How Banking Software Helps To Personalize Customer Experience

Melissa Burns

Lately, the banking industry has been hyping the personalized customer experience. Still, customers report significant gaps between their needs and banks’ ability to build a personal relationship with them. That is why it makes sense to clarify what customers expect from personalized banking and how banks can provide such experiences for their customers.

From the ideal image of personalized banking …

Let’s start with some examples to illustrate the concept of the personalized banking experience. Imagine Mary, a 30-year-old office manager in a small consulting firm in San Francisco, who mostly uses digital banking services. She spends around $20 each month on ATM fees because she withdraws money near her favorite lunchtime restaurant. What if her bank notifies her, before she makes a withdrawal, that there’s a free ATM located just a 10-minute walk from her office?

Taking that logic one step further, let’s say the bank’s AI software detects Mary has increased child-related spending. In this case, her bank could offer her a loan on a larger home or a 529 college savings account for her child. Imagine how Mary’s attitude about her financial institution might change after she received such relevant, personalized messages.

… to a harsh reality

While the digitization of banking services has opened numerous possibilities for personalized customer experience, it has complicated the task at the same time. As banks moved from branch-based banking to online and mobile banking software, they focused on making their products and services work for the digital environment. Unfortunately, not all banks understood how to replicate the “personal touch” of branch-based banking in their digital channels. As a result, banks lost the “human” part that has to do with the needs, sentiments, and preferences of individual customers.

The meaning of personalization in banking

Becoming a bank with a “personal touch” is not about the frequency or quantity of contacts with customers nor about the launch of a new banking app: it is about the quality and personal relevance of customer communications. Banks must put customers’ wants and needs at the heart of all banking activities rather than push what they believe their customers want. That is why banks need to shift their focus from simply selling products and services towards providing relevant and contextual financial advice. In other words, a bank should demonstrate a true interest in customers’ financial well-being.

Customers don’t want to be treated as “one of the crowd.” On the contrary, with digitization, they expect more personalization than ever before. Customer-oriented companies, such as Walmart, Amazon, and Google, set the bar for quality of personalized customer experience. It’s not surprising that customers expect the same level of service quality from a bank. And they may be disillusioned to find out that different banking systems don’t talk to each other, or that different channels don’t offer the same functionality, or that a bank still doesn’t offer online account opening.

Building personalized customer experience with technology

To personalize customer relationships, banks should build a customer-centric IT architecture model based on a single view of the customer. For this purpose, they should consolidate customer information from all banking software systems, including core banking, loan, and mortgage solutions, banking CRM, online and mobile banking software, etc. By applying predictive analytics to this summary, a bank can do the following customer-centric activities:

  1. Quickly identify an individual financial journey of each customer;
  1. Anticipate a customer’s needs that correspond to a particular stage of life;
  1. Proactively offer value-added financial products and services targeted to that stage.

Banks can communicate these offers using numerous channels, still focusing on those that seem the most convenient for a particular customer (such as tracking how frequently a customer uses each channel). This personalized banking communication can be further extended with channel integration to make the dialogue even more convenient for customers. For example, a bank can combine online banking with call centers or messengers with a mobile banking app. By linking these channels, banks can establish a long-lasting dialogue with customers, which helps gather customers’ sentiments about the quality of banking services, as well as understand how they can further personalize customer communication.

On a final note

Digitization offers great opportunities to personalize services for thousands of customers and offer them only relevant financial products. Using the right software solutions and tools, banks can uncover new ways to serve their customers.

Learn more about Influencing Customers Through Infinite Personalization.

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Melissa Burns

About Melissa Burns

Melissa Burns is an entrepreneur and independent journalist. She spends her time writing articles, overviews, and analyses about entrepreneurship, startups, business innovations, and technology. Follow her at @melissaaburns.

Stop Trying To “Go Viral” – Viral Content Hinges on Community

Lindsay Bell-Wheeler

gone viral sign on doorIf you’re anything like me, your head blows off every time you hear the words, “We must create viral content!”

Sorry to break it to you, folks, but you can’t “create” viral anything. Virality doesn’t just happen. It’s not luck of the draw. And it’s bloody hard work.

And if you’ll stick with me here, I’ll explain why.

There’s been a story kicking around for the past few years now, about a car company in small-town America. And not just any old car company. This is a car company that really understands how to build relationships, and by extension, community. Here’s how they do it:

This company monitors Twitter, and whenever they see anyone from their neck of the woods tweeting about a car accident, they reach out. Immediately. And they offer them the use of a car.

With this one small yet significant strategy, they’re absolutely nailing online relationship building. They listen, they react, they care. They’re offering a helping hand, not a hard sell, and their community loves them for it.

Why virality hinges on community

I bet you if that company released a funny video, or published their latest blog content, it would go viral. Why? Because they have built a strong, loyal community based on trust, and that community would be happy to share that content with all of their social communities, and so on.

But here’s where it really get’s interesting: Will that video or blog content end up on CNN, or The Tonight Show with Jimmy Fallon? No. Will it garner millions of views or clicks? Probably not. Will it generate a number of qualified leads and end up in a few cars sold? You betcha!

And that’s what real viral content does. It leads to conversions. It’s not actually traffic you should be seeking – it’s prospects and leads and sales.

Daniel Newman wrote recently about the futility of this “virality Golden Goose.” As he says, you might be thrilled with high vanity metrics, but really, what do those numbers really mean to your bottom line? Usually very little.

Viewed on purpose instead of viral by chance

The inspiration for Daniel’s post mentioned above was the latest incarnation of CMOTalk, which he hosts with V3’s Shelly Kramer. Titled “Viral Content and Community Building”, the two of them discussed this mad rush to create so-called viral content.

You can create all the content you want — viral or otherwise — but, much like the tree falling in the forest analogy, if you haven’t been strategic about building online relationships across multiple channels online, it will never be found and consumed.

CMOTalk

As Shelly and Daniel laid out in their podcast, you get what you give when it comes to community-building. Strong communities don’t happen by accident; you need to be strategic. You need to do your research, and engage in online monitoring and social listening, much like our car dealer friends above did.

Here are some important things to think about when building community:

  • What does my company/client do?
  • What words or phrases do people in this industry use and care about?
  • What are they currently talking about?
  • Where are they hanging out online?
  • What kind of content are they sharing? Can you tease out any trends?
  • Who are the influencers you should begin reaching out to?
  • Who are our competitors?
  • What are they sharing with their communities?

I’ll leave you with a few more things to think about the next time someone asks you to “create viral content:”

Accept that you aren’t a magician. Make friends with Google Analytics to track what types of content have been super-successful in the past. Stay abreast of what’s happening in the world around you, both on the pop culture front and in the news. And engage and use your community. Stay realistic in your approach. Understand your audience. And figure out what you can do that might surprise and delight them.

While you might not end up with 500,000 shares, you might end up with five new customers. And let’s face it: That’s where the real money is.

I strongly recommend you head on over to CMOTalk and have a listen to the entire podcast. I have barely scratched the surface here. And be sure and sign up so you don’t miss an episode!

