Best Practices in Financial Services Social Media: What's Trending Now and What Will the Future...

Best Practices in Financial Services Social Media: What’s #Trending Now & What Will The Future Bring? -- by Mark Zmarzly

Presented at the ABA Stonier Graduate School of Banking on June 10-11, 2014.

Let’s Learn and Have Some Fun!

http://www.duarte.com/services/

Me Looking into the Future & Seeing that You Really Enjoyed Yourself Afterward


Mark Zmarzly

www.hippocket.net

@BankMarketing www.linkedin.com/in/markzmarzly

Who the Heck am I?


https://twitter.com/BankMarketing

https://www.linkedin.com/in/markzmarzly

1992 1996 2000 20030 2005

High School Career Assessment: Forest Ranger

1999BA in English & Organizational Communication Studies

1975Born

2005MA in Creative Writing

The salad years

Writer & English Teacher

Who am I?

20102005-2008 2012

2011SVP of Financial Services

2009@BankMarketing

2009 2011

Linkedin.com/MarkZmarzly

2005 Now – all in Financial Services Marketing - Editor I Copywriter I Creative Manager I AE I SVP Financial Services I Business Development Executive I Speaker

Who am I?

my blog

2013 2014

Idea was born

ABA SBMM

Current & future

Launching first client – ubt.com.

Mortgage, Auto, and Retirement comparisons are available now.

Launching next group of clients immediately.

Facebook application planned for fall of 2014.

Second generation in late 2014.

A Word from My LawyerFFIEC & Your Compliance Department are the boss.

I analyze our industry for new insights and future trends.

Don’t sue me! Seriously…I have a wife and 3 kids!


What is Social Media?

https://www.dropbox.com/s/hfsyeorjg34gd4s/Social%20Intro2.mp4

https://www.dropbox.com/s/hfsyeorjg34gd4s/Social%20Intro2.mp4

2000 2001 2002 20030 2004

2000Dot Com Bubble Bursts

2001Wikipedia launched

1960sAl Gore Invents the Internet

1998Blog


2006 20082005 2010

US Subprime Lending Peaks

2007 2009

11/2007Keypoint FCU – online banking into FB Active Facebook Users: 0 to 1.22+B

2011 2012

7/2007PayPal on FB3/2006

First Major FI Blog

8/2007TD Bank (Canada)

3/2008Quicken Loans on Twitter

2013


Now

$16B

© Hip Pocket 2014

Is it Necessary for Us?


What Customers Say About Us

It’s No Wonder…

Annoying, Boring, & Unhelpful, but Maybe Not Entirely Ineffective???

The Good News: We Don’t Care!

We May Not Be Red Bull


But We Can Innovate/Reinvent

• Kitty & Lala: https://www.youtube.com/watch?v=JFbUbAWbB-s

https://www.youtube.com/watch?v=JFbUbAWbB-s


• Current Trends• 4 Case Studies• Big 3 Platforms• The Future?

Peaking Ahead

• Own Your Community• Engage Sub Communities• Crowdsourcing • Mission-Driven• Generate Social Virality• Engaging Voice

• Not all Trends are “good”

Listen & Learn from Trends

Not All Trends Are Good

What’s Hip? What’s Trendy?


Own Your Community


Own Your Community

10,800k likes in 2012. 35,740 now. 250% growth.


Own Your Community


Conversely…


Own Your Community

42k likes in 2012. 55k now. 31% growth.


Own Your Community


Engage a Sub Community



301,000 members



Founded in 2000



https://www.bizcrowd.com


https://www.ubt.com/business-banking/catalyst-small-business


Crowdsourcing


CrowdsourcingHome Improvement Challenge

• Photo contest housed on FB

• $7,500 prize to be used for a home improvement project

• Participants submitted a pic of their project & description of why it was important to them

• General public voted to determine the winner

•increase of 23% in home equity products for the campaign from the previous year. The marketing spend was also significantly less.


