 13% N = 209 FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 14
  15. 15. PRODUCT RATINGS & REVIEWS IN THE CUSTOMER DECISION JOURNEY ADD SOCIAL VALIDATION How do you provide social validation to prospects in the customer decision journey? Ratings & reviews on financial products and services have become prevalent and are experiential table stakes for consumers © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 15
  16. 16. PRODUCT RATINGS & REVIEWS IN THE CUSTOMER DECISION JOURNEY ADD SOCIAL VALIDATION How do you provide social validation to prospects in the customer decision journey? Ratings & reviews on financial products and services have become prevalent and are experiential table stakes for consumers © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 16
  17. 17. AS EXPECTED, USAGE TRACKS WITH AGE How Would You Characterize Your Use of Social Media? Percentage of Respondents, 2013 6% 5% 15% 33% 25% 36% 36% 13% 8% 33% 12% 23% 23% 8% 22% 14% 28% 12% 14% 18-29 30-46 34% 47-65 66+ I actively read, follow, and contribute to them. I often read or follow them and contribute occasionally. I often read or follow them but do not personally contribute I sometimes read or follow them but do not personally contribute I do not use them N = 1,624 FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 17
  18. 18. AND THAT TIES TO BASIC RESEARCH, TOO How Have You Used Social Media to Help You Over the Past Six Months? Percentage of Respondents, 2013 37% 21% To investigate a product or service that I was considering purchasing 21% 19% 18-29 25% 16% 30-46 47-65 To discuss a product or service that I used 8% 66+ 4% 22% To better understand a product or service that I currently have or recently purchased 12% 16% 16% N = 1,259 FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 18
  19. 19. GEN Y MOST ENGAGED IN BANK INTERACTION THROUGH SOCIAL MEDIA Which of the Following Describes the Ways You Have Used Social Media as a Customer of the Bank? Percentage of Respondents, 2013 46% 42% 38% 31% 32% 30%31% 30% 31% 29% 29% 23% 20% 20% 17% 18% 20% 8% 6% 5% 3% I discuss my experiences with the bank using social media 3% 1% I express my frustrations with my experiences at the bank I use social media to see how others feel about the bank 18-29 I like when others Social media helps me I recommend the bank share positive make decisions about to others using social experiences with the purchasing the bank media bank using social products and services media. N = 208 30-46 47-65 66+ FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. 6% Source: CEB TowerGroup Research 19
  20. 20. POSITIVE EXPERIENCES ARE A HIT Which of the Following Describes the Ways You Have Used Social Media as a Customer of the Bank? Percentage of Respondents, 2013 42% 32% 30% 29% 23% 18% 6% 3% I use social media to see how others feel about the bank 18-29 I like when others share positive experiences with the bank using social media. N = 208 30-46 47-65 66+ FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 20
  21. 21. CUSTOMERS SHARE STORIES ABOUT POSITIVE EXPERIENCES AND ADVOCATE FOR THE BRAND How can you get customers to advocate for the brand and dimensionalize the brand experience? Customers share stories about how they achieved their goals or their relationship with the FI positively impacted their lives FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 21
  22. 22. CUSTOMERS SHARE STORIES ABOUT POSITIVE EXPERIENCES AND ADVOCATE FOR THE BRAND How can you get customers to advocate for the brand and dimensionalize the brand experience? Customers share stories about how they achieved their goals or their relationship with the FI positively impacted their lives FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. 22
  23. 23. GEN Y MOST ENGAGED IN BANK INTERACTION THROUGH SOCIAL MEDIA Which of the Following Describes the Ways You Have Used Social Media as a Customer of the Bank / Insurance Company? Percentage of Respondents, 2013 29% 20% 17% 6% Social media helps me make decisions about purchasing the bank's products and services 18-29 30-46 47-65 FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 66+ N = 208 23
  24. 24. REMOVE BARRIERS TO CONVERSION AND IMPROVE PRODUCT SELECTION How can social experiences remove barriers to conversion and drive higher customer satisfaction? Question and answer experiences within the CDJ allow the brand to highlight subject-matter-expertise in a 1:many fashion FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 24
  25. 25. REMOVE BARRIERS TO CONVERSION AND IMPROVE PRODUCT SELECTION How can social experiences remove barriers to conversion and drive higher customer satisfaction? Question and answer experiences within the CDJ allow the brand to highlight subject-matter-expertise in a 1:many fashion FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 25
  26. 26. SOCIAL CAN ENGAGE THE MASS AFFLUENT, TOO How Have You Used Social Media to Help You Over the Past Six Months? Percentage of Respondents Who Responded Yes, 2013 20% To investigate a product or service that I was considering purchasing 35% 26% <$99,999 13% To better understand a product or service that I currently have or recently purchased 24% $100K - $999,999 16% $1M+ 12% To discuss a product or service that I used 15% 16% FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research N = 1,231 26
  27. 27. CUSTOMER WORD-OF-MOUTH IS THE FOUNDATION OF AN EARNED MEDIA ASSET How can you develop an Earned Media Asset that pays dividends over time? Letting in customer word-of-mouth allows you to develop an asset that pays consistent, as opposed to episodic, dividends over time by enhancing the performance of Paid and Owned programs Create a Marketing Annuity Earned builds on itself and scales as it fuels existing Paid and Owned programs FINANCIAL SERVICES PRACTICE, CEB TOWERGROUP RETAIL BANKING © 2013 The Corporate Executive Board Company. All Rights Reserved. Source: CEB TowerGroup Research 27
  28. 28. QUESTIONS? FINANCIAL SERVICES PRACTICE CEB TOWERGROUP, RETAIL BANKING & CARDS © 2012 The Corporate Executive Board Company. All Rights Reserved. 28
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