Are you a person who “wants something to go viral?” Do you agree that community is an integral part of the equation? I would love to hear your thoughts!

Want more smart marketing strategies? See How to Make a Smarter Entry into Emerging Markets.

Additional resources:

The DNA of Viral Content
The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate, You
Why BuzzFeed Has Been Quietly Deleting Thousands of Its Own Stories 

This article was originally seen on V3 Broadsuite Blog.

The post Stop Trying to “Go Viral” – Viral Content Hinges on Community (Podcast) appeared first on Millennial CEO.

Photo Credit: beckirk via Compfight cc

Comments

Phil King

About Phil King

Drawing from his 30 years of experience in IT and public sector organizations, Phil King is the Sales Director for the Public Sector in the UK and Ireland at SAP. He is passionate about working with the public sector to drive innovation that improves people’s lives and makes the world a better place.

Stop Trying To “Go Viral” – Viral Content Hinges on Community

Lindsay Bell-Wheeler

gone viral sign on doorIf you’re anything like me, your head blows off every time you hear the words, “We must create viral content!”

Sorry to break it to you, folks, but you can’t “create” viral anything. Virality doesn’t just happen. It’s not luck of the draw. And it’s bloody hard work.

And if you’ll stick with me here, I’ll explain why.

There’s been a story kicking around for the past few years now, about a car company in small-town America. And not just any old car company. This is a car company that really understands how to build relationships, and by extension, community. Here’s how they do it:

This company monitors Twitter, and whenever they see anyone from their neck of the woods tweeting about a car accident, they reach out. Immediately. And they offer them the use of a car.

With this one small yet significant strategy, they’re absolutely nailing online relationship building. They listen, they react, they care. They’re offering a helping hand, not a hard sell, and their community loves them for it.

Why virality hinges on community

I bet you if that company released a funny video, or published their latest blog content, it would go viral. Why? Because they have built a strong, loyal community based on trust, and that community would be happy to share that content with all of their social communities, and so on.

But here’s where it really get’s interesting: Will that video or blog content end up on CNN, or The Tonight Show with Jimmy Fallon? No. Will it garner millions of views or clicks? Probably not. Will it generate a number of qualified leads and end up in a few cars sold? You betcha!

And that’s what real viral content does. It leads to conversions. It’s not actually traffic you should be seeking – it’s prospects and leads and sales.

Daniel Newman wrote recently about the futility of this “virality Golden Goose.” As he says, you might be thrilled with high vanity metrics, but really, what do those numbers really mean to your bottom line? Usually very little.

Viewed on purpose instead of viral by chance

The inspiration for Daniel’s post mentioned above was the latest incarnation of CMOTalk, which he hosts with V3’s Shelly Kramer. Titled “Viral Content and Community Building”, the two of them discussed this mad rush to create so-called viral content.

You can create all the content you want — viral or otherwise — but, much like the tree falling in the forest analogy, if you haven’t been strategic about building online relationships across multiple channels online, it will never be found and consumed.

CMOTalk

As Shelly and Daniel laid out in their podcast, you get what you give when it comes to community-building. Strong communities don’t happen by accident; you need to be strategic. You need to do your research, and engage in online monitoring and social listening, much like our car dealer friends above did.

Here are some important things to think about when building community:

  • What does my company/client do?
  • What words or phrases do people in this industry use and care about?
  • What are they currently talking about?
  • Where are they hanging out online?
  • What kind of content are they sharing? Can you tease out any trends?
  • Who are the influencers you should begin reaching out to?
  • Who are our competitors?
  • What are they sharing with their communities?

I’ll leave you with a few more things to think about the next time someone asks you to “create viral content:”

Accept that you aren’t a magician. Make friends with Google Analytics to track what types of content have been super-successful in the past. Stay abreast of what’s happening in the world around you, both on the pop culture front and in the news. And engage and use your community. Stay realistic in your approach. Understand your audience. And figure out what you can do that might surprise and delight them.

While you might not end up with 500,000 shares, you might end up with five new customers. And let’s face it: That’s where the real money is.

I strongly recommend you head on over to CMOTalk and have a listen to the entire podcast. I have barely scratched the surface here. And be sure and sign up so you don’t miss an episode!

Are you a person who “wants something to go viral?” Do you agree that community is an integral part of the equation? I would love to hear your thoughts!

Want more smart marketing strategies? See How to Make a Smarter Entry into Emerging Markets.

Additional resources:

The DNA of Viral Content
The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate, You
Why BuzzFeed Has Been Quietly Deleting Thousands of Its Own Stories 

This article was originally seen on V3 Broadsuite Blog.

The post Stop Trying to “Go Viral” – Viral Content Hinges on Community (Podcast) appeared first on Millennial CEO.

Photo Credit: beckirk via Compfight cc

Comments

Richard McLean

About Richard McLean

Richard McLean, regional CFO for SAP Asia Pacific Japan, oversees all key finance and administrative functions for field and regional headquarters, supporting more than 16,000 employees. He has more than 20 years of experience in senior finance roles with leading global companies across a range of industries, including financial services, investment banking, automotive, and IT. He joined SAP in 2008.

Stop Trying To “Go Viral” – Viral Content Hinges on Community

Lindsay Bell-Wheeler

gone viral sign on doorIf you’re anything like me, your head blows off every time you hear the words, “We must create viral content!”

Sorry to break it to you, folks, but you can’t “create” viral anything. Virality doesn’t just happen. It’s not luck of the draw. And it’s bloody hard work.

And if you’ll stick with me here, I’ll explain why.

There’s been a story kicking around for the past few years now, about a car company in small-town America. And not just any old car company. This is a car company that really understands how to build relationships, and by extension, community. Here’s how they do it:

This company monitors Twitter, and whenever they see anyone from their neck of the woods tweeting about a car accident, they reach out. Immediately. And they offer them the use of a car.

With this one small yet significant strategy, they’re absolutely nailing online relationship building. They listen, they react, they care. They’re offering a helping hand, not a hard sell, and their community loves them for it.

Why virality hinges on community

I bet you if that company released a funny video, or published their latest blog content, it would go viral. Why? Because they have built a strong, loyal community based on trust, and that community would be happy to share that content with all of their social communities, and so on.

But here’s where it really get’s interesting: Will that video or blog content end up on CNN, or The Tonight Show with Jimmy Fallon? No. Will it garner millions of views or clicks? Probably not. Will it generate a number of qualified leads and end up in a few cars sold? You betcha!

And that’s what real viral content does. It leads to conversions. It’s not actually traffic you should be seeking – it’s prospects and leads and sales.

Daniel Newman wrote recently about the futility of this “virality Golden Goose.” As he says, you might be thrilled with high vanity metrics, but really, what do those numbers really mean to your bottom line? Usually very little.

Viewed on purpose instead of viral by chance

The inspiration for Daniel’s post mentioned above was the latest incarnation of CMOTalk, which he hosts with V3’s Shelly Kramer. Titled “Viral Content and Community Building”, the two of them discussed this mad rush to create so-called viral content.

