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Hey, Financial Services - Get Serious About Social, or Get Spanked!
 

Hey, Financial Services - Get Serious About Social, or Get Spanked!

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Today’s banking customers want much more than a place to store and access their cash. They want help with financial planning, tracking, and goal-setting and are increasingly tapping alternative ...

Today’s banking customers want much more than a place to store and access their cash. They want help with financial planning, tracking, and goal-setting and are increasingly tapping alternative institutions for that help. Unregulated innovators like Google Wallet and PayPal are stepping in and putting increasing pressure on banks to adapt—or die.

Meanwhile, financial services firms have been slow to innovate, still stuck on strategies for increasing branch visits. In turn, the influence they have over the personal lives of their customers is waning fast. As we run headlong into a digital-first future, how can financial service firms remain relevant?

Download this slide deck from Lithium and learn:

1. Why social customer experience is fast becoming an important battle ground for the financial service industry.
2. How financial service firms use social for marketing, customer care and service innovation.
3. Which banks, credit card and insurance companies do social right, do it best—and how.
4. The returns financial service firms are getting from social.
5. Social strategies and best practices financial service firms can deploy today to get in the game.

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  • So let’s start here. Because your competition isn’t just the other big banks or insurers in the room or even the disrupters like Moven and Simple, it could be Google or Facebook or Apple because those consumer internet companies have established a level of ease of use, convenience, and connectedness that consumers have now come to expect from all the brands they interact with. In our world, this means every consumer wants “the bank of me”
  • There is a ton of innovation going in the payments space, I know Square isn’t in Australia yet but companies like Square and Paypal and many others are clearly changing customer expectations about how transactions need to happen. It may still be your pipes behind the scenes but others are defining that customer experience through UI and design.
  • Then customers want data that makes them smarter. Lots of companies are cropping up to help aggregate data from all over the web and help people make better financial choices.
  • And ultimately consumers want to be connected, it’s the notion of investing in each other or with each other. The idea of community is as old as mankind, but the internet has made it much more scalable.
  • Use this slide to set the stage for the importance of social media and customer experience. Get the heads nodding.We live in an age where customers have higher expectations and more power than ever. As more brands seek to differentiate by delivering better customer service, the bar of expectations gets higher. And social media has given every customer a megaphone to tell the world what they think and feel about your brand in seconds. What’s more, customers now expect you to use the latest technologies in the marketplace to meet their service needs. They want:an immediate response on social channelsself-help tools they can easily find on your website and via search enginesa great service experience – they know they’re in control and they’re highly likely to find another company to meet their needs if you deliver even one bad service experience
  • Use this slide to set the stage for the importance of social media and customer experience. Get the heads nodding.We live in an age where customers have higher expectations and more power than ever. As more brands seek to differentiate by delivering better customer service, the bar of expectations gets higher. And social media has given every customer a megaphone to tell the world what they think and feel about your brand in seconds. What’s more, customers now expect you to use the latest technologies in the marketplace to meet their service needs. They want:an immediate response on social channelsself-help tools they can easily find on your website and via search enginesa great service experience – they know they’re in control and they’re highly likely to find another company to meet their needs if you deliver even one bad service experience
  • From Forrester Research: Increase in agent productivity. “Research shows that agents' productivity increases with access to the content in community postings. The reason for this is the content developed for the knowledge management database is often based on “known” problems or customer issues and their “known” solutions. However, research shows that more than 90% of customers' issues haven’t been unearthed, and the organization doesn’t have structured answers for them. These “exceptions” lead to long support calls, poor FCR, agent stress, and customer dissatisfaction. The community provides more relevant content to agents, making them more efficient. The savings from increasing agent productivity can be evaluated by looking at the increase in the number of calls agents can answer per hour.”
  • Talk about the trends on the leftAll these have existed for the last couple yearsThe wild card has been regulatory uncertainty. As governments issue guidance and first movers ask for forgiveness instead of permission, the risk has been reduced though not eliminated.This points FSIs towards focusing on the customer experience and on digital channels. Hello Lithium!
