Social media strategy for financial services

Social media strategy for financial services
24th March 2020

33% of a user’s time online is spent on social media. Take a closer look at why the use of social media for financial services shouldn’t be left out of digital marketing strategy.

Why is social media strategy for financial services important?

Almost 90% of marketers believe social media activity has boosted their brand visibility. 75% of those went on to state an increase in traffic to their company website. A recent survey uncovered that nearly all Fortune 500 financial services organisations effectively use social media profiles. But what are the advantages to implementing social media strategy for financial services businesses?

Social media strategy is important for five main reasons:

  1. Thought leadership
  2. Quick communication
  3. Increase visibility on Google rankings
  4. Build and retain audience engagement
  5. Increase website traffic and new opportunities.

What are the social media trends for financial services?

Social media is probably one of the fastest moving aspects of digital marketing. By the time you’ve finished this article there will likely be a new emerging channel, feature, algorithm that influences user experience and behaviour. This can sometimes seem overwhelming if your organisation doesn’t have a dedicated team monitoring the social media landscape, which is why working with a digital marketing agency can be beneficial.

Just like how digital marketing and technology in the sector has disrupted and evolved, social media does too and plays an integral role to brand perception, customer service, and digital marketing performance.

Expectations and human connections

This is less of a trend now and more of a standard expectation, not just for financial services, but industry wide. Social media has been around long enough now for a whole generation to be digital natives that learned their way around likes, shares and follow interactions inline with learning to talk. User expectations have therefore changed from just having an email or website chat facility available to contact companies, to customers being able to contact their favourite brands, banks, insurance companies, public services etc across any channel.

2020 Building Societies Digital Census Kagool

Audiences want to feel human connections with businesses, which can be achieved via social media and pivotal in building customer loyalty. When asked to rank which channel gave businesses the best opportunity to connect with customers, social media, of course, won the race. At the start of 2019, it was estimated that around 60% of the global population were active on some sort of social platform, being visible on their favourite social media platforms is becoming more and more of a necessity for businesses, not a choice.

A shift to Instagram

There is an ongoing shift from Facebook to Instagram for financial services’ audiences. It’s not just beauty, food or consumer friendly brands that are moving into the Instagram space, banks, insurance companies and the like are waking up to the opportunity. The average follower count for the financial services industry is 38,595 – a sizeable audience your organisation might not want to ignore, or risk losing to a competitor.

A recent report identified that, although the audience size for financial services is significantly smaller than Facebook, the engagement is far higher. Indicating a great opportunity for financial services businesses to take a closer look at Instagram and growing their audience.

A push for a personalised social experience

Personalisation has been a running theme for online and offline experiences for a few years now. But now we’re seeing social media platforms step up their game when it comes to targeting and better understanding audiences needs and interests. Social channels ad tools are getting more sophisticated when it comes to segmentation and showing relevant services or products to your target audience. Marketers can fine tune their ads to make sure the right people are being shown content at the perfect moment to boost conversions.

Five reasons to implement a social media strategy for financial services:

  1. Thought leadership – Social platforms are ideal for positioning your business and its individuals as experts. Whether your organisation is using your social channels to share original content on your website, or your senior leadership team are engaging with exciting industry topics, these all paint a bigger picture that your organisation is a trustworthy, knowledgeable leader.
  2. Quick communication – We live in a digital world, driven by convenience, where most things are available at a click or even a voice command. Making your organisation readily available to answer your customers, prospects and stakeholders’ questions helps to build stronger relationships and a positive brand perception.
  3. Increase visibility on Google rankings – Social media can have a positive effect on SEO for financial services. Regularly posting on all your social channels (especially where you know your audience hangs out digitally) keeps your business at the forefront of your customers and prospects’ minds and signals to Google that your website is being mentioned and worth showing in its results pages.
  4. Build and retain audience engagement – Social media is a great place to showcase the personality behind the business, the human side of your organisation. This might be through charity activities in the office that show off your company values to job seekers or continuing the great level of customer service customers experience with your brand offline. Either way, it’s a cost-effective way to keep in contact and reach new audiences.
  5. Increase website traffic and new opportunities – Regularly sharing content and promoting your site via social platforms like LinkedIn, Twitter and Facebook, can give your referral traffic a boost and provide more quality traffic that’s already engaged with your organisation.

How effective is your organisation’s social media strategy?

At Kagool we can help your organisation plan and implement an effective social media strategy for financial services. We specialise in the design, build and digital marketing of Sitecore websites. With over 20 years of experience in helping global organisations achieve their digital goals, your social media and overall digital strategy is in great hands. If you’d like to get more in-depth understanding of how well your organisation’s digital marketing is performing, contact us or book a digital marketing audit – we’d love to help.