In social media, conventional wisdom dictates that campaigns should be reactive, impulsive and fun. However, for financial institutions and insurance companies, this type of approach can seem riddled with risk, and the antithesis of normal business practice. Then how should financial institutions and insurers “do” social media? The answer is process and strategy.
A process-driven social media campaign is not to be confused with something that is pointless or disengaged. What I mean by a process is a social media campaign that is driven more by an over-arching, detailed strategy and less by impulse. All actions should be aligned with what is effective for the business rather than with arbitrary goals such as Facebook “Likes.” Top of mind should be the reduction of risk and the prioritization of customer satisfaction.
Currently, many financial institutions and insurers have an ambivalent relationship with social media. From a business development perspective, it isn’t generally seen as a strong avenue of customer acquisition. Many firms have recognized social media’s importance for direct customer relations; however, the risk of making an embarrassing mistake often puts companies off investing in social media further.
One of the most straightforward steps that financial institutions often neglect is analyzing what their customers are saying on social media. This goes beyond having a social media manager monitoring Twitter and Facebook and actually necessitates using software to measure the sentiment of customers, key words and pinch points. Many banks would be shocked by the divergence between what traditional customer service surveys tell them and the very negative reception many banks receive online.
Social media represents the world’s largest focus group, there is nothing that banks or insurers do that should preclude them from tapping this information to better understand their customers. What is needed within these organizations is a change in mentality. Taking social media seriously and getting C-level buy-in is essential. Social media management should not be the sole preserve of the customer service team or a social media manager. By making social media a company-wide responsibility that is overseen at the highest level, a comprehensive strategy aligned with the organization’s business goals can be implemented. This strategy will allow set procedures to develop that mitigate risk and ensure actions are aligned with the company’s core aims.
