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5 Major Benefits Of Social Media Marketing For Banking And Financial Sector

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The Financial Services, Insurance, and Banking sector might have been little slow to catch up with the social media marketing fever but still, they have been able to establish a firm and stable online presence. Major players like ICICI, ING Vysya, HDFC, Axis Bank and many more such companies are quite active on social networking channels. But simply posting content on social media channels does not end a businesses’ social media activity. There is a huge amount of content available online related to the social media marketing for banking and financial sector. If you are able to analyze this content you can have a huge amount of information which can be utilized for improving your social media marketing strategy.

social media marketing for banking

Mobile banking apps of different Indian banks

So, here are few tips which can prove to be beneficial for Banking and Financial sector when venturing in the social media space:

1) Understanding the market

 

social media marketing for banking

Understand target market for social media banking

Pushing of services and products to prospective customers may give a fillip to your sales for a short duration but in the long run, this effect will wear off. Instead, it is better to understand your market and then modify and develop your product or service. It would definitely be more effective in boosting the customer’s response. Looking at the dynamics of the ever changing market it is absolutely necessary for you to be abreast with the latest trends, fashion, and choice of the customer so that you can develop or modify your offerings based on these insights. For e.g., with the help of social media marketing analytics, businesses can find out what is the pie-share for different product/services types – debit cards, credit cards, salary accounts, loans etc. Businesses can also get further details on what type of subjects are being discussed by the users under different product type. This information can also assist you in categorizing your users into separate target groups and thus you can design customized solutions/offers for audience based on their preferences and needs.

2) Finding out potential customers

There is a sea of conversations available online. This provides you an opportunity to reach out to people who are actually in need of your services or products. Thus the chance for you to convert a prospect is better than sending cold emails to unknown prospects.

social media marketing for banking

Find potentials lead prospects

A few related keywords along with a social media network monitoring tool can help you to discover these prospective customers and connect with them easily before your competitors. You can take help from the online discussions of the prospects on social media networks or forums. This gives you a clue as to which prospects are more likely to reply or respond to which kind of offer and then you can target them accordingly. Some people might be chatting about buying a new car, someone might be wanting advice regarding buying a new car, some students might be sharing fee structure of a college and taking suggestions as to which bank is best for taking a loan, or for that matter which bank provides better interest rates. Now businesses have enough data in the form of conversations which can be routed to respective departments and thus you have now a list of relevant hot leads.

3) Identifying social media influencers

social media marketing for banking

Get in touch with Social media influencers

Social media influencers is a term given to people who are pretty active on social media and are followed by a huge number of followers. They enjoy a lot of clout among their followers and can influence the moods and opinions of their online followers. A good example can be- renowned writers, celebrities, sports personalities, politicians, artists, industry experts etc. One good review from such source can work better and be more effective than expensive advertisements. But this can also be a double-edged sword, as one negative review from them and you stand the risk of losing a good number of prospective clients, who are part of their follower’s list.

Bradley Leimer is one such influencer of social media marketing for banking sector in the virtual media space. He is considered as one of the top 20 influencers. One of his post criticizing Intuit’s (Co. offering accounting software online to small businesses) Mint.com was able to influence his follower’s sentiments and views against the company by adopting digital marketing for banks and Social media banking.

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4) Continues eye on customer feedback

Knowledge of what your clients think of your services and products is essential for surviving in the market and that is one of the reasons why so many companies are so actively engaged in customer’s surveys. But nowadays traditional marketing research is not the only thing that businesses can depend upon.

social media marketing for banking

social media monitoring tools

Social media is a platform where customers post countless reviews, opinions, and feedbacks about your products and services, without even being asked to do so. Thus social media listening helps you to understand the sentiments and views surrounding your company. This information can be used by businesses to design new products and/or improve existing offerings. The effect of social media marketing on financial can be seen through such instances.

There is a good example of Barclay’s. In 2012 they launched a mobile banking application. This app enabled customers to send money to other people by just using their phone number. Barclays further optimized the app by using social media analysis in real time and made several changes to it based on the online feedbacks of its users, thus adding more features to suit the demands of its customers. Here, Barclay’s used social media banking to provide easy banking to its customers.

5) Analyzing your competition

social media marketing for banking

analyze the performance of your competitors over the social media

Companies today are striving hard to beat each other out in wooing the customers. This is the reason why a huge amount of money is spent in tracking the activities of the customers. Traditionally companies hired ghost or mystery shoppers to not only gauge the mood of the customers regarding your products/services but also get an idea about the performance of competitors’ offerings.

