Why Fintech and Financial Institutions need Social Media
January 12, 2023
CEO | MEHRHOFF DIGITAL
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It is no secret that social media has taken over the world. We use it to stay in touch with friends and family, get our news, and learn about new products and services. Financial services businesses need to be on social media for several reasons.
First, social media is a great way to connect with potential and current customers. You can answer their questions, provide valuable information, and build relationships. Second, social media is a great way to generate leads. You can use social media management to reach people who are likely to be interested in your products or services. Finally, social media is an excellent way to build brand awareness and credibility. You can create a positive association with your brand by sharing stellar content and engaging with your followers.
You are missing out if you are not already using social media to promote your financial services business. Instagram, LinkedIn, and Twitter are all great platforms for fintech marketing. So what are you waiting.
Be your own media publisher and go-to source
Social media is not just an option. It is essential. Together, we help you smash your marketing goals with ease by helping you with battle-tested marketing and business development strategies and tactics; thus, you can enjoy results.
Encourage trust in your customers
Give your business brand a human touch
Harness the strength of stellar content
Entertain your prospects with influencer marketing
Get a feeling of how social media management works
Convert prospects just by being known
People rely on social networks for news, reviews, ratings, critics, suggestions, and referrals in today's digital world. The financial services company or fintech that provides the relevant post at the right moment stands to dominate its competition. We are talking about a tweet sharing chart analysis on interpreting market movements and making bold predictions about the stock market. Or an eye-catching Instagram Story outlining the advantages of working at financial services company XY to highly qualified talent as they scroll through their social media.
But it is not just about sharing promotional or educational content. People are actively looking for methods to manage their money via applications and online platforms as they come to a new reality: they no longer need to schedule a meeting with their bank manager to enhance their financial well-being. They want to feel like they are a part of a larger community and to be amused and informed. They also anticipate having access to various social media channels where they may ask questions and promptly get answers. Fantastic is that you can use these channels to increase brand exposure, encourage engagement and interaction, and turn followers into devoted customers and brand ambassadors without having to be an expert in social media management.
Inspire trust in your customers
As a fintech, you have a unique opportunity to use social media to your advantage. You may learn a lot about your target audience's needs and the strategies and tactics your competition uses. You may also leverage the analytics tools integrated into platforms like Facebook, Instagram, Twitter, and LinkedIn to gain new customers. However, you need not be a data specialist to begin skimming through social media to find client pain areas and build solutions. Simply listening to what your customers say may provide valuable insights that can help you create trust and attract new business.
Improve the customer experience
The role of fintech marketing is to make a financial service business more customer-centric, so excellent customer service should be a central part of your social media activity. You can answer queries and questions quickly and openly by constantly monitoring channels, helping to build stronger relationships and positive brand perception. In the meantime, you can find conversations to join by following keywords and hashtags. In the fintech sector, for example, social media is a crucial channel for financial services providers to connect with customers.
By understanding the sentiment around fintech-related keywords and hashtags, businesses identify areas where they need to provide more support or improve their offering. Equally, they can track service levels and monitor how effectively they meet customer needs. Financial Services and Fintech businesses that fail to put the customer first in today's competitive market are likely to lose out. So make sure you're using social media to its full potential as a tool for building strong customer relationships.
Stand your ground in what you believe in
When it comes to financial services, one of the best ways to gain consumer trust you need to engage on the issues that appeal to your target audience, simply put, if you want to be taken seriously as a company, the best way is by showing your commitment towards solving people's problems.
A practice often referred to as authentic marketing is essential when you consider that 81% of consumers prefer to buy from companies that share their values. This means taking a stand on the issues that matter to your customers and being responsible for the impact of your policies and practices.
People are sick of being marketed to, and they can see businesses' insincere attempts to sell their MVP version as a battle-tested product or service while still being untested and buggy. Authenticity is critical to building trust with your customers and creating a lasting relationship with them.
According to 69% of respondents, more brands than ever are distributing false information. Fewer than one in three consumers say they trust most brands they use or buy. Furthermore, 56% of consumers believe that too many businesses utilise societal problems as a marketing gimmick to increase sales.
It means honest and genuine communication with your customers and a real commitment to making a difference in the world.
Authentic brands are the ones people want to work with because they know they're doing good in the world. So if you're looking to build a genuine brand, remember that it all starts with being true to yourself.
By aligning your brand with shared values, you can show that you're not just out to make a quick buck but also committed to making a positive difference in the world. And that's a message that everyone can get behind. This is especially relevant regarding values-based investing, or ESG (environmental, social, and governance).
By aligning your policies and practices with the values of your target audience, you can not only win their business but also show them that you're a responsible corporate citizen.
In short, when it comes to financial services, authenticity pays.
Share success stories
The financial services industry is notoriously competitive, making it difficult for brands to stand out. To stay ahead of the curve, having a solid reputation that resonates with your target audience is essential. Good reviews and positive customer feedback are critical for building a solid reputation.
But what about going the extra mile and sharing success stories? Social media provides an opportunity to share inspiring success stories that show your brand in a positive light. These stories humanise your brand and help build trust with your target audience.
So if you're looking to differentiate your financial services brand, tell your story and let social media do the rest.
In addition, it can boost your reputation and shape how people perceive your brand. Reviews and ratings are also crucial in the financial services industry.
Encourage customers to rate products and services and share positive feedback on your channels. These recommendations can significantly help you stand out from the competition.
Give your business a human voice
Fintech companies are often accused of being faceless, impersonal organisations. But that doesn't have to be the case. In fact, giving your fintech a human voice can be a great way to connect with customers and create a better customer experience.
