Twitter has quickly become a
much-discussed player in the nascent Web 2.0 market. A large number
of banks in the US in particular have opened Twitter accounts with
a view to better customer engagement, though Spanish banks are some
of the keenest ‘tweeters’, according to a new report from
VRL Publishing*
Twitter is a micro-blogging service launched in March 2006. It
allows users to send messages (‘tweets’) of up to 140 characters
and follow the tweets of other users. Tweets can be sent and
received online, by mobile device, or by desktop or other web-based
applications. Senders can post messages to all of their followers
publicly, to a specific person publicly, or to a specific person
privately.
While the stated purpose of Twitter is to
allow users “to communicate and stay connected through the exchange
of quick, frequent” messages, it has become much more than this.
Twitter is being used increasingly by companies as a means of
direct and immediate communication with their customers. A wide
range of uses fall into three broad and overlapping categories:
Go deeper with GlobalData
• Listening:
companies are following tweets as a way of monitoring the ‘buzz’
around their brands, listening to customers, receiving feedback and
complaints, and monitoring competitors.
• Broadcasting:
companies are sending tweets to keep customers informed about a
range of things including new products, special offers,
recommendations and advice.
• Interacting:
companies are engaging in Twitter conversations as a way of
responding to queries, delivering customer service and public
relations, and engaging their customers in a personal way.
Twitter’s primary distinction from other
networks is its emphasis on real-time, up-to-the-minute
communication and information.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataTwitter does not release data on the number of
active accounts or other usage statistics. However, data from
comScore indicated it approached 10 million users in February 2009.
In the same month, Compete.com ranked it as the third most used
social network in the US after Facebook and MySpace, and Nielson
ranked it as the fastest growing social networking site with a
growth rate of 1,382 percent, compared to 228 percent for
Facebook.
Wachovia, now part of Wells Fargo, is the
leader among banks with a comparatively modest 2,911 followers
(compare this to media group CNN which is the biggest overall with
over one million followers).
Other banks with more than 1,000 followers
include USAA with 1,902, Bank of America with 1,737, and ING Direct
with 1,075. Spanish banks Banco Santander, Banco Sabadell, and Caja
Navarra are by far the most prolific senders of tweets, with Banco
Santander having sent 6,283 alone.
Financial services applications are also being
built upon the Twitter platform. Twollars has been launched as a
Twitter “thank you” currency. StockTwits and FXTwits enable
real-time stock and forex conversations respectively. TwitPay is a
Twitter-based person-to-person payments service powered by Amazon
Payments.
Interacting with
customers
While social media is a powerful tool
for listening to and communicating information to customers, its
real value lies in interacting with customers – engaging
them.
Jacob Jegher, an analyst at research group
Gartner, points out that Twitter can “build and solidify customer
relationships” by offering a personalised service. “Twitter can
have a more personal feel to it, particularly if messages are
exchanged,” Jegher said. “Customers value individualised attention
and appreciate having their questions answered.”
While Twitter represents only a tiny fraction
of customer service interactions for most banks, it is growing at a
rapid pace and banks using it must stand ready to meet the demand
should it take off.
If customers perceive that queries and
complaints are being resolved more efficiently than those placed
via traditional channels, it is possible that Twitter could quickly
become the preferred channel for complaints. If someone tweets
about a negative experience with the company, the company can let
the customer know they are being heard and offer to help put the
situation right.
Customers are also using Twitter to share
advice and information among themselves and address one another’s
queries when banking agents may not be available. Much of the
customer service via Twitter is managed in the public domain, which
allows other followers to see it and even resend the tweets among
their own network.
Bank of America says it is satisfied so far
with the results of using Twitter. Customer response rates have
been high: of the first 29 customers the bank engaged on Twitter to
solve problems, 24 responded, according to a message on the bank’s
blog.
Not a lot of banking
twitters
Banks have not yet attracted large
numbers of followers compared to other brands on Twitter and it has
been suggested, moreover, that a large proportion of users
following financial institutions are not customers but other
industry insiders.
Despite this, a number of banks are already
using Twitter successfully, most notably as a contact point for
customer service. This potential, combined with the ease and low
set-up costs, means that Twitter has the potential to become an
important part of banks’ social media mix.
*The above is a very brief extract from an
updated version of a report by VRL Publishing called Web 2.0 in
Retail Banking – Building Customer Engagement. For more
information, contact Kirsten Lamb at
kirsten.lamb@vrlpublishing.com
|
Marketing |
||
|
Twitter – top 10 banks ranked by |
||
|
Tweets |
Followers |
|
|
Wachovia(2) |
311 |
2,911 |
|
USAA |
116 |
1,902 |
|
Bank of America |
819 |
1,737 |
|
ING Direct USA |
116 |
1,075 |
|
Wells Fargo |
233 |
870 |
|
Chase |
28 |
605 |
|
North Shore Bank |
237 |
529 |
|
Pioneer Credit Union |
311 |
510 |
|
Texas Lending |
55 |
439 |
|
Caja Navarra(3) |
2,030 |
430 |
|
(1) as of end-of March; (2) part of Wells |
||
