Yes, Press Releases Are Now Part of Social Media and VERY Viral

About a week ago, after issuing a press release about my company's use of social media, I saw a tweet come up from someone questioning the use of a press release to promote Web 2.0. What I got from the tweet's 140 characters was essentially doubt about the use of press releases (traditional old school technique) in promoting use of Web 2.0. The tweet said something along the lines of "Why would a company that is rolling out social media use a press release. Social media is about being viral. Press releases are not viral."

This post has been created to make you aware that, yes, press releases ARE social media and ARE definitely viral. I'm not a publicist by schooling but I have had years of experience using press releases in the pre- and post-Web 2.0 world. Something I noticed about a year ago was how the press release outlets, including the majors such as BusinessWire, started Web 2.0-enabling their releases. The following is an example of the social media functionality added to press releases to enable their VIRAL distribution.

As you can see under the "Sharing" section on the left side of the page, the press release outlet (in this case BusinessWire) added a series of common social media platforms with which this press release could very easily be shared. This is only one outlet, but I've seen most outlets incorporate this "viral accelerator" to their pages.

As a result of a recent press release, I achieved immediate and broad distribution on Twitter illustrated by the sampling below:



As you can see, just on Twitter alone there were nearly 100 retweets of the press release. Multiply that number by the number of followers that read each retweet and you can see how a traditional press release can achieve viral distribution.

Now consider how these traditional press releases are distributed to hundreds of online media outlets by the wire services, resulting in greater viral potential. Below is a snapshot of a small number of the media outlets that received the press release from the wire service and began serving up copies of the press release - again, each with a similar "sharing" feature.



Now, keep in mind that simply having a "viral accelerator" does not mean a press relaese will achieve viral results. The material has to possess certain qualities. Press releases in of themselves are not great for creating viral buzz. But press releases tied to good viral content will do the job. I recommend reading the chapter of Viral Marketing in The Community Banker's Guide to Social Network Marketing for more details.

In any case, to answer the question posed by the tweet mentioned above, the fact that press releases have Web 2.0 funtionality means that, YES, press releases ARE about viral distribution.

What Bankers and Willie Sutton Have in Common in 2009

If you've been a banker for any extent of time chances are you've heard his name - or at least his quote. Willie Sutton was a career bank robber who held up over 100 banks from the 1920s to the 1950s (final arrest in 1952). As the story goes, after being arrested Willie was asked why he did it..."because that's where the money is."



So what does Willie Sutton have to do with social media?

On September 21, 2009, comScore Media Matrix released its rankings of the top 50 U.S. Web properties for August 2009. According to comScore, Facebook came in at 5th place with 92.2 million unique visitors - a five percent increase from July 2009. Twitter came in at 46th place with 20.8 million unique visitors.

So, let me ask it again...what does Willie Sutton have to do with social media? If Willie were alive today, he'd probably say, "because that's where the money is."

That's right. The money. Banks, and businesses in general, need to consider how to best utilize social media to develop their businesses - from customer service to reputation risk management to sales and marketing. And by doing all these things well, banks will find a route to new found treasure.

But, of course, social media is NOT the same as Web or email marketing. Social media is much more complicated and brings with it a whole new set of nuances that set it apart from traditional online marketing. In a nutshell, the nuances involve honest, transparent and ongoing conversations with the "community." This post does not cover those nuances in detail but is intended to get bankers thinking about the potential for the use of social media; to get bankers to think about where to find the money (without having to hold up a competitor!). I recommend the ebook Community Banker's Guide to Social Network Marketing for a detailed description of the nuances.

I recently read a post by Richard Pentin where he stated that the honeymoon over social media is over. While I respect Mr. Pentin's view, from the banking industries point of view, he could not be further from the truth. As a banker it hurts me to say that we tend to be far behind the innovation curve. So while the rest of the world has been neck deep in social media over the past two years, bankers are just now starting to get their arms around it. As such, from a banker's perspective, the honeymoon is just beginning. And with bankers' current and potential customers increasing jumping onto Facebook and Twitter and other social platforms at increasing rates, bankers need to figure out how to continue to meet the demands of the evolving consumer as well as how to use those evolving technologies to secure additional business.

What is another reason bankers consider social media? Well, to quote another controversial historical figure, former President Bill Clinton, "It's The Economy Stupid." As the economy continues to struggle, consumers have become more critical of the banking industry. With TARP, AIG, Lehman Bros., et al, bankers have taken a hit from a reputational perspective. Social media can assist in healing those wounds through the honest and transparent approach required by social media.

I could go on and on but I really think that the next step requires a thorough reading of the Community Banker's Guide to Social Network Marketing. Then we can come back and fill in the gaps.

How Social Media Improves the WOM Effect

In The Financial Services Marketing Handbook (Bloomberg Press, 2004), Evelyn Ehrlich and Duke Fanelli address How End Users Select a Financial Services Provider.


