Is Your Bank Scared of Social Media? #fail
Doing some research on a new project, I noticed a trend. Some of the places that spend MILLIONS on TV, Radio and Print are totally off radar when it comes to social media. Oh, their names are out there, but it’s a one way conversation, from the angry customer. You see, happy customers don’t go home and blog two pages about how much they loved it when they bank got their deposit amount right. Or when the bank made a banking error in their favor. But you get on the bad side of a customer, you’ll hear about it in social media.
So why are they scared to be on Social Media? Facebook doesn’t seem that scary to me. Twitter doesn’t seem too daunting for a bank with a small marketing budget, but for a bank with millions in the game, they aren’t anywhere to be found. I think I know why. It’s the customer retention number, and it’s about to catch up with them.
“It’s too risky,” they say. “We can’t control it. How can we control it? It’s too much of an unknown.” I’m here to tell you – you’ve already lost control. And the unknown happens because of the “head in the sand” syndrome from which you suffer. (Hint: there’s a little thing called “social media monitoring” – every business should be doing it!)
Last year, I began banking with a large regional bank. Their marketing was everywhere, and their branches were too. Their branding and web site was fantastic (imagine, that, I liked the branding and web site?) I loved my small town bank with the friendly faces, but my travel and other limitations made us part ways. Boy, do I miss them.
So, I tried this large regional bank, and the first two weeks were great. (No, I’m not going to name them and harass them, that’s not what this post is about – we’re about solutions, not tearing folks down.) The girl who opened my account gave me her direct number, and things were fab. Then I realized that that dress she was wearing that day wasn’t just a little loose, it was maternity. (No offense, but maternity leave caused a lapse in our relationship – I get it, but I was still devastated.) I went from being happy and having a banker, to being a number. I tried to find other branches, with good people with whom I could connect and trust, but it didn’t happen.
Finally, I started shutting down accounts. It was too much trouble to deal with the little things that they could have fixed in 30 seconds (but didn’t) mounted up. I was ready to leave. I went to complain to the manager about another “fee” that I was charged, basically an error in their system. I got told “there’s nothing I can do about it.” Well of course I wanted to go up the ladder and find someone who could help, but when that wasn’t an option, I walked out frustrated. And since then I’ve told everyone about my horrible experience banking with them. I’ve had literally almost everyone agree with me, and yep, I’ve cost that bank a LOT of money.
It’s funny that banks especially will spend so much on an ad campaign to get new customers, when making a couple customers a day happy could actually create more of a buzz, than a grocery bag, that’s “green.” You made me mad, I told everyone on facebook that I hated your service (850 people), and I tweeted about you (400 people) and I got retweeted (1500 more people), plus I’m writing a blog that will be here forever. Don’t you think a little, “let me take care of that for your sir” would have gone a long way. Yep.
So why aren’t the big boys all using Social Media to communicate with customers and provide customer service? Could it be that they know there are LOTS of people angry with them. That giving those folks a clean shot at communicating directly with the brand is not gonna look pretty for the PR department?
But what if… what if? What if they opened a dialogue and fixed a few customers’ problems…and engaged…were real by admitting that they’d made a mistake or two. Maybe they could LISTEN and learn about what customers want and understand why certain policies were hurting them terribly in the customer retention department. Maybe they would learn how they could actually GROW the bottom line from another angle instead of “gotcha” fees.
Hrmmm, well I know some banks (and other entrenched industry mammoths) aren’t gonna go for that, but I suggest that you watch your small local banks. I have a feeling some of them are going to engage social media with a passion as a means to engage customers and gain a competitive edge over their competition on both profit margins and the customer retention game.
What say you? How can social media change the face of the banking industry?
Comments
Andy, great post! The problem with companies is that they think they can get into these social networks and “control” the situation. They can’t! This stuff is not corporate Marcom – it has to be real and unfiltered. I think if they were to go on and start trying to “clean up” their mess, they may even get some respect out of it.
Totally agree, Ryan. Traditional marketing is a thing of the past and those that still play by those old school rules are leaving money on the table and customers at the curb. As old Ben Franklin said, “When you’re finished changing, you’re finished.” Time for banking institutions to start changing – or be finished. – Marianna
Great article Andy and “right on target” response by you, Marianna. Hope we can show the banking world that we’re up for change and join the social media! We need the core business and we’re definitely interested in your helping us with the project. Adv dollars are hard to nail down if they’re successful or not. New customers are a great way to know. See y’all soon. Willis
Thanks, Willis. You are exactly correct… It’s too often difficult to prove ANYTHING with traditional media – but counting new customers and repeat customers plus the content of references to your organization, customer feedback, “chatter” or conversation about the bank in general and so much more equals real value for any business. Banks are ripe for change – and the technology is available to allow meaningful relationships with your customers now more than any time in recent history – old fashioned banking using new tools. – Marianna