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Keeping an Eye on your Web Presence

by Ron Daly

With all the talk about growing your brand these days, managing reputation risk is becoming more important. Imagine there was a clause in the lease or deed of your branch that allowed someone to buy it out from under you and completely replace you. In minutes, your branch is gutted and replaced with a chop shop. Customers coming in to handle their business are baffled - the sign and location are the same, but why are these guys stealing our hubcaps? 

In real life, such incidents are unlikely. On the Internet, however, it can and does happen. Organizations and businesses let their URLs and domains lapse and they're snapped up by disreputable businesses and spammers. The Financial Brand pointed to a perfect example of how NOT to manage your online presence(s) in this recent post. TIAA-CREF let the domain rights to one of their special micro-sites lapse and the domain was bought out from under them by...well, just go read their article. It'll stun you. 

We've seen similar issues arise with folks who switch Twitter names or Facebook pages. They make the switch, a spammer takes over their old name and starts spamming their followers. It's remarkably easy to lose control of your domain names and your social media accounts. What's worse, the fact that the management of these accounts and URLs is inexpensive relative to how much it can cost you in customer dissatisfaction. 

I'm going to be very direct and lay it all out there for you: you need to have the day your URLs expire very clearly marked. The same is true of your hosting - one of the worst things is a site pulled down for non-payment simply because a check wasn't mailed or a credit card number changed. Your webmaster(s) should stay on top of these issues and should be able to tell you, on demand, when your renewal dates are. 

How do you avoid the TIAA-CREF issue the Financial Brand discussed in their post? One FB commenter has the right idea: 

Bonnie: 
July 14th, 2010 at 7:54 am

In some cases, maybe it would be better to create a page on your website, instead of creating a separate microsite with its own unrelated URL, for a temporary promotion.

Sane advice. A special domain for a special promotion can be effective, but you need to treat it with the same care as you would your day-to-day customer-facing website. 

Go find out when you need to renew your domains today. You'll be glad you did tomorrow. 

Social Finance - Is It Working?

by Jimmy Marks

Look at your watch. Let eight seconds go by. Boom - another social media consultant has just appeared and has come up with an article about how much impact social media has on people's finances. 

It's getting a little crazy. It seems like every time we turn around, we get one more guy saying that users of X social media site are Y% more likely to put their money in your credit union than any other human being alive. Whoops, another eight seconds went by, that's another guy yelling about how all those Facebook fans you have are the same as alternative capital!

Let's get serious for just a second. We've been talking social media for the last two posts (if you haven't read them, go do it). Come to think of it, we've been talking about social media for the last two YEARS. But we've never really taken the time to look at the impact "social finance" and whether or not there were numbers and trends you could count on when it comes to social media and online finance. 

America (Banking) Online

Louis Hernandez at Open Solutions wrote an article (It Takes a (Global) Village: How to Use Social Media - CUJournal, 4/19/10) about social media. Some interesting facts about deposit balances and social network users (most of which, it seems, were culled from a report by Raddon Financial Group): 

• MySpace users have the lowest amounts on average, with $11,891. 
• LinkedIn users has the most with $29,794
• Twitter users had $20,562 on average
• The average Facebook user has $19,339, but daily Facebook users average about $16,586. 

I found these numbers surprisingly high, given that we only started seeing a resurgence in savings in the past year-and-a-half or so. 

I differed to Ron (Daly, my boss), who said "Ask what the average amount is among people who want nothing to do with this stuff." He's betting it's going to be a lot more. Anybody got numbers, comment on this article and let us know. 

Other interesting numbers regarding getting financial advice via social:

• Only two percent of consumers have interacted with their FI while visiting a social networking site.
• Three percent would be interested in taking advice from a blog or SM site. 
• Only four percent said they had solicited advice about finance from a social media site. 

Two, three, and four percent? That's terrible. Is it because there are few FIs online and they're doing a bad job of social media, or is it that people aren't interested in "friending" B of A or their chief banking institution? (Yeah, B of A's Twitter has 7,000 followers, give or take, but I'm doubting all their followers are customers with issues, and with 53 million customers, you're looking at <.013% of customers being helped by their Twitter account.)

