Best Practices in Financial Services Social Media: What's Trending Now and What Will the Future Bring?

This presentation was a 3.5 hour class delivered in two parts as the 2014 ABA Stonier Graduate School of Banking. It's grown and expanded over the last two years since I first gave it for J.D. Power & Associates Social Media Division. Below are more details:

Best Practices in Financial Services Social Media: What's Trending Now and What WIll the Future Bring?

Banks and Credit Unions large and small are still struggling with how best to use social media to move from awareness to engagement to sales. Through an in-depth analysis of our industry’s attempts to engage consumers, we’ll analyze today’s best trends and how your institution can leverage social media in the future to drive engagement and sales.

Specifically, we’ll look at:

· Great examples of large, multifaceted social media campaigns from institutions around the world.
· What’s working in the US and abroad to drive social engagement in brand, mission, and product sales.
· Why storytelling, voice, and brand all need to come together in a consistent fashion for social media to excel.
· Specific case studies of brands inside and outside of Financial Services that have excelled at using social media to engage and sell.

1. Best Practices in Financial Services Social
Media: What’s #Trending Now & What Will The
Future Bring? -- by Mark Zmarzly
Presented at the ABA Stonier Graduate School of Banking on June 10-11, 2014.

2. Let’s Learn and Have Some Fun!

3. Me Looking into the Future & Seeing that
You Really Enjoyed Yourself Afterward

4. Mark Zmarzly
www.hippocket.net
@BankMarketing www.linkedin.com
/in/markzmarzly
Who the Heck am I?

5. 1992 1996 2000 20030 2005
High School Career
Assessment: Forest Ranger
1999
BA in English &
Organizational
Communication Studies
1975
Born
2005
MA in Creative Writing
The salad years
Writer & English Teacher
Who am I?

6. 20102005-2008 2012
2011
SVP of
Financial
Services
2009
@BankMarketing
2009 2011
Linkedin.com/MarkZmarzly
2005 Now – all in Financial Services Marketing - Editor I Copywriter I Creative
Manager I AE I SVP Financial Services I Business Development Executive I Speaker
Who am I?
my blog
2013 2014
Idea was born
ABA SBMM

7. Current & future
Launching first client – ubt.com.
Mortgage, Auto, and Retirement
comparisons are available now.
Launching next group of clients
immediately.
Facebook application planned
for fall of 2014.
Second generation in late 2014.
A Word from My Lawyer
FFIEC & Your Compliance
Department are the boss.
I analyze our industry
for new insights and future trends.
Don’t sue me! Seriously…I have a
wife and 3 kids!

8. What is Social Media?
https://www.dropbox.com/s/hfsyeorjg34gd4s/Social%20Intro2.mp4

9. 2000 2001 2002 20030 2004
2000
Dot Com
Bubble Bursts
2001
Wikipedia
launched
1960s
Al Gore Invents
the Internet
1998
Blog
What is Social Media?

10. 2006 20082005 2010
US
Subprime
Lending
Peaks
2007 2009
11/2007
Keypoint FCU –
online banking
into FB
A
ctive Facebook U
sers: 0 to 1.22+B
2011 2012
7/2007
PayPal on FB
3/2006
First Major FI Blog
8/2007
TD Bank (Canada)
3/2008
Quicken Loans
on Twitter
2013
What is Social Media?
Now
$16B

11. © Hip Pocket 2014
Is it Necessary for Us?

12. What Customers Say About Us

13. It’s No Wonder…

14. It’s No Wonder…

15. It’s No Wonder…

16. Annoying, Boring, & Unhelpful, but
Maybe Not Entirely Ineffective???

17. The Good News: We Don’t Care!

18. We May Not Be Red Bull

19. But We Can Innovate/Reinvent
• Kitty & Lala: https://www.youtube.com/watch?v=JFbUbAWbB-s

20. •Current Trends
•4 Case Studies
•Big 3 Platforms
•The Future?
Peaking Ahead

21. •Own Your Community
•Engage Sub Communities
•Crowdsourcing
•Mission-Driven
•Generate Social Virality
•Engaging Voice
•Not all Trends are “good”
Listen & Learn from Trends

