DIGITAL BANKING Tips - Tip 4: Banks and Social Media, What is the Magic Formula?

Digital transformation created two segments of people in society as Digital Natives (technologists) and Digital Immigrants (adapters). From the banking perspective, the change in customer behavior together with technological transformation (mobile, social media, wearables etc) - necessitates adaptation to this new environment. As majority of top banking managers are Digital Immigrants, they ask for help from Digital Natives (mostly either young talents of the bank or external companies/agents) how to manage this change. Of course there is a strategical gap between two minds even so Resources allocated, money spent then got 1 million+ followers at Social Media and .. .do not know what to do with them.

Majority of the banks are managed by using traditional KPIs (Key Performance Indicators) and ROIs (Return of Investment) - from the management perspective, it is always good to know that "how can we measure the success and how much you put / how much you get". On the other side, if KPI or ROI of Social Media activities considered, things get a little bit complicated. You can find couple of KPI/ROI definitions for SM and depending on the channel it varies (if it is youtube how many times it was watched and like, Twitter Followers, Facebook likes etc.) but principle is same.

This is the short version of the post. 

Starting from Tip 2 to Tip 30 only short versions of my posts are available at Finextra. From Tip 31, full (long) versions of my posts can be read here.