Best Practices in Financial Services Social Media: What's Trending Now and What Will the Future Bring?

1. Best Practices in Financial Services Social Media: What’s #Trending Now & What Will The Future Bring? -- by Mark Zmarzly Presented at the ABA Stonier Graduate School of Banking on June 10-11, 2014.

2. Let’s Learn and Have Some Fun!

3. Me Looking into the Future & Seeing that You Really Enjoyed Yourself Afterward

4. Mark Zmarzly www.hippocket.net @BankMarketing www.linkedin.com /in/markzmarzly Who the Heck am I?

5. 1992 1996 2000 20030 2005 High School Career Assessment: Forest Ranger 1999 BA in English & Organizational Communication Studies 1975 Born 2005 MA in Creative Writing The salad years Writer & English Teacher Who am I?

6. 20102005-2008 2012 2011 SVP of Financial Services 2009 @BankMarketing 2009 2011 Linkedin.com/MarkZmarzly 2005 Now – all in Financial Services Marketing - Editor I Copywriter I Creative Manager I AE I SVP Financial Services I Business Development Executive I Speaker Who am I? my blog 2013 2014 Idea was born ABA SBMM

7. Current & future Launching first client – ubt.com. Mortgage, Auto, and Retirement comparisons are available now. Launching next group of clients immediately. Facebook application planned for fall of 2014. Second generation in late 2014. A Word from My Lawyer FFIEC & Your Compliance Department are the boss. I analyze our industry for new insights and future trends. Don’t sue me! Seriously…I have a wife and 3 kids!

8. What is Social Media? https://www.dropbox.com/s/hfsyeorjg34gd4s/Social%20Intro2.mp4

9. 2000 2001 2002 20030 2004 2000 Dot Com Bubble Bursts 2001 Wikipedia launched 1960s Al Gore Invents the Internet 1998 Blog What is Social Media?

10. 2006 20082005 2010 US Subprime Lending Peaks 2007 2009 11/2007 Keypoint FCU – online banking into FB Active Facebook Users: 0 to 1.22+B 2011 2012 7/2007 PayPal on FB3/2006 First Major FI Blog 8/2007 TD Bank (Canada) 3/2008 Quicken Loans on Twitter 2013 What is Social Media? Now $16B

11. © Hip Pocket 2014 Is it Necessary for Us?

12. What Customers Say About Us

13. It’s No Wonder…

16. Annoying, Boring, & Unhelpful, but Maybe Not Entirely Ineffective???

17. The Good News: We Don’t Care!

18. We May Not Be Red Bull

19. But We Can Innovate/Reinvent • Kitty & Lala: https://www.youtube.com/watch?v=JFbUbAWbB-s

20. • Current Trends • 4 Case Studies • Big 3 Platforms • The Future? Peaking Ahead

21. • Own Your Community • Engage Sub Communities • Crowdsourcing • Mission-Driven • Generate Social Virality • Engaging Voice • Not all Trends are “good” Listen & Learn from Trends

22. Not All Trends Are Good

23. What’s Hip? What’s Trendy?

24. Own Your Community

25. Own Your Community 10,800k likes in 2012. 35,740 now. 250% growth.

26. Own Your Community 10,800k likes in 2012. 35,740 now. 250% growth.

31. Conversely…

32. Own Your Community 42k likes in 2012. 55k now. 31% growth.

34. Engage a Sub Community

35. Engage a Sub Community 301,000 members

36. Engage a Sub Community Founded in 2000

37. Engage a Sub Community https://www.bizcrowd.com

38. Engage a Sub Community https://www.bizcrowd.com

44. Engage a Sub Community https://www.ubt.com/business-banking/catalyst-small-business

45. Engage a Sub Community https://www.ubt.com/business-banking/catalyst-small-business

47. Crowdsourcing

48. Crowdsourcing

49. Crowdsourcing

50. Crowdsourcing

51. Crowdsourcing

52. Crowdsourcing

53. Crowdsourcing

54. Crowdsourcing

55. Crowdsourcing Home Improvement Challenge • Photo contest housed on FB • $7,500 prize to be used for a home improvement project • Participants submitted a pic of their project & description of why it was important to them • General public voted to determine the winner •increase of 23% in home equity products for the campaign from the previous year. The marketing spend was also significantly less.