22. Not All Trends Are Good

23. What’s Hip? What’s Trendy?

24. Own Your Community

25. Own Your Community
10,800k likes in 2012. 35,740 now. 250% growth.

26. Own Your Community
10,800k likes in 2012. 35,740 now. 250% growth.

27. Own Your Community

28. Own Your Community

29. Own Your Community

30. Own Your Community

31. Conversely…

32. Own Your Community
42k likes in 2012. 55k now. 31% growth.

33. Own Your Community

34. Engage a Sub Community

35. Engage a Sub Community
301,000 members

36. Engage a Sub Community
Founded in 2000

37. Engage a Sub Community
https://www.bizcrowd.com

38. Engage a Sub Community
https://www.bizcrowd.com

39. Engage a Sub Community

40. Engage a Sub Community

41. Engage a Sub Community

42. Engage a Sub Community

43. Engage a Sub Community

44. Engage a Sub Community
https://www.ubt.com/business-banking/catalyst-small-business

45. Engage a Sub Community
https://www.ubt.com/business-banking/catalyst-small-business

46. Engage a Sub Community

47. Crowdsourcing

48. Crowdsourcing

49. Crowdsourcing

50. Crowdsourcing

51. Crowdsourcing

52. Crowdsourcing

53. Crowdsourcing

54. Crowdsourcing

55. Crowdsourcing
Home Improvement Challenge
• Photo contest housed on FB
• $7,500 prize to be used for a
home improvement project
• Participants submitted a pic of
their project & description of why it
was important to them
• General public voted to determine
the winner
•increase of 23% in home equity
products for the campaign from the
previous year. The marketing spend
was also significantly less.

56. Crowdsourcing
•National Bank of Arizona
awarded $10K to a local
business through a video
contest housed on FB
•Winner was selected by
public vote
•Total views to the Facebook
tab reached 2,128
•Total video views exceeded
3,000

57. Mission-Driven Campaigns

58. Amplify Your Giving Visibility
From FMS Social: http://fmssocial.com

59. Amplify Your Giving Visibility
From Sundin Inc: http://www.sundininc.com

60. Amplify Your Giving Visibility
From Sundin Inc: http://www.sundininc.com

61. Amplify Your Giving Visibility
From Sundin Inc: http://www.sundininc.com

62. Amplify Your Giving Visibility
From Social Assurance: www.socialassurance.com

63. Amplify Your Giving Visibility
From Social Assurance: www.socialassurance.com

64. Amplify Your Giving Visibility
From Social Assurance: www.socialassurance.com
“As we have done since the
inception of the bank, the bank
remains strongly committed to
supporting the arts, culture, and
health and human service needs
in the communities we serve.”

65. Virality – Rapid Social Spreading

66. Virality

67. “If a piece of content makes
people seem smart, they’re more
likely to share it with their
friends. And people like being
the first to share information
because it makes them seem
cool and in-the-know.”
-- Jonah Berger, author of Contagious
http://jonahberger.com/books/contagious/

68. Virality

70. 50k wait list before launch

71. 50k wait list before launch

75. Have a Distinct Voice

76. Instead of Doing This:

77. Voice
http://www.currencymarketing.ca/young-free/

78. Voice

79. Voice
http://www.frankbyocbc.com - Singapore

80. Voice
http://www.frankbyocbc.com

81. Voice

82. At the center of Vancity’s brand is the concept of ‘balanced prosperity,” a strategy driven by a “triple
bottom line” of financial returns, social returns, and environmental returns. – Jeffry Pilcher of
TheFinancialBrand.com
Voice

83. Voice

84. Voice

85. Voice

86. Voice

87. http://business.time.com/2012/03/12/dollar-shave-club-a-start-ups-viral-ad-for-fing-great-razors-is-a-big-hit/
Voice

88. • Dollar Shave Club – beta
4/2011
• Video launched March, 6 2012
• 2 Million views in first 4 days
• 4.1 Million views total in first 2
months.
• 14,770,000 to date
• $4,500 video production costs
Michael Dubin
• Co-founder & CEO
• Digital marketer/brand
development
• Improv comedy background -
Groundlings
• Personality/Voice
http://business.time.com/2012/03/12/dollar-shave-club-a-start-ups-viral-ad-for-fing-great-razors-is-a-big-hit/
Voice

