How can banks use social media to manage customer criticism online?
Social media has an increasing role to play within the banking sector, helping to elevate the customer experience and, in particular, manage customer complaints.
Turning to online channels is second nature for customers faced with an issue. This is increasingly the case for the new generation of consumers. “As generation Z comes into working age, we are seeing the first fully digitally native group emerge as critics of the brands they buy from, explains Juliette Aiken, Chief Marketing Officer, Dotdigital.
Due to stricter regulation banks may not be able to use social media in the same way as an ecommerce business, for example, but they can use it as an effective communications tool to manage customer expectations. “As it becomes easier and more natural for customers to complain online, the banking and FS sector must be ready to respond,” says Aiken.
Response, reassurance, resolution
When banking issues arise, there’s a heightened sense of urgency due to the persistent anxiety that surrounds financial matters. Consumers want problems resolved quickly and personably. However, replicating the in-branch experience online may be more difficult because of the lack of humans on hand to help customers. Sometimes only the reassuring presence of a human – who can respond, reassure and resolve quickly and in real time – is good enough.
What resources need to be put in place to elevate the online experience? “Banks need committed teams whose job it is to look at social media and deal with customer complaints, says Ian Davis, Insight Director, Customer Experience, IPSOS.
Making customer-first decisions online isn’t always easy, but having the right technology stack can help. “Technology is a bank’s best friend. It can help identify what the issues are, enabling teams to follow up and provide resolutions,” explains Rebecca Stephens, Research Director, Customer Experience, IPSOS.
Online customer engagement should be handled delicately, given the customer sensitivities surrounding financial services. Avoiding salesy language, complicated jargon and templatised conversations that may irritate customers are a winning formula for traditional banks. Providing that personal touch is important. “Curating an authentic tone of voice and content guidelines that are compliant, without forcing people to be overly formulated in their responses to complaints, can also add personability to customers conversations,” explains Aiken.
Quality assurance in customer engagement
They key to a successful social media strategy is supporting teams with practical guidance, allowing them to curate constructive and quality responses that resonate with end customers. “Can traditional banks empower social teams, content creators or even customer service agents? Can they be better educated and enabled…to respond authentically while remaining compliant?” asks Aiken.
An effective social media strategy is about putting the customer at the centre, before, during and after the engagement. With the right training in place, banks may be able to turn the negativity of a complaint into a positive experience. “At IPSOS, we advocate the double-closed loop – contacting the customer personally, wherever they may be, to find out if the resolution is satisfactory,” says Davis.
Click through to the Chartered Banker Knowledge Hub for more insights.