Social media engagementimg01.thedrum.com/s3fs-public/drum_basic_article/96453/additional… · We hope you enjoyed part one of our insights and research on what Financial Services

Social media engagementUnder the spotlight

Part TwoAugust 2012

Covering:

Retail Banking

Wealth Management

& Insurance

Contents02 Foreword

03 Sector Analysis: Banking

09 Sector Analysis: Insurance

14 Sector Analysis: Wealth Management

19 IFAs – Industry reform drives business online

20 In summary

Part

Social Media Engagement – part two © Studio Six 2012

01

ForewordWe hope you enjoyed part one of our insights and research on what Financial Services brands are doing right now in the social media space.

If you haven’t received your copy please contact us.

In this second report we give you a breakdown into some of the different financial sectors and our analysis of how they are using social media channels and trying to integrate this into their marketing. With all financial sectors coming under the media spotlight, especially retail banking, and brand reputation at stake, we wanted to find out who is leading the way right now and engaging creatively, as well as listening to their customers through social media.

New roles are being created across the sectors and, as well as social media-specific roles, there is an increase in how all marketing roles are evolving in this space. Not just a trend, social media is increasingly seen as a tool to guide other marketing avenues. We as a creative agency have reacted and evolved to incorporate social media into our thinking and design solutions. It is a measurable and valuable tool for any brand, financial services need to catch-up with the way other more consumer industries are visibly interacting with their ‘followers’, as well as using these channels to specifically target the numerous groups that have been growing. One profile or message will not translate if we are not targeted with Social engagement.

We hope you find this interesting and valuable, please share and feel free to comment back to us on your thoughts. We will be holding a digital survey among our clients and look forward to your own insights.

John Argent Managing Director, Studio Six, [email protected]

02

return to contents | Social Media Engagement – part two © Studio Six 2012

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Sector analysis:

Banking

The banking sector* is no longer confined to the major high street names, with new entrants coming into the market such as grocery and department store chains. Social media activity has largely been targeted through the retail channels and aimed at engaging with consumer audiences. *both retail and business

This may be because budgets for social media activity are more likely to be directed to the retail sector or due to a lack of insight and experience in using social media to target businesses or a combination of these.

03

Retail banking snapshotAlthough there’s some strong usage of social media channels in the retail sector, perhaps surprisingly, it has not featured as prominently as you would expect, particularly given the urgent needs for banks to reconnect with a distrusting public to win back lost trust following the banking crisis. The reputation of British banks has crashed in the past few months following the technical errors and interest rate scandals. Twitter has never been busier in this sector. Why, when social media would appear to offer the perfect solution on a plate, has this sector shied away from extensive proactive engagement?

The answer is likely to be fear and nervousness about getting it wrong; we understand that compliance is an issue for all online communications – but it’s no longer a valid reason for not being involved.

Leading the packThe credit card companies are the ones to watch in this sector, they have a history of tapping into lifestyle trends and use insight very well in marketing activity, think Mastercard’s Priceless campaigns:

“There are some things money can’t buy. For everything else, there’s MasterCard.” And Barclaycard’s current campaign promoting its contactless technology: “Barclaycard. Easier”.

With most of the main players having active Twitter and Facebook pages as well as a whole host of YouTube content the credit card providers – albeit usually with impressive marketing budgets demonstrate how engagement secures reach and brand impact online.

Company Twitter Followers Facebook Likes

Visa @Visanews 3,173 n/a

Mastercard @MastercardUK 7,388 facebook.com/MasterCardUK 12,936

Barclaycard @Barclaycard 702 facebook.com/Barclaycard 157,416

Capital One @AskCapitalOne 3,696 facebook.com/capitalone 2,494,539

Virgin @VirginMoney 8,254 facebook.com/VirginMoneyUK 14,988

March 2012

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Use of social media in retail bankingThe most obvious quick win as far as social media is concerned is for proactive consumer engagement and for the development of a social media strategy. The best way to handle this is to take advantage of the free functionality offered by the main channels.