You can create all the content you want — viral or otherwise — but, much like the tree falling in the forest analogy, if you haven’t been strategic about building online relationships across multiple channels online, it will never be found and consumed.

CMOTalk

As Shelly and Daniel laid out in their podcast, you get what you give when it comes to community-building. Strong communities don’t happen by accident; you need to be strategic. You need to do your research, and engage in online monitoring and social listening, much like our car dealer friends above did.

Here are some important things to think about when building community:

  • What does my company/client do?
  • What words or phrases do people in this industry use and care about?
  • What are they currently talking about?
  • Where are they hanging out online?
  • What kind of content are they sharing? Can you tease out any trends?
  • Who are the influencers you should begin reaching out to?
  • Who are our competitors?
  • What are they sharing with their communities?

I’ll leave you with a few more things to think about the next time someone asks you to “create viral content:”

Accept that you aren’t a magician. Make friends with Google Analytics to track what types of content have been super-successful in the past. Stay abreast of what’s happening in the world around you, both on the pop culture front and in the news. And engage and use your community. Stay realistic in your approach. Understand your audience. And figure out what you can do that might surprise and delight them.

While you might not end up with 500,000 shares, you might end up with five new customers. And let’s face it: That’s where the real money is.

I strongly recommend you head on over to CMOTalk and have a listen to the entire podcast. I have barely scratched the surface here. And be sure and sign up so you don’t miss an episode!

Are you a person who “wants something to go viral?” Do you agree that community is an integral part of the equation? I would love to hear your thoughts!

Want more smart marketing strategies? See How to Make a Smarter Entry into Emerging Markets.

Additional resources:

The DNA of Viral Content
The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate, You
Why BuzzFeed Has Been Quietly Deleting Thousands of Its Own Stories 

This article was originally seen on V3 Broadsuite Blog.

The post Stop Trying to “Go Viral” – Viral Content Hinges on Community (Podcast) appeared first on Millennial CEO.

Photo Credit: beckirk via Compfight cc

Comments

Catherine Lynch

About Catherine Lynch

Catherine Lynch is a Senior Director of Industry Cloud Marketing at SAP. She is a content marketing specialist with a particular focus on the professional services and media industries globally. Catherine has a wide international experience of working with enterprise application vendors in global roles, creating thought leadership and is a social media practitioner.

Stop Trying To “Go Viral” – Viral Content Hinges on Community

Lindsay Bell-Wheeler

gone viral sign on doorIf you’re anything like me, your head blows off every time you hear the words, “We must create viral content!”

Sorry to break it to you, folks, but you can’t “create” viral anything. Virality doesn’t just happen. It’s not luck of the draw. And it’s bloody hard work.

And if you’ll stick with me here, I’ll explain why.

There’s been a story kicking around for the past few years now, about a car company in small-town America. And not just any old car company. This is a car company that really understands how to build relationships, and by extension, community. Here’s how they do it:

This company monitors Twitter, and whenever they see anyone from their neck of the woods tweeting about a car accident, they reach out. Immediately. And they offer them the use of a car.

With this one small yet significant strategy, they’re absolutely nailing online relationship building. They listen, they react, they care. They’re offering a helping hand, not a hard sell, and their community loves them for it.

Why virality hinges on community

I bet you if that company released a funny video, or published their latest blog content, it would go viral. Why? Because they have built a strong, loyal community based on trust, and that community would be happy to share that content with all of their social communities, and so on.

But here’s where it really get’s interesting: Will that video or blog content end up on CNN, or The Tonight Show with Jimmy Fallon? No. Will it garner millions of views or clicks? Probably not. Will it generate a number of qualified leads and end up in a few cars sold? You betcha!

And that’s what real viral content does. It leads to conversions. It’s not actually traffic you should be seeking – it’s prospects and leads and sales.

Daniel Newman wrote recently about the futility of this “virality Golden Goose.” As he says, you might be thrilled with high vanity metrics, but really, what do those numbers really mean to your bottom line? Usually very little.

Viewed on purpose instead of viral by chance

The inspiration for Daniel’s post mentioned above was the latest incarnation of CMOTalk, which he hosts with V3’s Shelly Kramer. Titled “Viral Content and Community Building”, the two of them discussed this mad rush to create so-called viral content.

You can create all the content you want — viral or otherwise — but, much like the tree falling in the forest analogy, if you haven’t been strategic about building online relationships across multiple channels online, it will never be found and consumed.

CMOTalk

As Shelly and Daniel laid out in their podcast, you get what you give when it comes to community-building. Strong communities don’t happen by accident; you need to be strategic. You need to do your research, and engage in online monitoring and social listening, much like our car dealer friends above did.

Here are some important things to think about when building community:

  • What does my company/client do?
  • What words or phrases do people in this industry use and care about?
  • What are they currently talking about?
  • Where are they hanging out online?
  • What kind of content are they sharing? Can you tease out any trends?
  • Who are the influencers you should begin reaching out to?
  • Who are our competitors?
  • What are they sharing with their communities?

I’ll leave you with a few more things to think about the next time someone asks you to “create viral content:”

Accept that you aren’t a magician. Make friends with Google Analytics to track what types of content have been super-successful in the past. Stay abreast of what’s happening in the world around you, both on the pop culture front and in the news. And engage and use your community. Stay realistic in your approach. Understand your audience. And figure out what you can do that might surprise and delight them.

While you might not end up with 500,000 shares, you might end up with five new customers. And let’s face it: That’s where the real money is.

I strongly recommend you head on over to CMOTalk and have a listen to the entire podcast. I have barely scratched the surface here. And be sure and sign up so you don’t miss an episode!

Are you a person who “wants something to go viral?” Do you agree that community is an integral part of the equation? I would love to hear your thoughts!

Want more smart marketing strategies? See How to Make a Smarter Entry into Emerging Markets.

Additional resources:

The DNA of Viral Content
The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate, You
Why BuzzFeed Has Been Quietly Deleting Thousands of Its Own Stories 

This article was originally seen on V3 Broadsuite Blog.

The post Stop Trying to “Go Viral” – Viral Content Hinges on Community (Podcast) appeared first on Millennial CEO.

Photo Credit: beckirk via Compfight cc

Comments

Stop Trying To “Go Viral” – Viral Content Hinges on Community

Lindsay Bell-Wheeler

gone viral sign on doorIf you’re anything like me, your head blows off every time you hear the words, “We must create viral content!”

Sorry to break it to you, folks, but you can’t “create” viral anything. Virality doesn’t just happen. It’s not luck of the draw. And it’s bloody hard work.

And if you’ll stick with me here, I’ll explain why.

There’s been a story kicking around for the past few years now, about a car company in small-town America. And not just any old car company. This is a car company that really understands how to build relationships, and by extension, community. Here’s how they do it:

This company monitors Twitter, and whenever they see anyone from their neck of the woods tweeting about a car accident, they reach out. Immediately. And they offer them the use of a car.

