Brett King

Posts Tagged ‘Facebook’

Customers will never use Facebook to login to their bank!

In Engagement Banking, Future of Banking, Groundswell, Mobile Payments, Social Networking, Twitter on December 7, 2011 at 07:16

We’re experiencing a massive shift in consumer behavior right now with the explosion of Facebook, Twitter, YouTube, and other community collaboration and social media platforms. A world where Facebook has 800 million inhabitants and a President who is a college dropout (albeit Harvard).

We’re seeing the global domination of mobile across the entire world, where before long every person on the planet will have a mobile phone – and soon that phone will be a wallet. Smartphone owners will be the majority in just a few years as smartphones are virtually free on contract, and unlimited data is bundled free. Already the average smartphone user spends more time using Apps than they do using an Internet browser on their computer.

The traditional players amongst us say that such things don’t really change the fundamentals, that “it will take time for people to trust these new mechanisms”.

I’ll never login with Facebook to my bank.

I won’t pay with my mobile phone unless I understand how secure it is. This NFC technology is too new and there’s no common standard.

Huh?

The same people who said this probably said…

I’ll never use email, there’s nothing like calling someone or a face-to-face discussion to solve a problem

I’ll never use an ATM machine, I don’t trust a machine to give me money.

I’ll never get a cell phone – I don’t want people to be able to call me whenever and wherever I am.

I will never put my credit card details on a website online – are you crazy?

I’ll never bank online. Not in my lifetime…

I’ll never need a Facebook account – it’s a waste of time, it’s just for college students.

Really?

If you are saying you won’t do something that millions of other people are already doing, that’s a sure sign that it’s going to disrupt the hell out of your business and you’re in trouble.

If you’re not planning to work differently, if you’re not thinking differently, then you’re just out of touch, you’re just one step away from irrelevance. You’re fighting the flow upstream and getting pushed towards disaster.

The one constant of the internet-enabled world is that you have to be ready to change constantly. Resistence is not only futile, it’s stupid and very costly in the long run. It’s cheap and easy to be social right now, same for mobile – it won’t be in the future.

Right now you have two choices.

Start experimenting with how to adapt to these new methods

Start figuring out what people want to talk about on social media. When they’re using their phones at a store, for searching on products, when they check-in, tweet or update their facebook status.

Start talking to them. Start sharing content that isn’t marketing messages pushed down their throat, but helps them.

Start trusting consumers to talk to you about your brand, your products and about what they want from their bank or services provider. Understand you can’t control the conversation, but you can and should participate in it.

Open up new products and services based on social media. Get consumers to give voice to their needs and help you form those ideas. OCBC, DBS, First Direct, ASB, Comm Bank are all trying different types of crowdsourcing to develop better relationships with their customer base.

OR… Ignore the obvious, get ready to be displaced

Our customers don’t feel safe using Facebook for login!

But some of them might… how long before most of them will? How do you meet your KYC requirements and keep customers safe when allowing them to do this? Are you going to wait till everyone else is doing it, or are you going to learn how to do it properly and securely now. Are you asking your compliance teams to find ways of figuring out how to do this stuff safely?

It will take years for the mobile wallet and NFC to take off!

Right now Google and Apple are eating your lunch and you don’t even know it. You are getting ready to write off the one device that is most critical for connections and context with your customers in the later part of this decade. Someone else is going to own your customers, and as banks we’re going to be paying the likes of Google to include our branded card in their wallet, or our products and services and messages on their platform.

We already have to ask permission from Google and Apple to give our customers our App.

Don’t want to change! You will…

The fact is most of the last two decades we’ve been facing constant change, and no one organization has been able to resist the shift because customers decide how and when you’ll engage with them.

Customers have already decided they want their mobile device to be their bank. They’ve already decided that they want to discuss your brand and your service capability in the open community of social media.

Now it’s time for you to decide that you want to stay relevant to your customers. Or ignore the obvious and go away.

#Winning at the Social Media game

In Blogs, Customer Experience, Engagement Banking, Groundswell, Retail Banking, Social Networking, Strategy, Twitter on April 11, 2011 at 08:54

Ok, so the feedback from Finextra’s #finxsm event this week is that we’re finally coming to grips with the fact that Social Media isn’t going to disappear into the night like some passing fad. Good news!

It’s interesting though, whenever a major disruptor like social media, the internet, etc has come along, inevitably there are many traditional managers and practitioners who don’t understand it and label it as a ‘fad’. Just because you don’t understand something personally, doesn’t mean it is a fad. That’s the realization that the industry is going through right now, that is – social media isn’t a fad, it isn’t going away, we need to deal with it. Just because we don’t understand what the fuss is about doesn’t mean our customers won’t use it, and if they’re talking about us we better be listening.