90. Own Your Community
Would You Want To Get Lunch
with Your Social Media Voice?
How About
Lunch?
My Mouth’s
Not Real.

91. Would You Eat a Philly
Cheesesteak with this Person?

92. Would You Eat a Philly
Cheesesteak with this Person?

93. Hand-Selected Case Studies

94. Case Study 1: Navy FCU

95. Case Study 1: Navy FCU

96. 06/15/14 96

99. •Ask the
Question
•Provide
relevant
information
•Single Auto-
buying post,
1,525 Likes

100. 06/15/14 100

103. “We are trying to be a friend people look
forward to engaging with,” explained Don
Varela, the lead strategist for social media.
“Our mantra is engage now, sell later.”

104. Case Study 2: Social Money &
Smarty Pig

105. • SmartyPig, LLC – Iowa
• Launched in 2008
• $0 in advertising expenses
• $500 MM in deposits (BBVA
Compass) in 2012.
• $3 Billion in Goals reached in
first 4 years.
Social Media Case Study #2

106. • Personality/Voice
• Product-focused
• Engage on the Benefits
• Consistency
Social Media Case Study #2

107. • Majority of customers have 4+ goals
• 70%+ of customers share their goals (can be kept private)
• When savers reach redemption, they usually open 2 more goals.
• "Social media as a whole isn't a luxury," says SmartyPig's president,
Scott McCormack, “it's a necessity, which is why banks are turning to
us."
• Financial Literacy
• Cross-sell
• Contests
• Pre-spend
behaviors
• Life stage data
• Special offers
Social Media Case Study #2

108. How One-Click Saver works


Install the SmartyPig Chrome extension.
Begin shopping online!
Find a product you want to save for?
Click on the browser extension icon and set up a goal.


SmartyPig automatically pulls the product name, image, and price, while
you indicate when you’d like to purchase the item.



Presto! Your goal is automatically linked to your existing bank account and added to your SmartyPig
profile where it earns 1% APY.

The best part? This all occurs without your ever leaving the site on which you are shopping.

Once you reach your goal you’re offered a variety of rewarding ways to spend your dollars, including
a prepaid MasterCard rewards card that pays 1% cash back on every purchase, and select merchant
closed-loop cards that offer cash boosts of up to 11% of the total amount saved.

109. How One-Click Saver works


Install the SmartyPig Chrome extension.
Begin shopping online!
Find a product you want to save for?
Click on the browser extension icon and set up a goal.


SmartyPig automatically pulls the product name, image, and price, while
you indicate when you’d like to purchase the item.



Presto! Your goal is automatically linked to your existing bank account and added to your SmartyPig
profile where it earns 1% APY.

The best part? This all occurs without your ever leaving the site on which you are shopping.

Once you reach your goal you’re offered a variety of rewarding ways to spend your dollars, including
a prepaid MasterCard rewards card that pays 1% cash back on every purchase, and select merchant
closed-loop cards that offer cash boosts of up to 11% of the total amount saved.

110. “As banks struggle with social media, SmartyPig LLC is set to offer its
tried-and-true approach to any bank that wants it.”
“We are taking the essence of SmartyPig and we are putting it into an
application that can live inside of an existing banking website.“
2012: 6 domestic banks, 3 overseas banks, 3 prepaid card
vendors, and non-profit.
http://www.americanbanker.com/issues/177_22/smartypig-social-media-twitter-facebook-money-systems-goal-saver-1046243-1.html

112. Time: When Keeping Up
with the Joneses Means
You’ll Save More Money
3 Random Groups - .3%
vs. 5% vs. “peer group”
“Social forces—peer pressure, in
this instance—seem to have more
power to change behavior than
plain old monetary incentives.”
"The idea is to share that with your family and friends,
and keep up the social pressure to reach your goals.”
– Smarty Pig user Nathan Robertson

113. Peer group could vocalize
their goals and see peer
progress.
“…The Peer Group
Treatment deposit 3.5
times more often into the
savings account, and their
average savings balance
is almost twice that of the
control group.”

