2013 07-31 social media scorecard - banking

Banking Industry North America

Social Media Score Card and Industry Maturity July 2013

Table of Contents

1. Purpose of Report2. Research Methodology 3. Report Summary & Highlights 4. Social Media Score Card5. Social Media Industry Maturity6. Social Media Ranking 7. About Base22

2 © Copyright 2013 Base22 Canada Inc. July 2013

Purpose of Report

The purpose of this report is to understand how corporations are effectively using social media relative to their peers in the industry. In addition, assessing the adoption of social media within an industry will measure the maturity of the market segment in their use of these emerging communication channels.

Corporate expenditures for traditional media such as print, television, and radio are rapidly declining as the acceptance of social media becomes more mainstream. Companies need to realign their marketing and communications strategy by targeting their customers and business communities who are increasing their activity on these social networks.

Companies failing to realign their marketing and communications strategy by adopting social media will be wasting money on traditional channels where the presence of their targeted market demographics is diminishing.


Research Methodology

Our research methodology analyzes data from the four most popular and largest social media networks: Twitter, LinkedIn, YouTube and Facebook.

• Twitter, with over 700 million accounts, was assessed because of its potential use for mass communications to drive market presence and brand awareness.

• LinkedIn. LinkedIn has quickly become an important business development capability, brand awareness, and brand advocacy by company employees.

• YouTube, with its reputation for spawning viral videos, is increasing its importance as a social media channel to distribute rich visual messaging.

• Facebook with over 900 million registered accounts has become the primary channel to drive customer loyalty, brand advocacy, and consumer engagement.

The methodology consists of assessing a minimum of 15 publicly available data elements across all four social media channels. Each data element for each company is rated and ranked across the industry. A final balanced score for each company is calculated and ranked among the peers in the industry.


Report Summary


Early Adopters CITI and Bank of America continue to battle it out for the top spot in the North American banking industry with their respective balanced social media footprint. Both banks focus on all of the social media networks and integrate their channels to provide a richer and broader customer engagement experience and online social presence.

Early Majority Wells Fargo, Chase, and TD have established initiatives but tend to focus on one or two social media platforms. If they integrated their campaigns across all social channels, they will have a stronger and more balanced online presence and improved customer engagement model.

Late Majority RBC, Scotiabank, US Bank, BMO, and CIBC appreciate the need to have a social media presence. They have established a standard footprint but need to develop a more integrated and balanced strategy to improve on their social presence, online influence, and consumer engagement.

Laggards Desjardins and National Bank have not realized the benefits of social media and do not see the urgency to provide an active social engagement with their customers. Companies in this category will fall further behind their peers and will have a tougher challenge to establish a competitive social presence as the industry matures in the next 12-18 months.

Report Highlights

From the latest research data as of July 2013, Canada’s top 7 financial institutions, banking, continue to be late majority or laggards in their adoption of social media. With the exception of US Bank, all of the American banks are early majority or early adopters to social media. The disparity in adoption uptake could be related to Canada’s more conservative and risk adverse attitude of embracing new technologies, such as social media, at the corporate level.

In the last 6 months there were several notable changes for social media adoption in the banking industry. CITI (score = 6) has taken over the top spot by surpassing Bank of America (11). RBC (25) is currently positioned in 6th while pushing Scotiabank (27) down to 7th. Desjardins (39) and National Bank (47) were introduced into the sampling population in order to provide a broader assessment of the industry by including Quebec based FI’s.

In summary, social media will continue to have a strong presence in the banking industry for customer engagement, brand advocacy, and consumer loyalty. Banks who fail to capitalize on this technology will isolate themselves from an emerging younger workforce and a socially engaged consumer generation.


Report Highlights (continued)


FinancialInstitution (Bank)

RankJuly 2013

Rank Jan 2013

Net Change

CITI 1 2 +1

Bank of America 2 1 -1

Wells Fargo 3 3 0

Chase Bank 4 4 0

TD Canada Trust 5 5 0

RBC 6 7 +1

Scotiabank 7 6 -1

US Bank 8 8 0

BMO 9 9 0

CIBC 10 10 0

Desjardins 11 N/A -

National Bank 12 N/A -

CITI

Bank of America

Wells Fargo

Chase Bank

TD Canada Trust

RBC

Scotiabank

US Bank

BMO

CIBC

Desjardins

National Bank

Social Media Score Card – Banking


LEADING LEADING

AWARE AWAREAWARE

AWARE AWAREAWARE

AWARE AWARE

AWARE

AWARE

AWARE AWARE

ENGAGED

ENGAGED

ENGAGED

AWARE AWARE AWARE

AWARE AWARE AWAREAWARE

ENGAGED

ENGAGEDENGAGED

ENGAGED ENGAGED

AWARE

Social Media Industry Maturity – Banking


ENGAGEDENGAGED

AWAREAWARE

LEADINGLEADING

Laggards Late Majority Early Majority Early Adopter

Exploring – 1 or no presence and limited customer engagement

Emerging – 2 or more presences with minimal customer engagement

Socializing – 3 or more presences with active customer engagement

Leading – 4 or more presences with integrated social footprint & customer engagement

Ranking by Social Media Platform

FI – Bank Rank Score Twitter Facebook LinkedIn YouTube

CITI 1 6 1 2 2 1

Bank of America 2 11 6 1 1 3

Wells Fargo 3 12 3 3 4 2

Chase Bank 4 21 2 8 3 8

TD Canada Trust 5 24 4 10 6 4

RBC 6 25 5 5 5 10

Scotiabank 7 27 10 4 8 5

US Bank 8 31 11 7 7 6

BMO 9 32 8 6 9 9

CIBC 10 37 7 9 10 11

Desjardins 11 39 9 12 11 7

National Bank 12 47 12 11 12 12


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About Base22

© Copyright 2013 Base22 Canada Inc. July 2013

Edward Wong MBA

12

Edward is a Partner and co-founder of Base22 Canada. As a former KPMG, Deloitte, PricewaterhouseCoopers and IBM professional, Edward has over 18 years of business and technology consulting experience. Edward has held senior management and strategic leadership positions at his previous companies and brings with him a diverse set of practical skills and client experiences ranging from audit/tax, Enterprise Resource Planning, enterprise portals, content management, social enterprise transformation, social analytics and industry market research.

Edward developed the Social Enterprise Theory, methodology, and framework. These intellectual assets and thought leadership will enable organizations to quickly and cost effectively adopt social technologies from a strategic position but with manageable tactical execution to realize faster entry into the social business and social media platforms. Edward’s industry experiences include Banking, Pharmaceutical, Retail, Petroleum & Chemical, Government, and National Defense.

fastersmarter.biz @base22canada [email protected]

© Copyright 2013 Base22 Canada Inc. July 2013

Economy & Finance

2013 07-31 social media scorecard - banking