When did the lines of social media begin to overlap? Isn’t anyone concerned that social media brands will become indistinguishable in terms of target audiences and uses?
Back in November 2009, LinkedIn offered a partnership with Twitter so that Twitter users were able to link their Twitter accounts to LinkedIn and feature their Twitter updates or tweets on top of their LinkedIn pages. I asked this question back in November, since the audiences and uses of LinkedIn and Twitter are different, why would someone want to connect the two? Most LinkedIn users provide a wealth of information to build their personal brands (aka, their professional identity) with the goal of building business contacts: their name, location, photo, expertise, current and previous jobs, job duties, education, contacts, group affiliations, links to portfolios, links to presentations, links to blogs, etc. A LinkedIn user must provide specific details in order to establish an account. By contrast, Twitter users do not need to show their photos, professional backgrounds, telephone numbers, websites, or even use a real name. Twitter exists and succeeds as a micro-blog where users discuss areas of specialty, opinions, news, and initiate and engage in conversations – all in 140-characters or less.
Although Facebook users have had the ability to include their tweets on their Facebook pages, this month, Facebook introduced a re-tweet style function for links. While Facebook users can share information, they can write more than Twitter’s 140-character limit.
So, perhaps, the question is not when did the lines of social media overlap, but instead, what have you been doing while the Twitterization of social media happened – and did you notice?
Monday, January 18, 2010
Time to Reflect...
Greetings!
Today is Martin Luther King day and the moment cause me to stop and reflect. One of the most stirring speeches that I have ever heard from Dr. King's speech in Washington that is commonly referred to as "O have a Dream" Knowing how powerful that speech is in recorded versions, I can only imagine the power of hearing it live and being part of the scene that day.
However, if people had only "heard" it and not internalized the message, it would have all been simply words delivered with passion.
I a very passionate about what I do...and believe it comes out in everything that I do. However, I want to share with you a few "dreams" that I have...some for banking and some personal:
My mantra for the year?
From Great Challenge, comes the Challenge to be Great!
I will be great this year....join me on the journey?
Cheers!
Bruce Clapp
Today is Martin Luther King day and the moment cause me to stop and reflect. One of the most stirring speeches that I have ever heard from Dr. King's speech in Washington that is commonly referred to as "O have a Dream" Knowing how powerful that speech is in recorded versions, I can only imagine the power of hearing it live and being part of the scene that day.
However, if people had only "heard" it and not internalized the message, it would have all been simply words delivered with passion.
I a very passionate about what I do...and believe it comes out in everything that I do. However, I want to share with you a few "dreams" that I have...some for banking and some personal:
- I have a dream that my daughter will be free of seizures
- I have a dream that my son will continue to fulfill his unending potential
- I have a dream that my family continues to be blessed
- I have a dream that my clients will continue to be successful and internalize our messages
- I have a dream that banking continues to grow in seeing the world from the customer view
My mantra for the year?
From Great Challenge, comes the Challenge to be Great!
I will be great this year....join me on the journey?
Cheers!
Bruce Clapp
Sunday, January 17, 2010
Banks Beginning to Prepare for New OD Regulations
According to Sherief Meleis, managing director of New York City-based Novantas LLC, the banking industry could lose between $12 billion and $29 billion a year in checking account revenue when new regulations involving overdraft (OD) and nonsufficient funds (NSF) fees take effect. With such an adjustment taking place in the ability to generate fee income, banks are quickly determining how to communicate the upcoming (and still somewhat undefined changes) to their customers, while looking to dramatically restructure their checking portfolio. At last year's BAI Retail Delivery Conference, SunTrust SVP Hugh Gallagher stated, “We’re in an environment where free checking, if not dead, is all but dead.”
What needs to be remembered is that there is still a segment of customers who want access to overdraft services and actually rely on these services when emergencies occur or when debit card transactions are not monitored.
In fact, some of the heaviest overdrafters are aware of their behavior and do not dispute the fees being assessed according to a recent research study by Novantas and Informa Research Services.
As banks prepare to build a communication strategy in response to Reg E, it will be important to segment customers based on behavior, build a new pricing strategy for overdrafts, determine the best contact strategy and communication channels to reach impacted households and most importantly, how to adequately communicate the benefits of either opting in or opting out of the expected changes.
Success in communicating these new regulations could be worth between $10 - $15 billion annually for the banking industry.
What needs to be remembered is that there is still a segment of customers who want access to overdraft services and actually rely on these services when emergencies occur or when debit card transactions are not monitored.