No Facebook allowed here, unless you’re a marketer

So the first trick with social media and how it’s going to effect the business is learning about how it works. The knee jerk reaction for most banks when social media came along was two fold; The first was to try to figure out how to dump traditional advertising and PR campaigns down the pipe. The second was to shut down any access internally within the organization because it was risky for employees to talk directly to the public, and also because it was feared there would be wholesale time wastage from staff playing farmville and other sorts of unproductive, non-work related tasks.

The problem with this mind-set is that is was fundamentally wrong. Primarily, the organization was prevented from learning about the real capability of social media, and this hampered the brand from creating advocacy and engaging customers. Additionally, the reality was that employees were simply pushed away from the desktop internally to their mobile device and the risks that employers were hoping to prevent by shutting off access weren’t prevented they were simply pushed outside of a controlled environment.

Social Media ROI is not a marketing metric

The marketing-led thinking about attempts to control or spin the brand message out through social media characterized as just another broadcast channel, are also fundamentally flawed. Social media is more akin to a dialog with your broader customer audience, not a channel for slamming more corporate comms or campaigns down customer’s throats. Thus, the traditional marketing metrics don’t apply either.

“The ROI of Social Media is that your business will still exist in 5 years”
Erik Qualman, Socialnomics

I was pleased to see the response of Hakan Aldrin, MD of the Benche at SEB when asked if he has numbers to prove the value of his social media community platform he replied, “No. That’s not what it’s for.”

Having said that, while not being a broadcast channel, it is a channel for targeting key influencers to get your message out. Key influencers are those with a sizeable following (1,000 followers or more) who influence their follows – i.e. get lots of retweets, reposts, etc. Recently when Charlie Sheen burst on to the Twitter scene garnering 3.5m followers in just weeks, what did it mean for key influencer opportunities? Ad.ly worked with Sheen to promote internships.com, a new jobs board – one tweet from Sheen got more than 100,00 applications from 181 countries for the #Tigerblood intern spot. No classifieds ad in any newspaper has EVER been able to get that sort of response. Lesson: Engage key influencers!

You too can be #Winning on Social Media

What is Social Media for?

It’s a dramatic opportunity to listen to what your customers are saying and form useful strategies for advocacy, to inform product and marketing strategies based on real-time feedback from customers and it is increasingly a very powerful servicing tool. While there has been some viral marketing success on social media, if it social media is classified as a marketing tool or channel within your organization it means two things:

1. You don’t understand the two-way dialog nature of social media, and
2. You have too many traditional marketing people in your marketing team today

So now that we know social media isn’t a fad – what happens next?

Who’s responsible?

One of the biggest challenges is figuring out who is going to manage social media internally in the business today. Often this falls to some junior marketing staffer, maybe someone in the online team or perhaps a corporate communications or PR team member. All of these decisions would be wrong.

Social media can be used to build brand and advocacy, support and service customers, research new strategies, design new products, create new markets, and to educate and inform. This is going to require a whole kaleidoscope of supporting skills sets and capabilities underneath to do this properly. So if you limit it to being pigeonholed into the current organization structure, somewhere along the line your social media strategy is going to be deficient.

Do you have a head of call centre? Where does he sit in the organization chart? Well the head of social media should be at least equivalent in the organization chart to this resource. Why? If a customer like Ann Minch, David Carroll decides to target your brand because of poor service, bad policy or just plain ignorance, your share price is going to start to take a hit.

The strategy shouldn’t be to try to shut it down or attempting to force employees to refrain from social media activity. When Commonwealth Bank attempted this it backfired badly. The strategy needs to be one of informed engagement and encouraging positive use.

The biggest risk FIs face today is reputational risk associated with a social media blowout. You need someone in charge with common sense, but also with the organizational wherewithal to actually get something done. This is not a junior role. You need a policy that encourages participation across the organization, but that provides strong guidelines, supported by training, on how to engage customers and how to support the brand through social media. But most of all you need a mechanism to take what you hear from your social media listening post and inform strategy, change policy and improve customer experience. That is the potential of social media that is so underutilized today.

The digital relationship revolution

In Customer Experience, Engagement Banking, Media, Social Networking on February 21, 2011 at 18:01

Everyday we’re making choices in the digital and physical worlds between one brand and another. Sometimes we choose a brand because they provide us with great service, but sometimes it’s simply because they provide adequate service and there isn’t really a better option. Mostly the choice of the interaction isn’t about great service at all; it’s about convenience. Generally speaking it’s not because of their products or their so-called services. It might be the way in which they connect me to certain products or services, but it isn’t generally what they produce.

