Banking In A Social Networking World

Banking in a Social Networking World

Wisconsin Bankers Association Technology Conference

September 22-23, 2009Eric Cook, Certified Internet Business Consultant

Banking in a Social Networking World - WBA 2009

Eric Cook, Certified Internet Business Consultant 2

Did You Know Video…

Banking in a Social Networking World - WBA 2009

Eric Cook, Certified Internet Business Consultant 3

What Does This Mean For Financial Services?

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Eric Cook, Certified Internet Business Consultant 4

Agenda

• “Sticky” banking• Evolution of the web• Social networking

– Blogs & “Fab Four”

• Social banking• Free promotion tools• Wrap-up and questions

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“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”

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Why “Gen Y”

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Shifting Values

1 2 3 4 5Traditionalists

1901 - 1924

Legacy Loyalty Discipline Logic Consistency

Boomers

1925 - 1965

Climbing the Ladder

Money & Status

Hard Work Idealism Competition

Gen X

1966 - 1979

Flexibility Portability Independence Change Freedom

Gen Y

1980 - 1990s

Collaboration Innovation Entertainment Speed Learning

Source: Bea Fields, Author

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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

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Online Activities

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Online Advertising Spend

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Percent of Total Spend

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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

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social media is basically a

conversationhi whats up?

socialmedia

What Is Social Media???

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Using Networks Such As…

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Social Network Profiles

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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

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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

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Objectives of Social Media

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Customer Rankingsand 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

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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

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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)

SEO & SMO Work Together

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Blogging

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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

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Examples of FI Blogs

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Blogging Etiquette

1. Be real & engaged

2. Provide value

3. Be accessible

4. Generate conversations

5. Listen to opinions

6. Ask questions

7. Help others (even competition)

8. Put others first

9. Listen to community

10.Leverage talent

Source: MarketingProfs.com

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The “Fab Four”

• Facebook

• Twitter

• LinkedIn

• YouTube

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Total Visits

Source: Compete.com

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Some Facebook Stats

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My Newest Friend…

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Twitter-iffic

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Twitter Tidbits

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Peoples Bank Phishing Alert

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@Banking on Twitter

@CommunityBanks

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LinkedIn

• Professional networking environment

• More business focused– Online resume

• Personal and Groups

• Connections

• Recommendations

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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…

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Landmark BankVideo Channel

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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)

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E-Mail Is Cost-Effective

SearchEngine

Advertising

eMail YellowPages

Banner Ads Direct MailSearchEngine

Advertising

eMail YellowPages

Banner Ads Direct Mail

1.7x1x4.1x

6.9x

34.3x

2.4x

1x

5.9x

7.1x

8.2x

Cost per Lead Cost per Customer

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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

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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

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Online PFMs

Source: Compete.com

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Mint.com

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USAA - Mobile Deposits

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Some Free Promotion Tools

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Podcasting• TalkShoe.com• BlogTalkRadio.com• InstantConference.com

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Webinars

• DimDim.com• Also…

– GoToMeeting/Webinar– WebEx

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Whitepapers & Articles

• DocStoc.com– “Community Bankers

Guide to Social Network Marketing” by Jesse Torres

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Presentations

• SlideShare.net– Embeds into

LinkedIn

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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!

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Reputation Monitoring

http://www.google.com/alerts

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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

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Critical Success Factors

• Be yourself– Not John Mackey, CEO of Whole

Foods

• Be responsive

• Contribute and give back

• Don’t sit on the sidelines

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It Takes Balance…

QuestionsEric Cook

Certified Internet Business Consultant

eric@PoweredByWSI.com

www.PoweredByWSI.com/WBA2009

(269) 841-5007

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