Social%20Media%20Presentation

SOCIAL MEDIA: WHAT IS IT AND WHY DO CREDIT UNIONS NEED IT? Presented by the League of Southeastern Credit Unions (LSCU)

1

I am NOT an expert, BUT I work with numerous credit unions on strategies to make social media work for them!

Disclaimer

The Social Media Revolution 3

http://www.youtube.com/watch?v=sIFYPQjYhv8

Social Media Revolution

What stood out to you the most in that video?

Did you learn something you didn’t know about Social Media before?

Social Media: What is it?

“Social Media” is an umbrella term that defines the various activities that integrate technology, social interaction and the construction of words and pictures.

Essentially, it’s media (content that is

published) with a social (anyone can add to it) component.

5

Forms of Social Media 6

Traditional Outbound Marketing

What are we currently used to seeing as it relates to marketing and connecting with members and potential members?

Traditional Outbound Marketing

Television Radio Newspapers Telephone Direct Mail Internet/email

8

Media Characteristics

One characteristic shared by both social media and industrial/traditional media is the capability to reach small or large audiences;

For example, either a blog post or a television show

may reach zero people or millions of people. Some of these properties are:

9

Media Characteristics

Reach - both industrial and social media technologies provide scale and enable anyone to reach a global audience.

How long did it take to reach 50 million users?

38 Years 13 Years 4 Years Facebook/SM = 100,000

million users in 9 months

Media Characteristics

Accessibility - the means of production for industrial media are typically owned privately or by government; social media tools are generally available to anyone at little or no cost.

11

Media Characteristics

Usability - industrial media production typically requires specialized skills and training. Most social media do not, or in some cases reinvent skills, so anyone can operate the means of production.

Media Characteristics

Recency - the time lag between communications produced by industrial media can be long (days, weeks, or even months) compared to social media (which can be capable of virtually instantaneous responses; only the participants determine any delay in response).

Permanence – industrial media, once created, cannot be altered (once a magazine article is printed and distributed changes cannot be made to that same article) whereas social media can be altered almost instantaneously by comments or editing.

14

Media Characteristics

Information Sharing

Where are your members getting their information, about you, their favorite brands and potential companies they will do business with?

Knowledge is power and these conversations are evolving

Consumers Share Information and Opinions with Friends Online

16

Where Do Consumers Get Information About Your Brand and Products?

17

What is the Public Saying?

According to a 2009 Cone Business in Social Media Study:

93% of Americans believe a company should have a presence in social media;

85% believe a company should not only be present but also interact with its consumers via social media; and

56% of American consumers feel both a stronger connection with and better served by companies when they can interact with them in a social media setting.

18

Social Media as a Staple

Social Media started out as a fluffy confection – but it’s now a staple in any arsenal of marketing tools.

Then: Unmeasured Small scale No business impact but lots of

fun Now: Highly measurable Massive scale Major driver of leads, sales Still fun!

19

Social Media Conversations

If a conversation takes place online and you’re not there to hear or see it, did it actually happen?

- Yes. Social media conversations

are taking place with or without you. And if you are not part of the conversation, you are leaving it to others to answer questions and provide information, whether it is accurate or incorrect.

20

Social Media Conversations

Even worse, you are leaving it up to the competition to jump in and become the resource for the community. Yes, there will be negative comments. Yes, you will invite unsolicited feedback and people will question your intentions.

Negativity will not go away simply because you opt out of participating. Negative commentary, at the very least, is an opportunity to change the perception that you did or didn’t know existed.

21

Companies using Social Media

Many companies are using social networks as a form of proactive outbound customer service with a twist of social marketing.

Zappos JetBlue Southwest H&R Block Dell Freshbooks Apple

22

Companies using Social Media

These companies are engaging customers on their turf, in their way, in order to help them solve problems, find information or simply engage them in valuable dialogue.

In turn, they are turning customer relationships into

a powerful competitive advantage.

23

Why use Social Media?

While engaging with and empowering your members as an extension of your marketing efforts isn’t new, in the era of Social Media, there are new tools and philosophies to more effectively listen and engage with members. Using Social Media can help you:

Cultivate a more significant community Enhance your brand Build relationships Create evangelists (staunch supporters) along the

way

24

A “Dialogue,” not a “Message”

Traditional marketing typically “speaks” at “target audiences” through “messages.”

Social media is about a

dialogue, two-way discussions that bring people together in order to discover and share information.

25

What Does this Mean? 26

The member comes first!

By fusing Social Media, customer service, relationship marketing, experiential marketing and traditional marketing, we’re creating a new formula for outbound influence and fueling a new generation of brand ambassadors and loyalists.

Making Social Media work for you!

Use social media to allow your credit union to: Recruit new members and attract quasi-members to see

your CU as a value-add Energize participation at CU events through interaction

and SM forums Activate an online community allowing your CU to

communicate in real-time Raise funds for charities and other organizations

important to your CU through social fundraising and micro-donation sites.