With this one small yet significant strategy, they’re absolutely nailing online relationship building. They listen, they react, they care. They’re offering a helping hand, not a hard sell, and their community loves them for it.

Why virality hinges on community

I bet you if that company released a funny video, or published their latest blog content, it would go viral. Why? Because they have built a strong, loyal community based on trust, and that community would be happy to share that content with all of their social communities, and so on.

But here’s where it really get’s interesting: Will that video or blog content end up on CNN, or The Tonight Show with Jimmy Fallon? No. Will it garner millions of views or clicks? Probably not. Will it generate a number of qualified leads and end up in a few cars sold? You betcha!

And that’s what real viral content does. It leads to conversions. It’s not actually traffic you should be seeking – it’s prospects and leads and sales.

Daniel Newman wrote recently about the futility of this “virality Golden Goose.” As he says, you might be thrilled with high vanity metrics, but really, what do those numbers really mean to your bottom line? Usually very little.

Viewed on purpose instead of viral by chance

The inspiration for Daniel’s post mentioned above was the latest incarnation of CMOTalk, which he hosts with V3’s Shelly Kramer. Titled “Viral Content and Community Building”, the two of them discussed this mad rush to create so-called viral content.

You can create all the content you want — viral or otherwise — but, much like the tree falling in the forest analogy, if you haven’t been strategic about building online relationships across multiple channels online, it will never be found and consumed.

CMOTalk

As Shelly and Daniel laid out in their podcast, you get what you give when it comes to community-building. Strong communities don’t happen by accident; you need to be strategic. You need to do your research, and engage in online monitoring and social listening, much like our car dealer friends above did.

Here are some important things to think about when building community:

  • What does my company/client do?
  • What words or phrases do people in this industry use and care about?
  • What are they currently talking about?
  • Where are they hanging out online?
  • What kind of content are they sharing? Can you tease out any trends?
  • Who are the influencers you should begin reaching out to?
  • Who are our competitors?
  • What are they sharing with their communities?

I’ll leave you with a few more things to think about the next time someone asks you to “create viral content:”

Accept that you aren’t a magician. Make friends with Google Analytics to track what types of content have been super-successful in the past. Stay abreast of what’s happening in the world around you, both on the pop culture front and in the news. And engage and use your community. Stay realistic in your approach. Understand your audience. And figure out what you can do that might surprise and delight them.

While you might not end up with 500,000 shares, you might end up with five new customers. And let’s face it: That’s where the real money is.

I strongly recommend you head on over to CMOTalk and have a listen to the entire podcast. I have barely scratched the surface here. And be sure and sign up so you don’t miss an episode!

Are you a person who “wants something to go viral?” Do you agree that community is an integral part of the equation? I would love to hear your thoughts!

Want more smart marketing strategies? See How to Make a Smarter Entry into Emerging Markets.

Additional resources:

The DNA of Viral Content
The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate, You
Why BuzzFeed Has Been Quietly Deleting Thousands of Its Own Stories 

This article was originally seen on V3 Broadsuite Blog.

The post Stop Trying to “Go Viral” – Viral Content Hinges on Community (Podcast) appeared first on Millennial CEO.

Photo Credit: beckirk via Compfight cc

Comments

Paul Kurchina

About Paul Kurchina

Paul Kurchina is a community builder and evangelist with the Americas’ SAP Users Group (ASUG), responsible for developing a change management program for ASUG members.

Stop Trying To “Go Viral” – Viral Content Hinges on Community

Lindsay Bell-Wheeler

gone viral sign on doorIf you’re anything like me, your head blows off every time you hear the words, “We must create viral content!”

Sorry to break it to you, folks, but you can’t “create” viral anything. Virality doesn’t just happen. It’s not luck of the draw. And it’s bloody hard work.

And if you’ll stick with me here, I’ll explain why.

There’s been a story kicking around for the past few years now, about a car company in small-town America. And not just any old car company. This is a car company that really understands how to build relationships, and by extension, community. Here’s how they do it:

This company monitors Twitter, and whenever they see anyone from their neck of the woods tweeting about a car accident, they reach out. Immediately. And they offer them the use of a car.

With this one small yet significant strategy, they’re absolutely nailing online relationship building. They listen, they react, they care. They’re offering a helping hand, not a hard sell, and their community loves them for it.

Why virality hinges on community

I bet you if that company released a funny video, or published their latest blog content, it would go viral. Why? Because they have built a strong, loyal community based on trust, and that community would be happy to share that content with all of their social communities, and so on.

But here’s where it really get’s interesting: Will that video or blog content end up on CNN, or The Tonight Show with Jimmy Fallon? No. Will it garner millions of views or clicks? Probably not. Will it generate a number of qualified leads and end up in a few cars sold? You betcha!

And that’s what real viral content does. It leads to conversions. It’s not actually traffic you should be seeking – it’s prospects and leads and sales.

Daniel Newman wrote recently about the futility of this “virality Golden Goose.” As he says, you might be thrilled with high vanity metrics, but really, what do those numbers really mean to your bottom line? Usually very little.

Viewed on purpose instead of viral by chance

The inspiration for Daniel’s post mentioned above was the latest incarnation of CMOTalk, which he hosts with V3’s Shelly Kramer. Titled “Viral Content and Community Building”, the two of them discussed this mad rush to create so-called viral content.

You can create all the content you want — viral or otherwise — but, much like the tree falling in the forest analogy, if you haven’t been strategic about building online relationships across multiple channels online, it will never be found and consumed.

CMOTalk

As Shelly and Daniel laid out in their podcast, you get what you give when it comes to community-building. Strong communities don’t happen by accident; you need to be strategic. You need to do your research, and engage in online monitoring and social listening, much like our car dealer friends above did.

Here are some important things to think about when building community:

  • What does my company/client do?
  • What words or phrases do people in this industry use and care about?
  • What are they currently talking about?
  • Where are they hanging out online?
  • What kind of content are they sharing? Can you tease out any trends?
  • Who are the influencers you should begin reaching out to?
  • Who are our competitors?
  • What are they sharing with their communities?

I’ll leave you with a few more things to think about the next time someone asks you to “create viral content:”

Accept that you aren’t a magician. Make friends with Google Analytics to track what types of content have been super-successful in the past. Stay abreast of what’s happening in the world around you, both on the pop culture front and in the news. And engage and use your community. Stay realistic in your approach. Understand your audience. And figure out what you can do that might surprise and delight them.

While you might not end up with 500,000 shares, you might end up with five new customers. And let’s face it: That’s where the real money is.

I strongly recommend you head on over to CMOTalk and have a listen to the entire podcast. I have barely scratched the surface here. And be sure and sign up so you don’t miss an episode!

Are you a person who “wants something to go viral?” Do you agree that community is an integral part of the equation? I would love to hear your thoughts!

Want more smart marketing strategies? See How to Make a Smarter Entry into Emerging Markets.

Additional resources:

The DNA of Viral Content
The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate, You
Why BuzzFeed Has Been Quietly Deleting Thousands of Its Own Stories 

This article was originally seen on V3 Broadsuite Blog.

