Six Principles for Social Success in Financial Services:  Case studies, Trends and Regulatory RequirementsJuly 17, 2012

Joanna BelbeySocial Media and Compliance Specialisthttp://www.linkedin.com/in/belbey @belbeyhttps://about.me/belbey

Confidential and Proprietary © 2012, Actiance, Inc. All rights reserved. Actiance and the Actiance logo are trademarks of Actiance, Inc

Agenda

About Actiance

State of the Nation

Social Media Maturity Curve

Social Media – a Powerful Marketing Tool

The Six Essential Principles for

Social Media Success

Upcoming Webinars, Materials

Joanna BelbeySocial Media and Compliance Specialist

FINRA Education Department

Running training firm

I help firms use social media while complying with the regulations

Twitter: @belbey, @actiance

LinkedIn: http://www.linkedin.com/in/belbey

About.me/belbey

My biggest challenge?

Why are we presenting to you today?

A decade of expertise, a history of firsts

Global Operations

• 3 US offices, three continents

• 210 employees

Dedicated Social Engagement Team

• Partnering: networks, platforms, service providers

• Regulators: FINRA, IIROC, FSA, SEBI…

• Best Practice enablement, education

Client Engagement

• 9 out of the top 10 US Banks, Top 5 CDN Banks

• 284 FINRA firms

• 84,000 Social Networking users under license

About Actiance

4

Why Customers Select Actiance

5

“We chose Actiance because they had the resources and partnering culture to help us with our long term strategy”

– VP Technology, Interactive Marketing, Top 3 Wirehouse

“Actiance’s platform allows us to execute our long term vision of integrating our internal social platforms with consumer networks”

– SVP & CIO, Major Mutual Fund Company

“Socialite Enable and Engage offer the best mix of compliance and marketing capabilities allowing our advisors to develop their personal brands”

– Marketing Director, Top Regional Brokerage

97.09% of people questioned in a survey said their

buying decisions are influenced by social groups

A majority of respondents indicate using social media for one or more business purposes.

SOCIAL MEDIA USAGE

For which of the following business purposes do you use social media today?

Base: all respondents in 2012 (1,428) and 2011 (1,597); multiple responses.

Social media usage

Respondents under 35 are

more likely to use social media for business purposes

than those 55 or older (68%

vs. 45%)

Social Media Maturity Curve

8

Pre-Consideration

• No Social Presence

• Restrictive social policy

• No Social Tools

• Need to: identify options, best practices

Early Consideration

• Some Corporate Presence

• Banned/ restrictive policy in place

• Pilot program for content distribution might be in place

• Need to: justify distributed teams usage

Early Adopters

• Corporate Presence

• Acceptable use policy

• Social media being used by distributed

teams/advisors

• Need to: use social to develop, strengthen relationships, for some also as a sales channel

Early Majority

• Corporate SM presence

• Social media usage by distributed teams advisors

• Acceptable use policy

• Next step, use social to develop, strengthen relationships, for some also as a sales channel

• Previous concerns about IIROC and/ or impact of social media overcome by market acceptance and demonstrable results.

Outline Real Results

Case Study: Wealth Management Firm (NJ)

LinkedIn Only

Listening is Key, watching connections who matter

Using Social as an integral element of communications mix to spot change

LinkedIn Connection retirement status change = $2.75m account acquisition– Job Change noticed on

Status Update = 401k rollover– FA obtains 400 new

prospects in Energy market– New Commercial Account

Opportunity through colleagues LinkedIn Connections

Outline Real Results

Case Study: RW Baird

LinkedIn Already Available to 1200

Veteran Advisers, tech savvy

Authentic Content

@MaryS_rwbaird– 51 followers– 93 Tweets (at the time)– $1m prospect

Social Media – A Powerful Marketing Tool

11

Proven to attract customer attention

Promotes customer loyalty

Enables companies to communicate with hundredsof thousands of people at once

Increases opportunities for “viral” transmission of information about you or your services

Allows companies to interact on a more personal levelwith customers

The Advantages of Social Media

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It’s free or relatively inexpensive

It’s interactive

It offers immediate, direct feedback

It’s adaptable

e

Slow Adoption by Financial Services Firms

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Demanding oversight of online communications are required (SOX, FRCP, GLBA)

Regulations governing electronic communications – FINRA, SEC, IIROC, FSA, SEBI (record keeping, advertising, suitability, supervision)

Fear of data leakage, malware and viruses

Banks, credit unions and brokerage houses are typically slow to change

20% of enterprises that employ social

Media beyond marketing will lead their industries

in revenue growth by 2015. GARTNER, MAY 2011

So why is social important to us in Financial Services?