Mandatory social media involvement by the banks should at least be to have established, active and efficient handling of consumer questions, queries and information requirements using Twitter as a primary tool and the use of a Facebook and YouTube brand page.

Facebook pages are changing the way they look and new features will be added allowing brands greater communication options with their audiences. With Facebook being such a primary platform with high levels of daily use for many consumers this is a channel which retail banks will ignore at their peril.

A measured approachKatie Doble-Birch, Head of Social Media Barclaycard and, formerly responsible for social media strategy at Lloyds TSB, advises taking a sensible approach to social media in the FS sector while not being afraid to try new ideas.

Adept at understanding the overlaps and lines of responsibility, Katie advises. “It doesn’t really matter who has responsibility for social media – whether it’s PR, Digital, or Marketing – all disciplines need to work together and agree on a clear set of objectives.”

Tackling an issue that is a main cause of concern for brands, that of how to handle negative brand mentions and direct criticism, she says “it’s all about timing and awareness – being reactive and quick. Even if the conversations are negative, you can be seen in a more positive light if you are reactive. It’s important to build your profile gradually as well as promoting your best spokespeople to ensure they have visibility”.

Katie Doble-Birch’s top three tips for social success:

1. Listen – Gather information. ‘Listen’ and monitor online to what your customers are saying and where they are saying it.

2. Respond Distribute content more widely – start with Twitter from a customer service point of view.

3. Engage Build relationships through campaigns, and make sure your key people are visible. It’s all about timing and awareness – being reactive and quick, even if the conversations are negative, you can be seen in a more positive light if you consistently engage as much as possible. We’ve analysed the main retail bank brands and their current impact on Twitter, Facebook and YouTube and the results make for interesting reading. It shows there is a vast difference in terms of impact and reach indicating a variable commitment to consumer engagement.

05


Company Main twitter Twitter followers Facebook fans YouTube channel?

LloydsTSB @AskLloydsTSB 5,187 65,664 Yes

Barclays @BarclaysOnline 918 422 Yes

HSBC @hsbc_uk_press 4,839 21,602 Yes

NatWest @NatWest_help 799 Only for ‘NatWest Cricket’

First Direct @first_direct 3,626 12,960 Yes

Santander @santanderuk 561 No

Nationwide @NationwidePress 1,106 13,611 Yes

Sainsbury’s n/a for Finance/Banking

39,132 n/a for banking Yes – a main company channel not finance-specific

Tesco @Tescobankmedia 110 n/a for banking Yes – a main company channel, not finance-specific

Co-operative @Thecooperative 8,121 22,644 Main company channel

March 2012

The importance of talking (and listening) to your customers…There have been several studies into how many companies respond to online customer queries: econsultancy UK found that only an average of 5% of questions posted on company Facebook pages receive any response and a US study at the end of 2011 which surveyed 1,300 Twitter users showed that 71% of people posting a question to a brand did not get a reply.

06


Transparency, honesty and integrity: American Express case studyAmerican Express found to its peril that despite best laid and well intentioned plans its social media initiative was subject to intense consumer scrutiny (as is always the case). Its recent social media based Be Inspired campaign pledged to give 50p to the Prince’s Trust every time someone shared messages about what inspired them.

However, what they failed to be clear about in the campaign blurb was that there was a cap on the donations of £150,000. Again, nothing wrong with any of this but it led to consumers feeling that perhaps American Express had not been as clear as they should have been, and this has inevitably led to public criticism. What AmEx should get credit for, if not the whole package, is its willingness to be different, creative and think laterally about how working in a social space can be used to best advantage to enhance the brand profile.

Banking on the move – the rise of the mobile With mobile access to the internet set to overtake desktop access this year, mobile is where it’s at for brands and now the need to develop software that works across many platforms is where much digital investment is being directed.

Banking is no exception to this consumer shift in behaviour. Being able to access bank accounts and make payments and transfers through a mobile is fundamental to banks being able to offer customers what they want, when they want it. It doesn’t seem long since telephone banking became a phenomenon, but that now seems outdated with technology ruling every aspect of our lives.

