Most credit card industry professionals believe social media will become a "significant factor" in customer service, with Twitter and Facebook outpacing blogs as the most popular methods for card brands to connect with consumers, a survey found.
Firstsource Solutions, a customer service and collections firm headquartered in Mumbai and New York, interviewed 100 executives at the Card Forum & Expo in Miami Beach, Fla., April 27 to 29. SourceMedia Inc., publisher of American Banker, sponsors the annual event.
The survey results, released June 2, indicate that social media is a hot button for the card industry.
Seventy-four percent of respondents agreed that social media will become a "significant factor" in customer service. Roughly 66% said social media platforms already play a critical role in enhancing customer experiences.
Thirty-three percent of respondents said their organizations use Twitter to connect with customers and monitor online conversations about their brands, while 30% use Facebook to do so. Only 20% of respondents use blogs, while 18% use video sharing or other forms of social media to communicate with customers.
"Despite contrary belief, social media adoption has become much more sophisticated in the payments industry," Tim Smith, Firstsource's senior vice president for banking financial services and insurance, said in a press release. "Banks and credit card issuers are using social media platforms not only to improve the customer experience but to develop new products and service offerings based on customer preferences."
Asked about regulatory issues, 45% of respondents said they were concerned about rules created by the Dodd-Frank Act. Nine percent cited the Credit Card Accountability, Responsibility and Disclosure Act, which went into effect last year.
Half of the executives said they expect continued growth in the prepaid card industry, and 30% said they expect consumers to continue to load more funds into prepaid card accounts. Forty percent said they expect increased regulatory scrutiny of reload fees and other fees associated with prepaid cards.