114. Case Study 2: Social Money &
Smarty Pig

115. Case Study 3: Umpqua

119. https://www.youtube.com/watch?v=z8flLtw-ob4

134. Case Study 4: NAB

135. Case Study 4: NAB

136. Case Study 4: NAB
http://moreless.nab.com.au

137. Case Study 4: NAB
http://moreless.nab.com.au

141. NAB in 2011
http://breakup.nab.com.au/2011/02/why-did-we-break-up/#content
• 18% market share compared with 33%,
31%, and 18% = the big 4
• Twitter, Video, Guerilla, Print, Micro
• Feb 14, 2011

142. http://breakup.nab.com.au/2011/02/why-did-we-break-up/#content
• Differentiation-focused
• Specialized landing page
• http://breakup.nab.com.au
NAB in 2011

143. http://socialmediaclub.org/blogs/from-the-clubhouse/social-media-case-study-national-australia-bank
• Results
• Commonwealth Bank and others fought back – $1,200 cash for NAB
customers to refinance
NAB in 2011

144. NAB in the Future
https://www.youtube.com/watch?v=1BOKmUDBTR8

145. A Word About the Big 3 Platforms

146. A Word About the Big 3 Platforms

147. Facebook

153. Twitter

156. Engaging the Community

158. Engaging a Sub Community
https://www.youtube.com/watch?v=TKL_cn8vhjo

161. You Can’t Control it…at all

165. The Battle for Small Biz

166. LinkedIn Facts
•Founded in 2003 (11 years old!)
•More than 300 Million Members as of 5/1/14. 100M in US
•40% of users check it daily
•Well educated, well compensated:
http://www.globalrecruitingroundtable.com/2013/01/22/LinkedIn-facts-figures-2013/#.U4zZg1zjyzA

167. Social Selling is a result of social buying
Social Selling 101 THE INTERNET HAS CHANGED THE GAME

168. The good news is that
LinkedIn is still an
emerging trend within
banking and there’s
lots of available
opportunity.
“Commercial Lender”
in Omaha, NE
Social Selling
Social Selling 101 THE INTERNET HAS CHANGED THE GAME

169. 06/15/14 169

173. What Will the Next 10 Years Bring?

174. •Social Channel Consolidation
-You can’t be everywhere
•Data Integration
-What social data do you want most?
•Platform Integration
-Online acct access within FB

175. •Niche Down
-Can you win all retail or a long tail?
•ROI Focus
-Strategy and sales need attention
•Digital vs. Social Strategy
-Bolt on or are you strategic?

176. “‘Digital strategy on social platforms,’
uses social media to broadcast
commercial messages and seek
customer feedback…’social strategy
on social platforms,’ steers clear of
direct broadcasting in favor of helping
customers create and strengthen
relationships with each other.”
-- Mikolaj Jan Piskorski
http://hbswk.hbs.edu/item/7545.html

177. “American Express's OPEN Forum, a
website where entrepreneurs share ideas, is
an example of a successful social strategy…
I've received help for my business under the
umbrella of American Express, and I'm more
likely to recommend AmEx to my friends
because I've made this great connection,
and the cost of customer acquisition for
AmEx drops. This is, in fact, what American
Express has found to be the case.”
-- Mikolaj Jan Piskorski
http://hbswk.hbs.edu/item/7545.html

178. 06/15/14 178

179. • “We started the contest on May 1, 2013 at 8,860 page Likes and ended May
31, 2013 with 15,190 page Likes for a net total of 6,330 new page Likes.
• Our goal was 4,000 new likes, which we exceeded by more than 50%• Our fans
uploaded 100 mustache pictures – our goal was 50.
• The total number of votes: 12,707 – which means we probably had more than
10,000 visits to our Facebook page• People spun the slot machine at least 950
times, but probably much, much more. Our goal was to get 500 people to spin,
which we nearly doubled.• Our brand engagement rate spiked, topping out at
26.81% during the week of May 14-20, 2013.”
Or Will We Keep On Keeping On?

180. •Of what we’ve seen,
what was digital
strategy vs. true
social strategy?
•Where does your
bank stand?
•Can you innovate to
break bad trends and
start better ones?
Parting Thoughts

181. Mark Zmarzly
[email protected]
402.802.1005
@BankMarketing ​https://www.linke
din.com/in/markz
marzly
Let’s Connect