A growing market offering huge potential to create a true market competitive edge, we are still behind the US in innovation. USAA Bank has achieved success with the launch in January 2012 of its iPad app for customers offering the following features:

• A way to find the bank’s financial services centres

• Financial Management tools including; pay bills, transfer funds, trade stocks

• DEPOSIT@MOBILE; a way to deposit cheques from an iPad

• Loan calculators, ATM and rental car locator.

Screen shots from the USAA Bank ipad app http://bit.ly/HMH4tM

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On the move Lloyds TSB launched its mobile banking app in October 2011 supported by a national TV campaign. Securing 350,000 downloads in the first few weeks following launch, demonstrates the huge consumer appetite for convenience and ‘on the go’ solutions.

Security is obviously a major concern both for the banks themselves and also for the consumer who, although they may enjoy access to their financial affairs when they are out and about, will understandably be uneasy about the implications that a lost or stolen mobile phone poses. Lloyds TSB recently launched its Save What Matters™ app designed to address this concern by offering a way to protect personal data.

Creativity Social engagement is not just about using Twitter and Facebook to listen and talk to customers it’s also about using the channels in creative ways to attract attention, secure new business and raise a company’s profile.

The growth of apps and mobile access to the internet has led to several interesting online initiatives by the banks in the UK, notably:

• Barclays has been developing apps to showcase its sponsorship and lifestyle affinity. Examples showing how creative input results in strong brand engagement include Barclays Bikes and Barclays Football.

• Most of the banks have ‘banking on the go’ apps for mobile and tablets although many apps are only available to be used with iphones which can be both limiting and frustrating for some customers.

Commercial bankingThere currently appears to be a woeful lack of creativity when it comes to banks using social media to engage with business audiences. With ongoing focus on the retail sector it may be a while before the commercial banks catch up. Given that there may be less pressure to be part of the main social platforms from the point of view of needing to respond to customer enquiries online, we suspect that business banking social engagement is taking a back seat to their retail cousins.

Using social media to target an SME audience is a strong opportunity for the business banking brands. We see this as a major growth area in the next 12–18 months as banking brands become more confident and comfortable with using social tools to engage with business audiences.

Case study: Barclays gets credit for new money transfer mobile appBarclays launched its Pingit app in February 2012. Achieving some strong media coverage and through proactive promotion to existing business customers, the Pingit app claims to be a revolutionary way to send and receive money for businesses. Antony Jenkins, chief executive of Barclays retail and business banking, said the app could “revolutionise” the way people send and receive money. Pingit has been very well received and has seen good take up by both Barclays and non-Barclays customers. Since launch, there has been a steady increase in downloads and registrations across all the mobile operating systems - iPhone holds the largest percentage of users. The app has been downloaded over 900,000 times in its first four months and these numbers continue to grow. The Pingit app also has a Facebook page which attracts 400 monthly users.

Pingit for Business: http://bit.ly/H6vM7k

Business banking appsSlowly but surely the business banking products available online are catching up with what has been available for retail customers for some time. Banks currently offering business banking apps include: RBS, NatWest and HSBC.

“Mobile banking is now more popular

than ‘traditional’ internet banking with three million

Britons now doing their banking via mobile apps”

(source: Monetise)


08

http://bit.ly/MwaW4P

Sector analysis:

Insurance

With aggressive pricing, increasing consumer awareness about shopping around for the best deals to switch suppliers, and the influence of price comparison and cashback sites, the insurance market is an interesting sector when it comes to online communication.

09

Company Twitter Followers Facebook Likes Notes Online/Apps

Compare the Market @Aleksandr_Orlov 51,900 793,055 Twitter is for ‘compare the meerkat’ but is linked to on Compare the Market website.

