Sanjay Mehta on Social Media for Banking


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Our Joint CEO Sanjay Mehta's session at Institute for Development and Research in Banking Tech (IDBRT) on 'Social Media for Banking'

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Sanjay Mehta on Social Media for Banking

  1. 1. Social Media For Banking Industry Sanjay Mehta Jt. CEO, Social Wavelength
  2. 2. Where do these insights come from? A little bit about me..
  3. 3. Our clients include…
  4. 4. Agenda • What is Social Media : A Quick Look at the Fundamentals • Relevance of Social Media Marketing for Banks • “Listening”: Social Media Monitoring • Why Banks are most vulnerable to Social Media damage? • Process for setting up full-proof Online Reputation Management and Social CRM for banks
  5. 5. “Social Media is about sociology and psychology more than technology.” ~ Brian Solis
  6. 6. Being Social is not about selling, it is not about marketing, it is not about promoting. It is simply about "Being Helpful".
  7. 7. “A brand is no longer what we tell the consumer it is – it is what consumers tell each other it is.” ~ Scott Cook
  8. 8. How BigIs It
  9. 9. >500 million regd users Every minute – 72 Hrs worth of new video uploaded If Facebook was a country. Population? > a BILLION! Over 362 million people read more than 2.5 billion pages on every month
  10. 10. But this is kids stuff right? How does it effect my business? First of all, its not just kids.
  11. 11. You may still ask, “Is it for me yet?” • “We are a bank, not MTV – is it for us?”  You have consumers? You have a communication need?! • “They are all youngsters – my TG is older”  Population vs Internet age mix + they will be customers tomorrow, if they are not already your customers! • “This is all about B2C; I handle SMEs, and my market is B2B”  Is your buyer a human being? Then you have to be here! • “Where do we find the time / bandwidth..”  Ignore at your own risk; FIND TIME! Get outside help, if necessary
  12. 12. By the time there is a case study in your specific industry, it is going to be way too late for you to catch up - Seth Godin “
  13. 13. Let’s look at some specific challenges that banks face
  14. 14. We are a Young Country..
  15. 15. Clearly this is NOT the kind of communication that connects with today’s youth!!
  16. 16. Clearly, this communication is NOT working; youth not connecting to the banks! Also the choice of media for communication has been TV and print – whereas the youth are spending more time in front of a different screen!
  17. 17. Some more insights • On the functional part, banks have modernized • Most offer Net Banking and similar features • With technology backends, large number of interesting features are also offered by banks • From bill payments to tax payments, from loan processing to debit cards, from insurance sales to credit card offers.. Banks have a lot to communicate
  18. 18. Critical information that banks need to communicate • Anti-phishing warnings and guidance • Other security related education • Frequent changes in rules and regulations • But how do these get communicated??
  19. 19. With large usage of Net Banking, few people walk into a branch, to talk to bank staff and learn about new offerings, etc. Bank websites are dense with detail – customers are unlikely to spend much time to “discover” stuff Usually, customers go to the Net Banking screen, log in, complete work and get out!
  20. 20. Summarizing the challenges then.. • Banks need to find the right way to connect with the large youth market in India – the tonality, the style, the choice of media, etc. • Banks need to communicate information about their various new features and offerings – this is not easy via traditional means • Other critical information like anti-phishing and such security guidance also needs to be communicated – need to find the right way!
  21. 21. The right way: Social Media • Platforms where the youth are spending time • Platforms which enable a natural “storytelling” format • You are not paying for every column-cm or every second of time; you can make your point gradually
  22. 22. “If we get active on social media, we will be bombarded by complaints!”
  23. 23. Does your presence on Social Media attract more complaints? • No, it does not • If there are reasons to complain, people will complain, whether you are present or not • There are many other forums and places for people to go and say nasty things about you • They are not waiting for your presence on social media, in that case • On the other hand, if they complain on your social media page, you can learn and respond