Crowdsourcing• National Bank of Arizona

awarded $10K to a local business through a video contest housed on FB

• Winner was selected by public vote

• Total views to the Facebook tab reached 2,128

• Total video views exceeded 3,000


Mission-Driven Campaigns


Amplify Your Giving Visibility

From FMS Social: http://fmssocial.com

http://fmssocial.com/



From Sundin Inc: http://www.sundininc.com

http://www.sundininc.com/



From Social Assurance: www.socialassurance.com

http://www.socialassurance.com/



From Social Assurance: www.socialassurance.com

“As we have done since the inception of the bank, the bank remains strongly committed to supporting the arts, culture, and health and human service needs in the communities we serve.”

http://www.socialassurance.com/


Virality – Rapid Social Spreading


Virality

“If a piece of content makes people seem smart, they’re more likely to share it with their friends. And people like being the first to share information because it makes them seem cool and in-the-know.”

-- Jonah Berger, author of Contagious

http://jonahberger.com/books/contagious/

Virality

50k wait list before launch

Have a Distinct Voice

Instead of Doing This:

Voice

http://www.currencymarketing.ca/young-free/

Voice

http://www.frankbyocbc.com - Singapore

Voice

http://www.frankbyocbc.com

At the center of Vancity’s brand is the concept of ‘balanced prosperity,” a strategy driven by a “triple bottom line” of financial returns, social returns, and environmental returns. – Jeffry Pilcher of

TheFinancialBrand.com

Voice

http://business.time.com/2012/03/12/dollar-shave-club-a-start-ups-viral-ad-for-fing-great-razors-is-a-big-hit/

Voice

• Dollar Shave Club – beta 4/2011• Video launched March, 6 2012• 2 Million views in first 4 days• 4.1 Million views total in first 2 months. • 14,770,000 to date• $4,500 video production costs

Michael Dubin• Co-founder & CEO• Digital marketer/brand development• Improv comedy background - Groundlings

• Personality/Voice

http://business.time.com/2012/03/12/dollar-shave-club-a-start-ups-viral-ad-for-fing-great-razors-is-a-big-hit/

Voice

Own Your Community

Would You Want To Get Lunch with Your Social Media Voice?

How About Lunch?

My Mouth’s Not Real.

Would You Eat a Philly Cheesesteak with this Person?

Hand-Selected Case Studies

Case Study 1: Navy FCU

04/07/23 96

• Ask the Question

• Provide relevant information

• Single Auto-buying post, 1,525 Likes

04/07/23 100

“We are trying to be a friend people look forward to engaging with,” explained Don Varela, the lead strategist for social media. “Our mantra is engage now, sell later.”

Case Study 2: Social Money & Smarty Pig

• SmartyPig, LLC – Iowa

• Launched in 2008• $0 in advertising expenses • $500 MM in deposits (BBVA Compass) in 2012.• $3 Billion in Goals reached in first 4 years.

Social Media Case Study #2

• Personality/Voice• Product-focused• Engage on the Benefits• Consistency


• Majority of customers have 4+ goals• 70%+ of customers share their goals (can be kept private)• When savers reach redemption, they usually open 2 more goals.• "Social media as a whole isn't a luxury," says SmartyPig's president, Scott McCormack, “it's a necessity, which is why banks are turning to us."

• Financial Literacy• Cross-sell• Contests• Pre-spend behaviors• Life stage data• Special offers


“As banks struggle with social media, SmartyPig LLC is set to offer its tried-and-true approach to any bank that wants it.”

“We are taking the essence of SmartyPig and we are putting it into an application that can live inside of an existing banking website.“

2012: 6 domestic banks, 3 overseas banks, 3 prepaid card vendors, and non-profit.

http://www.americanbanker.com/issues/177_22/smartypig-social-media-twitter-facebook-money-systems-goal-saver-1046243-1.html

Time: When Keeping Up with the Joneses MeansYou’ll Save More Money

3 Random Groups - .3% vs. 5% vs. “peer group”

“Social forces—peer pressure, in this instance—seem to have more power to change behavior than plain old monetary incentives.”

"The idea is to share that with your family and friends, and keep up the social pressure to reach your goals.” – Smarty Pig user Nathan Robertson

Peer group could vocalize their goals and see peer progress.

