The Hidden Economics of Social Media

Transcription

1 The Hidden Economics of Social Media

2 TODAY S PANELISTS o Ryan Bell, Chairman, Gremlin Social o Steve Chase, Managing Vice President, American Bankers Association o Siya Vansia, Vice President of Marketing, ConnectOne Bank

3 Agenda 1. The State of Social Media 2. Establishing Priorities 3. What is Required to Measure Value? 4. Returns on Investment & Potential Cost Savings

4 SOCIAL SHARING 2005

5 SOCIAL LISTENING 2007

6 SOCIAL SERVICING 2010

7 SOCIAL CHANNELING BRANDING 2012 TODAY

8 The Evolution of Social Media for Business SOCIAL SHARING 2005 SOCIAL SERVICING 2010 SOCIAL CHANNELING TODAY 2007 SOCIAL LISTENING 2012 SOCIAL BRANDING

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10 Over 2 Billion Active Users

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12 TWITTER

13 Joining the Online Conversation #AmericasBanks

14 Does your bank use social media for the following activities? (select all that apply) Currently In 1 2 years No plans exist Communication (N=880) 80% 9% 10% Marketing /sales (866) 68% 17% 16% Risk management (monitoring 63% 12% 26% Customer service (838) 58% 17% 25% Recruiting (829) 56% 17% 27% Competitive analysis (N=797) 29% 18% 53% Conduct research (798) 28% 21% 51%

15 WHAT ACTIONS ARE YOU TAKING TO SUPPORT THAT INVESTMENT?

16 POLL: HOW ENGAGED ARE YOUR TEAMS IN YOUR BANK S SOCIAL MEDIA EFFORTS? Very Engaged Somewhat Engaged Not Very Engaged Not Engaged at All

17 Team Member Advocacy = YOUR NEW SOCIAL MEDIA CHANNEL Empower your employees and relationship managers to be the face of the company going forward and build your employer brand

18 Let Them Post Socially active companies are 40% more likely to believe their company is more competitive and 20% more likely to stay at their company (Edelman).

19 Earned Media Value Calculation If LinkedIn charges $5 per paid advertising click: 50 (employee) x 5 (shares per employee per month) x 6 (clicks per employee share) x 5 ($ value per click) = $7,500 Smarp

20 SOCIAL CEO

21 SOCIAL CEO / Better Than the Rest

22 You Should Lead / You Should Post your newer, younger, more agile competitors When already CEO have social a media clear engagement vision for this managed, new world. 70% If you of employees don t or have believe left [it] this makes to a CMO, CEOs more CTO effective or worse -- a junior employee, leaders. you are making mistake Brandfog Survey Each department has their own objectives, goals and plans

23 Rank, in order, the reasons your bank uses social media: (Rank 1 10 with 1=top reason) Reason Average Rank Given by Respondents (1=top reason) 1. Community engagement (N=784) 1.9 Deepen existing customer relationships (e.g., providing updates on 2. new products/services, financial tips) (N=747) 3. Thought leadership/brand awareness (N=756) 3.9 Send general alerts to customers (e.g., branch closings, holiday 4. hours, changes in hours, etc.) (N=750) 5. Attract new customers (N=756) Respond to customer service needs (N=715) Employee or potential employee engagement (N=735) Advertising depository products and service (N=709)

24 WHAT IF WE FLIPPED THESE PRIORITIES?

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26 Advertising Depository Services

27 Advertising Depository Services

28 Advertising Financial Services

29 Employee Engagement

30 Customer Service Needs

31 HIDDEN ECONOMICS OF SOCIAL MEDIA CUSTOMER SERVICE Save money and have happier customers by shifting part of your customer care assets to social media RECRUITING Find top talent. Preserve your people. Lower recruiting costs and timeline. Go where the candidates are. BUSINESS DEVELOPMENT Build relationships online. Targeted marketing. Research and find your ideal customers.

32 SOCIAL CUSTOMER SERVICE HAPPIER CUSTOMERS / LESS CHURN CUSTOMER SERVICE Save money and have happier customers by shifting part of your customer care assets to social media

33 Social Customer Service Economics 5% improvement in response time yields a 10% improvement in CSAT. If this can correlate to a $10 per customer revenue increase for 5K customers, then that is a $600K run rate opportunity.