The post Stop Trying to “Go Viral” – Viral Content Hinges on Community (Podcast) appeared first on Millennial CEO.

Photo Credit: beckirk via Compfight cc

Comments

Stop Trying To “Go Viral” – Viral Content Hinges on Community

Lindsay Bell-Wheeler

gone viral sign on doorIf you’re anything like me, your head blows off every time you hear the words, “We must create viral content!”

Sorry to break it to you, folks, but you can’t “create” viral anything. Virality doesn’t just happen. It’s not luck of the draw. And it’s bloody hard work.

And if you’ll stick with me here, I’ll explain why.

There’s been a story kicking around for the past few years now, about a car company in small-town America. And not just any old car company. This is a car company that really understands how to build relationships, and by extension, community. Here’s how they do it:

This company monitors Twitter, and whenever they see anyone from their neck of the woods tweeting about a car accident, they reach out. Immediately. And they offer them the use of a car.

With this one small yet significant strategy, they’re absolutely nailing online relationship building. They listen, they react, they care. They’re offering a helping hand, not a hard sell, and their community loves them for it.

Why virality hinges on community

I bet you if that company released a funny video, or published their latest blog content, it would go viral. Why? Because they have built a strong, loyal community based on trust, and that community would be happy to share that content with all of their social communities, and so on.

But here’s where it really get’s interesting: Will that video or blog content end up on CNN, or The Tonight Show with Jimmy Fallon? No. Will it garner millions of views or clicks? Probably not. Will it generate a number of qualified leads and end up in a few cars sold? You betcha!

And that’s what real viral content does. It leads to conversions. It’s not actually traffic you should be seeking – it’s prospects and leads and sales.

Daniel Newman wrote recently about the futility of this “virality Golden Goose.” As he says, you might be thrilled with high vanity metrics, but really, what do those numbers really mean to your bottom line? Usually very little.

Viewed on purpose instead of viral by chance

The inspiration for Daniel’s post mentioned above was the latest incarnation of CMOTalk, which he hosts with V3’s Shelly Kramer. Titled “Viral Content and Community Building”, the two of them discussed this mad rush to create so-called viral content.

You can create all the content you want — viral or otherwise — but, much like the tree falling in the forest analogy, if you haven’t been strategic about building online relationships across multiple channels online, it will never be found and consumed.

CMOTalk

As Shelly and Daniel laid out in their podcast, you get what you give when it comes to community-building. Strong communities don’t happen by accident; you need to be strategic. You need to do your research, and engage in online monitoring and social listening, much like our car dealer friends above did.

Here are some important things to think about when building community:

  • What does my company/client do?
  • What words or phrases do people in this industry use and care about?
  • What are they currently talking about?
  • Where are they hanging out online?
  • What kind of content are they sharing? Can you tease out any trends?
  • Who are the influencers you should begin reaching out to?
  • Who are our competitors?
  • What are they sharing with their communities?

I’ll leave you with a few more things to think about the next time someone asks you to “create viral content:”

Accept that you aren’t a magician. Make friends with Google Analytics to track what types of content have been super-successful in the past. Stay abreast of what’s happening in the world around you, both on the pop culture front and in the news. And engage and use your community. Stay realistic in your approach. Understand your audience. And figure out what you can do that might surprise and delight them.

While you might not end up with 500,000 shares, you might end up with five new customers. And let’s face it: That’s where the real money is.

I strongly recommend you head on over to CMOTalk and have a listen to the entire podcast. I have barely scratched the surface here. And be sure and sign up so you don’t miss an episode!

Are you a person who “wants something to go viral?” Do you agree that community is an integral part of the equation? I would love to hear your thoughts!

Want more smart marketing strategies? See How to Make a Smarter Entry into Emerging Markets.

Additional resources:

The DNA of Viral Content
The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate, You
Why BuzzFeed Has Been Quietly Deleting Thousands of Its Own Stories 

This article was originally seen on V3 Broadsuite Blog.

The post Stop Trying to “Go Viral” – Viral Content Hinges on Community (Podcast) appeared first on Millennial CEO.

Photo Credit: beckirk via Compfight cc

Comments

Konstanze Werle

About Konstanze Werle

Konstanze Werle is a Director of Industries Marketing at SAP. She is a content marketing specialist with a particular focus on the travel and transportation, engineering and construction and real estate industries worldwide. Her goal is to help companies in these industries to simplify their business by sharing latest trends and innovation in their industry.

Stop Trying To “Go Viral” – Viral Content Hinges on Community

Lindsay Bell-Wheeler

gone viral sign on doorIf you’re anything like me, your head blows off every time you hear the words, “We must create viral content!”

Sorry to break it to you, folks, but you can’t “create” viral anything. Virality doesn’t just happen. It’s not luck of the draw. And it’s bloody hard work.

And if you’ll stick with me here, I’ll explain why.

There’s been a story kicking around for the past few years now, about a car company in small-town America. And not just any old car company. This is a car company that really understands how to build relationships, and by extension, community. Here’s how they do it:

This company monitors Twitter, and whenever they see anyone from their neck of the woods tweeting about a car accident, they reach out. Immediately. And they offer them the use of a car.

With this one small yet significant strategy, they’re absolutely nailing online relationship building. They listen, they react, they care. They’re offering a helping hand, not a hard sell, and their community loves them for it.

Why virality hinges on community

I bet you if that company released a funny video, or published their latest blog content, it would go viral. Why? Because they have built a strong, loyal community based on trust, and that community would be happy to share that content with all of their social communities, and so on.

But here’s where it really get’s interesting: Will that video or blog content end up on CNN, or The Tonight Show with Jimmy Fallon? No. Will it garner millions of views or clicks? Probably not. Will it generate a number of qualified leads and end up in a few cars sold? You betcha!

And that’s what real viral content does. It leads to conversions. It’s not actually traffic you should be seeking – it’s prospects and leads and sales.

Daniel Newman wrote recently about the futility of this “virality Golden Goose.” As he says, you might be thrilled with high vanity metrics, but really, what do those numbers really mean to your bottom line? Usually very little.

Viewed on purpose instead of viral by chance

The inspiration for Daniel’s post mentioned above was the latest incarnation of CMOTalk, which he hosts with V3’s Shelly Kramer. Titled “Viral Content and Community Building”, the two of them discussed this mad rush to create so-called viral content.

You can create all the content you want — viral or otherwise — but, much like the tree falling in the forest analogy, if you haven’t been strategic about building online relationships across multiple channels online, it will never be found and consumed.

CMOTalk

As Shelly and Daniel laid out in their podcast, you get what you give when it comes to community-building. Strong communities don’t happen by accident; you need to be strategic. You need to do your research, and engage in online monitoring and social listening, much like our car dealer friends above did.

Here are some important things to think about when building community:

  • What does my company/client do?
  • What words or phrases do people in this industry use and care about?
  • What are they currently talking about?
  • Where are they hanging out online?
  • What kind of content are they sharing? Can you tease out any trends?
  • Who are the influencers you should begin reaching out to?
  • Who are our competitors?
  • What are they sharing with their communities?