Some fresh perspective from Jeffry Pilcher's Financial Brand blog, which ran a "Datahead" article about online banking and social finance (his data's from Forbes, Mintel and ComScore to be clear): 

• 76% of online banking users have visited a branch in the past two months, while 68% have visited an ATM and 37% have called their call center. Mr. Hernandez's article says there's been a drop-off in branch visits even between '08 and '09, but 76% is still plenty high. 
• 75% of members/customers don't realize their bank/CU has online banking. Half of those that DO realize there's online banking USE online banking. That's 12.5% of consumers that are actively using OLB on average. But 87% of those are accessing OLB more than once per week.
• Half of all online banking users have mobile internet on their phone and less than half of those access their bank's services online from said phone - so, on average, about 23% of consumers are accessing their bank's site via mobile. 
• 65% of members wanted to get emails about their accounts(!) while only 8% wanted account updates via social media. 

On this evidence, I'm willing to make a few guesses about where social media fits in the big picture. 

1) Social media is good for ad hoc feedback, event coordination and notification, casual chat and (maybe) some selling. But most folks don't want advice from their social networks. And it's not specifically the networks, it's the people using said network. 

Think about it - do you want to talk about your Roth IRA or your Mortgage with the person who keeps sending you "Which Twilight Character Are YOU!?!?!?11?!" Quiz on Facebook? No, you don't. At least, I HOPE you don't. You trust a few people in this world to tell you what you should do with money, and that conversation doesn't have to happen in front of an audience of hundreds.

According to this article from eMarketer Daily, the number of people using social media is going to be growing to about 66% by 2014. Getting a foot in the door now is smart, given that the trend is increasing and the risk is relatively low, but expecting it to be "the fix" for your institution is unrealistic. People don't start a financial relationship with some bank or CU that they found on Facebook. They go find their bank on Facebook because they already have a relationship with them. 

People are loyal to a dependable product first, its associated brand second. Slap a member or customer with $200 worth of fees and all the social media in the world won't make a difference - they'll feel cheated and complain, and might even leave. Doesn't matter if they brought it on themselves -they're going to say it's your fault.

2) OLB, email and websites all need to be better. There's a reason you started offering online bill pay/banking, eStatements, eLerts and so on. It's because the more people are leaning on your online channel, the less they have to come all the way to the branch to deal with their money issues. Little things like transferring money between accounts and making payments are time sucks for a branch - let people work it out from home. 

Emails, eStatements and online notices are popular (it's why we exist), but we still have people who are on the fence about communicating with members via email. Why? What's stopping you? You don't have to put a ton of personal info into the thing and you aren't spamming anyone. "We might get phished," you say? Yeah, you might. But if you're actively engaging members with emails and getting them accustomed to what an email from you looks like, you're training them about what the real messages look like versus a fake one. Come on, people, it's 2010. "I'm scared of email" stopped being a valid excuse in 1998. Get in there.

If your OLB, emails and websites aren't up to snuff, you're missing out. This is Web 1.0 stuff, and 2.0 is about to hit the bricks in favor of Web 3.0 (does that blow your mind, because it should). You're going to see the big banks and their big websites increase functionality in the next few years, and as Robbie Wright of CU Innovators recently said: 

I will immediately think poorly of a product if they have a crappy looking website. crappy site=crappy product

less than a minute ago via CoTweetRobbie Wright

Let's just cut to the chase: you have a budget of $1 million. You can spend it on your websites and online banking, or on your social media initiatives. You can only spend it these two ways, and you can split it any way you choose. What are you going to spend it on, knowing what you know now? 

Talk to me, people.

