Due to the fast technology development, many changes in social areas and business life have arisen as a result of increase in internet use and availability. New concepts have been introduced into our life because of these changes. One of these concepts is “social networks”. It is one of the fastest and the most effective way of communication and sharing information. The use of social media has increased significantly in the previous years which led many companies to be more interested in social media Where millions of people can be reached through it. Therefore, they have started to give importance to it. Social media is a great way for customers to learn more about financial institutions and deepen relationships, as I see it like a platform that will decide many of the winners of tomorrow’s connected enterprise. Major aim of this search is to analyze and evaluate the relationship between financial performance and efficient use of social media.
Social networking is the use of internet-based social media programs to communicate with friends, family, customers and clients. they can create their own contact groups and watch videos or monitor posts shared by their contacts in an open or half-open system which is surrounded by rules (Ellison, Steinfield and Lampe, 2007). Kim, Jeong and Lee (2010). Social networking can occur for social purposes, business purposes or both through sites such as YouTube, Facebook, snapchat, Twitter, LinkedIn, and Instagram and so on. In order to meet the components of this definition an application or a website must have users independent from the publisher, have a user generated content, there must be interaction among users and there must not be limitations of time and space (Erkul, 2009). As a result of this, enterprises which intend to increase customer communication and interaction must manage their operations based on internet increasingly. The use of social media makes the communication between organizations and stakeholders easier. In providing this communication, social media platform has a faster and more effective position, and it is cost efficient (Schniederjans, Cao and Schniederjans, 2013).
financial sector uses social networks to improve their client engagement, management initiatives and business processes( Morales,2012 ). For financial service providers (FSPs) it would be more benefit to integrate social with existing customer relationship management programs (Social CRM) to leverage the “big data” available in social engagement. in the Finance Industry applying Social networks is the understand of customer experience which is very important to analyze how social media is actually being applied in Social Marketing, Social CRM and the financial sector ( Morales,2012 ). financial institutions must define the purpose of using social media , is it for brand recognition, reputation management, or connecting with consumers? Approve business-related content before it is posted on social media, employees training and user groups Identified to post, and define approved channels. Involve various departments – Sales and Marketing, IT, or HR – to do policies, and ensure that the use of social media is within limits In order to adopt social media strategy and to prevent social media risks.
Social marketing: Using social tactics, media, tools, and technologies across all components of the marketing mix: product, price, promotion, placement. Social CRM: Expanding CRM systems from optimized customer-facing transactional processes to include simultaneous interactions and conversations that customers have among them; in order to improve business processes and supporting technologies in: targeting, acquiring, retaining, understanding, listening to, and collaborating with customers. ( Morales, 2012 ) Sales, product development, account managers, all the way up to senior executives would be able to use data mined from social CRM to increase market understanding and incrementally speed up decision making. Therefore, financial service providers must moving to the use of Social CRM to have a deeper, measurable impact on undermost-lines ( Morales,2012 ). Social Marketing and Social CRM both share similar Key Performance Indicators (KPIs) though Social CRM KPIs are by nature more the benefits of social marketing are more difficult to monetize. Customer-oriented and often more Given that social marketing actions can hardly be measured by tangible to measure than those of direct ROI ( Morales,2012 ).
social media has also given light to a whole new way of conducting business in and financial services. New business models Use Cases P2P lending / financing Creating a platform that both lenders and creditors can access to post and select their needs and find suitable matches will reduce the need and cost of intermediation when investing in or acquiring unsecured personal loans. Mainly run as non-bank Financial Social Networks (FSN) platforms, they are replacing banks in certain niche areas that will grow in size Creating a P2P lending platform that and importance, and therefore must be tracked closely ( Morales,2012).
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