Once upon a time, measuring a banking institution’s success could be done by learning the number of branches it had. However, as in the mythical dispute between oaks and maples, a chainsaw has leveled the playing field.
Technology is cutting away at the advantages of physical locations and face-to-face customer service. As you’ll see in their infographic contained below, Websitebuilder.org.uk has gathered the statistics to show how social media is changing the way customer service is delivered.
Financial institutions need to find avenues to serve these seven customer profiles and stay relevant in a tech-dominated society.
This list also contains Websitebuilder’s corresponding infographic, which you can find here.
7 Types of Customers You’ll Lose Without Social Media Customer Support
Members of this younger demographic were practically born with a smartphone in their hands. They are the most technologically-adept generation which has reached adulthood. They are the first generation which has broken free from brick-and-mortar consumerism to e-Commerce.
They expect businesses to do the same.
With over 90% of social media users communicating with businesses through these platforms, it only makes sense financial institutions will need to build relationships with Millennials using social media.
2. Gen Xers
The in-betweeners, the forgotten generation, the Baby Bust.
Call them what you will, but these customers are in the prime years of earning, spending, and borrowing–exactly the kind of clients you want to keep happy.
Over 80% are on Facebook, a third use Instagram and almost a quarter are tweeting. These are the channels Gen Xers are accustomed to using. Financial institutions need to reach these people here to keep them as clients in the future.
3. Baby Boomers
This group may seem like a surprising member of our list, but Baby Boomers have adapted quickly to the ubiquitous technology of the smartphone. Facebook is the platform of choice, with 72% of Boomers using it.
It’s not just grandkid photos and nostalgic memes, either. Twelve percent of people over age 55 have used social media to complain about the customer service they received from a business.
Still, customer service through social media must be delivered effectively. Fifty-two percent of Baby Boomers have stopped using a brand due to poor customer service.
Time is money, they say. Professionals live this out as a creed. They will choose the fastest method to receive service–but still, they expect excellence.
Social media outperform other customer service delivery platforms in speed and value. In fact, Facebook and Twitter are shown to be 44% faster and 48% more accurate at delivering customer responses than email.
5. Tech Savants
We all have that friend who simply must buy the latest phone, only reads on a tablet, and has a voice assistant proudly displayed on the living room coffee table.
Tech savants have embraced change. They have chosen to live in the future. That future includes utilizing social media for most business interactions.
Techies notice how effectively customer service is delivered, too. Companies which provided the best service experience over social media retained 92% of customers.
Back in the day, there were these people called “shoppers.” They would visit a store or bank, look around, ask questions – and then go to another location. After considering prices and service among several options, these shoppers would choose a winner and become a client.
These people still exist, but now you may never see them. They do their shopping online. Even so, customer service remains an integral part of their equation.
The modern shopper expects businesses to provide customer service through social media. For 63% of consumers, this will be part of the equation in deciding whether to use your institution–or not.
Nobody wants to wait for service–and why should we have to? We have an instant connection to the world in our hand or pocket almost all the time.
Impulsive clients require attention and quick response, yet many businesses, including banks and financial institutions, fail at this.
Over 40% of consumers who use social media to request customer service expect a response within an hour. The impulsives (11%) want the response immediately.
How do most businesses stack up?
Not well. The average response to a customer inquiry takes five hours. Believe it or not, a third of all customer complaints are simply ignored.
The financial industry is a major player in social media customer service, with over three-quarters using Facebook and more than half using Twitter. To keep these customers using your institution, social media delivery of customer service is a must.