The days of most companies solely turning to print media and television ads to market their products and services are long gone. But some community banks have been slow to get the message and are missing out on instituting strong digital and social media strategies to draw and retain new customers.

“In general, banks have a case of marketing myopia. They are fixed into the rhythm and routine of what they’ve done in the years past,” said Jacques Hart, CEO of Miami-based Roar Media. “However, the media and social media landscape has been turned upside down and a ‘years-past mentality’ doesn’t cut it.”

Because of regulations in place to protect customer and bank information, a financial institution has to be very cautious with its marketing, and that can slow a bank’s social media strategy. That’s particularly true of smaller banks that often lack the resources needed for a full-blown digital marketing team.

“Compliance is a thorn in traditional marketers’ sides, and it’s a big thorny bush for digital marketers,” Hart said. But today’s banking customers expect digital and social marketing, and by employing a smart digital strategy, banks can be both safe and maintain an active presence online, he added.
Banks are limited in how transparent they can be when it comes to social media, but a lackluster corporate Twitter account doesn’t mean that banks are behind the times when it comes to technology. In fact, on the backend security and support and customer-facing sides, banks are extremely innovative.

“They are geared, in general, on how a customer can bank now. At the ATM, online, mobile,” Hart said. “The flip side is that while banks have really innovated with their service availability, they haven’t with their digital and social marketing to drive customer engagement.”

The moment of truth

The days of most companies solely turning to print media and television ads to market their products and services are long gone. But some community banks have been slow to get the message and are missing out on instituting strong digital and social media strategies to draw and retain new customers.

“In general, banks have a case of marketing myopia. They are fixed into the rhythm and routine of what they’ve done in the years past,” said Jacques Hart, CEO of Miami-based Roar Media. “However, the media and social media landscape has been turned upside down and a ‘years-past mentality’ doesn’t cut it.”

Because of regulations in place to protect customer and bank information, a financial institution has to be very cautious with its marketing, and that can slow a bank’s social media strategy. That’s particularly true of smaller banks that often lack the resources needed for a full-blown digital marketing team.

“Compliance is a thorn in traditional marketers’ sides, and it’s a big thorny bush for digital marketers,” Hart said. But today’s banking customers expect digital and social marketing, and by employing a smart digital strategy, banks can be both safe and maintain an active presence online, he added.

Banks are limited in how transparent they can be when it comes to social media, but a lackluster corporate Twitter account doesn’t mean that banks are behind the times when it comes to technology. In fact, on the backend security and support and customer-facing sides, banks are extremely innovative.

“They are geared, in general, on how a customer can bank now. At the ATM, online, mobile,” Hart said. “The flip side is that while banks have really innovated with their service availability, they haven’t with their digital and social marketing to drive customer engagement.”
The moment of truth

In decades past, customers found out about new banking products and services in newspapers or magazines or by watching TV ads. They would then walk into a bank to open an account. But today’s breed of customers conduct research online before even considering walking into a bank.
That process is the “zero moment of truth,” Hart said. “It used to be that the first moment of truth was when they walked into the bank, the second was if they actually bought and used the account.”

Today, banking customers consider nine different sources of information to make a banking decision and it’s important that banks consider the zero moment of truth to help inform their potential customers’ decisions. That means maintaining an active and compelling digital and social media presence.
“You can’t stop what the customer is doing, and the customer is turning to third party channels that tend to live in the digital environment,” Hart said. “That tends to be an environment where banks have been skittish.”

Why going digital increases market share

When it comes to banking, the benefits of effective mobile, social media, and digital strategies are clear, Hart said. Points to consider:

• A strong mobile platform that people know about can help draw customers away from competitors. About 20 percent of local banks failed mobile tests and one in six banking consumers consider switching banks after a poor mobile experience.
• Best practices unique to each online platform are key. “Consider a high-net worth individual. They have two screens in the office, three tables, a powerful laptop at home and a very, very powerful mobile microprocessor in their pocket,” Hart said. Each of those screens offers a space for a bank to showcase its products with a strong digital and social media plan.
• Tracking engagement can provide valuable knowledge on the consumer’s habits and cost efficiencies. “Digital communication offers a great deal of value to bankers from a standpoint of marketing analytics,” Hart said. “There is the ability to target where there is cost efficiency through tracking and measurement.”
• Digital marketing, from an upgraded website to a strong social media presence, will save banks money. “Digital marketing is probably one-tenth the cost in terms of reach[ing] an individual on a cost per thousand basis compared to broadcast, radio, and print,” Hart added.

How to reap the benefits of digital

Many national and successful regional banks already have robust digital presences, but there are at least two easy strategies local banks can employ to maximize their limited digital presence:

• Focus on a clean, well run website as the hub of all marketing activity. A website should be easy to understand and most importantly, be coordinated with all other marketing efforts. If a customer sees a commercial for the bank on the television, they should be able to go to the website and see consistent information that tells them more, Hart said.
• Employ people who understand the culture of the bank and can safely and effectively communicate that culture through social media. Tweets, Facebook posts, and messages on Linkedin are more effective when they are consistent and representative of a bank’s unique culture.