The number reveal: Is Social Media another fad or it is here to stay?

The numbers reveal: Is Social Media
another fad or is it here to stay?
Dr. Benedikt Köhler, Munich
Dr. Benedikt Köhler, Munich

SOMESSO Conference,
Zurich 3 November 2009

Yet another fad?

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Or here to stay?

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What is Social Media?

„A variety of digital media and
technologies that enable users to
exchange among themselves and
create media content, individually
or in community.“

1. Presentation of self in every day
online life
2. Exchange of information, opinions,
experiences or emotions in real-time
3. Collaboration and creation of content

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Communication and banking via Social Media?

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Banks used to be like this: Big is beautiful

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Banks used to be like this: Walls & Fortresses

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Banks used to be like this: Fake conversations

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Banks used to be like this: Complex products

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Banks used to be like this: Talk = Sales

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Banks used to be like this: Behind counters

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Social Media is going to change this!

» Social Media means: The whole Internet is becoming social
» Living an online life
» Feedback
» Dialogue
» Social Media as a disruptive technology

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The future of Social Media

„1990–2004 was the match being struck;
2005–2009 was the fuse;
and 2010 will be the explosion.“
(Tim O‘Reilly and John Battelle)

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It´s getting bigger

» 25% of search results for the world’s top
20 largest brands are links to user-
generated content.
» 13 hours of video are uploaded on
YouTube every minute.
» Dell claims to have earned $ 3.000.000
via Twitter-Posts since 2007.
» If Facebook were a country, it would be the
4th largest in the world – with 250 Mio
users.
» 34% of bloggers post opinions about
products and brands – in over 200.000.000
blogs.

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Internet growing as fast as TV did

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Social Media – importance for companies

Far-reaching implications:
» Providing the information the customers
expect on social media right now!
» Possibility of a strong customer bonding
causing loyalty.
» Combination of marketing, CRM and PR
in one unit, acting simultaneously.
» Genuine dialogue between companies,
customers and other stakeholders - in real-
time.

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Users are looking for product information

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5 Dimensions of Corporate Social Media

Social Media Newsroom Branded
Channel

Brand Monitoring

Corporate Blog

Corporation
2.0
Real-Time Support
Trainee
Blog

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Social Media - challenges for finance

» In the U.S. the trust in banks
decreased from 69% to 36%
» 72% share their dislikes with a
friend or colleague.
(Edelman Trust Barometer 2009)

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People don’t trust bankers

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People trust their peers – online!

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Consumers 2.0 – Sapere aude

„Banks sell what‘s most profitable for them … Really good
deals can only be found on the web … I‘m doing research
myself and this way I get a truly independent offering.“

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Finance – between tourism and fashion

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Sparkasse with largest buzz in Social Media

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Word of mouth can be positive …

Friendliness Good Service
Security Good Interest Rates

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… or negative

Failure Technical System Error
No Money Transfer Disguise
Mysterious Not Executed

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… or “interesting”

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New Conversational Landscape: Homepages

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New Conversational Landscape: General Interest

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New Conversational Landscape: Special Interest

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From Mass society to Individualization

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2 out of 3 German onliners use Social Media

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More than 90% of teenagers use Social Media

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Strongest growth in generation 60+

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Social Networking more popular than Email

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Online is a primetime medium … today!

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16% of banks are active in Social Media …

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… whatever „active“ means

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Après moi, le déluge

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What are the caveats?

» 58% are nervous about potential
compliance problems.
» 45% don‘t understand social
media marketing.
» 37% think it doesn‘t fit to their
customers.

» And four out of ten participating
banks avoid discussing specific
products and services in their
social media efforts.

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Wishes and needs of digital natives

» 48% of Facebook users between the
ages of 18-34 would use secure
gadgets if their bank offered it.
» 33% of 25-34 year old Facebook users
would even consider switching to
another bank that offered Web 2.0
gadgets for online banking. (WorkLight –
Survey)
» 37% of U.S. customers liked to have
testimonials and customer reviews
on their bank‘s website (Forrester)

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Social Media means a shift from Brands …

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… to faces …

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… and stories!

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Finance in Social Media – Examples

» Mint has over 20.000 Followers on
Twitter…

» …and is in dialogue with
them by following back and
answering to questions.

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» Missouri Bank provides a Facebook-
Fanpage

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» Wells Fargo is hosting different
blogs…

» And even…

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» … their own virtual world:
Stagecoach Island

» … where you can „learn how
to use your money wisely“

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» Social Media users elude banks and
begin to lend money to each other –
directly.

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Social Media is not for everyone

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Next Steps …

» Charting your company’s Social Media
Landscape with a full survey of all
channels and platforms
» Developing a strategic view of your
company’s dialogical future (including
Social Media Guidelines or Policies)
» Beginning to grasp the disruptive power
of Social Media Brand Building –
giving the users a chance to live your
brand online
» Building strong and sustainable user
experiences in Social Media
» Experimenting with Social Media
yourself by hosting Immersion Days at
your company
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Thank you very much!
Questions?

More information: http://www.ethority.de

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Questions?

Feel free to contact us! ethority GmbH & Co. KG
Büschstr. 7 (Ecke Gänsemarkt)
For further information visit us: 20354 Hamburg

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contact@ethority.de
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Pictures

» 2. http://www.flickr.com/photos/snapeverything/2634024846/
» 3. http://upload.wikimedia.org/wikipedia/commons/1/16/Chuck_Berry51.JPG
» 8. http://www.flickr.com/photos/rwp-roger/2953749709/
» 9. http://www.flickr.com/photos/rwp-roger/2953749709/
» 10. http://commons.wikimedia.org/wiki/File:Fotothek_df_roe-
neg_0006503_008_Zwei_Kunden_und_ein_Verk%C3%A4ufer_an_einem_Wurststand_des_VEB_Fettverarb
eitung_Berli.jpg
» 12. http://www.flickr.com/photos/mogmismo/1516068463/
» 13. http://www.flickr.com/photos/primarygeography/3842714697/
» 14. http://upload.wikimedia.org/wikipedia/commons/c/c6/Tsunami-kueste.01.vm.jpg
» 15. http://www.flickr.com/photos/foxgrrl/3974595767/
» 16. http://www.flickr.com/photos/8198384@N03/3485752118/
» 18 http://www.flickr.com/photos/yourdon/3613094285/
» 21. http://www.flickr.com/photos/worldeconomicforum/3488886490/
» 43. http://www.flickr.com/photos/rhianonf/3348023558/
» 44. http://www.flickr.com/photos/vauvau/3989766534/
» 46. http://en.wikipedia.org/wiki/File:Fredmeyer_edit_1.jpg
» 52. http://www.flickr.com/photos/_nijoker_/2805751399/
» 53. http://www.flickr.com/photos/mecookie/3052444140/

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The number reveal: Is Social Media another fad or it is here to stay?

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