I’ll leave you with a few more things to think about the next time someone asks you to “create viral content:”

Accept that you aren’t a magician. Make friends with Google Analytics to track what types of content have been super-successful in the past. Stay abreast of what’s happening in the world around you, both on the pop culture front and in the news. And engage and use your community. Stay realistic in your approach. Understand your audience. And figure out what you can do that might surprise and delight them.

While you might not end up with 500,000 shares, you might end up with five new customers. And let’s face it: That’s where the real money is.

I strongly recommend you head on over to CMOTalk and have a listen to the entire podcast. I have barely scratched the surface here. And be sure and sign up so you don’t miss an episode!

Are you a person who “wants something to go viral?” Do you agree that community is an integral part of the equation? I would love to hear your thoughts!

Want more smart marketing strategies? See How to Make a Smarter Entry into Emerging Markets.

Additional resources:

The DNA of Viral Content
The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate, You
Why BuzzFeed Has Been Quietly Deleting Thousands of Its Own Stories 

This article was originally seen on V3 Broadsuite Blog.

The post Stop Trying to “Go Viral” – Viral Content Hinges on Community (Podcast) appeared first on Millennial CEO.

Photo Credit: beckirk via Compfight cc

Comments

Angelica Valentine

About Angelica Valentine

Angelica is the Marketing Manager at Wiser. Wiser collects and analyzes online and in-store data with unmatched speed, scale and accuracy. She is experienced in strategy and creation for cross-channel content. Angelica is passionate about growing engagement and conversion rates through excellent content. Her work has also appeared on VentureBeat, Bigcommerce, Retail Touchpoints, and more. She holds a Bachelor’s degree in Sociology from Barnard College of Columbia University in New York City.

Stop Trying To “Go Viral” – Viral Content Hinges on Community

Lindsay Bell-Wheeler

gone viral sign on doorIf you’re anything like me, your head blows off every time you hear the words, “We must create viral content!”

Sorry to break it to you, folks, but you can’t “create” viral anything. Virality doesn’t just happen. It’s not luck of the draw. And it’s bloody hard work.

And if you’ll stick with me here, I’ll explain why.

There’s been a story kicking around for the past few years now, about a car company in small-town America. And not just any old car company. This is a car company that really understands how to build relationships, and by extension, community. Here’s how they do it:

This company monitors Twitter, and whenever they see anyone from their neck of the woods tweeting about a car accident, they reach out. Immediately. And they offer them the use of a car.

With this one small yet significant strategy, they’re absolutely nailing online relationship building. They listen, they react, they care. They’re offering a helping hand, not a hard sell, and their community loves them for it.

Why virality hinges on community

I bet you if that company released a funny video, or published their latest blog content, it would go viral. Why? Because they have built a strong, loyal community based on trust, and that community would be happy to share that content with all of their social communities, and so on.

But here’s where it really get’s interesting: Will that video or blog content end up on CNN, or The Tonight Show with Jimmy Fallon? No. Will it garner millions of views or clicks? Probably not. Will it generate a number of qualified leads and end up in a few cars sold? You betcha!

And that’s what real viral content does. It leads to conversions. It’s not actually traffic you should be seeking – it’s prospects and leads and sales.

Daniel Newman wrote recently about the futility of this “virality Golden Goose.” As he says, you might be thrilled with high vanity metrics, but really, what do those numbers really mean to your bottom line? Usually very little.

Viewed on purpose instead of viral by chance

The inspiration for Daniel’s post mentioned above was the latest incarnation of CMOTalk, which he hosts with V3’s Shelly Kramer. Titled “Viral Content and Community Building”, the two of them discussed this mad rush to create so-called viral content.

You can create all the content you want — viral or otherwise — but, much like the tree falling in the forest analogy, if you haven’t been strategic about building online relationships across multiple channels online, it will never be found and consumed.

CMOTalk

As Shelly and Daniel laid out in their podcast, you get what you give when it comes to community-building. Strong communities don’t happen by accident; you need to be strategic. You need to do your research, and engage in online monitoring and social listening, much like our car dealer friends above did.

Here are some important things to think about when building community:

  • What does my company/client do?
  • What words or phrases do people in this industry use and care about?
  • What are they currently talking about?
  • Where are they hanging out online?
  • What kind of content are they sharing? Can you tease out any trends?
  • Who are the influencers you should begin reaching out to?
  • Who are our competitors?
  • What are they sharing with their communities?

I’ll leave you with a few more things to think about the next time someone asks you to “create viral content:”

Accept that you aren’t a magician. Make friends with Google Analytics to track what types of content have been super-successful in the past. Stay abreast of what’s happening in the world around you, both on the pop culture front and in the news. And engage and use your community. Stay realistic in your approach. Understand your audience. And figure out what you can do that might surprise and delight them.

While you might not end up with 500,000 shares, you might end up with five new customers. And let’s face it: That’s where the real money is.

I strongly recommend you head on over to CMOTalk and have a listen to the entire podcast. I have barely scratched the surface here. And be sure and sign up so you don’t miss an episode!

Are you a person who “wants something to go viral?” Do you agree that community is an integral part of the equation? I would love to hear your thoughts!

Want more smart marketing strategies? See How to Make a Smarter Entry into Emerging Markets.

Additional resources:

The DNA of Viral Content
The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate, You
Why BuzzFeed Has Been Quietly Deleting Thousands of Its Own Stories 

This article was originally seen on V3 Broadsuite Blog.

The post Stop Trying to “Go Viral” – Viral Content Hinges on Community (Podcast) appeared first on Millennial CEO.

Photo Credit: beckirk via Compfight cc

Comments

Stop Trying To “Go Viral” – Viral Content Hinges on Community

Lindsay Bell-Wheeler

gone viral sign on doorIf you’re anything like me, your head blows off every time you hear the words, “We must create viral content!”

Sorry to break it to you, folks, but you can’t “create” viral anything. Virality doesn’t just happen. It’s not luck of the draw. And it’s bloody hard work.

And if you’ll stick with me here, I’ll explain why.

There’s been a story kicking around for the past few years now, about a car company in small-town America. And not just any old car company. This is a car company that really understands how to build relationships, and by extension, community. Here’s how they do it:

This company monitors Twitter, and whenever they see anyone from their neck of the woods tweeting about a car accident, they reach out. Immediately. And they offer them the use of a car.

With this one small yet significant strategy, they’re absolutely nailing online relationship building. They listen, they react, they care. They’re offering a helping hand, not a hard sell, and their community loves them for it.

Why virality hinges on community

I bet you if that company released a funny video, or published their latest blog content, it would go viral. Why? Because they have built a strong, loyal community based on trust, and that community would be happy to share that content with all of their social communities, and so on.

But here’s where it really get’s interesting: Will that video or blog content end up on CNN, or The Tonight Show with Jimmy Fallon? No. Will it garner millions of views or clicks? Probably not. Will it generate a number of qualified leads and end up in a few cars sold? You betcha!

