social media for finance

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Our customers don’t trust us! Why financial service companies should use social media to regain the trust of their customers Part 1


Financial Services have a problem…

How much do you trust the industry?

Technology 77%

Automotive 69%

Food and beverage 66%

Consumer packaged goods 65%

Telecommunications 62%

Brewing and spirits 62%

Energy 59%

Pharmaceuticals 58%

Media 53%

Banks 50%

Financial services 50%

Financial services are trusted the

least of all industries surveyed

… people don’t trust them

Source: Edelmen 2013


In five years the number of customers who trust companies in financial services has fallen considerably

56% 53%

63%

51%

35%

26%

56%

42%

47% 45%

35%

45% 47%

44%

38%

32% 31% 31%

23% 22% 19%

11%

0%

10%

20%

30%

40%

50%

60%

70%

Global Poland France Netherlands UK Ireland

2008 2013



4% 14%

35% 29%

6%

12%

Once Twice Three times

Four or five times Six to nine times Ten or more times

More than 60% of financial services customers need to hear company information 3-5x before they will believe it



And yet, engagement and integrity are not incorporated into most financial service firms social media messages

59%

62%

63%

63%

64%

64%

65%

67%

55% 60% 65% 70%

Treat employees well

Communicates frequently & honestly on

Has ethical business practices

Offers high quality products or services

Has transparent and open business practices

Places customers ahead of profits

Takes responsible actions to address issue/

Listens to customer needs and feedback

Customers rank the most important trust building attributes for financial services companies

ENGAGEMENT INTEGRITY PRODUCTS/SERVICES



More than 80% of consumers said it would be important to read user generated content before making a decision about banking or other financial services….

Source: Bazaar Voice 2011


…Whereas 56% of consumers who post about personal finance online will use social media to find finance products for purchase

Source: Global Web Index 2013

WWW.BLOOMWORLDWIDE.COM Source: Bazaar Voice 2011

44% of millennial’s say they would not purchase insurance without referencing others' opinions


77% of long-term customers would recommend their financial firms to others – they are the second largest promoter for these types of firms

Source: Bazaar Voice 2012


45% of online US adults who have a Twitter account are interested in interacting with financial services firms via Twitter

Source: Forrester 2012

WWW.BLOOMWORLDWIDE.COM Source: Forrester 2012 Source: Global Web Index 2013

Last year, more than 25% of online audiences globally wanted to be contactable at all times over matters relating to their private affairs


3 ways you can build trust through social media now

•  Incorporating customer feedback is effective marketing. Customers reviews will strengthen claims your firm makes

Listen to your customers

•  Social media lets you connect with customers directly. Use it to build stronger relationships and trust online

Direct customer contact

•  Customers consult peers before making a purchase. Promote your online advocate reviews can help to positively impact sales

Promote your online advocates

Source: BLOOM Worldwide 2014


Go to www.bloomworldwide.com/finance to find more social media resources tips and advice tailored for financial

service companies

social media for finance

Economy & Finance