Facebook on a quest to revolutionize financial services marketing

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.

Mobile

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

Low cost marketing innovation – 4 essentials to success

It’s tough to be a marketer. It’s hard to allocate cash for innovation, but at the same time rapid consumer behaviour changes and increased competition make it a bit tricky to stand out.

All is not lost. We can once again get our creative juices flowing without breaking the bank (sorry…). I recently took a look at the world of Financial Services and it’s safe to say a few obstacles need to be overcome; the allure of the non-banks and a heck of a lot of expectation from the customer.

With that in mind I recently caught up with Simon Clarke, Head of Online Banking Suncorp.

Simon and the team have a clear focus: “We’re delivering our new core banking capability. It is a major strategic initiative for us and will enable a new generation of customer experience through our simpler and more agile platform.”

“At more of a group level, we are constantly looking at ways we can improve the customer experience across our key areas of banking, life and insurance. We want to ensure that customers have a consistent experience no matter what product they have and touch point they engage us from.”

The team have a smaller budget than the major banks, encouraging (sometimes forcing) Suncorp to think outside the box to build and optimise customer experience. This approach can often far outweigh consultation and reading through insight all day.

So how exactly are they doing this? Here’s Simon’s recipe to success:

Sweat the small stuff

“Post GFC, innovation has been always associated with research and development. But in more recent times, people and customers have come to realise that innovation isn’t always about the newest technology or gadget. It’s often just tapping away to remove a step or part of a process.

“We often find in banking that we build, design, rebuild and redesign technologies very quickly due to tech improvements and resilience. But we often neglect to review the process which the technology facilitates. That often leads to a slick looking application underpinned by a very long, frustrating seven-step process to do something that should only take two.

“We have a goal in which we constantly go through customer journey maps and ask: ‘Does that need to be there? Is it just because it’s always been there?’ As we optimise our websites, online banking platforms and mobile channels, we have the opportunity to challenge and improve the process. We also blend with user experience design so every word, click or tap culminates in a simple, easy to use engagement.”

What to do today: Innovate incrementally. Start with a small pain point with your product, system or process. Pull it apart and put it back together 2% at a time. Overtime, these 2% add to 20% very quickly and culminates in achieving high customer satisfaction at low cost and risk.

Mix it up

“We often find it amusing the costs that come out of delivering innovative technology or simply keeping up with customer demand. All of our banking platforms are designed and built in-house.

“This allows for very tight ‘product teams’ to form with a mix of business and IT people to take a challenge, sketch it, design it, user-test it, build it, secure it and get it out the door within a few days. We have feedback forms that are monitored and answered by product owners so every idea, complaint or comment goes straight to the person who can make a decision and execute on that idea or fix that problem.”

What to do today: Speak constantly to your team to understand roadblocks and attack them one by one to form a lean, effective team. Take the time to also listen to your customers. They should influence and be a part of your strategy and execution, not just an end user.

Look past the fancy reports

“From a design and UX perspective, again we use the same tools that a small business might to perform UI online tests, surveys and lab tests using basic video conference equipment.

“Some of these tools can cost $150 to run and the feedback and insight we get is amazing compared to a $10,000 report. We love using these ‘guerrilla tactics’. From an execution side, it allows us to try a lot of new things and if some don’t hit the mark, there isn’t a swollen budget sitting at the other end.”

What to do today: If you need insight, there’s plenty of it out there for free. Form an idea, build it out with creative and knowledgably colleagues and put it to the test. Learn fast and do it cheap. If the idea doesn’t hit the mark, gather your learnings and put it towards your next opportunity.

Persist

“Having a ‘fail fast and learn’ culture can be difficult to achieve and persist. But with the right attitude, enthusiasm and decision-making capability, we can strive to build the easiest-to-use websites and online banking platforms and see the effects through direct feedback.

“I think the biggest challenge is building the right culture and acknowledging that innovation doesn’t need to be cutting edge development. Simple touches each day accumulate to building an innovative model that customers can appreciate each time they engage us.”

What to do today: Build a safe working environment that allows your staff to thrive in generating and testing ideas. Isolate risk adversity so that it is managed but not impacting your ability to innovate and drive user experience.

Join Simon at Digital Financial Services 2014, he’ll be delivering the Case Study ‘Banking Channels at Speed through Lean Innovation’.  Visit www.digitalfinancialservices.com.au or tweet @digifinance