  • Objective:Launch a new credit card offering driven 100% by its community of card members. Provide complete transparency between the bank and customers by giving card members the visibility into how Barclays makes money and help shape the card’s profitability. Approach:Launched community for card members to exchange ideas, vote on product features and earn “credits” through community participation.Results: since launch in April 2012, 50+ ideas have been voted on and the use of game dynamics to incent beneficial customer behaviors, such as paying on time and going paperless. Barclaycard won the Forrester VOC award and Ring was one of the customer experience initiatives that helped them achieve a $10m annual benefit, improve customer retention by 25% and decrease complaints by 50%. 2012 Groundswell submission: http://lithosphere.lithium.com/t5/Lithium-View-blog/Ring-Barclaycard-Turns-Cardmembers-into-Company-Stakeholders-and/ba-p/590702012 Forrester VoC award winner: http://www.businesswire.com/news/home/20120626006756/en/Forrester-Research-Announces-2012-Voice-Customer-AwardHow It Works The mechanism that brings Ring cardmembers together and empowers them to influence business decisions is the social hub at barclaycardring.com. The Ring site is endowed with branded social tools such as: - gamification – points are earned for helping others with useful information, and badges are awarded for taking positive actions such as paying on time and going paperless- ideas – members submit ideas in a structured format that includes prioritization based on member voting, and status updates on what action Barclaycard is taking with an idea- ask-and-answer – members ask a variety of financial questions and receive useful answers from peers in minutesdiscussions – members discuss timely personal finance topics, and award each other kudos for interesting insights- polls – members answer multiple-choice questions on card features such as fee structure and agreement terms, which, rather than merely being used as additional feedback, are considered to be votes in a final decision to shape these features- blogs and announcements – Barclaycard community managers and high-status members keep members up to date with the latest happenings in the community, including descriptions of how Barclaycard is taking action on members’ ideas and feedback
  • Objective:Launch a new credit card offering driven 100% by its community of card members. Provide complete transparency between the bank and customers by giving card members the visibility into how Barclays makes money and help shape the card’s profitability. Approach:Launched community for card members to exchange ideas, vote on product features and earn “credits” through community participation.Results: since launch in April 2012, 50+ ideas have been voted on and the use of game dynamics to incent beneficial customer behaviors, such as paying on time and going paperless. Barclaycard won the Forrester VOC award and Ring was one of the customer experience initiatives that helped them achieve a $10m annual benefit, improve customer retention by 25% and decrease complaints by 50%. 2012 Groundswell submission: http://lithosphere.lithium.com/t5/Lithium-View-blog/Ring-Barclaycard-Turns-Cardmembers-into-Company-Stakeholders-and/ba-p/590702012 Forrester VoC award winner: http://www.businesswire.com/news/home/20120626006756/en/Forrester-Research-Announces-2012-Voice-Customer-AwardHow It Works The mechanism that brings Ring cardmembers together and empowers them to influence business decisions is the social hub at barclaycardring.com. The Ring site is endowed with branded social tools such as: - gamification – points are earned for helping others with useful information, and badges are awarded for taking positive actions such as paying on time and going paperless- ideas – members submit ideas in a structured format that includes prioritization based on member voting, and status updates on what action Barclaycard is taking with an idea- ask-and-answer – members ask a variety of financial questions and receive useful answers from peers in minutesdiscussions – members discuss timely personal finance topics, and award each other kudos for interesting insights- polls – members answer multiple-choice questions on card features such as fee structure and agreement terms, which, rather than merely being used as additional feedback, are considered to be votes in a final decision to shape these features- blogs and announcements – Barclaycard community managers and high-status members keep members up to date with the latest happenings in the community, including descriptions of how Barclaycard is taking action on members’ ideas and feedback
  • Loyalty has been a serious concern in the real estate industry. Homebuyers are often mistrustful of real estate brokers. But Redfin’s innovative business model and its thriving community are winning back the trust of consumers. Redfin CEO Glenn Kelman says that “For too long, real estate has been a monologue, with the brokerage doing all the talking. Lithium is helping us to make it a dialog.”It’s that dialog that drives engagement and loyalty. Redfin attributes its recent 5% rise in Net Promoter Score to its community strategy. The community provides a refreshing level of transparency for customers, so they’re more likely to be willing to recommend Redfin to others.With the help of the word-of-mouth marketing emanating from its community, Redfin has grown revenues 40% year-over-year, while reducing marketing expenses by 82%. It’s easy to tie that revenue and margin growth back to the community: 51% of customers who have used Redfin said they were influenced by their conversations in the community.
  • Lithium makes software that powers the social customer experience. We serve the world’s most iconic brands. (highlight relevant examples)Our communities are exceptionally vibrant - each year we host more than 1 billion visits from engaged customers exploring trusted content.We’ve been recognized as a leader by top analyst firms, and we are the only social customer platform that operates as a SaaS business with a 100% uptime SLA and monthly product releases.This is all great, but what we’re most proud of is the success our customers have achieved. Let me share a few examples.

