Banking customers are not engaging on social media sites, according to the TSYS 2013 Consumer Payment Choice Study.
The survey numbers are even more alarming given that the banking industry is using digital communication as much as possible to reach customers. Digital channels also allow individuals to educate themselves regarding a financial institution’s products and services by visiting the financial institution’s Facebook, Twitter, or other social networking pages, the study notes.
In the TSYS 2013 Consumer Payment Choice Study, four questions related to social media were posed with two of the questions related to social media and banking.
Respondents were asked if they use social media, if they had “followed” their debit and/or credit card issuer on social media, if they had ever talked about a financial institution on social media, and what actions in the past year they had taken on a social media site.
Here are some key takeaways from the study:
Less than a quarter (20%) of the respondents answered that they “follow” their bank or credit union on a social media site
Almost three-quarters of the respondents (71%) said that they have never used social media to complain about their bank or credit union
Roughly half (51%) of the respondents answered that they do not pay attention to advertisements on social media sites
Most respondents (71%) noted they had never used social media to “talk” about their bank or credit union, and only a few (10%) responded that they had used social media to complain about a bank or credit union
In the report, “Banking and Social Media Customer Communication Boom or Bust?” author Nicholas P. Hopek, corporate strategy analyst at TSYS, says that social media adoption is becoming more common among financial companies. But, he asks if customers want to join the conversation or are they even listening?
“There are many aspects of the financial services industry that are changing at light speed, and financial institutions are looking for ways to communicate these changes to their customers,” Hopek wrote. “Most, if not all, of the largest U.S. banks have a presence on one or more of the top social-media sites, and they are using this channel to communicate product changes, service enhancements and other happenings that are of relevance to customers.”
The company surveyed 1,000 consumers throughout the United States who own a credit and debit card.