And that’s what real viral content does. It leads to conversions. It’s not actually traffic you should be seeking – it’s prospects and leads and sales.

Daniel Newman wrote recently about the futility of this “virality Golden Goose.” As he says, you might be thrilled with high vanity metrics, but really, what do those numbers really mean to your bottom line? Usually very little.

Viewed on purpose instead of viral by chance

The inspiration for Daniel’s post mentioned above was the latest incarnation of CMOTalk, which he hosts with V3’s Shelly Kramer. Titled “Viral Content and Community Building”, the two of them discussed this mad rush to create so-called viral content.

You can create all the content you want — viral or otherwise — but, much like the tree falling in the forest analogy, if you haven’t been strategic about building online relationships across multiple channels online, it will never be found and consumed.

CMOTalk

As Shelly and Daniel laid out in their podcast, you get what you give when it comes to community-building. Strong communities don’t happen by accident; you need to be strategic. You need to do your research, and engage in online monitoring and social listening, much like our car dealer friends above did.

Here are some important things to think about when building community:

  • What does my company/client do?
  • What words or phrases do people in this industry use and care about?
  • What are they currently talking about?
  • Where are they hanging out online?
  • What kind of content are they sharing? Can you tease out any trends?
  • Who are the influencers you should begin reaching out to?
  • Who are our competitors?
  • What are they sharing with their communities?

I’ll leave you with a few more things to think about the next time someone asks you to “create viral content:”

Accept that you aren’t a magician. Make friends with Google Analytics to track what types of content have been super-successful in the past. Stay abreast of what’s happening in the world around you, both on the pop culture front and in the news. And engage and use your community. Stay realistic in your approach. Understand your audience. And figure out what you can do that might surprise and delight them.

While you might not end up with 500,000 shares, you might end up with five new customers. And let’s face it: That’s where the real money is.

I strongly recommend you head on over to CMOTalk and have a listen to the entire podcast. I have barely scratched the surface here. And be sure and sign up so you don’t miss an episode!

Are you a person who “wants something to go viral?” Do you agree that community is an integral part of the equation? I would love to hear your thoughts!

Want more smart marketing strategies? See How to Make a Smarter Entry into Emerging Markets.

Additional resources:

The DNA of Viral Content
The Six Things That Make Stories Go Viral Will Amaze, and Maybe Infuriate, You
Why BuzzFeed Has Been Quietly Deleting Thousands of Its Own Stories 

This article was originally seen on V3 Broadsuite Blog.

The post Stop Trying to “Go Viral” – Viral Content Hinges on Community (Podcast) appeared first on Millennial CEO.

Photo Credit: beckirk via Compfight cc

Comments

Uli Muench

About Uli Muench

Uli Muench is Global Vice President of the Automotive Industry Business Unit at SAP.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.

Comments

Phil King

About Phil King

Drawing from his 30 years of experience in IT and public sector organizations, Phil King is the Sales Director for the Public Sector in the UK and Ireland at SAP. He is passionate about working with the public sector to drive innovation that improves people’s lives and makes the world a better place.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.

Comments

Richard McLean

About Richard McLean

Richard McLean, regional CFO for SAP Asia Pacific Japan, oversees all key finance and administrative functions for field and regional headquarters, supporting more than 16,000 employees. He has more than 20 years of experience in senior finance roles with leading global companies across a range of industries, including financial services, investment banking, automotive, and IT. He joined SAP in 2008.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.

Comments

Catherine Lynch

About Catherine Lynch

Catherine Lynch is a Senior Director of Industry Cloud Marketing at SAP. She is a content marketing specialist with a particular focus on the professional services and media industries globally. Catherine has a wide international experience of working with enterprise application vendors in global roles, creating thought leadership and is a social media practitioner.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.

Comments

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.

Comments

Paul Kurchina

About Paul Kurchina

Paul Kurchina is a community builder and evangelist with the Americas’ SAP Users Group (ASUG), responsible for developing a change management program for ASUG members.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.

Comments

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.

Comments

Konstanze Werle

About Konstanze Werle

Konstanze Werle is a Director of Industries Marketing at SAP. She is a content marketing specialist with a particular focus on the travel and transportation, engineering and construction and real estate industries worldwide. Her goal is to help companies in these industries to simplify their business by sharing latest trends and innovation in their industry.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.

Comments

Angelica Valentine

About Angelica Valentine

Angelica is the Marketing Manager at Wiser. Wiser collects and analyzes online and in-store data with unmatched speed, scale and accuracy. She is experienced in strategy and creation for cross-channel content. Angelica is passionate about growing engagement and conversion rates through excellent content. Her work has also appeared on VentureBeat, Bigcommerce, Retail Touchpoints, and more. She holds a Bachelor’s degree in Sociology from Barnard College of Columbia University in New York City.

Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.

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Integration Of Social Media With CRM In Banking And Financial Services

Luisa Ruppert

Many businesses across industries have integrated social media into their CRM systems early on; some better than others.

It’s not only about the adaptation but knowing how to leverage social media to get the best results and accelerate business growth.

It is common knowledge that the financial sector was highly affected by the global economic crises. Most banks and other financial services providers sustained a substantial loss in customer trust and loyalty. Integrating social media into their CRM systems and putting a considerable amount of effort into social media strategies is one of the ways to rebuild that trust.

Challenges

One of the unique challenges for the entire financial industry is the vast variety of international and national laws and regulations that restrict the integration of social media in a few different ways:

  • Internationally operating banks face various laws that restrict them in one or more countries in actually integrating any type of social media with their CRM system.
  • Industry-specific regulations limit financial institutions in giving financial advice online due to privacy concerns of their customers.
  • All of the available social networks have their own terms and conditions that contain regulations on companies’ communication with customers and prospects.

Due to these limitations, banks are reluctant to adopt any kind of social media as part of their communications strategy. Here are a few examples of what financial institutions might be worried about:

  • Degradation or loss of brand image. Negative feedback and controversial discussions on social media sites can damage the image of financial institutions. This is why it is crucial to have the right resources, expertise and a strategy in place when employing any type of external social media.
  • Waste of energy and resources. Most banks make most of their profit through corporate banking and there is still a predominant opinion amongst the financial industry that social media is more for the individual than for corporations and therefore considered not to be valuable for revenue.

Benefits

In making use of social media and tying their CRM system to social media networks, banks and financial service providers can get closer to their customers, corporate and retail, and find out how to improve services and products. This will positively impact their revenue if the right strategy is in place. Here are a few selected benefits:

  • New opportunities of designing customer-specific offers will emerge through the gathering and analyzing of big data via social CRM system
  • Increased customer satisfaction through engaging with clients on social media platforms and easier management; For example: using social complaints management solutions integrated in CRM systems
  • Encourage P2P (peer-to-peer) Support by establishing discussion forums and communities for customers and interested parties to exchange knowledge and profit from each other. A good suggestion might be to open forums for existing customers via a secure log-in to ensure a higher level of security – This can be an issue when it comes to sensitive financial issues

6 Examples of banks successfully using social CRM

Even though the bank and financial industry are still reluctant to integrate social networks into their CRM, there are a few early adopters and best practice cases in most regions. Below is a brief selection:

In the US American Express has recently delivered a very unique campaign enabled via social CRM. The program the bank developed with Twitter allows AmEx customers to link their bank accounts with Twitter, and by using specific hash tags, customers earn savings from designated partners. This long-term social and brand campaign is focused on rewarding existing customers and since its foundation is social CRM it has a high ROI on media and sales. Another example is Bank of America which uses their Twitter account to track customer relationships and reduce response time to inquiries.