Connect you grassroots efforts through public conversations online.

Social Media as a cocktail party

Think of Social Media as similar to a business cocktail reception but without the constraints of time or space!

Meet people and start conversations

Build relationships Answer questions Ask questions Build trust Build a reputation

I’m 48. I don’t understand this Social Media Stuff

You already have the skills!

28

Social Media Strategy

Every company looking to delve into Social Media needs a strategy to identify users, their needs and how to use the social media to its best advantage.

A “Social Media Strategy” creates value by leveraging the use of “Social Technology” tools, which adds value to a “community” or network of people and organizations.

29

Social Media is NOT

A campaign; although our members are used to getting direct mailings and email communications from your CU

Implementing a Social Media Strategy

A Social Media Strategy addresses: Your objectives Your audience (current and potential) Your message Your intellectual property Your network champions Technology tools and platforms(s) Measurement The process, structure, plan and resource allocation to

implement your strategy.

31

Who are you trying to reach?

In most organizations, 20% or fewer of your total membership base accounts for more than 80% of profit or revenue. Focus on attracting and retaining the most

profitable 20% of Members.

32

Who are you trying to reach?

Identify and profile your “ideal” member What are the top 3 concerns/problems/needs of

this member group? Identify and recruit the thought leaders and experts

in your field that are working on these problems Align messaging and services to address key target

group(s) Quantify target markets

33

Phases of Social Media Communications

When planning your Social Media Strategy, consider the five critical phases of social media communications:

Awareness Consideration Conversion Consumption Word of Mouth

34

Phases of Social Media Communications

Awareness: How many new prospective clients have become aware of your offer/service/product through social media and word of mouth?

How are you drawing attention to new products or services from your existing membership?

35

Consideration: How many positive vs. negative comments/endorsements are being populated on all of the various channels?

How many are genuine (supporters and detractors)?

And how is your organization engaged in these discussions (in an honest and participatory manner)?

Phases of Social Media Communications

Conversion: How many transactions (purchase decisions) are you able to trace that either originated or were heavily influences by social media conversations?

Phases of Social Media Communications

Phases of Social Media Communications

Consumption: Are you measuring customer satisfaction in real time at the point of experience with the product or service?

Are you using social media to capture the experience?

38

Phases of Social Media Communications

Word of Mouth (WOM): Measure the echo. What are customers saying about your

offer/product/service after consumption? Are you encouraging after sales word of mouth?

What is the result?

39

Credit Unions and Social Networking 40

Credit Unions and Social Networking 41

Credit unions interested in using social networking to reach their members and communities must ensure that their social networks are relevant according to social media expert Ryan Brown, CEO of MindBlazer in Charlotte, NC Create Facebook page that is event-driven, offers financial

education and has specific calls-to-action Come up with 40 tweets such as “40 Tips to Stretch a Dollar”—

be practical not promotional Integrate videos in your online space and blend them with other

media, such as pictures and text Video is the highest engaged media being used, says Brown

What is Facebook? 42

Facebook is the world’s largest social network, with over 250 million users.

Facebook’s growth in the fall of 2009 was

staggering. Over 1 million new users signed up every week, 200,000 daily, totaling over 50 million active users. Facebook received 40 billion page views a month.

Long gone were the days of Facebook as a social network for college students.

11% of users are over the age of 35, and the fastest growing demographic is users over 30.

What is Facebook? 43

Fastest growing segment on Facebook is persons55-65 YOA. Who does that look like?

Facebook has also seen huge growth

internationally; 15% of the user base is in Canada. Facebook users’ passion, or addiction, to the site is unparalleled: more than half use the product every single day and users spend an average of 19 minutes a day on Facebook.

Facebook is 4th most trafficked site in the US and top photo sharing site with 1.5 million photos uploaded DAILY.

What is Facebook?

Based on these types of numbers, Microsoft invested $240 million into Facebook for 1.6 percent of the company in October 2007. This meant a valuation of over $15 billion, making

Facebook the 5th most valuable US Internet company, yet with only $150 million in annual revenue. Many explained Microsoft’s decision as being solely driven by the desire to outbid Google.

Facebook’s competitors include MySpace, Bebo, Friendster, LinkedIn, Tagged, Hi5, Piczo, and Open Social.

Who is on Facebook?

Airline Companies Local & National Retailers Local Community Groups Non-Profits National Companies Celebrities Credit Unions COMPETITION

Envision Credit Union on Facebook

Alabama Telco CU on Facebook 47

GTE FCU on Facebook 48

Listerhill Credit Union on Facebook

LSCU on Facebook

How Financial Institutions Use Twitter 51

“The Bank and Credit Union Twittersphere: How Financial Institutions Use Twitter” William Mills Agency, Spring 2009

What financial institutions are using Twitter? What types of financial information do financial

institutions share via Twitter? How do national banks and community financial

institutions use Twitter directly? What audiences are financial institutions trying to

reach via Twitter?

