Setting up accounts on social networking sites is not confined to solely establishing personal connections anymore. Owing to the digital age, more and more companies are seeing the benefits of creating an online presence. In fact, even financial organizations are now jumping into the fray of social media marketing.
It took a while for financial companies to take advantage of social media. Unlike other companies, those under the financial sector need to abide by laws and regulations governing online communications. In the US, for instance, the Financial Industry Regulatory Authority requires financial companies venturing into social sites to comply with the regulations detailed on Regulatory Notice 10-06.
With the legal fronts cleared, financial companies can now make the most of the advantages of social media, which includes:
- Higher exposure.
The idea of social media marketing is to boost a company’s online reputation. Social media allows financial companies to reach a wider audience, as studies show that there is a significant number of investors who are active online.
Social media is a great tool for online campaigns, be it on various blogs, Twitter, Facebook, or Google+. Customers can browse through a company’s complete set of products and services, as well as learn about company-led events. For example, finding the best stores to purchase something like cheap checks is now a click away. It gives customers—both the regular and the potential ones—convenience and quick information.
- More interaction, easier communication.
Less than a decade ago, clients raise their concerns through phone calls, official letters, or emails. Social media now makes it easier for both the company and the clients to create an atmosphere of respectful and open dialogue. The new Facebook Timeline, for one, allows their business-related pages to send and receive private messages from customers.
This works both ways: The financial company can reach out to potential customers, while customers now have an easier avenue to give their feedback to the company.
- More improvements for products and services.
Once customers have given their feedback, financial companies now have the option to act upon the comments of their customers, whether these are positive or negative.
Financial firms can capitalize on online comments. Analyzing feedback from customers can be another strategy of financial enterprises to create more personalized products and services that will cater to customers’ specific needs. Companies can improve or completely remove products and services that are no longer working. As with every business venture, satisfied customers translate to higher revenues.
- Peer-to-peer recommendations.
Social media thrive on numbers. Take a look at these statistics: by the end of 2011: Facebook has 845 million monthly active users; by March 2012, Twitter has 140 million users; and by January 2012, Google+ has 90 million users. Imagine the potential of tapping into this massive number of networks online.
If a financial company provides quality services and products, customers are more likely to share good stories to their online contacts. Aside from word of mouth, social sites have features that can make sharing information a lot easier, such as posts and tweets, likes, re-tweets, etc.
- Interactions with other companies in the financial sector.
There are various online communities that provide an area for open discussions between other companies and thought leaders in the financial industry. Financial firms can participate on topics they can relate to by sharing their website contents. They can also trade information, connect with other companies, and learn new tips and strategies.
Technology also brought many changes to the financial sector. Although there may be risks in adopting social media strategies, these advantages can undoubtedly bring more business value to various financial companies.