Social media has become a buzzword for businesses, but many organisations, especially in the financial services sector, do not know how to effectively integrate social media into their business practices.<\/p>\n
Ultimately, financial service providers (FSPs) can use online platforms to effectively engage with their target audience, and increase the bottom line.<\/p>\n
This is according to James Saulez<\/a>, CIO and head of online trading at Global Trader who says that social media in South Africa is often perceived to be a cheap alternative to conventional marketing and brand awareness, with the result that the translation of technology into business innovation is not being achieved.<\/p>\n Saulez says that, although mainstream social media has taken off, the net effect for FSPs is currently low. \u201cReturn on equity is measured by the number of followers or \u2018fans\u2019, \u2018likes\u2019 and \u2018shares\u2019 a company has rather than by solid performance and financial acumen.\u201d<\/p>\n Furthermore, he says that if companies want to see real return from social media, it needs to form part of their high-level business objectives. \u201cNew customer user channels are being created and managed by junior staff and are driven from a marketing perspective. However, if inconsistencies arise, it often results in customer and call centre frustration and can tarnish a brand if it serves no real purpose.\u201d<\/p>\n He says the financial services industry needs to shift the way social media is approached. \u201cPeople want to use social media to engage with each other, not their service provider, although some may use this platform to engage with them if necessary. The fundamental question to ask is whether customers are ultimately benefiting from socializing with each other and the organisation and what these new platforms offer that the sales, marketing and customer teams can\u2019t.\u201d<\/p>\n \u201cIf social media platforms do not add value in the customer\u2019s use of your products, don\u2019t bother, full stop.\u201d<\/p>\n Saulez provides five considerations on how FSP\u2019s can implement an online strategy:<\/p>\n Saulez suggests that FSP\u2019s who push the boundaries of sharing data will gain a very valuable competitive advantage. \u201cFinancial products are commodities and people want to know why a product was purchased. If people can see the benefit of sharing information, they will. Structuring online platforms in this way makes the difference.\u201d<\/p>\n Related articles<\/strong><\/p>\n RainFin aims to \u201cshake up\u201d financial services in SA<\/strong><\/a><\/p>\n Wonga aiming for right local formula<\/strong><\/a><\/p>\n\n
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