Hey, Financial Services - Get Serious About Social, or Get Spanked! Hey, Financial Services - Get Serious About Social, or Get Spanked! Presentation Transcript

  • ffinancial services:inancial services:ffinancial services:inancial services: get seriousget serious about socialabout social—— or get spanked!or get spanked! Katy Keim, CMO Lithium D O h i CEO C W kDeanna Oppenheimer, CEO CameoWorks Sept 19, 2013
  • today’s speakersy p Katy Keim Deanna OppenheimerKaty Keim chief marketing officer Lithium Deanna Oppenheimer chief executive officer CameoWorks @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • leading on the diagonal in a ti llvertically challenged worldchallenged world Deanna Oppenheimer CEO, CameoWorks @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • financial service industry challengesy g trust is at an all time low cost pressures are at an all time highcost pressures are at an all time high technology has a triple whammy of legacy maintenance, cost to decommission, and deploying the brave new world of, p y g mobile apps, digital and cloud platforms and big data regulators are invasive to say the least growth on the top line is elusive at best @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • financial service customer challengesg 2 90%=2 90%= 90% of 18-29 year olds sleep with smart phone 90% of all Data since the beginning of time created in th t 2 95% of customer interactions in retail banking will b di it l b 2020 1 billion mobile banking users globally by 2013 the past 2 years be digital by 2020 @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • what does the future hold? transactions datarelationship @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • what does the future hold? transactions datarelationship @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • what does the future hold? transactions Money Mapsdatarelationship @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • what does the future hold? transactions datarelationship datarelationship @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • what banks should be thinking aboutg 1 the tipping point has arrived1 the tipping point has arrived 2 rebalance Investments from 2 “Run The Bank” to “Change the Bank” 3 lead on the diagonal3 g • Vertical hierarchy to administrate • Informal Teams to Innovate @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • why the social customer experience matters 1 Amazon to Uber driving 1 banking customer expectations 2 customer engagement follows 2 g g transaction channel ll d i i3 colleague, cost and competition @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • communities are one way to lead on the diagonal • source of innovation includes third parties; effectivethird parties; effective partnership with smaller companies is a key capability • think diagonally with all stakeholders: regulators, unions, and definitely….customersdefinitely….customers
  • authentic communication isauthentic communication is required; everything else is lip service required; everything else is lip serviceserviceservice • information sharing and transparency • information sharing and transparencyand transparency • authenticity means and transparency • authenticity means being willing to make yourself vulnerable being willing to make yourself vulnerable @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • consumers engage h thwhen they are passionate andpassionate-and they’re passionatethey re passionate about moneyy Katy Keim CMO Lithium @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • recognize this industry?g y • low NPS and trust • large numbers of customers • complex to buy complex to use• complex to buy, complex to use • highly competitive, low switching costs = churn issues @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • why CSPs invest in social CXPy top social motivestop social motives doing plan to do 68% 15% 59%27% 44% 27% loyalty innovation operational commercial 20% 32% loyalty use social to engage customers innovation bring customer driven ideas to market operational enable existing customers to help other customers commercial enlist customers to give purchase advice to new tcustomers @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • CSPs maturing social CXP goalsg g 82% enlist customers to help other customers (social support) 82% enlist customers to share ideas (social innovation) 73% use social to transform the CXP73% use social to transform the CXP 64% reduce support call volume in 2012 18% decreased call center spending in 2012p g @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • CSPs maturing social CXP goalsg g 82% enlist customers to help other customers (social support) Think FinServ is diff ? hi k82% enlist customers to share ideas (social innovation) different? Think again! 