Managing Multiple Social Network Accounts

Banks that are new to social media or are determining how best to jump into social media eventually ask the following question: “Should we start with one social network or several?”  The answer?  It depends.

All things being equal, being active on multiple social networks is better than one.  Unfortunately, all things are not equal and resources, both human and financial, play a role in the ultimate look and feel of any social media strategy – including the number of social networks on which a bank participates.

According to the ReadyBuzz blog, “the biggest mistake most businesses make is to only use one social media platform.  In most cases, they either choose Twitter or Facebook. The truth is, one just isn’t enough.”  Many social media users maintain two or more social media accounts.  In many cases these accounts are established when the user first visits the social network as part of a curiosity or through the referral by an acquaintance.  However, regardless of many users’ maintenance of multiple social media accounts, users are not equally active on each social network.  As such, users may only access one account on a regular basis and largely ignore the others.  This means that a bank that focuses its social media efforts on a single social network risks missing out on a large portion of social media users that use other platforms.

Zmags blogger Christina Pappas recommends how to best utilize multiple social networks.  According to Pappas, “there are many social media channels and most of us use each channel with a slightly different spin.  The type of content we would Tweet is different than the content we may post to a Facebook Business Page.  Both of those formats may require a different twist than we’d offer on LinkedIn.”  Pappas makes the case for a strategy that differentiates the manner in which information is shared on each social network.

However, Inc. blogger J.J. McCorvey warns against biting off more than can be chewed.  According to McCorvey, “If you have enough staffing power to handle multiple social networking sites, that’s great.  If not, it’s important to focus on one or two, or you could spread yourself too thin and fall victim to the ‘gaping void’ perception, where you end up going days without activity.  Your followers will notice.”

Social Media Today blogger Mark Evans echoes McCorvey’s advice.  In one of his posts Evans recounts his advice to a small business.  According to Evans, “my reluctance to suggest a multi-pronged approach was mostly due to the lack of available resources.  The last thing I wanted to see was the company blast out with several Twitter accounts, only to see its efforts fail due to poor content or a lack of activity and engagement.

An example of the success that can be achieved through the use of multiple social networks is Starbucks.  Blonde 2.0 blogger Ayelet Noff credits Starbucks’ multipronged social media strategy as one of the reasons why Starbucks has been successful at creating millions of fans for the brand and keep them involved in the brand’s doings.  According to Noff, “The brand has created a digital dialogue with its customers, enabling people to give their feedback and receive a response back from Starbucks addressing their concerns/comments.  Starbucks is showing its customers and potential customers – ‘hey, we care about what YOU have to say.’  I am certain that if each one of these elements was done alone then the strategy would not have been as successful and complete as it is when done like this in integration with the rest of the elements on board.”

Amanda Brooke, Drop Ship News blogger, speaks to the advantages of multiple social networks by stating that “by working on your brand on the most popular social media sites such as Twitter, MySpace, Facebook and YouTube, you can reach a much, much broader audience than traditional marketing methods.”  Social Media Today blogger Daulton West, Jr. goes on to say that “’listening’ to their customers, and creating conversations that span several social media sites, allows for communication that strengthens relationships for existing and potential customers.”

In the final analysis, while it appears desirable to maintain several social network accounts simultaneously, it is critical that the bank maintain a budget that provides for adequate staffing to ensure that the bank’s social media efforts add value.

Look Who's Talking: Facebook Engagement

Facebook recently began disclosing several key metrics on Facebook Pages to assist Page owners at-a-glance in assessing the success of their Facebook efforts and to assist visitors to the Page in determining how useful others have found the site in the past week.  These metrics are disclosed along the left side of the Page (they, along with other metrics, are also found on the Insights page).

The first metric indicates how many users Like the page.  Traditional Facebook marketing theory states that the bigger this number, the better.  That is why so many social media consultants go on about tactics to increase "Likes" as if he with the most Likes wins.  While I agree that all things being equal, more Likes is better than less Likes, I also believe that it's not the quantity of the Likes but rather the quality of the likes that will make a Facebook effort successful.

Social media is about social engagement.  Social engagement does not occur unless the Facebook effort provides value.  As such, it does not matter how many Likes a page has if the content is not engaging.  Without valuable content the community will ignore the page resulting in a wasted effort to attract the community.  In other words, a Page with 100,000 Likes that was created through some effective marketing effort will not help the bank if none of the 100,000 users visit the Page on a regular basis.

