Banking in a Social Networking World Wisconsin Bankers Association Technology Conference September 22-23, 2009 Eric Cook, Certified Internet Business Consultant

Did You Know Video…

What Does This Mean For Financial Services?

Agenda “ Sticky” banking Evolution of the web Social networking Blogs & “Fab Four” Social banking Free promotion tools Wrap-up and questions

“ Sticky” banking

Evolution of the web

Social networking

Blogs & “Fab Four”

Social banking

Free promotion tools

Wrap-up and questions

“Sticky” Banking Strategies Defined : Strategy used to keep customers around and do what YOU want them to do Direct deposit, automatic transfers, bill payment, financial calculators, mobile banking, blogs, social networking, others? Evolving into “relationship building”

Defined : Strategy used to keep customers around and do what YOU want them to do

Direct deposit, automatic transfers, bill payment, financial calculators, mobile banking, blogs, social networking, others?

Evolving into “relationship building”

Why “Gen Y”

Shifting Values Source: Bea Fields, Author Learning Speed Entertainment Innovation Collaboration Gen Y 1980 - 1990s Freedom Change Independence Portability Flexibility Gen X 1966 - 1979 Competition Idealism Hard Work Money & Status Climbing the Ladder Boomers 1925 - 1965 Consistency Logic Discipline Loyalty Legacy Traditionalists 1901 - 1924 5 4 3 2 1

Evolution of the Web Then (1.0) Basic information source Online brochures Looks nice, but difficult to determine effectiveness Expense items Now (2.0) 24/7 sales person Accountable (ROI) Feedback Conversational Transparent Open to contribution

Then (1.0)

Basic information source

Online brochures

Looks nice, but difficult to determine effectiveness

Expense items

Now (2.0)

24/7 sales person

Accountable (ROI)

Feedback

Conversational

Transparent

Open to contribution

Online Activities

Online Advertising Spend

Percent of Total Spend

What is Web 2.0? Web 1.0 = One-way conversation “ Website” Web 2.0 = Two-way conversation Visitor-generated content Feedback and participation Involve and interact “ Business 101” Know me, like me, trust me… do business with me

Web 1.0 = One-way conversation

“ Website”

Web 2.0 = Two-way conversation

Visitor-generated content

Feedback and participation

Involve and interact

“ Business 101”

Know me, like me, trust me… do business with me

social media is basically a conversation hi whats up? social media What Is Social Media???

social media is basically a conversation

Using Networks Such As…

Social Network Profiles

The Future is Now Nearly 50 percent of senior marketing executives believe that social media (networking) is a vital component of corporate communications that should be monitored at the executive level and allocated appropriate resources . -2008 Survey from TNS Comfony

Nearly 50 percent of senior marketing executives believe that social media (networking) is a vital component of corporate communications that should be monitored at the executive level and allocated appropriate resources .

-2008 Survey from TNS Comfony

Use of Social Networking Researchers predict that nearly half of all U.S. Internet users will visit at least one social networking site on a monthly basis by 2011, with users shifting towards women and older users . Key Question : Who makes the financial decisions in the households you serve? -2008 Survey from TNS Comfony

Researchers predict that nearly half of all U.S. Internet users will visit at least one social networking site on a monthly basis by 2011, with users shifting towards women and older users .

Key Question : Who makes the financial decisions in the households you serve?

-2008 Survey from TNS Comfony

Objectives of Social Media

Customer Rankings and Feedback 96 percent of retailers surveyed ranked customer ratings and reviews as an effective or very effective tactic to driving conversion . -Forrester Research and Shop.org

96 percent of retailers surveyed ranked customer ratings and reviews as an effective or very effective tactic to driving conversion .

-Forrester Research and Shop.org

Benefits of Social Media Product Development Customer Service Networking & Idea Sharing Market Intelligence (competition) News & Information Research on People (HR) Global Perspective Low Cost Build Your Brand Build Trust Source: Marketing 2.0

Product Development

Customer Service

Networking & Idea Sharing

Market Intelligence (competition)

News & Information

Research on People (HR)

Global Perspective

Low Cost

Build Your Brand

Build Trust

Just adding pages and pages of content as an SEO strategy doesn’t cut it anymore Social Media is the new way to take your SEO strategy to the next level Social Media increases the number of high quality links & targeted traffic (2 of the most important factors in SEO) SEO & SMO Work Together Hello. I’m SEO. And I’m SMO.