According to Ehrlich and Fanelli:

"As with most services, the most common selection factor is word-of-mouth referral. This is not surprising, since most people don't have an objective way of judging the quality of financial advice, insurance claims handling, or other types of services. when seeking the services of a stockbroker, pension adviser, private bank, or hedge fund manager, both institutional and consumer buyers seek the advice of their peers."

If Ehrlich and Fanelli are correct regarding their assessment (and I believe they are), then bank boards and CEOs should ensure that their banks have considered the need for social media within their overall marketing plan. Why? Because of the effect that social media has had on word of mouth. The Community Banker's Guide to Social Network Marketing states the following:

"Researchers have observed that social media is affecting the way people communicate, make decisions, socialize, learn, entertain themselves, interact with each other and do their shopping. Accordingly, social media has caused a significant change in the market power of consumers, taking it away from product and service providers and giving it to consumers. The vast and growing knowledge base collected and maintained by social media applications has given consumers the power to make more informed decisions, forcing product and service providers, including banks, to deal in a more honest and open manner or lose the transaction to a competitor that does. And while social media presents serious challenges to businesses, it also provides opportunities to those that embrace the change and work within the new paradigm." "

Based on the power of social media and its ability to shape consumer behavior, every bank should consider and discuss the adoption of social media. While social media may not be right for every organization, the discussion should take place rather that just assuming for or against it without a meaningful discussion.

If buying decisions relative to bank products are highly dependent on word of mouth, and if word of mouth is a significant activity taking place on social networks, banks need to ensure that they, at a minimum are monitoring the conversations taking place that involve them. For example, in my last post I noted an actual case in which AT&T proactively monitored Twitter conversations to identify and resolve potential customer service issues. At a minimum, this same approach should be used by all banks.

As noted by Erlich and Fanelli, consumer buying decisions are shaped by word-of-mouth. By monitoring and responding to conversations taking place on social media platforms (social networks, blogs, etc.), the bank has the ability to demonstrate to the community that they are interested in truly serving their customers. But more importantly, these interactions go a long way in turning negative word-of-mouth into positive word-of-mouth, resulting in improved sales.

Bank Lawyer's Social Media Checklist

On April 17th, I published Social Media and Bank Compliance Requirements, where I provided, thanks to the ABA Banking Journal, a list of regulatory compliance-related items that should be considered by banks that are thinking of or have already implemented some form of social media within their organization.

In this post I leverage (and paraphrase) off of the work of Richard Best as contained in NZLawyer article titled, "Social media and legal code: A checklist of issues."

Mr. Best highlighted four distinct areas that require legal consideration:

• Upfront governance and assessment;
• Site design and set-up;
• Content creation, moderation, and use; and,
• Content distribution.

Upfront Governance and Assessment

Questions that should be addressed :

1. Does the bank have a clear objective/rationale for creating a online presence with social media capability?
2. Has management and the board considered the business case for the development of a social media component? Is the presentation and board decision clearly documented in the board minutes?
3. Has bank management formed a steering committee with an appropriate mix of skills been set up to oversee the development and implementation of the site’s planning, policies, and procedures? At a minimum, members of this team should have a background in the nuances related to social media and Web 2.0.
4. Has a review and approval process been developed relative to the process? Who has the final say? Executive management? Board of Directors?
5. Has the bank developed the appropriate policies and procedures that address issues such as site usage policy, staff contribution guidelines, employee training (e.g., who is authorized) and ongoing assessment ?
6. Has the bank revised its record retention policy and procedures to ensure that electronic records created comply with applicable disclosure and security requirements?

Site Design and Set-Up

Questions that should be addressed :

1. Has the bank chosen and researched the availablity of the Web site name and domain name name?
2. Has the bank's Compliance or other Department completed a comprehensive risk assessment and have the results of the risk assessment been presented to executive management and the board of directors?
3. Has the bank determined whether the site be designed in-house or outsourced? If outsourced, has the bank completed an appropriate vendor assessment according to the bank's vendor management policy?

Content Creation, Moderation, and Use

Questions that should be addressed:

1. Has the bank's legal department developed a terms of use policy that complies with applicable laws, rules and regulations. Refer to Social Media, Banking and the Communications Decency Act post. Considerations should include:

• Registration obligations;
• Copyright and licensing disclosures;
• Warranties on the part of site users contributing third-party copyright content that they have the right to use such material;
• Indemnification of the bank against loss;
• Ownership or licensing of users’ contributions;
• Unacceptable use and the bank’s right to remove offending material;
• Cooperation with authorities in the event that material breaching other parties’ rights, or that is otherwise unlawful, is posted to the site;
• Moderation and banning of abusive commentators;
• Disclaimers of liability (to the extent appropriate), and
• Right to amend the terms of use.

Content Distribution

Questions that should be addressed:

1. If the bank will be resyndicating content from other sites on the bank’s site (e.g., through RSS feeds available on other sites), the bank should ensure that the bank is licensed to resyndicate that content.

Mr. Best does a great job of noting key issues that must be considered. While this list is not exhaustive, consideration of each point noted here will go a very long way in protecting the bank from a legal perspective.