  24. 24. An Interesting Case Study Young and Free Alberta •Objective: To increase the number of young people opening a checking account in the credit union. •Strategy: They conducted a contest to find a young spokesperson, who then used a blog, Youtube, and Facebook to connect with other young people in Alberta. • Result: The number of accounts increased from all over Alberta. • 2,316 Y&F accounts • $3,587,000 New Funds
  25. 25. What can Social Media be used for ?  Brand Building  Generating Sales Leads  Reputation Management  Real Time Consumer Survey  Customer service  Co creating products  Creating B2B relationships
  27. 27. “Social Media is not just about going out and creating conversations as a brand. There is huge value in "listening" in to social media conversations”.
  28. 28. Two key reasons why you should “listen” on Social Media
  29. 29. I guess the Opportunity story is easily understood – but what about Vulnerability?? Banks ARE Vulnerable – and HOW?!
  30. 30. The worst nightmare for a bank! Can it really happen?? You don’t want to know!!
  31. 31. How does Social Media increase the risk for banks? • Social Media is a convenient outlet for consumers to vent their ire / complaints • All kinds of consumer-facing brands have had to face a disturbed customer on this medium • In particular, people are most sensitive when it comes to their money or feeling cheated • With large access of Social Media happening over a mobile device, response is immediate! • There is a natural, viral nature to the medium
  32. 32. ..and this is just one out of thousands of internet forums!
  33. 33. ..and this is just one out of thousands of internet forums! With so many banks vying for the same customer, having a positive online reputation and earning customers’ trust can be key to standing out over competitors.
  34. 34. Banking rests and exists on the pillar of TRUST! According to Trust Barometer 2012#, a global study by a PR Agency, less than 41% of people surveyed said they believed in the Banking Sector. 140 Million active internet users# 70 Million Facebook Members # 65% people find their peers’ recommendations credible Are you proactive on Social Media, or will you let a PR crisis ruin your bank’s reputation? #in India #Click to view source Social Media has to clearly be a priority for banks! No two questions on that..
  35. 35. •While the Cobrapost sting and it’s aftermath may die off in mainstream media, it does not get forgotten on the digital space! •When someone searches your bank brand, this could be the first result that comes up – even after a few years! Also, Google Does Not Forget!! A bank cannot just pray and wish that this does not happen to them; there have to be efforts to detect and respond to any such challenge that may spring up without warning!
  36. 36. Monitoring Tool Example: Radian 6 Radian6 is the most recommended & No. 1 tool in the market for Social Media Monitoring. It has a wide spread coverage with easy to understand Graphic User Interface with multiple reporting system.
  37. 37. Classification of each Conversation SOURCE BUCKET TAG TONE SIGNIFICANCE ACTION TAKEN Blog Product Monitoring √ Medium 1st Level Response Posted Forum Customer Service Delivery × Low 1st Level Response Posted Linkedin Innovation Value √ High 1st Level Response Posted Escalated to Client Facebook Partners Responsiveness √ Medium 1st Level Response Posted Facebook Product Scanning × Low 1st Level Response Posted Youtube Customer Service After Sales Support √ High 1st Level Response Posted Escalated to Client Docstoc Innovation Responsiveness √ Medium 1st Level Response Posted
  38. 38. Social Media Response A dedicated online monitoring & support presence can help the company improve support for Inquiries Queries Complaints Compliments
  39. 39. Social Media Response Can you add value? Evaluate the purpose Respond in kind & share Thank the person Unhappy Customer? Dedicated Complainer? Someone Who Rants? NegativePositive Yes No Do you want to respond? No Response No Yes Take reasonable action to fix issue and let customer know action taken Are the facts correct? Gently correct the facts No No No Yes Are the facts correct? Does customer need/deserve more info? Yes Explain what is being done to correct the issue. Yes Is the problem being fixed? Yes Let post stand and monitor. No Yes NoYes Yes Assess the message START
  40. 40. If things go wrong: PR Crisis Management Scenario Time period 0 hours 5 hours 8 hours 15 hours 24 hours Threatlevels Extremely High High Moderate Low Harmless First appearance Initial Conversations Rapid Sharing Mainstream Media Internet Publications
  41. 41. Questions? Sanjay Mehta Jt. CEO, Social Wavelength. 1. Give me your business cards; I will be happy to share the presentation on email 2. I have some sample industry report copies, created using Social Media Monitoring Tools. If anyone needs it, the same can be collected from me.