Only for Compare the Meerkat:

http://bit.ly/HAjW4O

Confused.com @confused_com 4,453 9,735

Money Supermarket @Moneysupermkt 5,823 34,788 http://bit.ly/HewTR6

Go Compare @Gocompare 2,051

This year’s UK Benchmark Insurance Survey (February 2012) conducted by Global Reviews makes for poor reading when it comes to how UK insurers respond to customers online. Rebecca Jennings, senior client advisor at Global Reviews, said: “The benchmarks conducted in Q3 2011 found that the average UK insurance site scored well below the minimum required to be deemed to be meeting consumer needs, suggesting that the UK insurance industry overall struggles to meet customer expectations.”

Social media for insurers: more than just marketing As a marketing tool it is easy to see the benefits to insurers of using social media platforms as a quick, easy and cheap way to promote products. However, social media offers much more as a business resource; insurers can use social platforms to

identify possible fraudulent claims and for forensic data mining to discover compensation fraud as well as using the networks as an extension to its customer service function and for researching consumer reaction to new products.

Technology offered by smartphones is also being used by some insurers to encourage policy holders to submit additional claims information, such as pictures of accident claims directly to claims management teams to improve claims handling.

“ Consumers are using social networks in a sophisticated way: researching products, prices, promotions and other consumers’ views, to validate their decision making”

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Influence on purchase decisions Regardless of whether insurers have established and maintain an effective social media marketing strategy for their products or brand, it must be acknowledged that the impact of social media content on consumer purchasing decisions is powerful. IBM published a study into social media influence on purchasing decisions in September 2011. Its findings stated that:

Go compare the market…The rise of price comparison sites over recent years has led to ever increasing competition on price as consumers are less loyal to their insurer than they used to be and are used to shopping around for the best deal.

We’ve taken a look at the main price comparison sites to see what they are doing in social media terms to attract consumers to click through to buy insurance.

Compare the market gets ten out of ten for its marketing creativity with the long running ‘compare the meerkat’ campaign. Love it or hate it the campaign concept has translated very well for consumer engagement activity and the meerkat is used for the Twitter handle. Innovation in app development has seen the introduction of an iphone ‘iSimples’ app which translates voices into the meerkat speak, good for comedy factor – downloadable from iTunes.

Money Supermarket has taken a more practical approach to app creation demonstrating ease of use and convenience as key consumer requirements with its app allowing car insurance renewal in ‘3 taps’.

“This is very relevant to the insurance market where purchasing has been driven online through the use of slick and efficient quote and buy technology.

However, this increased willingness by consumers to search and purchase online has also brought about a whole new industry within the market with price comparison sites now household names and prime time advertisers.”

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Quids-in with cashback sitesDecisions to purchase are no longer just dictated by price alone as online savvy consumers can now get a bit extra every time they buy online through a cashback site. QuidCo (www.quidco.com) and TopCashBack (www.topcashback.co.uk) are leading the pack. They do what the price comparison sites do – but give you the online referral fee (or a proportion thereof). This has led to competition for the price comparison sites as well as another persuasive and influential channel for the insurers (and retailers in general with cashback available for a multitude of purchases) where social media is often intrinsically linked to recommendations to purchase. Consumer favourite Martin Lewis’ Money Saving Expert advises consumers how to use these sites safely and its users consistently rank both sites as 4 out of 5.

Online consumer interaction – Insurance Social media channels and the functionality they offer look to have been a gift for the insurance sector – if nothing else it has helped transform and re energise a sector that had a reputation for being perhaps a little staid and not the most exciting product we purchase in our lifetimes.

Insurance brands now must have strong personalities to cut through the online noise and price based selling. Social media has allowed brands to enhance their image in more ways than through traditional (and expensive) advertising. Who would have predicted that a Meerkat would be chosen to sell insurance?