In fact, some of the heaviest overdrafters are aware of their behavior and do not dispute the fees being assessed according to a recent research study by Novantas and Informa Research Services.
As banks prepare to build a communication strategy in response to Reg E, it will be important to segment customers based on behavior, build a new pricing strategy for overdrafts, determine the best contact strategy and communication channels to reach impacted households and most importantly, how to adequately communicate the benefits of either opting in or opting out of the expected changes.
Success in communicating these new regulations could be worth between $10 - $15 billion annually for the banking industry.
Thursday, January 14, 2010
Why Focus on Closed Accounts?
Why focus on closed accounts?
Are you customers going out the back door as fast (or faster) than you are bringing them in the front door?
Research tells us that it costs 10 times more to bring in a new customer than it costs to keep an existing customer. We also know that the longer the tenure the customer has with an institution, the profitability of that customer generally goes up. Long term customers are much more likely to become advocates (or unpaid sales people) for your institution. Another way of saying it is that it is much more costly to regain lost market share than it is to protect your market share in the first place.
Over my career, I have conducted numerous closed account surveys. These surveys were primarily closed checking account surveys. Most people identify their primary bank or credit union relationship by where they have their checking account. Percentages vary a little from survey to survey but the results are generally very consistent.
80% of all closed checking accounts are for uncontrollable factors. Customers get divorced, they get married, they move, they die, they simply no longer need the account, etc. etc. Another 10 - 12% cite rates and fees as the reason they close their accounts. The remaining 8 - 10% close their accounts because of customer service issues.
Banks and credit unions need to concentrate on the 18 - 20% of customers who close there accounts for reasons the institution can impact.
First, let's talk about rates and fees. An institution doesn't need to pay the highest rates and charge the lowest fees. But the institution does need to stay competitive!
Remember my earlier statement. IT IS MORE COSTLY TO REGAIN MARKET SHARE THAN IT IS TO PROTECT IT IN THE FIRST PLACE!
Now let's talk about customer service. This is an area all institutions can impact immediately. While there are many components to customer service, a immediate positive impact can be made by making sure your frost line staff do the following three things:
1. Use your customers name during the transaction.
2. If staff must leave the teller station, ask for permission and explain why they
need to leave.
3. Thank the customer at the end of the transaction.
You may have to invest in training, you may need to rewrite job descriptions, etc. but the return will be well worth the effort and the cost.
Bottom line - Focus on the 20% of customers that your institution has some control over!
You can reduce attrition!
Have a great week/weekend!
Mike
Are you customers going out the back door as fast (or faster) than you are bringing them in the front door?
Research tells us that it costs 10 times more to bring in a new customer than it costs to keep an existing customer. We also know that the longer the tenure the customer has with an institution, the profitability of that customer generally goes up. Long term customers are much more likely to become advocates (or unpaid sales people) for your institution. Another way of saying it is that it is much more costly to regain lost market share than it is to protect your market share in the first place.
Over my career, I have conducted numerous closed account surveys. These surveys were primarily closed checking account surveys. Most people identify their primary bank or credit union relationship by where they have their checking account. Percentages vary a little from survey to survey but the results are generally very consistent.
80% of all closed checking accounts are for uncontrollable factors. Customers get divorced, they get married, they move, they die, they simply no longer need the account, etc. etc. Another 10 - 12% cite rates and fees as the reason they close their accounts. The remaining 8 - 10% close their accounts because of customer service issues.
Banks and credit unions need to concentrate on the 18 - 20% of customers who close there accounts for reasons the institution can impact.
First, let's talk about rates and fees. An institution doesn't need to pay the highest rates and charge the lowest fees. But the institution does need to stay competitive!
Remember my earlier statement. IT IS MORE COSTLY TO REGAIN MARKET SHARE THAN IT IS TO PROTECT IT IN THE FIRST PLACE!
Now let's talk about customer service. This is an area all institutions can impact immediately. While there are many components to customer service, a immediate positive impact can be made by making sure your frost line staff do the following three things:
1. Use your customers name during the transaction.
2. If staff must leave the teller station, ask for permission and explain why they
need to leave.
3. Thank the customer at the end of the transaction.
You may have to invest in training, you may need to rewrite job descriptions, etc. but the return will be well worth the effort and the cost.
Bottom line - Focus on the 20% of customers that your institution has some control over!
You can reduce attrition!
Have a great week/weekend!
