Banks and blogs
OK I admit it I have a proverbial bee in my bonnet at the moment about the BS I see being promoted by people who feel that the social web, Web 2.0 is vital to the marketing chances of any business. I am particularly bemused by the narcissistic goings on amongst certain bloggers in the banking sector. Just remind me when did it become apparent that customers of banks or credit unions wanted anything else from these companies other than great customer service, as opposed to crap service and effective and affordable banking products as opposed to expensive and ineffective products? What is driving the notion that anyone other than the most committed wanted or even expected anything else. I can guarantee you that like Michael Chertoff’s hunches about an imminent attack during the Summer none of this is based on any evidence other than loads of over excited tech types who think it must be so. I tell you what when my friends and family start clamouring for Web 2.o style functionality - you know normal mainstream types - from their bank then I know things will have changed but until then calm down.
Here’s my view on what banks should be focusing on instead of getting distracted with blogs and social web stuff.
1. Get the basics right first - implement a CRM solution and start communicating effectively with your customers.
2. Find out what your customers want - don’t spend a cent until you have canvassed opinion from a cross section for your customer base, you might be surprised at what they have to say.
3. Support a customer opinion panel - qualified opinion from a cross section of the base is more valuable than a blog at this stage. Remember who is likely to participate in a blog.
4. What’s the point in preaching to the choir - it’s far more challenging to target new customers and segments than looking for congrats from diehards. Plus these people are not the future of your business.
5. If you are considering developing a social web strategy be objective and assess it like you would any other channel. Don’t be fooled by arguments that it is the new way to communicate, it’s authentic etc. The vast majority of people don’t have a clue about these technologies Geez for that matter most people don’t even use internet banking!
6. Be wary of theatrical tech types who are dismissive of stats - if they can’t back it up why spend the money. Last time I checked I couldn’t find one instance of an FI losing customers because they didn’t have a Web 2.0 product!