Financial Institutions vs. Social Media

The social media marketing framework [SMMF] was proposed by Felix et al. (2016). The framework is made up of four different dimensions which include:

  • The Scope Dimension
  • The Culture Dimension
  • The Structure Dimension
  • The Governance Dimension

Social

Originally banks and other financial institutions avoided using social media platforms as it represented a major threat. Overtime more and more customers demanded real-time responses. This led to firms investing in financial technology [FinTech] which resulted in faster and improved services. The use of social media platforms allows consumers to express their concerns, state their opinions and to leave reviews. Investing in social media platforms enables firms to connect firsthand with clients and consumers and resolve ongoing issues. 

Culture

Due to the financial services industry target market, generally traditional marketing mediums are used to reach their audience. Recently, adults are adapting to the social media lifestyle, encouraging financial institutions to jump on the bandwagon. Using a modern marketing approach allows the industry to progress. 

Structure

The importance of financial institutions requires a centralised control approach. Employees have strict rules and protocols to follow regarding the use of social media platforms. The digital marketplace is a platform for institutions to connect with consumers expressing concerns and complaints. Every response has the ability to make or break a company’s reputation. Past advertisements using a traditional marketing medium have offended consumers and potentially damaged the banks reputation. Social media platforms have strict rules and allow companies to edit advertisements at an inexpensive rate.  

Governance

Modern day employee contracts include a code of conduct clause stating what an employee can and can’t post on social media. Introducing these types of contracts protects the employers’ reputation and prevents bad publicity. The types of rules listed in these contracts includes defamation [damaging your employers’ reputation online], inappropriate photos in work uniform and posting unprofessional comments online regarding the workplace. 

References

Chaffey, D & Ellis-Chadwick, F 2019, Digital Marketing Strategy, Implementation and Practise, 7th edn, Pearson Education, Harlow, United Kingdom. 

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