Banks use Web 2.0 to increase customer retention
Web 2.0 offers financial institutions abundant opportunities to engage with customers. Networks such as Twitter, Yelp and Facebook are now becoming common elements of multichannel and customer loyalty strategies, and banks are beginning to use these sites proactively to spread their messages.
In a recent article for Bank Technology News, Shane Kite describes how Citigroup's Global Transaction Services unit monitors social media outlets to address customer issues and improve products. Furthermore, the FI uses Twitter to release "breaking news" and upcoming events, and YouTube to disseminate videos that feature executives speaking about market news.
"We'll be closely monitoring these channels for feedback on the news and content we are distributing, and on what additional topics and issues customers want GTS to cover," Leslie Klein, marketing chief for the bank's securities, cash and trade finance unit, told BTN.
Citigroup exemplifies how this new technology is becoming essential to banks looking to improve their customer retention efforts. Mark Rogers, CEO of London-based Market Sentinel, explained how new apps can help stakeholders make any necessary changes by answering questions such as: "Have I gotten away with inching up my prices? Are customers talking about closing their bank accounts? How can I make the conversation more positive?"
Many experts are urging banks to adopt social media strategies or risk being left behind. In October, Mark A. Nystuen, a principal at the Kineo Group, told the Federal Reserve Bank of Chicago that a lack of online interactivity could cost banks customers.
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