56. Crowdsourcing • National Bank of Arizona awarded $10K to a local business through a video contest housed on FB • Winner was selected by public vote • Total views to the Facebook tab reached 2,128 • Total video views exceeded 3,000

57. Mission-Driven Campaigns

58. Amplify Your Giving Visibility From FMS Social: http://fmssocial.com

59. Amplify Your Giving Visibility From Sundin Inc: http://www.sundininc.com

62. Amplify Your Giving Visibility From Social Assurance: www.socialassurance.com

63. Amplify Your Giving Visibility From Social Assurance: www.socialassurance.com

64. Amplify Your Giving Visibility From Social Assurance: www.socialassurance.com “As we have done since the inception of the bank, the bank remains strongly committed to supporting the arts, culture, and health and human service needs in the communities we serve.”

65. Virality – Rapid Social Spreading

66. Virality

67. “If a piece of content makes people seem smart, they’re more likely to share it with their friends. And people like being the first to share information because it makes them seem cool and in-the-know.” -- Jonah Berger, author of Contagious http://jonahberger.com/books/contagious/

68. Virality

69. 50k wait list before launch

70. 50k wait list before launch

71. Have a Distinct Voice

72. Instead of Doing This:

73. Voice http://www.currencymarketing.ca/young-free/

74. Voice

75. Voice http://www.frankbyocbc.com - Singapore

76. Voice http://www.frankbyocbc.com

77. Voice

78. At the center of Vancity’s brand is the concept of ‘balanced prosperity,” a strategy driven by a “triple bottom line” of financial returns, social returns, and environmental returns. – Jeffry Pilcher of TheFinancialBrand.com Voice

79. Voice

80. Voice

81. Voice

82. Voice

83. http://business.time.com/2012/03/12/dollar-shave-club-a-start-ups-viral-ad-for-fing-great-razors-is-a-big-hit/ Voice

84. • Dollar Shave Club – beta 4/2011 • Video launched March, 6 2012 • 2 Million views in first 4 days • 4.1 Million views total in first 2 months. • 14,770,000 to date • $4,500 video production costs Michael Dubin • Co-founder & CEO • Digital marketer/brand development • Improv comedy background - Groundlings • Personality/Voice http://business.time.com/2012/03/12/dollar-shave-club-a-start-ups-viral-ad-for-fing-great-razors-is-a-big-hit/ Voice

85. Own Your Community Would You Want To Get Lunch with Your Social Media Voice? How About Lunch? My Mouth’s Not Real.

86. Would You Eat a Philly Cheesesteak with this Person?

87. Would You Eat a Philly Cheesesteak with this Person?

88. Hand-Selected Case Studies

89. Case Study 1: Navy FCU

90. Case Study 1: Navy FCU

91. 06/15/14 96

92. • Ask the Question • Provide relevant information • Single Auto- buying post, 1,525 Likes

93. 06/15/14 100

94. “We are trying to be a friend people look forward to engaging with,” explained Don Varela, the lead strategist for social media. “Our mantra is engage now, sell later.”

95. Case Study 2: Social Money & Smarty Pig

96. • SmartyPig, LLC – Iowa • Launched in 2008 • $0 in advertising expenses • $500 MM in deposits (BBVA Compass) in 2012. • $3 Billion in Goals reached in first 4 years. Social Media Case Study #2

97. • Personality/Voice • Product-focused • Engage on the Benefits • Consistency Social Media Case Study #2

98. • Majority of customers have 4+ goals • 70%+ of customers share their goals (can be kept private) • When savers reach redemption, they usually open 2 more goals. • "Social media as a whole isn't a luxury," says SmartyPig's president, Scott McCormack, “it's a necessity, which is why banks are turning to us." • Financial Literacy • Cross-sell • Contests • Pre-spend behaviors • Life stage data • Special offers Social Media Case Study #2

99. How One-Click Saver works Install the SmartyPig Chrome extension. Begin shopping online! Find a product you want to save for? Click on the browser extension icon and set up a goal. SmartyPig automatically pulls the product name, image, and price, while you indicate when you’d like to purchase the item.

100. SmartyPig automatically pulls the product name, image, and price, while you indicate when you’d like to purchase the item.

101. “As banks struggle with social media, SmartyPig LLC is set to offer its tried-and-true approach to any bank that wants it.” “We are taking the essence of SmartyPig and we are putting it into an application that can live inside of an existing banking website.“ 2012: 6 domestic banks, 3 overseas banks, 3 prepaid card vendors, and non-profit. http://www.americanbanker.com/issues/177_22/smartypig-social-media-twitter-facebook-money-systems-goal-saver-1046243-1.html

102. Time: When Keeping Up with the Joneses Means You’ll Save More Money 3 Random Groups - .3% vs. 5% vs. “peer group” “Social forces—peer pressure, in this instance—seem to have more power to change behavior than plain old monetary incentives.” "The idea is to share that with your family and friends, and keep up the social pressure to reach your goals.” – Smarty Pig user Nathan Robertson

103. Peer group could vocalize their goals and see peer progress. “…The Peer Group Treatment deposit 3.5 times more often into the savings account, and their average savings balance is almost twice that of the control group.”