34 Impact of a 10% Increase in CSAT 22% Increased Recommendation 13% Increase Revenue Per Month 8% Reduction in Churn

35 Social Customer Service Economics 70% Prefer Phone for Urgent Issues

36 SOCIAL RECRUITING GO WHERE YOUR CANDIDATES ARE RECRUITING Find top talent. Preserve your people. Lower recruiting costs and timeline. Go where the candidates are.

37 Positive Impacts of Social Recruiting Increased brand awareness Ease of connecting with top talent quickly Speed up hiring process Learn more about your candidates Reach passive candidates as well as active Decreased recruitment costs *

38 Shortened Hire Time Increased Reach: Traditional recruiting sites only target active job seekers. Social media catches the eyes of passive job hunters too!

39 Shortened Hire Time 79% Active job seekers use social media 64% Recruiters found their candidate on social media

40 Screening Candidates

41 Screen Your Candidates (Reduce Attrition) % of recruiters negatively impacted

42 Lower Chance of a Bad Hire 75% of employers have hired the wrong person for a position, and one bad hire costs organizations an average of $17,000. Career Builder

43 Social vs Traditional Traditional Lower Advertising Costs Lower Labor Costs Social Media More Candidates Higher Candidate Quality Decreased Hire Times Comparable Cost Per Initial Hire

44 SOCIAL SELLING RESEARCH / TARGET / CONNECT / CLOSE BUSINESS DEVELOPMENT Build relationships online. Targeted marketing. Research and find your ideal customers.

45 Executive Buy-in None of our customers use social media. WELLS FARGO EXECUTIVE None of our customers will use social media to talk to a bank. SAME WELLS FARGO EXECUTIVE We won t get any new customers using social media. - SAME WELLS FARGO EXECUTIVE GAINED NEW BUSINESS: 88% 64% 68% Putnam Investments Report

46 Increased Assets Under Management 81% Are using social media for business Up from 75% in % Gained new clients via social media Up from 66% reporting client gains in M Was the average asset gained Median: $1.9M 53% Gained over $1M in new assets 71% Who gained assets were active on a daily basis Source: Putnam Investments

47 Findings Our team that uses social media adds one to two brand new customers per month. It s our best ROI. - Digital Marketing Manager, Pulaski Bank (Busey Bank) Our loan officers close 1 additional loan per month when they are active in social! - Marketing Director, USA Mortgage Social Media has a 100% higher lead-to-close rate than traditional outbound marketing - Forbes, The Top 10 Benefits of Social Media Marketing

48 How does your bank evaluate or measure the impact of social media? (select all that apply) Reach (number of followers/likes/page views) Engagement (number of comments/retweets/shares) 65% 72% Action Taken (number of registrations/number of leads) 29% Metric of audience engagement, share of voice, and sentiment using third party service 18% Other 4% My bank doesn t measure the impact of its social media use 22%

49 Polling Question: WHAT METRICS ARE YOU MOST INTERESTED IN? NEW CLIENTS INCREASED DEPOSITS/LOANS INCREASED RECRUITMENT TOTAL FOLLOWING TOTAL NEW LEADS

50 Connecting the Dots

51 Takeaways 1. Get Involved! Social Media Strategies Have To Start at The Top. 2. Get Everyone on The Same Page. Align Social Media Teams With Company Goals. 3. Get Employees Engaged 4. Align Other Departments to Support Social Media Investments 5. Seek Out Cost Savings. How can social media compliment your existing initiatives?

52 Resources ABA Training The Social Media: Managing the Risks Free to ABA member banks as part of the Frontline Compliance program Marketing in a Digital World Six-course online training series ABA Bank Marketing School April 24 - May 2 Emory Conference Center Hotel, Atlanta, GA Brand Guardian Provides banks the ability to monitor the web for mentions of their bank name, its products and other keywords on sites including news, blogs and social media. Free to ABA member banks. The State of Social Media in Banking Report Available on ABA.com

53 Q & A

54 Thank You to Today s Panelists o Ryan Bell, Chairman, Gremlin Social o Siya Vansia, Vice President of Marketing, ConnectOne Bank