In order to evaluate the effectiveness of a Page's community, Facebook provides the number of users that have "talked about" the Page in the past seven days.  This "talking about" statistic is fairly meaningful as it states the number of users that have engaged with the Page (e.g., brand) in some form.  Activity that is included in the Talking About statistic includes users that:

• "Liked" the page
• "Liked," commented on, or shared a Page post
• Answered a Question on the Page
• Responded to an Event 
• Mentioned the Page
• Tagged the Page in a photo
• Checked in or recommended the Page location

In the examples below you see two sets of data taken from two banks - one small bank and one mid-size bank.

The bank on the left has only 409 Likes and the bank on the right has over 2,500% more at 10,850 Likes.  A natural conclusion based on the Like data may be that the mid-size bank has created a more valuable Facebook asset.  However, a review of the "talking about this" number suggests that while the mid-size bank has more likes, the absolute number of users that have engaged with the bank is identical.  As such, either the mid-size bank has a bunch of uninterested followers or the small bank has an active bunch of followers.

So why is having as many users talking about the bank so critical? Well, it is the active and engaged users that are most likely to support and evangelize for the bank.  These active users will tap into their social networks and inform their friends and acquaintances of the reasons why they should support the bank.  In addition,  new visitors to a Facebook page can look at these two metrics to understand how popular, active and engaging the Page is and as a result, whether it is one that they wish to follow.  Losing out on an opportunity to engage new users results in a loss of not only that user but of that user's social network.

While banks should seek as many Likes as possible, they should also examine the number and percentage of followers that are engaging with the bank.  If too few are engaging then the bank is not providing adequate content.  This may result from too infrequent posts, too many "salesy" posts, too frequent posts, uninteresting posts, etc.  It should be the job of the Facebook admin(s) to analyze the data to figure out how to best convert the nonengaged users into engaged users.  Once users become engaged then their networks may also become engaged, and at that point the Facebook page may provide significant value.  However, until engagement occurs, the Facebook page becomes that question about whether a tree falling in the woods makes any noise:  if a Facebook page with tons of users creates no engagement does it provide value?  Very little.

What To Do With Those Repos? Facebook Them!

During these tough economic times it is not uncommon for consumer banks that originate auto loans - particularly used auto loans - to have to pick up a repossession or two. In many cases banks will dispose of the autos through wholesale auctions or wholesale transactions with used auto dealers. Depending on the car and the outstanding balance, sales through auctions or directly to dealers will result in marginal to significant write offs, as the banks are forced to accept deep discounts.

Fortunately, with the purchase of a fairly low cost video camera and video editing software, banks can now create and distribute videos through social networks in an effort to connect directly with consumers and obtain retail sales prices on their repossessed autos - and possibly provide the financing to qualified borrowers.

After exploring its options, Pan American Bank (my employer) in Los Angeles initiated a social media-based program that distributes videos on YouTube, Facebook and other platforms to publicize its repossessed used autos.  Through the use of in-house videos, Pan American Bank is able to achieve several goals:

1. Publicize the sale of its repossessed autos directly to retail buyers, reducing/eliminating the losses  experienced from wholesale transactions.
2. Create a following among consumers seeking quality used autos.
3. Increase the Bank's visibility. 

As the cost of  video equipment and video editing software has fallen sharply (most cell phones provide video capability), many individuals have become pro-am videographers.  If your organization has little to no budget, a great place to begin a search for a video expert is within your organization.  A simple e-mail blast to employees asking for experienced videographers may result in one or more in-house resources.  This will reduce costs and increase flexibility.  If an in-house resource is not available, inquire with students at local high schools and colleges. Finally, call on video services.  If budget is not a problem you may want to seek a professional right away.  However, you may be pleasantly surprised at the quality of employees.

Social Media's Tortoise and the Hare

We've all heard the Aesop fable of the Tortoise and the Hare.  In the story, the hare, speedy and full of bravado, fails to win the race against the slower tortoise.

The financial services industry is undergoing its own version of the fable with respect to social media.  On the one hand you have firms such as Chase, giving away $1 million dollars through Facebook.  On the other hand you have firms such as Morgan Stanley, reluctantly entering the world of social media by getting every tweet, LinkedIn post and other social media comments pre-approved by "corporate" before making the messages public.

While it is important for every firm to understand the influence of social media, it is just as important for every firm to do it in a manner that is consistent with the culture and governance style of the firm.  Some firms, such as Chase, are very comfortable jumping into social media with both feet.  We'll call them the hare.   This is a function of the culture at Chase.  Some firms, such as Morgan Stanley, are more comfortable taking calculated steps.  This too is a result of the corporate culture.  We'll call them the tortoise.

