Social Banking and CRM System Useage in Banks

The operating environment for banks is experiencing change. For example, each year 45% of customers stop at their local branch less than 5 times. In the 18-29 age group, 92% use social media. Surprisingly, the 65+ group is the fastest growing segment and 38% already partake in social media. Visits to social networking sites by financial customers increases 31% annually. Indeed, 45 of the biggest banks in the world have a Facebook presence and most have a Twitter account.

In addition to CRM system useage in Banks, banks can also develop an online social strategy to attract new customers by using the voice of their current customers. Marketing by word-of-mouth is more effective and trusted than ad placement. On-line reviews, either residing on the bank website or independent (such as Yelp), help inform customers and generate sales.

Before entering the social banking world, banks need to research and choose social channels, design supporting systems, train current staff and recruit new talent experienced in social media. A social presence requires capability for prompt response to customer input. This input could include their experiences, complaints and ideas. Customer input should influence the whole organization from product development to follow-up on sales generation.

Monitoring Social Media for comments on your institution is a minimum for all banks. If you cannot commit to a serious resource allocation, then not responding via social media is a safer strategy. Liability and security issues have to be managed correctly.

Becoming a social bank requires adjustments:

Customer Service can now interact with customers using multiple channels. Changes in customer communication requires additional employee training.

Social channels can broadcast messages and initiate conversations with customers.

Social media presents new opportunities for sales and marketing to engage customers and learn what banking products fit their needs.

Use of social media requires investment new technology. However, the upgraded technology, integrated with existing CRM and internal systems will increase efficiency.

Using social media, customers can beta test new bank offerings. Reacting to customer comments and reviews, provides opportunity to build good will, satisfy needs and develop innovative products.

The behavior of branch employees has more impact on the bank’s image when it is a social bank. Front line employee training must teach consistency in service and conflict resolution.

Social media requires adherence to regulations concerning privacy, security and data retention.

Social banking has value when customers have a need and take advantage of the bank’s social channel to learn, transact or be acknowledged. The bank benefits when it utilizes customer interactions correctly to retain and increase its customer base.

We use social media to promote our Loan Pricing Model and get found by bankers.

Alan Lee