With 12 million users in Australia, Facebook has developed into a core marketing platform to help organisations achieve their business objectives.
The organisation has been through a bit of a transformation of late, with the initial focus being the social networking customer experience – adding features to revolutionise the way we communicate and share with each other. Now though, the spotlight is well and truly on the business world, to leverage the wealth of information Facebook holds to drive efficiency and experience for financial services.
Here in Australia, Paul McCroy joined the Facebook team 12 months ago and his role as Head of Travel and Finance tasked him with the objective to build a team that can work closely with financial services to use Facebook. Paul explains: “It started with the team we created. We’ve hired a group of people to really understand the problems industry is faced with; we have people who worked in finance now working for us. It’s a constant focus to understand the problems faced by industry and build our Facebook platform to solve those problems. From there we want to work closely with financial services here in Australia to help them use Facebook in the best way possible.”
Whilst some of the big four were initially sceptical about the potential threat of Facebook in the financial services arena, the social networking giant has insisted they want to grow new users and enhance experience, rather than create banking services of its own.
There’s a huge focus on mobile and it’s clear to see why. Digital advertising overtook traditional advertising for the first time last year, drive mainly by the onset of mobile. With 10 million active daily users and 85 per cent accessing via mobile devices – it’s easy to see where the potential lies for many a marketing team. Paul explains:
“Digital has overtaken television and mobile is the new upstart. Facebook became a mobile first business two years ago, transforming from desktop. Here in Australia, there’s a higher mobile percentage than any other developed country. Facebook represents an opportunity to take advantage of the fact that more people are consuming media on mobile phones.”
It’s this drive to mobile that’s seen a surge in app development over recent years, with the finance industry among the top performers for app engagement, providing customers with ease of access like never before. But with many banks allocating huge resources to develop their own assets, is there really any need to tap into the Facebook pool? Paul explained where the potential lies:
“One of the immediate benefits is the opportunity to capitalise on the trend. Mobile Banking was developed to service the customers where they are. It is also the most cost efficient way to service customers and has been quoted by Mckinsey as 1/8 the cost of servicing via the call centre.
“One in every five minutes on a mobile phone is spent on Facebook properties. When you want to speak to people who are on a phone, Facebook is where you should go. Our biggest growth area is banks taking their apps to our platform and promoting their advert in front of their customers. Customers then go and install that app unit. In terms of results, we’re the most cost effective for getting apps installed – 30 to 40 per cent of app installs come from Facebook.”
“Phase two is where the banks have people with the app installed, but they’re not necessarily engaged. We have developed a tool that helps with app engagement. Essentially, once it’s installed, you continuously re-engage them so that they use it as a utility. By them frequently engaging on the app, it takes the pressure off the contact centre and service channels, so the overall experience has been a success.”
Easing data concerns
There are some real alarm bells that often get triggered thanks to some serious spotlight on large data companies like Facebook and Google. Naturally an integrated banking service would lead to some data concerns, an area Paul insists is at the core of that they do:
“We don’t give anybody data. We have 12 million Australian users who do a lot of things on our platform. What we do is provide a targeting interface to enable advertisements to people that fit their interest behaviour. That data is never given back to an advertiser, it stays with us. Our primary goal is privacy. We’re one of the largest data companies the world has and will ever see. Everything we do is about keeping our site secure. It works well with banks, as it’s exactly the same as what they do. Whilst some people see data as a problem, we see it as a really nice fit.”
Driving experience and efficiency
The team at Facebook are already seeing results creating unique experiences by targeting the right people, with the right content, on the right platform.
“When it’s done well, the conversions are huge. There are key challenges facing industry right now – efficiency, scalability and profitability.
We know certain media channels are becoming more expensive, every company in the world wants to achieve their goals in a more efficient manner. Where in the world is there more scale and engagement than Facebook? Our users are very engaged and it’s a huge opportunity to reach your customers and prospects at scale.”
Paul will be speaking at Digital Financial Services 2014: “I want to impart some of that knowledge to the audience and provide real life examples. A big thing we want to bring is what we see trending and how we can work with you to capitalise on some of those trends. We’ll also take a look at what we’re developing in the future.”
Visit www.digitalfinancialservices.com.au or follow @digifinance for more information on the event.
View the full interview with Paul here: http://youtu.be/t196-WP4_8U