Three Reasons Why Banks Trend Online

Thursday, September 28, 2017

Social media greatly impacts today’s businesses, both positively and negatively. Over the years, many businesses have either been glorified or denounced by social media users for their actions (and inactions) — and banks are no exception.

PositiveEdge’s banking experts have learned that there are three main reasons why banks trend online, which we call The Good, The Bad, and The Wow.

 

The Good...

Marketing Campaigns

Social media is a powerful tool for increasing brand awareness. Many banks have capitalized on this phenomenon using marketing campaigns. Take the campaign of TD Bank for example.

Since 2008, TD Bank is considered as the industry’s king of marketing campaigns. From delivering pizzas to handing out free umbrellas, TD Bank has launched several memorable campaigns and gimmicks that stand out from the rest. In 2014, they launched the #TDThanksYou campaign, in which TD turned one of its ATMs into an automated thanking machine. This new ATM gave personalized thank you messages and gifts to some loyal TD customers. One of the videos of the campaign received over 20 million views on YouTube.

 
New Products and Technologies

Like any other business, banks can be aggressive when introducing new products and technologies such as new mobile banking apps or credit cards with cash-back and travel incentives.

When Capitol One introduced its new mobile app for tracking and improving credit scores, the bank spent a huge amount on YouTube advertising. Its YouTube video has been viewed over 13 million times since last year. Recently, Capitol One also invested in Facebook advertising. Capitol One’s new video promoting its credit card with a cash-back feature for Spotify subscriptions has over 2 million Facebook views, 2 thousand reactions, 400 shares, and 250 engagements.

 

The Bad...

Bank Failures

Bank failures — from service outages to bank closures — gather a disproportionate amount of attention not just because of the inconvenience they cause, but also because people expect banks to be more stable and reliable than other businesses.

Last May, JPMorgan Chase customers took their frustrations to Twitter when the bank’s online services went down. While customers could still log in to the bank’s mobile app or website, they were unable to view their balances, pay their bills, or transfer money. In 2008, a total of 25 banks closed because of the financial crisis, generating headlines across the nation. Recently, the abrupt closure of Guaranty Banks in Wisconsin not only caught depositors by surprise, but also local state news companies, which hastily posted the news online.

 
Controversies and Scandals

Banks are among the most trusted institutions in the United States and abroad. So, when bank employees, who are supposed to take great care of depositors’ money, are caught perpetrating financial crimes, it not only creates a lot of buzz but also negatively affects public’s trust in the bank.

In 2016, Wells Fargo employees were caught creating fake accounts to meet their sales targets, leading to over $185 million in fines and compensations. The incident was well-documented on various news and social media channels. In the aftermath of the scandal, Wells Fargo continued to struggle with negative public perception. Credit card and new checking account applications with Wells Fargo went down 43% and 40%, respectively, from the previous year.

 

...and The Wow!

When it comes to trending online, nothing beats customer service in generating buzz — whether it be exceptionally commendable or atrocious.

For instance, Ally Bank recently won two awards from a respected personal finance magazine for Best Internet Bank and Best Bank for Millennials. It is also widely considered as the best bank for customer service. Furthermore, the level of engagement in its social media channels makes Ally Bank a leader among companies using social media. Customers, especially millennials, recommend Ally Bank for its 24/7 phone and live chat support, coupled with simple and transparent product offerings. According to a podcast, 60% of Ally Bank’s new customers are millennials, which comes at a time when other banks are struggling to win millennials’ approval.

On the other hand, Bank of America’s attempt to respond faster to customer issues did not go so well. In 2013, it set up a robot that will respond automatically to Twitter mentions. Unfortunately, the generic, impersonal messages went viral, with Twitter users disparaging and denouncing the way the bot responded to complaints.

 

Making Customers Heard

According to PricewaterhouseCoopers, developing a customer-centric business model is the top priority of retail banks through 2020. From marketing campaigns new products and technologies, to social media strategies, banks must embrace a customer-centric approach that will not just make them trend online in the short-run, but also create long-term trust with their customers.

PositiveEdge has been helping banks and financial institutions through its customer-centric solutions. With its CRM for Contact Centers tool, Positive Edge enables more effective customer-agent conversations by integrating a bank’s CRM and phone systems. The tool provides agents with the right information at the right time for every customer, thus enabling a personalized level of care. With its CRM Integrated Live Chat Tool,

PositiveEdge also enables representatives to engage with customers in real-time.

Get in touch with us to learn how we can take your customer experience to the next level.

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