WWW.BLOOMWORLDWIDE.COM Our customers don’t trust us! Why financial service companies should use social media to regain the trust of their customers Part 1
May 09, 2015
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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
WWW.BLOOMWORLDWIDE.COM
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
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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
Source: Edelmen 2013
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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
Source: Edelmen 2013
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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
Source: Edelmen 2013
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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
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…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
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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
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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
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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
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Go to www.bloomworldwide.com/finance to find more social media resources tips and advice tailored for financial
service companies