Nov 11
30
Building Online Communities: Leveraging Social Media to Grow Customer Relationships
For those who missed this year’s BAI Retail Delivery Conference, you can view my presentation below. And be sure to visit my SlideShare profile for more presentations from 2011.
Nov 11
29
Satisfaction Grows Among Banking Customers
Financial institutions and their customers took a hit during the recession and many are still struggling to overcome economic hardship. However, the results of a new study show that despite harsh financial times, the relationship between banks and their customers remains strong.
The annual Customer Satisfaction with Retail Banks survey, conducted by J.D. Power and Associates, found positive sentiment among banking customers rose for the first time in three years, despite being charged slightly higher fees. On a 1,000 point scale, customer satisfaction increased four index points to 752 between 2010 and 2011. The study shows an improvement in customer sentiment in certain areas, such as problem resolution, facility and product offerings. Satisfaction in other areas, such as account activities, remained consistent from 2010 data.
However, the study did not find a decline in satisfaction when it came to fees, as some banks have been forced to impose higher charges for certain transactions to recoup profit losses. Analysts say that despite dissatisfaction in this area, customers are still happy in their banking relationships on an overall scale.
“Being charged a fee does not necessarily have to result in dissatisfaction,” said J.D. Power and Associates banking services director Michael Beird. “Customers who completely understand their bank’s fee structure and value the products and services they receive tend to have higher levels of overall satisfaction, despite paying fees.”
In addition, Beird says other services and benefits, such as rewards programs, mobile and online banking have overshadowed fee increases and provided customers with more gains and control over their accounts. According to the survey data, the percentage of Generation X and Y customers who utilize mobile banking applications increased from 11 percent in 2010 to 23 percent in 2011. Additionally, 75 percent of Generation X customers report using social media applications. The number of Generation Y customers who report the same activity is higher at 87 percent.
Additionally, banks that offer quick and efficient customer service were given higher overall ratings of customer satisfaction, whether representatives provided service in person, online or through social media platforms. Those will lower ratings lost points due to a lack of consistent correspondence with customers who requested help with their accounts.
“Among customers who post customer service inquiries on sites such as Facebook or Twitter and receive a reply, 47 percent say they would definitely reuse the bank for future products and services. This drops to just 27 percent if the bank provides no response,” Beird reports.
Oct 11
3
Are You Friends with Your Financial Advisor?
Would you want your financial advisor to friend you on Facebook? People may think of that as a connection better reserved for LinkedIn–where most social media users maintain their professional relationships—and I used to agree. However, I came across on article on WSJ.com that may have changed my opinion…
Many professionals, including myself, use social media as a way to share their thoughts and opinions with others, discuss new platforms, services and trends and more. However, where is the line drawn between professional and personal?
The WSJ article highlighted the growing trend of financial advisors who connect with clients on personal social platforms, like Facebook, in addition to characteristically “professional” platforms like LinkedIn. These FI’s feel they can serve their clients better and create a stronger bond by knowing more about their personal life. For example, your FI might find out that you want to build or purchase a new home and modify their investment plans for you as a result. They may also realize mutual interests that you share.
Another benefit to financial advisors who connect with clients on personal social media platforms is the ability to draw in younger clients. The old ways of cultivating relationships (golf outings, lunches, etc.) don’t necessarily work with Gen X or Y, but having conversations on Facebook or Twitter may help forge that connection.
While many people may feel wary of letting their FI view their family photo albums or personal status updates on Facebook, there could be some benefits, and it remains to be seen whether this will be a successful way to retain current clients and attract new clients.
However, with all of that said, would you want to be friends with your financial advisor?
It has been three years and Wells Fargo is finally rebranding Wachovia, whom they purchased for $15.1 billion dollars at the beginning of the financial crisis. Their methods range from changing signage on Wachovia branches to rolling the Wells Fargo stagecoach down Pennsylvania Ave in D.C. In addition, customers (especially those in the D.C. area where Wachovia had a larger footprint than any other financial institution in the state) can expect to see advertisements on public transportation, billboards and television.
One of the hardest elements of a rebranding campaign is retaining customers and assuring them that service will not only be as good, but get even better. This can be done through in-branch advertisements, direct mail, email, etc., but a strong branding campaign triggers emotions (hopefully positive) in the hearts and minds of customers that can establish loyalty and assuage fears.
According to Lori Kolbert, Wells Fargo’s mid-Atlantic sales and marketing director, the bank will continue pushing their stagecoach image because it “inspires confidence in our nation’s growth [and] it signals progress.”
For Wells Fargo, the notion of guiding clients through their financial journey – like a stagecoach making the journey westward – is also strong, but it remains to be seen whether or not the gold-rush image of the stagecoach will gain traction with east coast consumer and commercial clients.
Sep 11
21
Google Wallet: First Impressions (via Mashable)
Google Wallet is officially here, and already the technology is showing a lot of promise. Check out this article from Mashable for some great insight into using Google Wallet, issues with privacy, and, of course, what comes next.