Regulation in this sector doesn’t seem to have had the same effect in creating a reticence towards marketing across social platforms as demonstrated by the banking sector. This, in part, has been driven by the consumer who now expects to be able to access their insurer online for any or all of the following:

• Get friend/peer recommendations

• Research (corporate sites/ price comparison/ social media promoted

special offers)

• Customer service: questions, complaints, advice, help, requests for information

• Get real time, competitive quotes

• Links to purchase sections of insurance websites from popular social networks

• CSR – access company information, gauge corporate reputation

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Company Twitter Followers Facebook Likes YouTube Notes

Aviva @AvivaUK @AvivaUKSupport

3,079 348

22,299 http://bit.ly/HgusOG

AXA @AXAPPPhealth 3,252 476 http://bit.ly/H0Gb2f

Standard Life @sl_adviser 804 374 http://bit.ly/HjuLGa

Direct Line @dl4bnews (for businesses)

86 335 (wiki page)

http://bit.ly/H0OvzI Direct Line only has a twitter account for businesses and careers.

Churchill @thechurchilldog (no tweets)

275 25,632 http://bit.ly/Hmq8sP

LV @insideLV 1,825 1,302 http://bit.ly/GXbD4l

More Than @morethan @morethanfreeman

696 1,042

26,931 http://bit.ly/HgtXnK @morethan seems to be the main twitter account dealing with customer service, news, etc. @morethanfreeman is the account the webpage links to.

Co-operative @Coopbankethics 542 2,555 http://bit.ly/HmsFEG

Creativity in the insurance market With a mass market consumer audience for many of the main brands and a wealth of products to push from motor and home to breakdown and travel we all have an ongoing vested interest in being able to tap into the best deal. Social media is a great way for insurers to reach and engage with consumers and many of the leading names are using it to good effect. The emphasis often seems to be on motor insurance with more apps and online tools targeting that sector than any other. Some companies are using technology and online communications to offer practical help and tools to their existing customers and others are developing increasingly sophisticated ways to attract attention and reel in new business.

Apps on the move Many of the big insurers are offering free apps – some only available with iphones, some across other platforms. The main focus of any consumer app development over the last 12 months appears to have been directed towards the motor sector. Notably MoreThan My Claim, ‘AXAdent’, LV=My Car and Direct Line On The Road all offer a range of car and motoring-related content.

On offer is a range of information including, as you would expect, product related features such as renewal reminders, claims functionality, additional quote tools for breakdown and other insurance. Some apps are purely claims focused and others, such as the one from LV= and Direct Line On The Road, offer help with journey planning, live incident reports and other useful information for motorists.

Engaging for the futureSocial content in this sector is very much driven by consumer activity. They have made insurance brands realise that they have to be in the channels and that not to be engaging will lead to significant competitive disadvantage.

However, generating content that promotes brand reputation and enhances sales opportunities, as well as adding value to the consumer proposition is where the challenge lies for this sector. Stand out in such a noisy, crowded online market is difficult; insurance companies must ensure they are highly targeted with their social media approach. Starting with their key commercial objectives, it is vital to identify where audiences are already talking – accurate segmentation is going to be the key to success in this market.

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Often associated with more traditional, established business audiences, wealth management firms have been the slowest of all the financial services sectors to exploit what social media has to offer.

Sector analysis:

Wealth Management

This may be because, for a long time, it did not seem relevant to the way that these companies often conduct themselves to source business – through word of mouth, personal introduction and referrals, and by reputation.

In fact, social media lends itself very well to this sector and used properly and appropriately it can add real value to a sector which can sometimes feel out of touch with the latest innovation. We take a look at the social media success in this sector.

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Looking back at Citywire’s* 2010 list of top ten fastest growing wealth management companies in the UK we see how, as rising stars in this sector, they have grasped social media.

There are mixed results with many of these firms still not embracing any of the social media channels, often resulting in a very one dimensional web presence more akin to an online brochure than a dynamic, interactive online brand.

Established name Barclays Wealth & Investment Management was in this list and has integrated social media tools as part of its corporate communications strategy with an active twitter feed on the firm’s website and a strong blog providing original content for its audience. With over 10,000 followers on both its Twitter feed and Linkedin company profile, it’s using these channels to good effect to push thought leadership commentary. We spoke to Lisa Worley, Head of Marketing, Barclays Wealth and Investment Management, she tells us on page 15 how they have implemented their social media plan in the wealth market to give them a successful social media presence.

