Study: Banking Customers Not Keen On Social Engagement
by Michael Patrick McSweeney (@mpmcsweeney)
Many businesses, including banks and other financial institutions, are reaching into social-media platforms to connect with consumers. But are they paying attention? A new survey report from TSYS suggests many aren’t, as only 20 percent of consumers follow their bank or credit union on a social media network such as Facebook or Twitter.
In the report “Banking and Social Media Customer Communication Boom or Bust?” author Nicholas P. Hopek, corporate strategy analyst at TSYS, suggested that social-media adoption is growing increasingly more common among financial companies.
“There are many aspects of the financial services industry that are changing at light speed, and financial institutions are looking for ways to communicate these changes to their customers,” Hopek wrote. “Most, if not all, of the largest U.S. banks have a presence on one or more of the top social-media sites, and they are using this channel to communicate product changes, service enhancements and other happenings that are of relevance to customers.”
The company surveyed 1,000 consumers throughout the United States who own a credit and debit card. Of the respondents, 80 percent said that they had an account on a major social-media site. Yet only 29 percent said they ever used their account to make a complaint or publicly comment on the service of their bank or credit union.
In one test group, survey takers noted that some respondents hadn’t previously considered interacting with their bank or credit union on a social network. Some even found the concept amusing, TSYS reported.
TSYS also looked into whether consumers are paying attention to advertisements shown on social-network sites. Fifty-one percent of respondents indicated that they ignore advertisements. The survey results also suggest that 31 percent of consumers are influenced to explore a potential service or product purchase after seeing content on a social network, a finding that echoes the results of a recent study by Harris Interactive.
Read the full TSYS report on banks, social media and customer engagement by clicking here.