WEEK 10 Blog-The Impact of Social Media on Increasing ROI in Banking Sector

 The Impact of Social Media on Increasing ROI in Banking Sector

 There is an increased concern of engaging customers via innovative social media such as Facebook and Twitter in banking sector. It is also interesting to note that many banks have received benefits from incorporating with social media. So the question that raise to the mind, what are benefits? Facebook has been identified as the strongest social media used to quick access to bank staff and system. Twitter has also follow the same pattern as Facebook, where it helps customers in notification purposes and priority access to new products and services. Other benefits may include financial guidance and links to other relevant processes. It is quite concern in banking sectors to use mobile devices in increasing investment. That’s said, by incorporating this service and other social media and mobile banking, levels of customer advocacy and loyalty could be improved.   

As with any banking strategy, social media needs to be effective from a financial and ROI perspectives. The finance departments of banks have the responsibility to provide intangible benefits in order to deal with real value of sales, and help to connect between the investment and the return. So that using accurate financial measurements and appropriate social media can directly continue to grow bank marketing channel. 

How banks could determine the ROI of a social media services? Developing a social media strategy is a critical step in promoting the communication between the customer and bank staff. Four steps should be made in order to determine the ROI of a social media program in banking sector. First step include evaluating the current social media environment. ROI need to be aligned with three business objectives: customer acquisition, customer service and community engagement in order to evaluate the current banking situation. The second step includes benchmarking social media performance using sentiment analysis, which can shape each media channel to evaluate the effort. The third step includes develop insights and taking action, which target to evaluate customer experience problems and potential risks. The last step is more important, which includes ROI Metrics: Track your success. In this step, one of the biggest issues is achieve company goals and objectives by setting of metrics that can promote social media and implement new actions of measuring social media's ROI. Let’s now see the interesting below link.

http://www.youtube.com/watch?v=ivtTzBHNH1g

References

http://www.datamonitorfinancial.com/social-media-can-increase-return-on-investment/

http://jimmarous.blogspot.com.au/2011/09/how-effective-is-your-banks-social.html

http://www.ababj.com/community-banking/item/144-is-social-media-really-paying-off-for-your-bank

Week 9 -The Effect of Social Media Monitoring Tools in banking sectors ..

There has been concerned of using social media monitoring tools in financial institutions such as bank to regulate reputation risks associated with financial services and overall management and social web. Banks are willing to use social media tools such as Facebook, Twitter and Google+ to have an effective communication with customers, and also to manage social network data. By using social media monitoring tools, banks can activate sales and marketing services, for example, bank teams can create, edit and post detailed information about financial services. With the help of monitoring network tools, Commonwealth Bank of Australia (CBA) and National Australia Bank (NAB), for example, have succussed to make nearly $1 million in revenue by engaging customers on Facebook and Twitter intercepts, rather than using purely branches.

Using of social media monitoring tools in banking sectors could be seriously help in increasing web visits, getting feedback from customers, measuring ROI, monitoring brand identity and making network friends. One of the most important aspects in banking sectors is “Conversation Suite” by MasterCard. This service helps to regulate the feedback from social conversations and build an effective communication with customers. Using “Conversation Suite” by MasterCard has now many social media connections, which lead to foster customer satisfaction and impact communications. Social media monitoring tools of the posts of customers can also lead to understanding of new demand and preferences in the banking sectors, so that it tracks many bank competitors to provide high quality in order to meet customers need.   

Social media monitoring tools can support the strategic plans of the bank, and it must be effectively measured in order to improve engagement and reach bank goals and objectives. On the other hand, there are challenges of social media monitoring. Connecting with traditional channels is one of the challenges. Banks in general has a major problem in credibility and financial crisis. Banks need, therefore, to get involved in powerful social media in order to get trust of followers and customers and fulfil their needs. Ultimately, this topic is quite interesting to many people who deal with banks, and want to know how effectively social media monitoring tools can improve customers services and overall organisational vision and mission. Let’s enjoy the link below.

http://www.youtube.com/watch?v=CnzFgf7tRmg

References

http://www.finextra.com/News/FullStory.aspx?newsitemid=25008

http://www.safesystems.com/blog/2013/06/3-free-tools-to-help-monitor-social-media-activity/

http://www.monitoring-social-media.com/social-media-monitoring-for-financial-services

http://www.australianbankingfinance.com/banking/kaching--cba-reaps--1m-from-social-media/

http://www.informationweek.in/informationweek/perspective/271898/banks-embrace-social-media