Most Effective Social Media Practices Among Financial Services Firms

April 16, 2012 by Eileen Leonardo

Corporate Insight tracked over 90 financial services firms to provide a comprehensive analysis of the top offerings and key trends

NEW YORK–(BUSINESS WIRE)– Corporate Insight, a leading provider of competitive intelligence and user experience research to financial institutions, today released a comprehensive report evaluating the most effective social media efforts currently offered by leading financial services firms. The report, “Social Media Leaders,” provides an overview on the use of social media by financial services companies through an in-depth examination of more than 90 financial services firms and offers rankings for four types of social properties: Facebook pages, Twitter profiles, proprietary communities and blogs. The research was conducted on companies that Corporate Insight tracks continuously through its Monitor services, including annuity issuers, banks, brokerages, credit card issuers, insurance companies and mutual fund firms.

“Over the past few years, the use of social media by financial services firms has increased exponentially,” says Alan Maginn, senior analyst and social media expert at Corporate Insight. “Social media is a critical way for companies to communicate with their clients, prospects and other targeted audiences on a personal level.”

The firm weighed three main factors – audience, content and engagement – when evaluating each firm’s social media properties. Corporate Insight put extra emphasis on engagement, which the analysts define as the interaction that occurs between a brand and its audience. “Engagement is truly what sets social media apart from more traditional business-to-consumer communications, and this direct interaction with current and prospective clients is a major benefit of a well-executed social media offering,” continues Maginn.

When ranking each social media offering, Corporate Insight gave data different weighting based upon “social value,” a criterion the analysts created. Social value measures the effectiveness of specific forms of engagement. For example, when evaluating a firm’s Facebook page, Facebook shares carry more weight than comments, though comments are valued more than “likes.”

Corporate Insight has been closely tracking the way financial institutions use social media since 2008. The firm has scrutinized social media offerings as they evolved from an experimental communication tool used by a few forward-thinking firms, into a nearly universal feature. Some of the top trends and innovations highlighted in “Social Media Leaders” include:

Corporate Insight identified one firm that stood out as best-in-class among financial institutions using social media – American Express. “Amex manages to use more social media channels more effectively than any other firm,” says Maginn. Amex was a pioneer in the space, activating its first online community in 2006. In 2007, the firm launched OPEN Forum, its most successful proprietary community, which focuses on small business owners. The card issuer also maintains five Facebook pages that draw a large and engaged audience, ranking high in social value. The American Express corporate Twitter account is the overall leader across all financial services firms, and has grown significantly since Corporate Insight last examined it in 2010. While “Social Media Leaders” identifies ten financial institutions that excel in the use of social media, American Express embodies the greatest number of best practices as a whole and sets the pace for the industry.

Corporate Insight will continue to closely monitor the social media efforts of the financial services community, and build on this assessment. “Social media will only increase in importance as a critical channel for clients and companies to communicate,” says Mike Ellison, President of Corporate Insight. “We will continue to monitor this space closely and offer actionable recommendations to our clients so they can maximize the impact of their social media efforts.”

To request a copy of the Social Media Leaders research or to speak with Alan Maginn please contact:

About Corporate Insight

Corporate Insight provides competitive intelligence and user experience research to the nation’s leading financial institutions. For two decades, the firm has tracked technological developments in the financial services industry, identifying best practices in online banking and investing, online insurance, mobile finance, active trading platforms, social media and other emerging areas.

Corporate Insight has been tracking the social media space beginning in 2008 when the company released its first industry study analyzing the way financial institutions use social media. In October 2010, they conducted a second study to address the evolving social media landscape. Corporate Insight continues to closely track the social media presence efforts of nearly 100 financial services firms.

The firm helps its clients – including 70% of the financial services firms in the Fortune 500 – to stay on top of industry trends and improve their competitive position. Further information on Corporate Insight is available at www.corporateinsight.com/about-us.

For Corporate InsightEileen Leonardo, 212-909-4782
eleonardo@intermarket.com
orStephanie DiIorio, 212-754-5181
sdiiorio@intermarket.com

Source: Corporate Insight

Originally Posted at InsuranceNewsNet on April 12, 2012 by Eileen Leonardo.