Wealth adviser Towry is using social media feeds on its company website with a moderately active Twitter feed @TowryWealth (612 followers, March 2012) and a strong

corporate blog. It has a moderate following on its Linkedin company profile and has made use of the company profile feature by including a clear and detailed ‘services’ section, but it is not using this platform for any proactive content or thought leadership messaging.

The firm at number two on the list, Brooks Macdonald, does have a Linkedin ‘follow’ button on its website – but also, requires visitors to its corporate website to accept terms and conditions of use before any of the website is visible. Its Linkedin company profile is active with interesting content and despite a fairly low following (just over 250) it is demonstrating an understanding of this platform.

However, for the vast majority of firms pinpointed by Citywire, we could find no clear searchable social presence at the time of writing. This includes firms Williams de Broë, Cheviot, Spearpoint, Partners Capital, Heartwood, Vestra Wealth and Standard Life Wealth. These firms all have websites which outline their products and services but have very little proactive interaction through social platforms, with the exception of Linkedin – where default company profiles are present with little or no bespoke profile content.

*Citywire, Wealth Manager, October 2010 http://bit.ly/JgHvyM

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Barclays Wealth & Investment Management – Lisa Worley, Head of Marketing, gives us her insight.

“In the absence of a proven roadmap in the industry to follow, a successful social media presence requires strategic thinking, initiative, creativity and commitment. The development of a Barclays strategy and a social media presence focuses on a number of strands. These are:

1. Making greater use of customised Facebook apps with rich material to attract our target audience whilst encouraging users to return to our Facebook page with stimulating content. Equally, maximising features such as the new timeline view to engage users and potential clients via special promotions or one-time offers – the canvas image from our new Facebook page is the first step in this direction.

2. Increasing the use of YouTube on some of our sites – the clear benefits of YouTube include its reach, accessibility, ability to drive traffic and the fact that YouTube is, in itself, a social network. While our investment philosophy microsite (investmentphilosophy.com) provides interactive tools enabling clients to learn more about the emotional and scientific dimensions of investing, linking content from YouTube encourages greater audience engagement through additional relevant and thought-provoking content.

3. Leveraging the power of ‘Word of Mouth’ through Facebook. ‘Word of Mouth’ is widely recognised as one of the most powerful means of promoting a brand as people are more likely to trust a brand if they have received a recommendation from a friend. Facebook offers a huge potential reach of those who are ‘friends’ with existing

‘fans’ (ie. those who already ‘like’ our page).

4. More generally across the different social media channels, providing links to external client-facing sites to ‘share’ our content, articles, website pages, etc, as well as recommendations on Klout which will increase social media presence and influence.

5. Increasing the integration of the different social media channels, for example by optimising Facebook posts and tweets for SEO.”

How do you think the FS industry as a whole is approaching the use of Social Media?

“On the whole, it is fair to say that the financial services industry has been slow to engage in social media in comparison to other sectors. Without doubt, within financial services, the retail sector can be seen at the forefront of those embracing social media and as a driver of greater engagement across the board. The wealth management industry has approached social media cautiously, using it primarily to promote content and therefore not maximising the potential for client and prospect engagement that it offers.

At Barclays Wealth & Investment Management, we recognise the extent of reach and influence of social media platforms and the ways in which they can be used to better connect with audiences. Strategies for engagement within social media need a creative, dynamic approach and we recognise they require committed investment to achieve real impact.”

How do your customers use social media given that this is an open environment?

“An increasing number of users now rely on social media as their primary source of news and information about brands. In contrast, many organisations are seeing a notable decline in traffic on their website. For example, 110 billion minutes a month are spent globally on social networking sites which represents 22% of all time spent online by users globally. In the UK, 1 million new users signed up to Facebook in 2011, with average use being 20 minutes a day. We expect that the way users, including our clients, will interact with brands will continue to evolve as they begin looking for 24/7 ‘activity hubs,’ that is to say, a place where users can engage in the full spectrum of social media activity from browsing to seeking information and actively engaging with our brand.”

