In a great article published on the IBM blog, Kimberly Trimble explores how social media data tracking is shaping the banking industry. She points out that social media “isn’t just changing the way banks communicate with customers; it’s changing the way the banking industry can track trends, allowing companies to respond quickly to economic opportunities”. Here is a summary of the four areas covered in the article.
Uncovering Real-Time Economic Trends
In a world where banks are constantly competing with each other, social media data can track economic trends in real time. The IBM article refers to a study carried out by the European Central Bank, which found that Twitter is an “economically significant” predictor of international stock market sentiment. Indeed, this article published by Talkwalker explores how the Bank of England uses social listening to obtain insights into the state of the economy, and make predictions about future economic development.
Better and Faster Competitive Threat Analysis
Social media data can offer insights into the products and also services that are generating customer interest, by analyzing how consumers interact with brand content; as well as what they say about companies on their own accounts. This in turn enables banks to evaluate their activity, and remain competitive. However, it also requires them to interact directly with customers; which, given the corporate nature of the industry, constitutes a significant shift in communication strategy.
Instantaneous Feedback on Marketing Campaigns
Banks can learn a lot from social media data, for both organic activity and sponsored campaigns. The IBM article uses the example of MasterCard, whose “Priceless Engine” analytics tool detects the effectiveness of ads; and also enabled the company to determine that “adding a red carpet to a black and white ad increased the response rate by 30 percent”. This is just one example of how social media data allows banks to fine-tune marketing campaigns based on audience engagement.
Building a Better Customer Experience
As mobile channels grow, banks are using social media to track the popularity and effectiveness of apps; and also make changes as quickly as possible. Tracking goes beyond ratings on app stores, and now takes into account customer feedback on Facebook and Twitter. This is why it’s essential for banks to listen to the conversations taking place on social media, in order to stay adrift of how their services are being used, and identify areas for improvement.
It’s worth noting that these four points are not confined to the banking sector. Tracking industry trends and developments are things all companies need to do in order to stay relevant and competitive; as well as customer behavior and expectations. Across industries, social media isn’t just an essential communication channel; but it’s an invaluable source of data that helps guide business strategy.