Feedback Loops - Part of a Balanced Budget

by Ron Daly 

No, it's not a sugary breakfast cereal - a feedback loop has to do with information and systems. A real life example: 

1. We got a Wii® Fit™ for our home
2. We got on and tested our balance and posture
3. We went through a series of crazy games involving hula-hoops and yoga poses
4. We re-tested our posture to see how it had improved

But there's a fifth step, one that happens from the moment we turn the game on until the moment we quit and go get a sandwich - it's self-correction. 

As you play, your character is being challenged to walk a tight rope, dance, and stand very still. The game gives you feedback about your posture and stance, evaluating your performance and telling you when you do whatever you're doing the wrong way. You try to get better, little by little, as you move through levels and exercises. Steven Levy of Wired has an article about being beaten down by these workout video games. His reason? He was TOO focused on his workout, as opposed to usual gym distractions. 

An article from Harvard Business Review, "The Cost of Being Omniscient", talks about feedback loops in business and how they change the behavior of a buyer/user. From their article:

Anyone who doubts the power of feedback to influence action hasn't stepped on a scale before dinner. Customers under pay-as-you-drive plans almost invariably start using their cars less and buckling up more. Enel, an electrical utility in Italy, saw the same effect. After it installed "smart meters" in homes, its newly aware customers collectively spent 500 million euros less per year on electricity.

We have come to a point where "Information Age" doesn't quite describe where we are as a society. I think "Feedback Age" is a better fit. The more social the Internet gets,  If you're interested in bettering yourself, there's info everywhere on how to get it done. Your iPod isn't just a music player, it's a pedometer and a calorie counter. Your car is telling you when you're not driving safely. Your house tells you to shut off your lights. As a result, you jog faster, you drive better, you live greener. Why? 

Divide and Conquer: Start Split Testing Today

by Jimmy Marks

 I'll go ahead and throw away the opening sentence of this article on an obvious statement: the internet has changed everything. We, as online creatives and marketers, are no longer confined to the constraints of the physical space (or "meatscape", as total weirdos call it). We can make our websites as big and bright as we like. We can publish our updates and releases at our leisure via blogs and online news services. We can change our minds and our products on a whim. We can animate, demonstrate, and, most importantly, split test. 

What is split testing, you're wondering? If you're not already doing it, today's your official start date. Split testing involves two (or more) options for a marketing campaign, website, email - any intellectual property that is designed to command user's attention. Typically, you set up your "A" and "B" choices and test each to see which gets the most user response/return. You might think these two choices have to be completely disparate, but the differences might be as simple as: 

• The placement of your "call to action" button
• A different subject line/title
• A different image in the body text
• Altered colors
• A different sender name (i.e., sending from "Member Solutions" instead of "Collections Department")

This involves a little work on your part. You're going to need to track conversions on these two website versions (that is, how many people take you up on your sales offer or click for more info). For traditional-mail marketing pieces, you can send both options in tandem and see which gets more response, then adjust from there. For email, you'll need to track opens, bounces, unsubscribes, etc. for each of your campaign choices. 

"So you're just measuring ROI ?" you ask. In a sense, but you're also measuring the strengths of one campaign's layout and language. Who's to say that, by putting your seminar ads up under your headline in a sidebar, you won't get more people signing up? Maybe members aren't calling because they don't know where your phone number is on your email or contact page. You might think these are trifles, but when it comes to engaging members and getting them to take an interest in what you have to offer, can you afford NOT to make a campaign better over time? Pick your pet campaign, give the components some thought, and see how a split test might improve it.

I could go into extra detail, but I'm hoping this has spurred you to start thinking about this for your websites, email campaigns, newsletters and marketing pieces. Here are some resources to get you started: 

• An article titled "10 Factors to Test that Could Increase the Conversion Rate of Your Landing Pages" (catchy title, no?). A good walkthrough, with some important points to keep in mind as you move forward. 
• From DailyConversions.com - An article in which one of the website's marketing specialists does split testing on a local homeless man's "please give" sign. It seems a little weird at the start, but his work with the homeless man's sign placement and content changes the homeless man's luck and drives up donations. A really strange exercise, to be sure, and not one I'd recommend repeating, but still worth a look.
• Five Second Test is a great website that lets you test website layouts and the impact your current layout has on a random spray of audience members. Simple, fast, effective, and free, it's worth the time it takes to throw up a few potential layouts and examples. 

