Rising Above the NoiseFacebook’s EdgeRank and Solving the Trust Gap

Augie RayDirector of Social Media Strategy@augieray

More Facebook FansFewer Facebook Fans

Quick Survey: Less Engagement More Engagement

@augieray #LLSMC

More Facebook FansFewer Facebook Fans

Quick Survey: Fewer Facebook Fans More Facebook Fans

@augieray #LLSMC

Look! Lots of engagement!

Company #4

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Total Insurance Conversation Volume by Brand

Percentage of Social Media Conversations by Topic

@augieray #LLSMC

Look! A fan surge!

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@augieray #LLSMC

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All fans are not created equal

High Value Fans Low Value Fans

+$ -$@augieray #LLSMC

∑ Ue We De = Success

The simple Facebook equation

Fans to the power of Affinity

Affinity between user & edge creator

Weight for this edge

Time decay factor for edge

FansA *

@augieray #LLSMC

The (slightly less) simple Facebook equation

∑ Ue We De = SuccessFans to the power of Affinity

Affinity between user & edge creator

Weight for this edge

Time decay factor for edge

Brand vector

FansA * * b

@augieray #LLSMC

You’re followed, but are you on Twitter lists?

You’re followed on LinkedIn, but who cares?

It’s not just a Facebook issue

It’s easy to forget that the goal isn’t to be liked or followed, it’s to earn attention, consideration, intent, usage and advocacy.

@augieray #LLSMC

Chicken or egg?

1.2.3.

Follow/LikeEngagementTrust

@augieray #LLSMC

• Millennials are 4 times more likely than baby boomers (28 percent vs 7 percent, respectively) to say they are unwilling to act on the advice of a financial advisor without first consulting other sources.(Accenture)

• 55% say “It’s hard for me to know who to trust for financial advice.” (2012 Household Financial Planning Survey, Certified Financial Planner Board of Standards & Consumer Federation of America)

The trust gap

@augieray #LLSMC

The trust gap

Source: Edelman 2013 Trust Barometer

@augieray #LLSMC

Trustis strongestperson toperson.

Credit: http://www.flickr.com/photos/mikebaird/

Data point: Consumers trust each other

@augieray #LLSMC

Data point: Consumers don’t trust us

@augieray #LLSMC

Ameriprise borrows the trust inherent in relationships

@augieray #LLSMC

Fidelity furnishes community for trusted P2P dialog

Fidelity’s Stock Plan Services communities allow sponsors to discuss with peers:• New regulations and industry trends• Opinions of Fidelity’s products and services• Administrative best practices45% of Fidelity's SPS client base registered to use the site

@augieray #LLSMC

Transparency

Increasestrust.

Credit: http://www.flickr.com/photos/thebarrowboy/

Data point: Consumers value transparency & honesty

Individual is honest and trustworthy

Individual provides transparency & keeps me informed

Investment track record

Fees or commissions charged

Depth of products & services

Offers products from a variety of companies

0% 20% 40% 60% 80% 100%

Choosing a new advisor: Households w/ $100k to $1mm

Source: National Association of Personal Financial Advisors

@augieray #LLSMC

Vanguard lowers barriers in social media

@augieray #LLSMC

is built withinteraction.

Credit: http://www.flickr.com/photos/jorislouwes

Trust

Data point: Social interactions build FP business

Source: July 2012 “Collaborative Advice,” Forrester Research by Bill Doyle

@augieray #LLSMC

Data Point: Mass affluent engage w/ FinServ content

Source: Influencing the Mass Affluent, LinkedIn and Cogent Research, 2013

@augieray #LLSMC

Prudential builds relationships between FPs and Clients

• 190% increase in LinkedIn connections to intermediary partners, Prudential Retirement’s key sales channel.

• 161% increase in first-degree connections, extending reach and the strength of their LinkedIn network within target industries.

190% IncreaseIntermediary Partners

161% Increase1st-Degree Connections

Prudential Retirement worked with PeopleLinx to assist FPs to grow theirnetworks and engage in an appropriate, results-oriented manner.

• 40% increase in advisor connections• 30% increase in alumni connections• 3 opportunities directly sourced

@augieray #LLSMC

USAA builds trust with social responsiveness

1 hour

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2 hours

2 hours

• USAA earns the most trust from its customers across 246 companies in 19 industries per the Temkin Trust Ratings.

• USAA was one of only 50 companies to earn the Customer Service Champion distinction from J.D. Power.

• USAA Bank's Net Promoter Score of 83% is the highest score among more than 200 brands across 22 sectors.

@augieray #LLSMC

Goal: Increase followers of Christopher Taylor, head of Financial Institutions.

• Posted content• Banner Ads• Targeted InMail to VPs,

Owners, Partners & C-level in FinServ

• 700,000 ad impressions• 850+ ad clicks• 1,000 new connections in six

weeks• Email had open rate of 14% &

CTR of 15%

Zurich creates interactions with content

@augieray #LLSMC

increases trust inproducts.

Credit: http://www.flickr.com/photos/jdhancock/

Co-creation

Data point: Consumers buy products they helped build

Source: The Collaborative Marketing Future, Crowdtap, 2013

@augieray #LLSMC

Barclaycard launched the world's first community-designed credit card.

• Transparent about financial performance and engages cardmember community to build a better credit card experience.

• More than 50 crowdsourced customer ideas and suggestions implemented

• Barclaycard’s cardmember community has helped drive customer retention up 25% versus typical programs, and decreased customer complaints by 50%

Barclaycard lets customers set product terms

@augieray #LLSMC

Build trust:• Person to person• With transparency• With quality interactions• With co-creation

Thank you!Augie Ray@augieray