Some days I’m incredulous at how some organizations manage to survive based on their apparent single-minded dedication to frustrating an efficient and productive service relationship. Other days, I’m amazed at myself for the ease with which I accept such maltreatment and why I don’t have the energy to turn around and leave. Often, it is because I don’t have a choice, there simply isn’t a better alternative. Sometimes it is because, defeated, I accept that my exiting investment in the relationship is sufficient a reason for why I should stay, knowing that I’m not going to generally fair much better elsewhere or I would need to incur costs to make a change.

Why most service businesses suck

Most service organizations might start off with good intentions, but over time they build processes that are designed to standardize or make the delivery of their services more efficient and cost effective. Somewhere in the process of defining the most efficient instance of a process, many organizations appear to forget why it is that they have a business in the first place, namely – the customers they serve.

The act of simply documenting a business process, scripting a flowchart or coding business objects, could in itself, be the very thing that destroys an organization’s ability to react to the needs of its customers. Granted, there must be order… but when the creation of order dehumanizes the participants, or kills off the ability to offer exceptional service, then in the end, the process itself is simply killing the opportunity. Over time, that process is burdened by more ‘rules’ or policies that not only disrupt service capability, but also reduce the cost effectiveness of the process too.

Sounds dramatic? Maybe I’ve been watching too many chick flicks lately. Maybe my inner self is crying out for something better. So here’s the thing…

Doesn’t the digital space itself do the very thing that I’m suggesting? Doesn’t an electronic interaction break the service opportunity into components of a database, an expert system, a user interface, a channel deployment, or a touch-point? So how is it that I, a glorious technophile and champion of all things digital, is suggesting that service requires humanization, heart and flexibility?

The digital connection

Well…it might just be feasible that what social media is really doing today is more than socializing the web. It might be possible that this drive towards great usability, human interaction design, multi-touch, augmented reality, geo-location and connectedness is actually creating a digital service platform that could revolutionize the ability of an organization to look after me as a customer.

Social media is about connections. I’m connected with my friends, my family, my business associates, my old school buddies, but I’m also potentially connected with those organizations I interact with day to day.

I’m using my “App” phone and my tablet to do my banking, check in on my flights, send messages to friends, play games (I call this downtime), watch a movie or read a book. My relationships in this space can be deep, emotional and powerful, such as when I see a picture of my kids on Facebook while I’m far away on a business trip. They can elicit a smile, such as when I see a funny status update, or even when I have a great, and really simple engagement with a service provider; like downloading a book on Kindle, starting to read it on my iPhone and the finding my place again later when I turn on my Galaxy Tab or iPad.

Building better relationships

The concept that you can’t build relationships in the digital space, that face-to-face or human interactions can consistently provide better service experiences, is simply an excuse not to expand your view of connections.

The digital landscape doesn’t destroy relationships, it doesn’t always replace physical either, but the multi-channel space can definitely enhance relationships between a brand and a customer.

Computers don't destroy relationships...people do

When I anticipate your needs before you do and I present you with a simple, targeted and compelling journey – that is great service. When I show you can trust me because I don’t inundate you with irrelevant marketing campaign messages to your phone or inbox, but when I have something to tell you it really hits the mark – that is building a relationship. When I don’t treat you like an idiot by trying to convince you will have a smile from ear to ear if you simply change banks, airlines, brand of shampoo or which mobile carrier you are using – I’m showing you I can be honest, rather than believing you are naïve.

The art of interactive relationships is about building great journeys in a world of transparency, a world of increasing demand for service and simplicity, and where you don’t get points for branding, you get points for the ability to connect and deliver.

We can talk about PFM, personalization, direct marketing, behavioral economics, usability, interaction design, and other such buzz words incessantly, but ask yourself this…

Are your customer facing processes defining your organization’s ability to have a relationship with the customer, or are your thinking of new ways to enable relationships with customers every day?

Don’t tell me I have to do it your way because that is your process. Don’t tell me you haven’t deployed an iPhone App or you aren’t on Social Media yet because you don’t know where the ROI is.

Meet me in the middle. Try to understand me, and try to deliver what I need, when and how I need it. If you do that honestly and transparently, I will trust you with my commerce.

If you don’t – your just another brand using just another channel to try to get my spend. That’s not a great start to a relationship.

