The 2013 Edelman Trust Barometer reports that financial service is globally considered the least trustworthy industry. While the industry’s reputation is still in recovery from the 2008 economic crisis, digital communication is creating new opportunities for building credibility and authenticity. Business Development Institute’s recent event “The Future of Financial Services Communications” presented case studies from emerging financial leaders that prove the effectiveness of using technology to strengthen customer relationships. The discussions offered several communications tactics that financial institutions can incorporate to build trust and loyalty among existing and potential clients.
Employ social media as a targeting tool
A case study by Actiance Inc. found that LinkedIn is now the #1 sales pitching tool among top sales reps. Actively participating in social media gives sales reps a higher competitive advantage than those who don’t due to the high engagement levels and greater reach on these channels. The ability to leverage connections, research prospects, and participate in relevant group discussions has evolved the traditional “cold call” pitch and enforces customer loyalty. Social media engagement also humanizes the brand in a genuine way.
Build a sense of community between the business and clients
“Finance should be viewed more as a community than a commodity” says CommonBond Co-Founder David Klein, “what will distinguish the winners from the losers is not necessarily building a community, but a community people want to belong to.” Commonbond’s unique approach to student lending has made education more accessible to those who wish to pursue an MBA degree without the fear of loans with high interest rates. During a time when students are facing enormous debt, the company has established trust with their clients by providing attentive customer service and hosting professional networking events.
Noah Breslow, CEO at OnDeck, explains how embracing cutting edge technology helped OnDeck improve the relationship small business owners have with their lenders. Traditional lending models that require customers to acquire a loan in person do not cater to business owners in remote geographic locations. OnDeck’s mobile and electronic payment system is revolutionizing the industry by providing access, convenience, speed and service to clients in all locations. While some customers still feel skeptical about electronic transactions, the company has built trust by creating an open dialogue with their audience’s preferred social networks, such as Yelp. Customer testimonials on these channels resonate more effectively than typical marketing tactics because as Breslow says, “Small business owners trust other small business owners more than you.”
Share consistent and relevant content
“Content bridges the digital divide between businesses and consumers” says Greg Matusky, President and Founder of Gregory FCA. Establishing the brand as a thought leader in financial services will build credibility among customers. In addition to credibility, Matusky’s “5 C’s of Trusted Content” also include compassion, creativity, contemporary, and compliance.
When it comes to digital communications, financial service providers face the unique struggle of maintaining relevant conversations while abiding by compliance laws. The lengthy approval process required for every tweet is incompatible with today’s demand for instant news. While it will take some time for financial services to adjust their approach to compliance, a more viable solution is to generate earned media as a method for creating trust with stakeholders. Developing high-quality resources that are shareable will accumulate audience attention over time and continuously spark conversation, thus building a community around your content and earning further credibility for your brand.
To learn more about developing content to build credibility among target audiences, check out the blog post “Creating an Effective Brand Experience on Social Networks.”