The number of people using Social media platforms is constantly on rise. Facebook alone has more than 500 million active users with average user having 130 friends, and people spending over 700 billion minutes per month on Facebook. Considering this increase in the number of social media users, businesses must leverage social media communities to track online conversations about their brand and to interact with their customers.
Being a completely customer driven segment, banks need to be in constant touch with their customers, and social media can act as a great channel of communication for them. Here are some of the ways banks can use social media:
- Drive awareness about a new product or service
- Engage with customers
- Post job opportunities and attract high quality candidates for jobs.
- Gauge its performance in the industry, identify areas of improvement and foster innovation
To analyze how Indian Banking Industry is leveraging social media, Simplify360 conducted a study of some leading banks in the private and public sector. Some of the banks being studied in the private category were HDFC Bank, ICICI Bank, Yes Bank, Citi Bank, Kotak Mahindra Bank, ING Bank, Axis Bank, IndusInd Bank etc. Public sector had banks like SBI, Bank of Baroda, Punjab National Bank, Canara Bank and several others.
These are some interesting findings of the study:
The most active Bank on Social Media: Different social media platforms like Facebook, Twitter, LinkedIn, YouTube and Blogs maintained by these banks, were studied to calculate the results. Among private sector banks HDFC was found to be most active one, with a social media grade of 3.06 on the scale of 5, and SBI ranked high in the public sector with the grade of 1.68.
Private sector Banks are more active: The results revealed that the public sector banks are lagging behind the private sector ones when it comes to the using social media for engaging with customers and marketing products and services.
ICICI rules online conversations: When it came to online conversations about banks, it was found that ICCI was being talked about by social media users of different age groups, while SBI was only found in the conversations of users in the age group of early 20s and early 30s.
Overall, the study indicated that, though banks are using social media tools, most of them are yet to understand the benefits of social media in the banking sector.