“It is a ‘place’ for clients to meet, engage with us and exchange ideas, not just a channel.”

Barclays acknowledge that the main challenges to social media engagement reside in the realm of compliance considerations and legal restrictions. However a great example of integrating social media into campaigns is the case of Pingit within the retail division. See Page 07.

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Linkedin – individual vs. company networking Many staff may choose to use primary business networking tool Linkedin for maintaining their own database of business contacts, the companies they work for are by and large not supporting their staff through proactive engagement.

Used well, Linkedin can be a highly effective business development and profile raising tool. Many of the firms we mention in this section have a small company profile on Linkedin. Some of the companies have added a logo to accompany their company pages, many have not even done this. Compared with other professional services sectors – particularly the accountants and law firms, the ‘investment management’ category on Linkedin in the UK is very much behind the curve.

The establishmentSome of the bigger and long established firms seem to be embracing this social channel as a means for pushing out corporate messages, news dissemination and thought leadership, here’s our pick of the firms investing in social brand visibility:

• Schroders has a careers page alongside its company profile; with 3200+ followers and ongoing proactive content this is clearly a well-used communications channel for this long established firm

• Aviva Investors also has a careers page and 2,300+ followers and 985 employees on Linkedin

• Brewin Dolphin has 1400+ followers on its company page and has added some basic information into the services section. 730 employees have profiles. The firm also has an active Twitter feed with 600+ followers and regular tweet and blog postings provide strong original content

• Rathbones has proactive Linkedin content and a Twitter profile with 438 followers

• Investec is creating an impressive impact with its Twitter feed with over 2,000 followers (see below)

• Barclays Wealth has a sophisticated social media presence. Its Linkedin company profile has nearly 11,000 followers.

Networking

17


Case study

Old school brand, new school tools Coutts & Co has come up well in our research and that’s because Coutts has been very proactive in harnessing the communications benefits that social media engagement offers.

Certainly amongst its competitors it’s carrying the torch for social media and should be praised for its willingness to get involved and to integrate social media platforms into its established communications activity. With a diverse range of clients and its long-standing heritage in the UK sector and as a global brand name, Coutts & Co has used social media channels to make sure that its public presence looks progressive and engaging. Compliance has certainly not been an issue for this brand in developing its social strategy.

A strong Twitter presence (@CouttsandCo) as well as a Facebook brand profile page is where the bank is investing time in social media communications. Coutts have recently reviewed their SM strategy and as a result are actively using LinkedIn as a preferred channel for thought leadership and market commentary content as well as Coutts news where appropriate. They believe this channel has the most resonance with professionals, Csuite for example and they are also looking at other ways to use LinkedIn with groups.

Head of Web publishing, Sita Aley comments, “Facebook is used for general Coutts news, sponsorship activity, and our archive material – where we feel our content aligns best to the timeline concept and use of photography. We have a rich heritage with lots of archive material and we believe FB is an ideal platform to showcase this – both past and present.”

Commenting on the firm’s social media strategy Ian Ewart, Head of Products, Services and Marketing at Coutts told us:

“Many of our clients use social media on a daily basis and we are cognisant of the fact that they all lead exceptionally busy

lives and face information overload. Operating in a very heavily regulated environment which is there to protect our clients’ interests, we pride ourselves on the discreet relationships we build. Social media is a very open and casual environment, and we believe we need to be true to the integrity of the Coutts brand, which has been built up over more than 300 years. We therefore have to ensure everything we do that touches our clients adds value in line with their expectations.

Coutts has a wide ranging and active social presence on LinkedIn, Twitter and Facebook, but we also recognise these channels may not be for everyone. In addition we understand the value of closed networks, which has led us to develop sites such as Coutts Knowledge Exchange. This is where we believe we can really add benefit to our client relationships.

