Social Media by definition is social interaction by using the internet. This means doing what you would normally do in a social situation except via the internet. Imagine you’re in class and there is this person who is really well known. But when they talk, their content only every says has the same theme – “Listen to me, I’m great.” Or “Here read this what I wrote”. They never say hi, they never engage in anything else. This sort of person will shortly find they have no real friends, only ‘clinger ons’. This is how brands can have large Twitter followers, but none or minimal interaction.
So what’s the difference between traditional marketing and social media? Well, traditional marketing is “Here, look how good we are compared to others”. Social media – “Hi, how are you?...” and the conversation continues which leads to building a rapport resulting in a social media acolyte. As this continues you’ll have this little army of acolytes who’ll read your material and forward your material to their acolytes. Before you know it, you’ve built a network of acolytes to distribute your content. This also inspires brand loyalty, and then they are more inclined to buy your products and use your services. I believe a system like this is able to compete strongly even against the most competitive of brands – Apple.
Do I think Social Media can be used by banks? YES! Social Media can be used for a number of reasons: brand presence being one thing. Another reason, if you are in the client relation business in private banking (an area I am looking for experience in…cough cough) then you can scope out potential clients. Research by Scorpio Partnership in 2012 showed that 42% of HNW clients use Twitter, yet this market is still untapped. Surely if you want new business you would use those mediums…right?