Just adding pages and pages of content as an SEO strategy doesn’t cut it anymore

Social Media is the new way to take your SEO strategy to the next level

Social Media increases the number of high quality links & targeted traffic (2 of the most important factors in SEO)

Blogging

Are You Blogging? Approx 133 million blogs indexed since 2002 with 900,000 posts in 24 hours (Technorati.com) Blended term for “web” and “log” = “blog” Website that supports feedback and is more conversational Can be developed for personal or business use Comments can be moderated or open Good “first start” for companies

Approx 133 million blogs indexed since 2002 with 900,000 posts in 24 hours (Technorati.com)

Blended term for “web” and “log” = “blog”

Website that supports feedback and is more conversational

Can be developed for personal or business use

Comments can be moderated or open

Good “first start” for companies

Examples of FI Blogs

Blogging Etiquette Be real & engaged Provide value Be accessible Generate conversations Listen to opinions Ask questions Help others (even competition) Put others first Listen to community Leverage talent Source: MarketingProfs.com

Be real & engaged

Provide value

Be accessible

Generate conversations

Listen to opinions

Ask questions

Help others (even competition)

Put others first

Listen to community

Leverage talent

The “Fab Four” Facebook Twitter LinkedIn YouTube

Facebook

Twitter

LinkedIn

YouTube

Total Visits Source: Compete.com

Some Facebook Stats

My Newest Friend…

Twitter-iffic

Twitter Tidbits

Peoples Bank Phishing Alert

@Banking on Twitter @CommunityBanks

LinkedIn Professional networking environment More business focused Online resume Personal and Groups Connections Recommendations

Professional networking environment

More business focused

Online resume

Personal and Groups

Connections

Recommendations

YouTube Online video site created February 2005 Sold to Google in November 2009 $1.65B #2 search engine (behind Google) 2007 vs. 2000 bandwidth consumption Flip camera Examples…

Online video site created February 2005

Sold to Google in November 2009 $1.65B

#2 search engine (behind Google)

2007 vs. 2000 bandwidth consumption

Flip camera

Examples…

Landmark BankVideo Channel

Consider Integrated Approach Consider social media as one leg of the chair Identify what offline efforts are currently underway Use to drive traffic to your end goal Leverage tools to aggregate your message ( ping.fm )

Consider social media as one leg of the chair

Identify what offline efforts are currently underway

Use to drive traffic to your end goal

Leverage tools to aggregate your message ( ping.fm )

E-Mail Is Cost-Effective 1.7x 1x 4.1x 6.9x 34.3x 2.4x 1x 5.9x 7.1x 8.2x Cost per Lead Cost per Customer

Why E-Mail Marketing Saves Time : Putting together a direct mail campaign can take weeks vs. a matter of hours Quick Response : Recipients can respond instantly, meaning an immediate impact on sales Lower Costs : 30x more effective at lead generation than direct mail and avoids fixed costs like printing and postage Measurable ROI : You can see who clicks and visits your site to track activity and effectiveness

Saves Time : Putting together a direct mail campaign can take weeks vs. a matter of hours

Quick Response : Recipients can respond instantly, meaning an immediate impact on sales

Lower Costs : 30x more effective at lead generation than direct mail and avoids fixed costs like printing and postage

Measurable ROI : You can see who clicks and visits your site to track activity and effectiveness

Social Banking Mint.com, Wasabe.com, QuickenOnline & Geezeo.com Web-based account aggregators and financial planning tools Accounts, tips from other members and goals (budgeting tools) Some even offer “social networking” for connections MoneyIsle.com, Prosper.com and LendingClub.com Provide P2P saving/lending capabilities SmartyPig.com - Provides users a way to save for a goal and invite others to help

Mint.com, Wasabe.com, QuickenOnline & Geezeo.com

Web-based account aggregators and financial planning tools

Accounts, tips from other members and goals (budgeting tools)

Some even offer “social networking” for connections

MoneyIsle.com, Prosper.com and LendingClub.com

Provide P2P saving/lending capabilities

SmartyPig.com - Provides users a way to save for a goal and invite others to help

Online PFMs Source: Compete.com

Mint.com

USAA - Mobile Deposits

Some Free Promotion Tools

Podcasting TalkShoe .com BlogTalkRadio .com InstantConference .com

TalkShoe .com

BlogTalkRadio .com

InstantConference .com

Webinars DimDim .com Also… GoToMeeting/Webinar WebEx

DimDim .com

Also…

GoToMeeting/Webinar

WebEx

Whitepapers & Articles DocStoc .com “ Community Bankers Guide to Social Network Marketing ” by Jesse Torres

DocStoc .com

“ Community Bankers Guide to Social Network Marketing ” by Jesse Torres

Presentations SlideShare .net Embeds into LinkedIn

SlideShare .net

Embeds into LinkedIn

Online Tutorials JingProject .com Provides free screen capture for images and video (up to 5 minutes) Easily share online for training and education Full version <$20/year!

JingProject .com

Provides free screen capture for images and video (up to 5 minutes)

Easily share online for training and education

Full version <$20/year!

Reputation Monitoring http://www.google.com/alerts

Dealing with Negativity Realize you cannot control conversations Opportunity for feedback Gain respect by accepting criticism Address open and honestly Let the world see how you handle problems

Realize you cannot control conversations

Opportunity for feedback

Gain respect by accepting criticism

Address open and honestly

Let the world see how you handle problems

Critical Success Factors Be yourself Not John Mackey, CEO of Whole Foods Be responsive Contribute and give back Don’t sit on the sidelines

Be yourself

Not John Mackey, CEO of Whole Foods

Be responsive

Contribute and give back

Don’t sit on the sidelines

It Takes Balance…

Questions Eric Cook Certified Internet Business Consultant [email_address] www.PoweredByWSI.com/WBA2009 (269) 841-5007