Mike
Wednesday, January 13, 2010
Using Social Media for Financial Services Marketing
Nate Elliott from Forrester Research has decided to research and write a report on how financial services marketers can most effectively use social media. He is hoping to include data on how different types of financial customers engage with social media and is also hoping to collect more insight from the bank marketers' perspective.
He is looking for financial services marketers willing to walk him through examples of how you've used social media, talk to him about how you manage risk and work with your legal and compliance departments, and share with him some of the lessons you've learned in social media marketing. He can be reached at nelliott@forrester.com.
When did television shows become brands?
The current buzz around Hollywood is the battle between two late-night comedians, Jay Leno and Conan O’Brien. But the buzz should really surround the question as to why this is a battle at all.
Conan O’Brien, the host of The Tonight Show, a show with less-than-desirable ratings since Jay Leno departed as host in May 2009, was recently quoted as saying that “The Tonight Show brand would be negatively affected if it started after twelve midnight instead of at its 11:35 pm start time.” When did television shows become brands?
There is no question that consumer products, restaurants, and even theme parks can easily be embraced as brands as a result of their consumer experience and customer service. Coca-Cola, Nike, and Disney are recognized throughout the world as top brands, but, television shows? When did we describe the Mary Tyler Moore Show, the Dick Van Dyke Show, Bonanza, or even Friends as brands? The experience of watching a television show does not correspond to drinking a soft drink, wearing a pair of tennis shoes, or visiting a theme park, so what is the connection? And what about reality TV? How does the length of Kate Gosselin’s hair create a brand?
While we are talking about TV shows, when did Simon Cowell become the embodiment of the Idol brand? While his comments are not always kind, his picks have not always won the final competition – and due to Ellen DeGeneres’ fans, the future of Idol may survive just fine without Simon. Besides, don’t people watch that show to watch people sing and sometimes make fools of themselves?
With so much content available to television viewers, it would seem that the buzz should be about the quality of that content – which would easily explain why HBO continues to win awards – its emphasis is on a quality consumer experience without constantly talking about its brand.
Conan O’Brien, the host of The Tonight Show, a show with less-than-desirable ratings since Jay Leno departed as host in May 2009, was recently quoted as saying that “The Tonight Show brand would be negatively affected if it started after twelve midnight instead of at its 11:35 pm start time.” When did television shows become brands?
There is no question that consumer products, restaurants, and even theme parks can easily be embraced as brands as a result of their consumer experience and customer service. Coca-Cola, Nike, and Disney are recognized throughout the world as top brands, but, television shows? When did we describe the Mary Tyler Moore Show, the Dick Van Dyke Show, Bonanza, or even Friends as brands? The experience of watching a television show does not correspond to drinking a soft drink, wearing a pair of tennis shoes, or visiting a theme park, so what is the connection? And what about reality TV? How does the length of Kate Gosselin’s hair create a brand?
While we are talking about TV shows, when did Simon Cowell become the embodiment of the Idol brand? While his comments are not always kind, his picks have not always won the final competition – and due to Ellen DeGeneres’ fans, the future of Idol may survive just fine without Simon. Besides, don’t people watch that show to watch people sing and sometimes make fools of themselves?
With so much content available to television viewers, it would seem that the buzz should be about the quality of that content – which would easily explain why HBO continues to win awards – its emphasis is on a quality consumer experience without constantly talking about its brand.
There's A Movement Afoot
My friends, there's a movement afoot ... figuratively and literally.
On December 29, a new Group was created on Facebook called "Move Your Money." The goal of this "project" is to get consumers to move their money from big "Wall Street" banks to local "Main Street" banks and credit unions. As of today, just 2 weeks later, there are 21,852 fans of this page, I've seen it mentioned on several national broadcast news shows and I've read about it in 2 large article.
With 4 CEOs of some of the nation's largest banks scheduled for a Congress whipping session - the circus is coming to town. Expect this to even trump NBC's late night soap opera.
What is your community bank or credit union doing to take advantage of this?
Seriously, folks this is the biggest gift under the Christmas tree just a few weeks late! If you are not emphasizing marketing now and preparing for the big bank run-off, you WILL miss out - there's just no other way to put it. There will be a short window of opportunity to spend smart money and capture market share from competition whom you've traditionally had a hard time battling due to brand awareness, the sheer number of branches and an enormous marketing budget.
As marketers, I'm sure that your head is buzzing with big ideas on how to capitalize on this - I know mine is ... I'm just waiting for the first community bank or credit union to call and ask for help.
Take care,
Eric
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