KQ Article

Last November, an article on TheFinancialBrand.com (read article here) asserted that banks and credit unions should avoid using social media. It was a candid, well-written piece with strong, research-backed points. (In fact, it was the site’s most popular article in 2010.) Essentially, it claimed financial institutions are not compelling enough to stand out in the crowded social media landscape, and so they shouldn’t even try.

What the article failed to mention was the scope of opportunity social media offers. Maintaining a Facebook page or Twitter feed represents only a small fraction of what’s possible. With this in mind, here are three reasons why it makes sense for financial institutions to engage in social media:

1. It all counts.

Simply having a social media presence — regardless of what you do with it — shows customers, members and prospects your institution is progressive, tuned in and technologically advanced. This by itself could sway a prospect, especially if it makes your competition look out of touch. Don’t fret if your following is weak. You may be achieving your goal simply because you have the “f” and “t” icons on your website.

2. It makes taking risks less risky.

I agree with the authors that social media is not the best channel for run-of-the-mill messaging. But it is outstanding for differentiating your brand. If you supported your community during tough financial times, use social media to talk about it. Post photos from the “Biggest Saver” competition you hosted. Tell stories about the customers piloting your mobile payment application. Social media is an ideal venue for information that is informal, interactive, funny or even absurd. (Remember, this isn’t your corporate website.)

Here’s a quick example: Blender manufacturer Blendtec recently used social media to ask people what they should blend. Answers included iPhones, golf balls and glow sticks. They whizzed up all of these things and posted the videos on YouTube. It was a goofy campaign that would not have worked as a print ad, or a brochure, or any other traditional marketing vehicle. But social media gave the campaign plenty of room to work. It gave prospects something to talk about and a place to talk about it. Most important, it kept the “Blendtec” name top-of-mind with everyone who saw it — in spite of the fact that blenders are relatively boring!

3. It’s free.

In the very near future, winners will not have to pay for the best marketing. Success will come to those who encourage natural, viral conversations about their brands, conversations that transcend niches, touchpoints, personas and other shopworn concepts. Getting your brand in the larger conversation requires a social media presence, as well as true engagement. You need to follow feedback, celebrate the positive and address the negative. You also need to stay relevant as the conversation evolves.

By all means, check out The Financial Brand article, but recognize it has a very narrow view of what social media can do. Bottom line: Social media is not just another channel for ads. It offers a unique opportunity to express your brand’s personality, highlight differentiators and get people talking.

_{© 2010 Martie Woods}