Finally, I’d like to thank my sponsors for this blog – the US Bureau of Citizen and Immigration (sic) “Services”, TSA, HSBC, Qantas, American, British Airways and United Airlines, countless hotel chains, and customs officials of many countries for their inspiration…

Too much content…dealing with the flood

In Customer Experience, Economics, Media, Social Networking, Technology Innovation on January 17, 2011 at 05:00

There has been much discussion about the impact of the so-called “information age”. Prior to 2003 it has been said that throughout history mankind had generated a sum total of 5 Exabyte’s of content up to that year. Today it is estimated we generate this amount of content measured in days.

“Between the birth of the world and 2003, there were five exabytes of information created. We [now] create five exabytes every two days. See why it’s so painful to operate in information markets?”
Eric Schmidt, CEO, Google

So what impact does all that content have on our society? How do we value ‘things’ when knowledge is pervasive, when money is digital, and when you can no longer protect an idea or concept legally because information scarcity no longer applies? The level and rate of change that we are experiencing today is likely to accelerate over the next 50-100 years. We will be undergoing periods of constant disruption this coming century, and the disruption we face every 10-15 years, may be something our forebears only have had to deal with during their entire lifetime.

Where is it all coming from?

Will all this content overwhelm us?

Geographically, in 2010, the majority of email users were located in Asia/Pacific (47%). Europe accounts for about 23% of all users, North America has about 14%, and the Rest of the World has around 16% of all users. In 2010, the typical corporate user sent and received about 110 messages daily. Roughly 18% of emails received were spam, comprising both actual spam and “graymail” (i.e. unwanted newsletters, alerts, etc.)

According to Facebook, more than 30 Billion (no that’s not a typo) pieces of content are shared on Facebook each month. Facebook users also install more than 20 million applications, and link through to more than 250,000 external websites every day. The average number of friends is 130 per user. With close to 600 million actives users, 50% of whom are logging on daily, the amount of content FB alone generates is staggering.

As of September 2010, Twitter has 170m users and is growing at the rate of approximately 350,000 new users a day. This results in a staggering 95m tweets per day. Twitter’s search engine is now receiving close to 1 Billion search queries per day. To put their growth into perspective they had 105m registered users in April 2010, and by September that had grown to 170m users.

LinkedIn, considered the premier business social network of today, already has close to 100m users, with a new LinkedIn member joining every second. LinkedIn has empowered users to find new jobs, raise startup funding, secure new business and deals, support charity efforts, and to find new staff – all through content generated on the site.

Now let’s talk about YouTube. Depending on whom you ask YouTube is now considered either the most popular search engine on the web, or the second most popular. YouTube users upload more than 24 hours of video to YouTube every minute of every day. More video is uploaded to YouTube in 60 days, than the 3 major TV networks in the US have created in the last 60 years. YouTube gets over 100 million views per day.

The impressive thing about YouTube, Facebook, Twitter and LinkedIn, who between them now have access to almost a billion people, is that these businesses didn’t exist 10 years ago. Nor did their content.

Mobile Messaging and SMS
2010 finished out the year with around 6.5 Trillion SMS messages worldwide. That’s a lot of content. Considering that most people didn’t start using the Short-Message-Service until 2002, this is tremendous growth. In the US in 2011 more than 200 Billion messages will be sent monthly.

All of this talk about trillions got me thinking – how much is 1 trillion? 1 trillion seconds = 32,000 years. Another way of looking at 1 trillion is that 1 trillion SMS messages is approximately 32,000 messages per second for every second of 1 year. And the world is up to just over 3 trillion for the 1st half of 2010.
William Dudley, Sybase 365

Increasingly, however, Y-Gens and digital natives are using mobile instant messaging, Facebook messages and other non-SMS mobile messaging platforms. Email use is on the decline for this demographic also. That doesn’t mean content proliferation is decreasing, it just means that these groups are finding more efficient mechanisms to communicate, and their communication is becoming more contextual.

The Big Filter
With all of this content, the big business in the future will be the ability to manage this flow of information and content. Increasingly, we’ll see Google, Apple, handset manufacturers, and developers looking to build better filtering mechanisms or systems that learn about the content we like and utilize, and prioritize this.

Google has already deployed their Priority InBox mechanism, designed to filter your most important messages and communications. App developers like My6Sense are using techniques like Digital Intuition or Dimensionality Reduction to prioritize streams of RSS content based on blending, semantics, correlation and other techniques.

In the future this will be big business. If you are in business today and you are regularly communicating with customers, you need to start thinking about creating a dashboard for customers to configure when and how you will communicate information about your relationship with them. It’s no longer enough to assume they will open your envelope, read your email, receive your SMS, or accept your unsolicited phone call to their mobile phone. You need to start seeking permission for the communications you have with your customers, and allowing customers to choose how and when they receive them. If not, very soon they’ll start to filter you out of the conversation.