Social media has exploded across the financial services industry.
And like many a new craze before it, it has largely been driven by the perceived need to do something, compounded by a lack of industry consensus around what that something should be. Initiatives have been launched without clear objectives. They are not targeted at specific customer needs. Measures of success have not been identified or tracked. Long term strategies are not mapped out. To cap it all, I’ve even heard the worst harbinger of doom uttered from the lips of bankers. “Don’t worry about the RoI or NPV. We just need to launch something – and fast.” If ever there was a warning sign – it was that. Social media has become frothy.
This really matters, because social media needs to be taken seriously. In a world where customers spend more time online and visit branches less and less, social media sites represent the best opportunity for banks to maintain their relationships with customers. Frothiness will deter the more cynical members of the banking fraternity from believing in the potential of social media to drive value. And worse, it will distract bankers from really focusing on the hard questions of how they can drive value from social media for customers and banks.
The froth needs to be knocked off social media – and quickly!
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