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As banks try to acquire new customers via digital channels, they should add content marketing strategies into their lineups.
June 16 -
For some banks, gone are the days of just using social media to update followers on branch hours. Increasingly, banks are using sites like Twitter and Facebook for something much larger.
June 22 -
Pairing up with corner stores, street teams and college students: all the ways fintech startups and tech savvy banks are trying to use the physical world to attract people to their digital products.
February 29
Building a
The most persuasive form of advertising is word of mouth. Endorsements from loved ones, neighbors or even Uber drivers tend to be the most powerful generators of product sales. Some marketers see social media as the electronic version of word of mouth — a contemporary substitute for talking to your neighbors. However, the evidence doesn't support that comparison.
Less than 7% of word-of-mouth occurs over social media, according to
Facebook and LinkedIn feeds may reach large numbers of people, but the critical component that makes engagements so persuasive — face-to-face interaction — is missing. When we engage in face-to-face conversations, we curate conversations to meet the specific interests of the other person. We know with whom to discuss camping gear or a new needlepoint pattern, for instance. Conversations in real life provide instant feedback and adjustment, making an endorsement more powerful than a broadly distributed Facebook posting.
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What's more, Facebook likes and Twitter retweets may mean nothing at all. In a
This isn't the only fallacy bank marketers may accept as fact.
In his best-selling book, "Contagious," Wharton School Professor
Berger also busts the myth that viral messages must be novel. Cats playing with dogs, dancing gorillas or mischievous pranks rack up high YouTube viewership but there's little connection between novelty videos and word of mouth. In fact, videos around boring or mundane products tend to generate more attention; top-of-mind products receive broader exposure.
All of which is to say that building a presence on Facebook, Twitter and LinkedIn doesn't equal effective marketing. In fact, it sucks resources from the thoughtful analysis and discussion required for creative problem solving.
Although social media is often the first box on a marketing checklist, it's rarely more than an ancillary tool. Social media advocates give it a false air of credibility by touting the number of followers and likes — meaningless figures that may justify a budget increase but they rarely provide useful insight into marketing effectiveness.
We need to reject a Kardashian-type focus on fluff and followers and become more discriminating in creating content integrated into a multichannel marketing program designed to achieve specific corporate goals.
Kevin Tynan is senior vice president of marketing at Liberty Bank in Chicago. He can be reached at