Bank and Credit Union Twittersphere 52

National banks post average of 53 tweets per month Credit unions post average of 22.5 tweets per month Community banks post average of 8.4 tweets per month Most active in March 2009:

Bank of America (@BofA_help) with199 posts Group Health Credit Union (@ghcu) with 171 posts Wachovia Bank (@Wachovia) with 124 posts 1st Mariner Bank (@1stMarinerBank) with 106 posts CU Community Credit Union (@mycucommunity) with 60 posts Pioneer Credit Union (@pioneercu) with 54 posts

53

Problem solvers Online customer service centers

Community activists Share information about upcoming events in the area

Informers Links lead to articles on personal finance, payment technology and other

finance-related topics Communicators

Use of re-tweets and replies to their followers Social Butterflies

Product promotions, comments on community activities, updates on internal news, shout-outs to friends and customers

Sideliners Financial institutions with fewer than five tweets Placeholders

Bank and Credit Union Twittersphere

How Credit Unions are Using Twitter 54

To make announcements To broadcast new blog posts To gather feedback on services To promote internal events To promote community events To engage in dialogue with members To answer questions and concerns To spread grassroots-level messages and

campaigns

Sample CU Tweets 55

DYK w/ TSCU u can access ur accounts and do business at CUs worldwide? U can also use many 7/11 ATMs 4 free! Check it: www.cuswirl.com

Need some $$$ for school? We have a special Back2School Loan: [email protected]% for up to 12 mo. Let us help make this semester a lil easier.

BTW DYK that we have $ 2 loan? Back2School Loans: $1000 @ 9.10% for up to 12 months.

Sample CU Tweets 56

@nwcu: This weekend’s 1st-time home buyer workshops ere great! We want to do more free finance workshops this summer…any topic requests? (Northwest Community CU)

@allegiancecu: Tomorrow is the last day to donate food at any of our locations to the Oklahoma Food Bank! Let’s help those in need.

@Bellco_CU: Heard about some fraud last week. Bellco is serious about keeping member info safe. Learn more: http://tinyurl.com/pwksxr

@GCEFCU: Discontinue your monthly paper statements in May for a chance to win an iPod Nano. Follow this link for more info: http://twi.cc/FzGm (Gulf Coast Educators FCU)

Suncoast Schools FCU Twitter Page 57

http://twitter.com/suncoastpatti

Pen Air FCU Twitter Page 58

http://twitter.com/PenAirFCU

What is a blog?

A blog (a blend of the term web log) is a type of website or part of a website.

Blogs are usually maintained by an individual with regular entries of commentary, descriptions of events, or other material such as graphics or video. Entries are commonly displayed in reverse-

chronological order. Blog can also be used as a verb, meaning to maintain or add content to a blog.

What is a blog?

Most blogs are interactive, allowing visitors to leave comments and even message each other via widgets on the blogs and it is this interactivity that distinguishes them from other static websites.

Many blogs provide commentary or news on a particular subject.

A typical blog combines text, images, and links to other blogs, Web pages, and other media related to its topic.

Verity Credit Union Blog

Do’s of Social Media

DO become well-versed with all of the available social media tools before you dig in.

DO start your social media marketing strategy planning by thinking about your TARGET Audience.

DO reinforce your traditional marketing campaigns with your online efforts and vice versa.

DO only write a blog post when you have something important to say to your members.

DON’T think that social media is just another marketing channel to start shouting on.

DON’T think it’s all about the credit union. IT’S NOT! It’s about your MEMBERS!

DON’T think you have to do a blog post or Facebook update everyday.

DON’T think that social media is limited to the marketing department.

***Handout provided for more guidance

Don’ts of Social Media

Critical barriers and Establishing Policies and Guidelines

Are We Ready for Social Media? 64

Critical Barriers to the Adoption of Social Media as a Branding Strategy

65

Establishing Policies and Guidelines 66

When you decide to implement Social Media as a part of your organization, the following must be considered:

Whether they know it or not, everyone within the organization contributes to the public perception of the company brand

Establishing Policies and Guidelines 67

You will need to:

Create communications policies and guidelines for all personnel, not just those tasked with participating in your social media tasks.

Get IT involved, as in many cases, popular social networks are blocked at the firewall. Usually CUs setup a computer that is not on the

network to facilitate their day-to-day SM activities

Craft outlines and determine response strategies based on a series of predictable scenarios. Negativity Upset/Hostile Members

Assign leads for listening and responding.

Empower & encourage your staff and management team to get involved.

Establishing Policies and Guidelines

Establishing Policies and Guidelines 69

Training and education bring things into perspective. Share examples of how to do it right and demonstrate

circumstances where a variety of scenarios didn’t pan out ideally.

Note how they were or weren’t corrected. Monitor, monitor, monitor

Questions?

This is your time to ask questions, share best practices and get more information!

Contact Information 71

Amber R. Tynan, Member Relations Specialist League of Southeastern Credit Unions

866.231.0545, x1154 [email protected]