Social media has seen an explosion over the last two years and will continue to evolve. Our challenge is to ensure we also evolve and exceed our clients’ expectations in everything we do.”

Added value not added effort?So why then, when many other professional services sectors are investing time, energy and money into developing social strategies which offer increased touchpoints for their clients and prospects, is the wealth sector reticent to get involved? Perhaps it’s because there has not been the same pressure to bear that the retail consumer brands have felt? Or maybe it is just taking them time to see the benefits of such engagement. Failure to get involved will at some point reflect on these firms’ reputations and public profiles but increased engagement often tends to be prompted by clients, so, if their customer base is not pushing for social engagement as a way of keeping in touch then where is the motive?

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The long-awaited RDR (Retail Distribution Review) which comes into force on 31 December 2012 will present the biggest reform to the provision of information in the financial services sector by its frontline advisers – the Independent Financial Adviser (IFA).

Such is the breadth and depth of the impact of the RDR on the financial services sector that we could devote this whole report to this one subject and we will be publishing more insight on this subject in the coming months.

In the past IFAs have generated their income based on commission selling – therefore effectively creating motivation to sell products which command the best commission as opposed to offer the best option to consumers. The RDR removes this and IFAs will now be paid on a fee basis by the people they advise. On the surface this means that consumers will no longer be able to book an appointment with an IFA to get advice on no charge basis; however, in the long run they should benefit from a more personalised, bespoke range of products to suit their individual requirements.

So how does social media play a part in this? IFAs will have to completely change the way they do business

– therefore many are undergoing professional training to learn the implications for their livelihoods. What RDR will mean is that IFAs will have to become marketing masters as they now offer a service to consumers with a fee attached – so gone is the ‘no obligation to buy’ sales tactic.

Social media will play a key part in this shift in how IFAs conduct themselves in the following ways:

• IFAs will now have to work hard to market themselves to prospective clients – the most obvious and cost effective way of doing this will be using the online channel as their ‘shop window’

• Consumers’ first stop when researching products and services is to start with the search engines – therefore Google, Yahoo, etc., will be key sales channels and no doubt we will see increased pay per click (PPC) activity by IFAs here

• With so much discussion online and peer to peer recommendation a key factor in consumer

purchasing decision – it will be crucial for IFAs to become social media marketing savvy.

Get set to see Facebook, Linkedin and Twitter populated by IFAs positioning

themselves as experts and thought leaders in financial services matters

• Creating original, useful and expert content will be key for IFAs who want to stand out from their

competition. Expect to see a rise in IFA-specific blog content.

IFA resources are springing up with the onset of RDR and there are two key hubs we have identified

where IFAs can access up-to-date information and source support for their changing business needs:

1. The social network for IFAs (www.ifalife.com) offers a wealth of guidance, networking opportunities and training in using social media in this sector. With free sign up and almost 8,000 IFA and financial planner members it’s a growing niche network in its own right

2. IFAonline (www.ifaonline.co.uk) is a digital publishing platform that offers a wealth of information and advocates the use of technology in this sector as a business tool.

4 in 10 investors have used a social media site in

the last 90 days(ByAllAccounts survey)

IFAs — industry reform drives business online

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So, in summary…This wraps up our sector analysis for the time being. There are clearly some winners in some surprising areas who are confidently implementing a creative mix of social media strategies and techniques, but there is still some way to go.

Social media and technology will continue to influence financial products and, with an increase in investment in this area, we predict the Financial Services industry will invest considerably more on interactive marketing channels than other consumer industries.

As consumers increasingly turn to social networks to look for trusted advice and information on their finances, these FS sectors are going to need more than a broad and basic commitment to social media. They will need to get much more personal in the way they interact and connect – less about the brand and more about what the consumer wants.

We’d like to thank those banks that have contributed to this series and hope you have found it insightful. We always welcome feedback, so please contact us if you would like to discuss anything.

Colkin House, 16 Oakfield Road, Clifton, Bristol BS8 2AP

Call 0117 915 0066 Click Studio6.co.uk

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