Nowadays with the advent social media, monitoring has become little easier. Social media marketing helps in not just tracking online activity that is happening around your brand but it can also assist you in monitoring your competition’s online activities.

Brands can monitor conversations happening online around their services, products, campaigns, online sentiments and much more. Since everything is happening online, you should possess substantial hands-on knowledge which will be feasible through best online social media marketing courses. Banking marketing is what you need at the moment. With the world going digital Marketing in banking sector is the need of the hour. 

For example, with the help of social media, you can track your most talked about competitors. Once you find your targets you can further drill down into the views/opinion surrounding them, what the audience is talking about – whether it is a new offer, a new branch, interest rates, customer service etc. This information can help you in designing new marketing strategies in banking sector to match your competitors and staying ahead in the race of social media marketing for banking sector.

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  • There are 10 comments


    • 3 years ago

      Arun   /   Reply

      Great Post Mayank. I agree with your benefits you have mentioned. “Analyzing your competition” part is really informative.

    • 2 years ago

      Andrew Hopes   /   Reply

      A wonderful post. I didn’t know it earlier that social media plays such a crucial role in banking and finance industry. Thanks a lot mayank for posting this information.

    • 1 year ago

      Nikhil Chhabra   /   Reply

      Hi,
      I am working in insurance sector as a sales executive. How digital marketing skills can help me to grow my career further ahead?

      • 1 year ago

        Sahil Arora   /   Reply

        Hi Nikhil,

        You might have discover the influence of social media in banking & financial sector in the above article. Similarly., digital marketing or social media skills can also help your career to grow. If you are looking to pursue your career in sales you can increase your sales target using these skills where you can start promoting your services on social media groups, forums where you can interact with the audience & promote your services. You can start your own blog or website where you can promote your insurance policies through SEO, PPC, Affiliate marketing.

    • 1 year ago

      Shikha Mathur   /   Reply

      What are the most successful examples of a bank’s social media presence?

      • 1 year ago

        Sahil Arora   /   Reply

        Hi Shikha,

        I would like to share one case study where you will know influence of social media in banking sector. To engage with their existing customers as well as to acquire new customer’s Yes Bank organized a lot of branch level activities :

        Every year during IPL in order to connect with the cricket fanatics YES BANK initiate contest called #YESBankMaximum.

        A Twitter campaign #RaisetheTricolour, was initiated on the occasion of India’s 69th Independence Day and it was followed by the #IndiaBoleYes campaign.

        YES TAG App promises to make banking more faster and convenient, with YES TAG a customer can avail various banking transactions from 5 different Chat applications – Twitter, Facebook Messenger, WeChat, Telegram and Skype.

        I would like to share an article where you will find YES BANK’s Social Media Strategy : http://www.digitalvidya.com/blog/understanding-yes-banks-social-media-strategy-hits-and-misses/

        Hope this article could help you. For any other query feel free to ask!!

    • 1 year ago

      Shahbaz Khan   /   Reply

      How forums or some other social media channels can help banking or financial sector to acquire customers?

      • 1 year ago

        Sahil Arora   /   Reply

        Hi Shahbaz,

        There are many forums or groups where you will find users discussing about financial services or banking policies where banks or financial sector companies can indulge in discussions by solving customers queries, by promoting their new policies. Similarly, twitter can be used where you can respond to users tweet.
        There are five key areas where social media is changing financial services around the world:

        1) Customer Service
        2) Marketing
        3) New Product/Service Development
        4) Reducing Costs and Improving Efficiencies
        5) New Business Models

    • 1 year ago

      Mohit Kapoor   /   Reply

      What are some of the ways Banks Are Using Social Media?

      • 1 year ago

        Sahil Arora   /   Reply

        Hey Mohit,

        Some of the best ways banks are using social media are :

        1) Community – Banks not only using social media to “sell” anything, but instead utilize social media as a way to build upon the community that acts as an online neighborhood for their customers to interact with each other and the bank – much like their branches.

        2) Customer Service – As I shared earlier banks are using social media as a customer support service to solve queries of their clients.

        3) Marketing & Promotion – In this digital era of marketing, social media has become an important effective way to promote their brand & services using social media

        4) Product Research – Banks are using social media to take a look at their customer’s needs and used that to build new products and services.

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