And I wouldn't be much of an ad guy if I didn't take the time to tell you that DigitalMailer's Automatic Relationship Builder (ARB) has built-in split testing capabilities. Start marketing smart by visiting our website, or give us a call at 866.994.4900 ext 115.

Who's Buyin', Who's Lyin', Who's Dyin'?

by Ron Daly 

After ten years providing email delivery and online services, I have a little experience with what draws people to open an email or visit a website. Where that experience shifts is when it comes to social media and referrals. Over the past year or so, there's been plenty to read about whether or not social media is "good" for your business. Can you run/boost a business using social media? 

Bob Serling of Power 8 Marketing seems to think it's possible, but it requires a stronger knowledge of your audience. From his blog post:

There are a lot of ways to identify people who are actual buyers, but it takes a lot more leg work, and usually more money to do this properly. That’s why the promise of the next “free magic bullet” traffic system is bound to fail too. Because there just isn’t any free and easy way to generate qualified leads in your sleep. If there was, we’d all have a different color Ferrari for each day of the week.

I think Bob's point is well spoken - just because you're blogging, tweeting, facebooking, youtubing, etc. doesn't mean you're going to burn up the Internet with site traffic and new visitors. And even if you do draw a million people to your business' website, how many are in market and qualified? It's a tough nut to crack for b-to-c companies, but for b-to-b it's a lot harder. Fewer people are involved in a b-to-c buying proposition and you can appeal to people on a gratification level that's not quite the same in b-to-b. But no matter who you're selling to, getting them to buy online in a single visit is a rarity. 

Special Guest Dan Schoenherr on "Closing the Loop"

Dan Schoenherr is an experienced credit union consultant. He has expertise in strategic planning, process improvement, board governance, and website strategies. He is President/CEO of Schoenherr Consulting and has led several credit unions in their process improvement programs and creating member delight. Most recently he has been helping credit unions with their Net Promoter® Score programs. He may be reached at dan@schoenherrconsulting.com.

[This article originally ran on digitalmailer.com]

Net Promoter® Score, a loyalty measurement, has been adopted by many credit unions. However, many are not "closing the loop." A Net Promoter® Score survey asks the question: "How likely is it that you would recommend (the credit union) to a friend or colleague?" Customers respond on a 0-to-10 point rating scale and are categorized as follows:

• Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth
• Passives (score 7-8) are satisfied but unenthusiastic members who are vulnerable to competitive offerings
• Detractors (score 0-6) are unhappy members who can damage your brand and impede growth through negative word-of-mouth.

Separating the Businesses from the Bots: What Social Media REALLY Means

by Greg Crandell and Jimmy Marks

If you're a CEO of a major credit union/business/non-profit, you're probably wondering

a) Do I make so much money that people are going to start picketing me at my house?
b) Am I really worth all that money if I'm wasting my time reading this blog all day?

and, most importantly: 

c) When are all these little DORKS going to stop pestering me about Web 2.0 and Social Media?!?

A and B, we can't help you. C, we know. 

We have already talked at length about how business professionals are sick and tired of hearing about Social Media (click here to read). So they hire these people...usually whippersnappers like Jimmy*...to sign them up for the holy triumverate of bad Web 2.0 decisions: 

1. A do-nothing Facebook page that has no actionable links or content
2. A Twitter account that pats itself on the back 
3. A YouTube channel with two videos which are poorly produced 

*Jimmy's Note: Being young has NOTHING to do with being good at social media. If young people were any good at managing content online and being good at representing a cause, they'd never get in trouble for having pictures of themselves smoking marijuana on their MySpace. Vet your online content managers/web specialists with the same jaundiced eye you'd use in selecting an accountant. 

Oh no you didn't...

by Ron Daly

We are gathered here to day to mourn the death of JuicyCampus.com...wait, did I say mourn? I meant celebrate.

