Financial services companies becoming more social

Financial services companies have increased their engagement with social media sites, according to a new LIMRA study.

The Retweets, Likes and Shares: How Financial Services Companies are Using Social Networks study reveals that, with increased usage of social media, strategies are evolving.

“We found that nine out of 10 companies currently use social media, and most agreed that compelling content is vital,” said Norah Denley, senior research analyst in the distribution and technology research division with LIMRA.

“Posting content that provides value to an audience is just as important—if not more so—as reaching the audience in the first place.”

The LIMRA study looks at the strategies of how companies are currently using social networks and their outcomes. So far, it has found the following:

  • Sixty-five percent say they use Facebook to build a community. Results indicate that companies are increasing engagement with audiences, and some companies are using Facebook as a customer service channel.
  • Nearly seven out of 10 say they use LinkedIn to recruit staff. Surveyed companies report they have seen success in recruiting efforts on LinkedIn, as well as increasing audience size.
  • Six in 10 say their main objective for Twitter is brand awareness. Companies report that Twitter is providing value to the brand and helping customers while increasing their reach.
  • With YouTube, brand awareness is the main objective for 83% of the companies surveyed. The use of video supports other initiatives for companies, which say YouTube is an easy way to host videos and increase search engine optimization.
  • Fifty-eight percent say they use Google+ for brand awareness and to build community. While results with surveyed companies have not been clear, many compared Google+ to Facebook.

The most popular social media sites continue to grow in influence, and a number of new sites are rapidly gaining attention. Financial services companies are still figuring out where they need to have a presence and where they can abstain. In addition, companies must understand the key networks where they choose to put their efforts in order to be successful with informed and effective strategies.

Financial services companies in both Canada and the United States LIMRA participated in the online survey.

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