“…The Peer Group Treatment deposit 3.5 times more often into the savings account, and their average savings balance is almost twice that of the control group.”

Case Study 2: Social Money & Smarty Pig

Case Study 3: Umpqua

https://www.youtube.com/watch?v=z8flLtw-ob4

Case Study 4: NAB

Case Study 4: NAB

http://moreless.nab.com.au

NAB in 2011

http://breakup.nab.com.au/2011/02/why-did-we-break-up/#content

• 18% market share compared with 33%, 31%, and 18% = the big 4

• Twitter, Video, Guerilla, Print, Micro

• Feb 14, 2011

http://breakup.nab.com.au/2011/02/why-did-we-break-up/#content

• Differentiation-focused• Specialized landing page• http://breakup.nab.com.au

NAB in 2011

http://socialmediaclub.org/blogs/from-the-clubhouse/social-media-case-study-national-australia-bank

• Results

• Commonwealth Bank and others fought back – $1,200 cash for NAB customers to refinance

NAB in 2011

NAB in the Future

https://www.youtube.com/watch?v=1BOKmUDBTR8

A Word About the Big 3 Platforms

Facebook

Twitter

Engaging the Community

Engaging a Sub Community

https://www.youtube.com/watch?v=TKL_cn8vhjo

You Can’t Control it…at all

The Battle for Small Biz

LinkedIn Facts• Founded in 2003 (11 years old!)• More than 300 Million Members as of 5/1/14. 100M in US• 40% of users check it daily• Well educated, well compensated:

http://www.globalrecruitingroundtable.com/2013/01/22/LinkedIn-facts-figures-2013/#.U4zZg1zjyzA

Social Selling is a result of social buying

Social Selling 101 THE INTERNET HAS CHANGED THE GAME

The good news is that LinkedIn is still an emerging trend within banking and there’s lots of available opportunity.

“Commercial Lender” in Omaha, NE

Social SellingSocial Selling 101 THE INTERNET HAS CHANGED THE GAME

04/07/23 169

What Will the Next 10 Years Bring?

• Social Channel Consolidation- You can’t be everywhere

• Data Integration- What social data do you want most?

• Platform Integration- Online acct access within FB

• Niche Down- Can you win all retail or a long tail?

• ROI Focus- Strategy and sales need attention

• Digital vs. Social Strategy - Bolt on or are you strategic?

“‘Digital strategy on social platforms,’ uses social media to broadcast commercial messages and seek customer feedback…’social strategy on social platforms,’ steers clear of direct broadcasting in favor of helping customers create and strengthen relationships with each other.”

-- Mikolaj Jan Piskorskihttp://hbswk.hbs.edu/item/7545.html

“American Express's OPEN Forum, a website where entrepreneurs share ideas, is an example of a successful social strategy…I've received help for my business under the umbrella of American Express, and I'm more likely to recommend AmEx to my friends because I've made this great connection, and the cost of customer acquisition for AmEx drops. This is, in fact, what American Express has found to be the case.”

-- Mikolaj Jan Piskorskihttp://hbswk.hbs.edu/item/7545.html

04/07/23 178

• “We started the contest on May 1, 2013 at 8,860 page Likes and ended May 31, 2013 with 15,190 page Likes for a net total of 6,330 new page Likes. • Our goal was 4,000 new likes, which we exceeded by more than 50%• Our fans uploaded 100 mustache pictures – our goal was 50.• The total number of votes: 12,707 – which means we probably had more than 10,000 visits to our Facebook page• People spun the slot machine at least 950 times, but probably much, much more. Our goal was to get 500 people to spin, which we nearly doubled.• Our brand engagement rate spiked, topping out at 26.81% during the week of May 14-20, 2013.”

Or Will We Keep On Keeping On?

• Of what we’ve seen, what was digital strategy vs. true social strategy?

• Where does your bank stand?

• Can you innovate to break bad trends and start better ones?

Parting Thoughts

Mark Zmarzly

[email protected]

402.802.1005

@BankMarketing https://www.linkedin.com

/in/markzmarzly

Let’s Connect

Best Practices in Financial Services Social Media: What's Trending Now and What Will the Future...

Social Media

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