Issue 6 / February 2009 Social media revisited
In today’s world, organisations have
Potential Opportunities: The Global Social Media Pictur
Potential Opportunities: The Global Social Medi
e
a Picture
Source: Capco Research
Social Media is a relatively new channel, the medium and long term
to accept that customers want to be
Social Media is a rwill see an expelatively new channel, the medium and long terlosion in its various forms m
will see an explosion in its various forms
communicated with in ways which
Social Media
Tools
are relevant to them
Account Aggregation
and Analysis Functionalities
linking to tailored
communities
Advanced
Mediation
social
Advanced blogging
networking
functionalities – i.e.
functionality
Launch Pads
micro blogging
P2P
BS: What are the major components BS: What is the value proposition for BS: So who’s doing this well? And what
platform compatibility
Specialised Insurance
of a social media strategy? the customer? are some of the lessons learned from
Podcasts, RSS
those who have dabbled?
InformationSharing
Sophisticated
feeds and widgets
Financial Advice
KM: In my view social media can’t be KM: In today’s world, organisations have
and focused
Internal
P2P
looked upon as a separate strategy. It’s too to accept that customers want to be KM: There are a lot of good case studies.
b2c blogs
Blogs
Mashups
Money
Transfer
integrated. It’s an extension of channels communicated with in ways which are American Express has a small business
P2P
Sophisticated Specialised
such as internet and mobile. It’s got to be relevant to them. Social media is pivotal in online community site, which is getting
Lending
and focused c2c blogs
RSS feeds
linked into channels, into propositions and achieving this, Blogs have the power to some good traction. Rabo, in Australia
c2c blogs
Podcasts
P2P Investing
particularly into the whole segmentation of inform and either drive customers to you or is also having success with communities
Widgets
the customer base. drive them away. Social Networking sites of interest where people share information
Lifestyle Focused
Specialised
Price Comparison
b2c blogs
Interactive Marketing
Communities
are becoming increasingly important and the financial institutions support the
Blogs
(i.e. virtual characters
The level of complexity and sophistication
sources of referrals for banks. community. I think it works well where
Networking
on second life)
of social media strategies is developing
Enabling
Sponsorship of online
financial institutions recognise that their Communities
CEO Blog forums and sites
Brand Development
rapidly, although the UK is typically less
Specialised
products are secondary to the consumers’
developed than some overseas.
s
Information
Generic
Social
Initiatives
key interests – the cars and holidays will
e
Physical
i
Forums
Info
Product focused
Viral Marketing
Networking
t
communities
A M
i
(traditional and
Forums
communities
Campaigns
site offers
typically be of more interest to people than
n
‘serious fun’
Social Networking
Strategic Advertising
q
c
u
r
a
the insurance and finance products that
m
models)
i
u
e
k
underpin them. m
1
site presence
Today Hybrid Marketing i
s
Internal
t n
i
t
o
– integrated o
i
C
Advanced
Forums
traditional and
n
&

g
“Play Dough viral components
Earners”
Tomorrow
Forums
2
Social Media: Social Media Development In FS
Source: Capco Research
FS social media initiatives are less developed in the UK, than in other markets
e.g. US and Canada, but UK FS institutions are now developing their responses 3
The Future
UK FS participant Non UK FS firms
Sustainable Holistic Business Model
High
5
Social Media is fully integrated into the business model.
The firm has adopted a sustainable approach to BS: What are the barriers to adopting BS: Is there an opportunity for large BS: Finally, let’s pretend it’s day one of
5
remaining innovative in this space
social media techniques, either internal or companies to adopt more social media your new job as director of social media
external to organisations? techniques internally? for the Royal Bank of Scotland – how
Mutual Collaboration
Fidor
4
The firm integrates user generated content into its
would you tackle your new role?
KM: Barrier one is an understanding of KM: I think that’s one of the key ways
4
Virgin Money
business model and increasingly incorporates social
media into its end to end business model (i.e. online
p2p lending
what this is about. People are confused to make this work. There’s so much KM: First of all I would want to understand
only product offerings and campaigns with user input)
Wells Fargo
about what it is and isn’t. It’s not just knowledge and expertise within the the brand positioning. Then I would want
Reciprocal Communication
Facebook or Bebo, it’s a whole range of institutions using blogs, Wikis and the like. to just get on and try these things out.
3
ING Direct
HSBC
3
Interaction paves way for a two way communication different tools, techniques and ways of Enabling use of these tools for internal I think the danger of not experimenting at
AMEX SMB
platform between customer and bank (i.e. user
using the Web (and increasingly mobile) communications and collaboration to the moment is that other people are. So I’d
Sophistication
HBOS
generated blogs which the bank responds too,
e-CRM data led product differentiation, etc)
to manage content and communities. supplement and encourage sharing of push piloting, testing and learning in the
RBC
2
Barclays knowledge and content can only make market and do the same internally. I would
Wizard Bank Reciprocal Interfacing
Barrier two is a concern over brand security
organisations stronger. promote usage of these tools internally
BBVA
2
Social Media evolves to become a channel via which and data, which is very topical at the
customers can actively and interactively participate from senior management all the way down
NS&I
in (i.e. open online communities with case studies
moment. This can cause a real reticence
1
or account aggregators on social networking sites)
through the organisation to establish the
to open up too much.
Low culture and grow the expertise internally,
Barrier three, is not allowing the which in turn will support what can go out
Low
One Way Communication
Complexity
High
1
Shallow social media presence which may include
experimentation and use of social to the market.
elements through which the bank communicates and
note the above graph is illustrative and does not include all FS firms
markets to customers (i.e. via blogs or closed communities) media internally.
with some social media presence
Barrier four, is an old fashioned technology
resistance which is ‘we will only use the
Achieving a long term and sustainable social media strategy cannot be done overnight
technologies that fit into our architecture,
we won’t allow greyness around the edges’.
14 / Perspectives on the future Perspectives on the future / 15
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