73% use social to transform the CXP 64% reduce support call volume in 2012 18% decreased call center spending in 2012 @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • financial services NPS isn’t stellar NPS by SectorNPS by Sector Sector Average NPS i i Sector Average NPS H /C I 41Airlines 30 Auto Insurance 41 Banking 29 Brokerage/Investments 45 Home/Contents Insurance 41 Hotels 32 Internet Services 9 Laptop Computers 41g Cable/Satellite TV Service 25 Cellular Phone Service 25 Credit Cards 25 /S i l S 62 Life Insurance 23 Online Entertainment 27 Online Shopping 43 S h 41Dptmt/Specialty Stores 62 Drug Stores/Pharmacies 26 Grocery/Supermarkets 36 Health Insurance 12 Smartphones 41 Software & Apps 24 Tablet Computer 45 Travel Websites 21 @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • FinServ customers want more bank account holders online would like to see more sophisticated online tools 23%32% 29% wanted web chat wanted peer review sections wanted bank comparisonweb chat facilities peer review sections on websites bank comparison services Source: You Gov’t Plc / n = 6 500 global consumersSource: You Gov t Plc / n = 6,500 global consumers @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • engaging with peers…g g g p @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • customers are flocking to social channelschannels V @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • the market is moving for good reasong g need to rebuild trust product commoditization regulatory compliance low interest rates so back to basics changing customer behavior h l hif f b h lichannel shift from branch to online highly competitive market customer experience trusted content @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • Barclaycard Ring’s innovative levels of simplicity, transparency, and service are impacting the way we do business…we believe this is the way all companies will engage with customers in the future. Paul Wilmore General Manager Consumer Markets, Barclaycard customer retention 25% $ $improved by 25% along with other customer $ $ decreased customer experience initiatives, Barclaycard Ring contributed to $10m complaints by 50% $10m in annual benefit @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • ideas submitted600 retail branches with iPad apps for posting ideas and voting 1200 and voting
  • latest indices and traded stocks constantly update 1. 2. stocks constantly update within the community members buy and sell stock directly from within the 3 community, monitor stocks via watch lists, or conduct detailed research sentiment indicator allow3. sentiment indicator allow members to discuss stock and alert CommSec if they think it’s a buy, hold, sell, reduce or accumulate
  • Community URLs drive 39%URLs drive 39% of traffic from search engines 7,943,701messages read per month 20,000 posts per month By year 41% More on FICO three forum members spend products @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • 25,000+ sales agents Forums used to share sales tips amongst an intergenerational g have community access amongst an intergenerational community of sales agents Documentation is hosted for agents to improve their productivity Ideas are captured for new products and process improvements @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • advisor-to- drive advisor product awareness and advisor community awareness and advocacy facilitate continuing education and amplify events interact with firm’s executives and experts @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • we're lithium we make software that powers the social customerpowers the social customer experience 300+ iconic brands as customers 1B+ community visits per year1B+ community visits per year named a leader by forrester & gartner 100% uptime SLA on SaaS platform @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • questionsq Katy Keim Deanna OppenheimerKaty Keim chief marketing officer Lithium Deanna Oppenheimer chief executive officer CameoWorks @KatyKeim @LithiumTech @CameoWorks #seriousaboutsocial
  • thank you!