BestMark News

Research investigates how financial institutions can use social media to 'speak' with consumers

In an effort to reach out to a wider range of consumers in a more personal fashion, many businesses are taking to social media to aid in customer experience management.

Banks and financial institutions (FIs) are no different. A recent study from Javelin Strategy & Research investigates the ways in which personal finance is becoming an acceptable social media player and how banks are using the channel to speak to consumers.

According to the research, 10 percent of consumers are comfortable using social media websites to manage their bank accounts. Furthermore, these channels are becoming viable customer service centers. In fact, through the use of Twitter, Citi has been able to address 36 percent of its customer service conversations.

"Social media is the next frontier for the FI and consumer relationship," said James Van Dyke, president of Javelin. "FIs that seek to capitalize on social media should target the most open-minded customers first: Core Millennials (college-age consumers), Moneyhawks (active users of online banking, FI bill pay and mobile banking), Asians, Latinos and African Americans."

However, financial institutions and any company launching a social media strategy will want to ensure it has a dedicated employee able to catch problems before they begin.