Now, being in the long-time internet guy that I am, I usually don't enjoy the demise of a website. I know there are plenty of people out there just trying to make an honest go of the web. But the folks behind Juicy Campus don't inspire sympathy in me. For those of you who don't know (or don't have college-aged kids), Juicy Campus was set up to let college students spread rumors about the school, campus organizations, or each other. The rumors could be benign things like "the price of parking is increasing soon" or malicious notes about people's relationships, appearances, or any other area of someone's life.

It took me two seconds to decide that this site and its mission was despicable. And it took me less time than that to be happy when I heard it was gone (click here for details on its closing).

I don't know "social networking" as well as some of my credit union contemporaries, but I do know this: a social network can't survive when it's built on hate-mongering. Juicy Campus lost out because it couldn't drum up online advertising here in the downswing. It has since been usurped by collegeACB, which stands for "Anonymous Confession Board", which doesn't encourage gossip so much as anonymous comments from anyone at any time.

Yeah, there's a BIG difference between that and Juicy Campus (sarcasm alert!).

But let's take a moment to talk about the people who are doing a GREAT job of social networking in the credit union world. And HOW are they doing a great job? They're not spitting on people and being catty.

A Drop In the Bucket (or, in this case, Kettle)

by Ron Daly 

I do my best not to get sappy around this time of year, but I was touched to read this story from CNN.com (click here to read) about the Salvation Army coming to the rescue of a couple in need. The story talks at length about their health care bills being the reason they couldn't make their house payment and about how after years of donating to the Salvation Army, the couple went there for help. 

It's nice to see that people are still willing to remember the spirit of giving, even if it's only a few cents. Cents, I might add, that turned into $118 Million last year.

But what really impressed me were the details of the Salvation Army's use of text messaging and Twitter to get people to donate. When you text the SA's "Online Red Kettle" on your cell phone, you get to donate via your phone bill. Following the SA's kettle on Twitter keeps you abreast of important information from the 143-year-old organization. 

Presidential Campaigns’ Email Tactics: Good Lessons in What Not to Do

by Ron Daly

This election season, both presidential candidates have turned up the heat with their email programs. They know email is an efficient, fast, and cost-effective way to reach supporters and to bring in donations. But according to Email Insider’s Jordan Ayan, both campaigns are “abysmally poor at executing based on today’s best practices.” (The Real Presidential Debate: What’s up with Candidates’ Email Campaigns, Oct. 1, 2008).

While we won’t have a winner until tonight, the presidential race is a dead heat when it comes to email no-no’s. Here are a few examples:

• Sending too many emails. Like many companies, presidential campaigns have many departments and offices, making it hard to keep track of the various messages being sent out on behalf of the candidate. Both the McCain and Obama campaigns regularly send numerous emails within the same day, giving recipients the impression of not just a poorly managed email policy, but a campaign that doesn’t value their time or respect their inbox. 

• Using multiple and irregular “from” addresses. When trying to build a brand or establish consistency, the email rule of thumb is to use familiar name(s) in the “from” line, which improves open and readership rates. Both the McCain and Obama campaigns send emails under various names – some are familiar, like their VP candidates and spouses, but many are unfamiliar, like state chairpersons and major supporters. This tactic is confusing and increases the likelihood that the messages will go unnoticed.

• Ignoring CAN-SPAM guidelines. The FTC ruled that emailers must provide a simple unsubscribe process that doesn’t make the recipient give information other than their email address and opt-out choices, and does not require them do more than send a reply message or visit a single Web page to unsubscribe. Neither campaign follows these guidelines … Obama’s sends recipients to a designated webpage to receive a special code number that they must enter on a designated browser form; McCain’s requires recipients to give a reason for unsubscribing.

Today, many financial institutions recognize that email is a valuable tool when it comes to communicating with members/customers and marketing products. The secret to success is knowing the right way (and wrong way) to plan your email strategy – and putting that knowledge into practice.