In the USA Gen Y accounts for $2.4 trillion worth of personal income

In 2025 Gen Y will account for 46% of personal income

Source: Javelin Research http://www.stltoday.com/business/local/article_719f49d8-15e6-5c5d-94b7-992ab12d9f97.html?print=1

Based on 26,749 online adults, USA, Source: Forrester Research, June 2011

The Six Essential Principles for Social Media Success

Principle 1: Strategy

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Social media is just another way to broaden your reachCompanies are successful in their social media usewhen social networking is part of the corporate DNA– Executive sponsorship. Senior management embracessocial media as a way to reach customers, prospects, and partners– Executive engagement. Senior management understands the value and they are enthusiastic about the opportunities– Part of the corporate culture– Eliminate politics and streamline content approvals

“Social Media is a part of the mix, not the solution”

GARTNER

Principle 2: Personal Brand

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You, Dear Reader, are my most valuable asset

17% of consumers trust a brand. 70% trust recommendations given by friends and connections

Consumers are starting to purchase products through social media

Movenbank requires individuals to register on Facebook

ICICI Bank enables use of social to login in to one’s bank account

Long-term objective: consumers and customers engage with the brand as embodied by individual employees

Principle 3: Relevant Content

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Content is King: use the personal approachDeliver compelling, informative and entertaining contentStart with pre-approved contentDevelop a library of interesting insights, investment challenges, wealth management tips, etc.Strive for personalized, unique content that informs your connections about you. Don’t just broadcast a brand message

Principle 4: Crowdsource

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Empower the Social Consumer to work for you

Convert consumers into evangelists promoting yourproducts or services

Before making buying decisions, consumers research online and seek recommendations from their network

Provide useful information that establishes your expertise and is worth sharing

Principle 5: Education

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Key Elements of a Social Media Training Program

Understand the role of social media in sales and marketing

Establish your social media objectives

Select which social networks are best for you

Avoid regulatory pitfalls

Build a network

Principle 5: Education (cont.)

27

Follow best practices to build out and maintain your network

Integrate social media activities with corporate systems

Analyze metrics to assess engagement levels of network

Adjust your social media program

Principle 6: Analytics

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Measuring clicks vs. measuring engagement

Comments are more valuable than “likes” and sharesare more valuable than comments

The number of followers on Twitter, LinkedIn and Facebook is an important metric

Active listening leads to effective engagement

Create your own real-time data stream

One measure of social media successis gamification

Norv LeongDirector, Product Marketing

Six Social Principles for Success

Crowdsource ContentDevelop Personal BrandCreate Integral Strategy

Measure & AnalyzeEducate and TrainLeverage Customers

Webinar Series for Marketers

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Marketers Guide to Social Media in Financial Services

Financial Services Compliance

Social Media Human Requirements

The Risk of Doing Nothing

Social Media Best Practices Checklist

Contact Information

31

info@actiance.com

@Actiance, @belbey

Further reading:Marketers Guide to Social Media in Financial Services

IIROC and FINRA requirements mapped to Facebook, LinkedIn, and Twitter features

Social Media Handbook

Osterman Research: The Impact of New Communication Toolsfor Financial Services Firms

Actiance Collateral Library http://actiance.com/products/collateral-library.aspx

Thank You

Joanna BelbeySocial Media and Compliance Specialisthttp://www.linkedin.com/in/belbey @belbey

Confidential and Proprietary © 2012, Actiance, Inc. All rights reserved. Actiance and the Actiance logo are trademarks of Actiance, Inc