People want to do business with companies that feel personal and relatable. And what better way to show that than by showcasing your fintech's personality on social media? Showing followers what goes on behind the scenes and making them feel part of the fintech family can go a long way in making your brand feel more human.
So if you're looking to give your fintech a little extra personality, consider using social media to give your customers a glimpse of the humans behind the scenes. It might just make all the difference in the world.
Work on your brand identity
Your fintech's tone of voice is one of its most crucial brand identity elements. After all, you've built your fintech's reputation on offering a modern and dynamic alternative to traditional financial institutions. So it only makes sense to bring this difference into your brand identity. Cutting out the jargon and adding a personal touch to your posts will instantly humanise your fintech company. And that will go a long way toward making your fintech comprehensible and understandable to customers. Be witty, engaging and, above all, authentic. It's the best way to show the world what makes your fintech unique.
Company culture is the law of attraction
At its heart, People respond to stories about people. Financial Services and Fintech are all about people - customers using technology to make better financial decisions.
So it's only natural that the best fintech is those who put their people first. By sharing #behindthescenes videos and images, fintech brands can build transparency and authenticity, two essential ingredients in the recipe for success. Employee advocacy is vital when selling your fintech's knowledge, experience and personal approach to financial advice.
Your people are your USP, so ensure you're showcasing them in the best possible light. If you're unsure where to start, ask your HR team for help. They'll be able to advise you on values, mission and vision, and how best to communicate these through social media. So next time you plan your fintech's social media strategy, remember: it's not all about selling; sometimes, it pays to show a little heart. And soul. And personality. Your fintech's USP might just be hiding in plain sight.
Building a community of brand ambassadors
CLV, or customer lifetime value, is the estimated net profit attributed to the entire future relationship with a customer. In other words, it predicts how much revenue a business can generate from a single customer before that person moves on. CLV is an important metric because it allows enterprises to see how much profit they're making from each customer and how much potential there is for future revenue. CLV also considers the costs of acquiring and retaining customers, making it an even more accurate predictor of profitability.
To maximise CLV, businesses must focus on creating a community of brand ambassadors. These are customers who are not only loyal to your company but who are also eager to share their positive experiences with others. As anyone in business knows, building a community is essential to success. And what better way to build a community than to enlist the help of your most loyal supporters? Brand ambassadors can be a powerful marketing tool, helping to spread the word about your fintech business and forging deeper connections with your target audience.
Of course, creating a community of brand ambassadors is easier said than done. It would help if you gave them a reason to say yes. What's in it for them? How will they benefit from promoting your business? Be clear about the benefits and make sure that your ambassadors feel like they are part of something larger, that they are playing a role in shaping your business and its future. It requires a genuine commitment to providing an outstanding customer experience at every touchpoint. It also takes time, patience, and effort. But if you can succeed in building a loyal following of satisfied customers, the rewards will be more than worth it. And remember: CLV is not just about numbers but people. So always put your customers first and treat them like family members.
Building a community of brand ambassadors can help you win new customers, deepen relationships with existing ones, and create a stronger, more recognised brand. So what are you waiting for? Start building your community today!
Harness the power of content marketing
Content marketing is essential to any growth marketing strategy, but fintechs have to constantly compete for attention in an increasingly short attention span world.
One way to stand out and grab consumers' attention is through interactive content. In fact, research has shown that 81% of marketers agree that interactive content is much more effective than static content when it comes to grabbing attention.
So, what exactly is interactive content?
It's any content (including but not limited to: blogs, social media posts, eBooks, infographics, quizzes, polls, contests, etc.) that encourage audiences to take some action. This could be as simple as taking a quiz or leaving a comment. Not only does this help to increase engagement and time spent on your site or platform - but it also helps to decrease your bounce rate.
And we all know that a lower bounce rate is associated with better SEO and improved website ranking. Interactive content is a great way to start or continue the conversation with your target audience and get them talking about your brand. It's also a great way to show off your company's innovation and creativity in an understandable human way - two qualities that are essential in the fintech industry.
Use Influencer Marketing to share your vision
Influencer Marketing has become one of the most effective ways to share your vision with the world. Early adopters of Influencer Marketing were primarily in the fashion, travel, and wellness industries; however, its use has now shifted to other sectors like fintech. By partnering with an influencer, you can tap into their pre-existing social network, which builds trust between your company and its potential customers.
Today some Bitcoiners are in Bern and the president of the ‚Bitcoin Association Switzerland‘ just spoke during the General Meeting of Shareholders of the Swiss National Bank about #Bitcoin. Well done Luzius! #CryptoNation🇨🇭 pic.twitter.com/tMhRj3Z5Dq
In fact, according to a recent study, 49% of social media users depend on influencer recommendations when making a purchasing decision. Influencer Marketing also expands reach and drives traffic to your company's social profiles and website. It is important to note that when selecting an influencer to partner with, you must consider your target audience, customer persona, and overall customer experience.
FOMO (or fear of missing out) is indeed real. You want to ensure your posts reach an aspirational audience, not just those who already agree with you 100%. So look for influencers who can demonstrate how their lifestyle benefits could help someone else achieve better financial outcomes in life- whether they're interested financially or not! Remember micro-influencer? They're perfect because these smaller accounts will bring more engagement than regular followers on social media platforms like Instagram, where every post needs tons of likes before it gets noticed again - which means followings don't grow as fast. Micro-influencers are perceived as more relevant by their followers and receive an average of 7 times more engagement than macro-influencers.
By keeping these factors in mind, you can be sure to select an influencer that will help you successfully share your vision with the world.
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