Do or die: why social media is important for Financial Services businesses

written by Lucie Osman on August 11, 2016 in Blog and Social Media with no comments

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Over the last decade, the rapid growth of social media has completely transformed corporate communication with its increasing ability to offer businesses direct and cost-efficient access to their desired target markets. The financial services industry has been slower to adopt social media due to the compliance, security and regulatory challenges inherent in the industry, however, with sound understanding of these constraints, many financial institutions can (and already are) seeing great success from social media. With an estimated social audience of 2.25 billion by 2017 (eMarketing Inc, 2012),  it is no longer a question of ‘Should we, shouldn’t  we?’, but rather ‘How can we integrate social media into our overall marketing strategy to serve our business most effectively?’.

Read our choice of the top benefits of social media within the financial services industry:

1.     Building brand loyalty, credibility and trust

Let’s face it, even if you are not using social media as a business,  it’s a given that your customers are. Recent research has shown that finance customers prefer to look up their pre-purchase options online before deciding who to buy from. A brand with an active and consistent online image is much more likely to be trusted than one without and consumers may base their purchasing decision purely on the social perception of a business that is gained from their presence or lack thereof on social media.

2.     Lower operational costs

Even if your business prides itself on the ‘personal approach’, many consumers use social media as a way of improving their customer service experience. By tying in your current customer service model with elements of social media, your business can take advantage of crowd-effect and lower the costs of client acquisition and retention through the provision of responsive ‘social care’  but also increase the reach and thus the power of traditional marketing messages at minimal cost.

 

Victoria Sheridan Consulting can help your business plan and implement a social media strategy that is in line with your overall business objectives and supports your traditional marketing and PR activity. Call us on +44 (0)208 123 3302 or tweet @ToriaSheridanPR to arrange a free consultation.