104. Case Study 2: Social Money & Smarty Pig

105. Case Study 3: Umpqua

106. https://www.youtube.com/watch?v=z8flLtw-ob4

107. Case Study 4: NAB

108. Case Study 4: NAB

109. Case Study 4: NAB http://moreless.nab.com.au

110. Case Study 4: NAB http://moreless.nab.com.au

111. NAB in 2011 http://breakup.nab.com.au/2011/02/why-did-we-break-up/#content • 18% market share compared with 33%, 31%, and 18% = the big 4 • Twitter, Video, Guerilla, Print, Micro • Feb 14, 2011

112. http://breakup.nab.com.au/2011/02/why-did-we-break-up/#content • Differentiation-focused • Specialized landing page • http://breakup.nab.com.au NAB in 2011

113. http://socialmediaclub.org/blogs/from-the-clubhouse/social-media-case-study-national-australia-bank • Results • Commonwealth Bank and others fought back – $1,200 cash for NAB customers to refinance NAB in 2011

114. NAB in the Future https://www.youtube.com/watch?v=1BOKmUDBTR8

115. A Word About the Big 3 Platforms

116. A Word About the Big 3 Platforms

117. Facebook

118. Twitter

119. Engaging the Community

120. Engaging a Sub Community https://www.youtube.com/watch?v=TKL_cn8vhjo

121. You Can’t Control it…at all

122. The Battle for Small Biz

123. LinkedIn Facts • Founded in 2003 (11 years old!) • More than 300 Million Members as of 5/1/14. 100M in US • 40% of users check it daily • Well educated, well compensated: http://www.globalrecruitingroundtable.com/2013/01/22/LinkedIn-facts-figures-2013/#.U4zZg1zjyzA

124. Social Selling is a result of social buying Social Selling 101 THE INTERNET HAS CHANGED THE GAME

125. The good news is that LinkedIn is still an emerging trend within banking and there’s lots of available opportunity. “Commercial Lender” in Omaha, NE Social Selling Social Selling 101 THE INTERNET HAS CHANGED THE GAME

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127. What Will the Next 10 Years Bring?

128. • Social Channel Consolidation - You can’t be everywhere • Data Integration - What social data do you want most? • Platform Integration - Online acct access within FB

129. • Niche Down - Can you win all retail or a long tail? • ROI Focus - Strategy and sales need attention • Digital vs. Social Strategy - Bolt on or are you strategic?

130. “‘Digital strategy on social platforms,’ uses social media to broadcast commercial messages and seek customer feedback…’social strategy on social platforms,’ steers clear of direct broadcasting in favor of helping customers create and strengthen relationships with each other.” -- Mikolaj Jan Piskorski http://hbswk.hbs.edu/item/7545.html

131. “American Express's OPEN Forum, a website where entrepreneurs share ideas, is an example of a successful social strategy… I've received help for my business under the umbrella of American Express, and I'm more likely to recommend AmEx to my friends because I've made this great connection, and the cost of customer acquisition for AmEx drops. This is, in fact, what American Express has found to be the case.” -- Mikolaj Jan Piskorski http://hbswk.hbs.edu/item/7545.html

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133. • “We started the contest on May 1, 2013 at 8,860 page Likes and ended May 31, 2013 with 15,190 page Likes for a net total of 6,330 new page Likes. • Our goal was 4,000 new likes, which we exceeded by more than 50%• Our fans uploaded 100 mustache pictures – our goal was 50. • The total number of votes: 12,707 – which means we probably had more than 10,000 visits to our Facebook page• People spun the slot machine at least 950 times, but probably much, much more. Our goal was to get 500 people to spin, which we nearly doubled.• Our brand engagement rate spiked, topping out at 26.81% during the week of May 14-20, 2013.” Or Will We Keep On Keeping On?

134. • Of what we’ve seen, what was digital strategy vs. true social strategy? • Where does your bank stand? • Can you innovate to break bad trends and start better ones? Parting Thoughts

135. Mark Zmarzly mark@hippocket.net 402.802.1005 @BankMarketing https://www.linke din.com/in/markz marzly Let’s Connect