USING SOCIAL MEDIA ANALYTICS IN THE BANKING INDUSTRY TO DRIVE BUSINESS ADVANTAGE

Abstract

This paper highlights the opportunities that social media can offer banks and explores the ways that “banks can leverage this medium to enhance customer engagement” [8]. The widespread use of social media in business has redefined the way enterprises approach customer engagement and business growth strategies. With social media becoming a mainstream form of communication, people are providing detailed information about themselves, their preferred products and services, their daily activities, and other important aspects of their personality. This information has the power not only to influence their personal network, but also to help “companies understand consumer preferences and customize their product and service offerings accordingly. In a market characterized by economic” uncertainty “and increased competition, an undivided focus on customer acquisition and retention has become the primary objective of the banking and financial services industry. Banks compete to reach out to potential customers with personalized service offerings and products that cater to individual customer preferences and investment behaviors. However, acquiring information on target customers, their choices and financial preferences is a challenging task given the enormous amount of data that must be gathered, processed, analyzed and interpreted accurately to drive effective business decisions. This is where social analytics come in. Social analytics involve aggregating unstructured data from social networks and analyzing” [15] it objectively to help enterprises make effective business decisions, create better channels of communication with their customers and other key stakeholders, increase cross-selling opportunities, provide an enhanced customer experience, and offer targeted solutions. This paper explores the power of social media and how it can be used by banks “to gain an advantage over their competitors by providing” [16] improved products and services, thereby making the customer experience easy and responsive.