Unlike the fable, this is a race where there is likely no loser.  What is important here is that organizations move into social media at a pace at which they are comfortable.  As stated on this blog many times; most important is for firms to actively "listen" to social media to determine what is being said so that appropriate responses can be provided.  Beyond listening (which IS mandatory for all), every firm should move at a speed at which they are comfortable.

Some firms will train and trust their employees as brand ambassadors and unleash them to do their thing on social media.  These firms will have no problem sleeping at night.  Other firms will limit employee access to social media and will screen and pre-approve all messaging.  For these firms, this is the only way they can sleep at night.  While social media proponents will push for the former, the reality is that either approach will work.  What is important is that the firms implement something in order to remain visible and competitive.

The Age of the Thick Skinned Banker

Amplicate, a social media analytics company, released a report that suggests that banks need to develop thick skin, really thick skin, in the new world dominated by social media.

The Amplicate study revealed that 83% of opinions about major banks in the US and Europe were negative over the past 12 months.  The study focused on large money center banks and not on the smaller community banks.  While community banks would have likely performed better due to their reputation as being more consumer-friendly, the lesson is the same: bankers need to learn to deal with and manage criticism like never before.


Social media makes it easier than ever for consumers to make their complaints public.  Look at Bank of America's recent social media troubles related to its $5 debit card fee.  The public outcry resulted in a complete about face by Bank of America and created significant damage to the Bank of America brand that will take some time to repair.

Banks' knee jerk reaction may be to avoid social media altogether in an effort to avoid the criticism.  However, as has been repeated many times on this blog, the criticism will occur regardless of a bank's stance on social media.  A better approach is to play offense and implement a social media monitoring system that tracks what is being said about the bank and responds in a transparent and honest manner in a effort to prevent the criticism from snowballing in a manner similar to that experienced by Bank of America.

Bottle Service with that Social Media

One of my favorite social media videos remains this one by Socialnomics.  I must admit that I get quite pumped up after watching and listening to this video by Erik Qualman.  Erik put together one of the best business-related videos ever!  This explains why this video has gone viral and has provided such a tremendous boost to Erik's company.

I've attended and participated in more social media events than I can recall.  In so many of these I hear talk about going "viral."  For social media marketers, including those that represent banks, this represents the holy grail.  The reality is that very (very) few initiatives will ever reach "viral" status.

I like to use this video as example of what it takes to get an initiative to go viral.  The visuals of this video along with the beats made for an emotionally-charged video that encouraged not only sharing, but repeated viewing.  The combination of music and visuals created an emotional charge among viewers, almost turning viewers into Viral Zombies.  Viewers have no choice but to share this video (I'm sharing, aren't I!).

I don't mean to discourage organizations from seeking the holy grail of social media sharing.  I just want to make sure that it is understood that social media is about being "social."  And before anything is shared - especially at the "viral" level - it must appeal to the social side of our existence.  In this case, viewers of the video get their blood pumping, head moving, feet tapping.  Watching people watching this video is almost like watching Will Ferrell and Chris Kattan in A Night at the Roxbury.

So before launching the next "big" social media initiative ask yourself how it will make people feel.  If it makes them feel significantly happy, sad, proud, etc., then it has a chance at spreading.  If it doesn't then don't expect much from it because no one will care.

Hello, Mr. Watson, Can You Hear Me?

On November 12, 2011, the Customer Contact Association released an advisory (Social Media Revolution Rewrites Customer Service Rules) that made the following observations:

• Companies must review which channels they use to monitor customer feedback as there is a mismatch between customers’ preferred channels and the ones companies monitor most frequently.More than 70% of the online population now regularly uses Facebook and Twitter.
• Forty-six percent of consumers believe that social media can hold brands and companies accountable.
• Businesses must reinvent their customer service models to respond to a growing breed of ‘connected customers’ who use social media to comment on service.
• Businesses need new multi-channel strategies to tackle ‘disconnect’ with customers.
• Forty-four percent of consumers believe companies do not care what they think.

While the data is helpful, I don't think anyone is surprised by the outcome - especially in the post-Occupy Wall Street world.  What is most useful is the conclusion that companies (banks included) are not listening in the right places.  Traditionally banks have used paper surveys, face-to-face interaction and other old school methods to obtain customer feedback.  Today, while these methods still apply, there is more and more feedback being provided through social media channels (Facebook, Twitter, blogs, etc.).  As such, it is important that banks "listen" to all applicable channels - not just those they are traditionally programmed to monitor.  At a minimum, banks should make use of Google Alerts and SocialMention.com to listen to the feedback/comments being placed out on the Internet.  Of course, larger organizations may opt for more robust (and expensive) solutions such as Radian6 and others.