Research and Markets: Social Media in Financial Services: The Customer as the Advisor

DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/7596a3/social_media_in_fi) has announced the addition of the "Social Media in Financial Services: The Customer as the Advisor" report to their offering.

“Social Media in Financial Services: The Customer as the Advisor”

Consumers increasingly turn to fellow customers to advise them on their financial services, driven by low trust in traditional advice sources and facilitated by social networking. Online peer groups are influential in purchasing decisions in all industries due to trust in the opinions of fellow consumers. FS providers must engage with peer-based advice to continue to be part of the advice process.

Features and benefits:

• Retain a full role in the advice process by learning how to leverage the power of social media as an advice tool.
• Learn how to use social media channels effectively through cross-sector analysis of best practice.
• Build strong relationships with customers by understanding how to use social media to create a sense of community.
• Attract new customers through understanding how to implement consumer driven promotion of products and services.

Highlights:

• Trust in the opinions of fellow consumers is high and will continue to play a crucial role in the decision making process. Research from Lansons shows that the influence of peers is increasing while that of the traditional media is decreasing. FS providers must recognize the power of consumer opinions and leverage this to their advantage.
• Consumers seek out user-generated content and reviews before making a purchase in order to select the best product for their individual needs. The online channel allows consumers to read quickly reviews on virtually any product available. Social media has facilitated this process with consumers obtaining advice from their social networks.
• Negative reviews and opinions travel quickly on social media channels of advice. FS providers need to have a presence on these channels to be aware of negative publicity and deal with these comments effectively.

Key Topics Covered:

INTRODUCTION

• Social media has become a channel for advice between consumers
• Providers are adapting to a "consumer-driven" decade
• Consumers like to share information and ideas via online channels

STRATEGIC CONTEXT

• Peer-based channels are increasingly influential
• Some consumers have lost their trust in providers to give appropriate advice
• Time-pressured consumers are seeking quick answers
• Peers offer consumers "tried and trusted" advice
• The rise of "collaborative consumption" encourages sharing between consumers
• The UK as a case study: changes to the regulation of advice

STRATEGY IN FOCUS

• User-generated content allows consumers to review and choose between products
• Ad hoc advice through Twitter travels quickly between consumers
• Blogs voice ongoing opinions, news, and reviews
• Consumers want to benchmark themselves against their peers
• Engagement with social media can tackle the spread of negative reviews

STRATEGIC ACTION POINTS

• Current account providers must engage with and facilitate social media advice channels
• Saving account providers should help consumers to compare their goals with peers
• Credit card providers can build a community around their cards
• General insurers need to market consumer satisfaction
• Personal loan providers must be more transparent with their lending criteria
• Pensions providers must be aware of their customers' sources of advice
• Mortgage providers should enable more peer advice
• Life insurers can use peer advice to educate consumers

For more information visit http://www.researchandmarkets.com/research/7596a3/social_media_in_fi

Source: Datamonitor