I recommend that bankers download a copy of my Community Banker's Guide to Social Network Marketing to educate management and the board on what it takes to develop and implement a sound social media strategy. The Guide can be downloaded at http://www.tinyurl.com/cbgsnm. Before a bank can reasonably approve such a measure, decision makers must be knowledgable. The Guide goes a long way in providing an education on social media and social networks.

Should The Internet Be The New Resume?

Over the weekend I came across a very thought provoking article at Law.com titled Bank Nixes Use of Social Networking Sites in Hiring Process. This article, written by Jenny B. Davis, addressed a recent policy implemented by Amegy Bank of Texas, an $11 billion Houston-based bank.

The article speaks to the bank's decision to block all access to social media sites in an effort to prevent the bank's human resources personnel from accessing the personal profiles of job applicants. The article states that the bank's outside counsel recommended the policy in an effort to prevent unnecessary employment-based litigation. The article used the Pregnancy Discrimination Act as a key motivator, since it is plausible that an applicant's social media profile(s) may contain mention of a pending pregnancy or of other information that employers are not permitted to request. The danger is that upon discovery of such information, the bank's human resources personnel may be "perceived" as having acted on such information if an applicant is not hired. As such, if the bank's policy does not permit access to such sites, the bank has a strong defense against any such complaints.

While at first blush that bank's position may seem a bit severe and short sited, given that that almost 40% of employers have used Facebook and other social networking sites to gather information on job candidates and more than 80% of employers consider that negative information discovered when making hiring decisions, this was not an entirely bad decision. Further, during tough economic times people may be more apt to file frivolous compliants.

A related blog article at gNeil, titled Dangers of Using Social Networking Sites to Screen Applicants, stated that when a company uses the Internet to research job candidates and even current employees, there are some very important legal issues to keep in mind such as:

• Invasion of privacy. Some social networking sites state specifically in their terms of service that is is illegal to use users’ profile information for commercial purposes.
  
• State protected privacy. California and New York have laws preventing employers from interfering in employees’ private lives outside of the workplace.

• Discrimination. Even if you stumbled across an applicant’s personal information unintentionally, it is unlawful to deny employment based on protected categories such as age, race or gender.

• False information. It’s probably not surprising, but users on social networking sites don’t always post information that is entirely true. It’s best to rely on information that the applicant directly gives you.

• Fair Credit Reporting Act (FCRA). If you’re using an outside agency to conduct background checks on job candidates, you must comply with the FCRA and receive the applicant’s consent before starting the background screening process.

So, while it has been said that the Internet is the new resume, banks should carefully craft thier background check procedures - especially those that utilize social networks. For example, use of LinkedIn would likely be acceptable since it is primarily used for professional purposes. However, other platforms such as Facebook and MySpace may be undesirable. While the use of these sites may provide helpful information relative to the character of the candidate, certain information may expose the bank to litigation.

According the the gNeil blog, "to avoid potential discrimination lawsuits, develop a uniform procedure for using social networking sites in the hiring process. Train everyone involved in the hiring process to treat every applicant consistently to avoid trouble and document each step you take. With the rate at which new technology emerges, it’s almost impossible for the law to keep up the pace. When you use social networking sites to research applicants, you may be taking uncertain legal risks with every search you make."

Amegy's CEO was quoted as saying, "good hiring decisions are among the top two or three decisions here, because it is where a lot of risks are managed." This is definitely true. And social media applications may help to reduce risk by identifying potential hazards. Unfortunately, human resource law is not Web 2.0 compliant and as such, taking advantage of these tools as part of the human resource process will require careful consideration, strong policies and procedures and an increased appetite for potential litigation.

Day One - Welcome to the Blog

Welcome to the first post of the Social Media and Banking blog. My name is Jesse Torres and I will be your tour guide as we discuss matters related to social media and banking.

As this is the first post, I figure a brief background is in order. I am a career banker with a major technology addiction. All through my career in banking (roughly 17 years), I have always favored technology as a way of improving the banking industry.

In my early days I was a bank examiner with the Treasury Department's Office of the Comptroller of the Currency and a senior consultant with KPMG Peat Marwick. In those roles I was always the tech guy who was called in when things went wrong in the field. It explains why I also hold CISA and CISSP certifications.

As I moved out of the field and into management, I continued to favor technology. Eventually, I came to oversee the IT departments of a couple banks I worked in and played a major role in technology acquisition and deployment.

Most recently I have played significant roles in marketing and developing brand identity for banks. This is where I became convinced that there are many benefits to be had in banking through social media.

In December 2008, I released an ebook called The Community Banker's Guide to Social Network Marketing. The Guide was released as a primer on social media and social networks targeted at community bankers. The goal was to raise bankers' awareness of the uses of social media. This project became quite a success, resulting in significant exposure for the Guide.

I established this blog after receiving considerable requests for an ongoing source of information related to banking and social media. I hope to address developments and stories to make the banking community better informed and more successful.

Thanks for joining me on this trip.

Jesse