In the EMEA region the Spanish bank Caja Navarra provides customer support via Facebook, Twitter, YouTube and Skype and leverages communities to better understand their customers’ needs. The Jyske Bank in Denmark offers its clients interactive Q&A sessions via a social TV channel. The third European best practice case is First Direct, a UK subsidiary of the global HSBC bank, that leverages Facebook, after experimenting with their own platform, as a place for their customers to exchange advice and receive feedback from peers as well as from the bank itself. The German Deutsche Bank ended up with 27 new customer product ideas after asking their customers to vote on features they are missing in their portfolio.

In APJ the CIMB Bank sees the integration of social media into their communication strategy less as a risk but rather as opportunity to engage their customers with competitions or by letting them decide what their next credit card layout will be.

Considering the mentioned challenges above (and only a few were mentioned), the banking industry is still very reluctant towards any social media and it is unfamiliar territory, for most, as on-site customer service was always first priority. Since the evolution of the internet, however, and the rise of online banks (e.g. ING DiBa in Germany and ING Direct in the USA, now owned by Capital One) without physical locations connecting with customers and prospects in a cost-effective way, online becomes even more crucial. In addition to that it is the changed customer, ‘the social customer’ that banks need to react to.

‘Generation Y’, born early 1980s to the early 2000s, is growing-up to be the key market segment. This generation is doing business mobile on tablets and phones, tweeting the news and sharing customer reviews on the Internet. According to a recent study “more than 40 percent of high-net-worth individuals younger than 50 viewed social media as an important channel for communicating with their banks.” Young people today do not want to take the time to go to a physical location or wait hours on the phone to get service from their banks; if banks do not adapt to the fast-paced world of their customers they will not have a a lot of customers in the future.

Comments

Uli Muench

About Uli Muench

Uli Muench is Global Vice President of the Automotive Industry Business Unit at SAP.

Hack the CIO

By Thomas Saueressig, Timo Elliott, Sam Yen, and Bennett Voyles

For nerds, the weeks right before finals are a Cinderella moment. Suddenly they’re stars. Pocket protectors are fashionable; people find their jokes a whole lot funnier; Dungeons & Dragons sounds cool.

Many CIOs are enjoying this kind of moment now, as companies everywhere face the business equivalent of a final exam for a vital class they have managed to mostly avoid so far: digital transformation.

But as always, there is a limit to nerdy magic. No matter how helpful CIOs try to be, their classmates still won’t pass if they don’t learn the material. With IT increasingly central to every business—from the customer experience to the offering to the business model itself—we all need to start thinking like CIOs.

Pass the digital transformation exam, and you probably have a bright future ahead. A recent SAP-Oxford Economics study of 3,100 organizations in a variety of industries across 17 countries found that the companies that have taken the lead in digital transformation earn higher profits and revenues and have more competitive differentiation than their peers. They also expect 23% more revenue growth from their digital initiatives over the next two years—an estimate 2.5 to 4 times larger than the average company’s.

But the market is grading on a steep curve: this same SAP-Oxford study found that only 3% have completed some degree of digital transformation across their organization. Other surveys also suggest that most companies won’t be graduating anytime soon: in one recent survey of 450 heads of digital transformation for enterprises in the United States, United Kingdom, France, and Germany by technology company Couchbase, 90% agreed that most digital projects fail to meet expectations and deliver only incremental improvements. Worse: over half (54%) believe that organizations that don’t succeed with their transformation project will fail or be absorbed by a savvier competitor within four years.

Companies that are making the grade understand that unlike earlier technical advances, digital transformation doesn’t just support the business, it’s the future of the business. That’s why 60% of digital leading companies have entrusted the leadership of their transformation to their CIO, and that’s why experts say businesspeople must do more than have a vague understanding of the technology. They must also master a way of thinking and looking at business challenges that is unfamiliar to most people outside the IT department.

In other words, if you don’t think like a CIO yet, now is a very good time to learn.

However, given that you probably don’t have a spare 15 years to learn what your CIO knows, we asked the experts what makes CIO thinking distinctive. Here are the top eight mind hacks.

1. Think in Systems

A lot of businesspeople are used to seeing their organization as a series of loosely joined silos. But in the world of digital business, everything is part of a larger system.

CIOs have known for a long time that smart processes win. Whether they were installing enterprise resource planning systems or working with the business to imagine the customer’s journey, they always had to think in holistic ways that crossed traditional departmental, functional, and operational boundaries.

Unlike other business leaders, CIOs spend their careers looking across systems. Why did our supply chain go down? How can we support this new business initiative beyond a single department or function? Now supported by end-to-end process methodologies such as design thinking, good CIOs have developed a way of looking at the company that can lead to radical simplifications that can reduce cost and improve performance at the same time.

They are also used to thinking beyond temporal boundaries. “This idea that the power of technology doubles every two years means that as you’re planning ahead you can’t think in terms of a linear process, you have to think in terms of huge jumps,” says Jay Ferro, CIO of TransPerfect, a New York–based global translation firm.

No wonder the SAP-Oxford transformation study found that one of the values transformational leaders shared was a tendency to look beyond silos and view the digital transformation as a company-wide initiative.

This will come in handy because in digital transformation, not only do business processes evolve but the company’s entire value proposition changes, says Jeanne Ross, principal research scientist at the Center for Information Systems Research at the Massachusetts Institute of Technology (MIT). “It either already has or it’s going to, because digital technologies make things possible that weren’t possible before,” she explains.

2. Work in Diverse Teams

When it comes to large projects, CIOs have always needed input from a diverse collection of businesspeople to be successful. The best have developed ways to convince and cajole reluctant participants to come to the table. They seek out technology enthusiasts in the business and those who are respected by their peers to help build passion and commitment among the halfhearted.

Digital transformation amps up the urgency for building diverse teams even further. “A small, focused group simply won’t have the same breadth of perspective as a team that includes a salesperson and a service person and a development person, as well as an IT person,” says Ross.

At Lenovo, the global technology giant, many of these cross-functional teams become so used to working together that it’s hard to tell where each member originally belonged: “You can’t tell who is business or IT; you can’t tell who is product, IT, or design,” says the company’s CIO, Arthur Hu.

One interesting corollary of this trend toward broader teamwork is that talent is a priority among digital leaders: they spend more on training their employees and partners than ordinary companies, as well as on hiring the people they need, according to the SAP-Oxford Economics survey. They’re also already being rewarded for their faith in their teams: 71% of leaders say that their successful digital transformation has made it easier for them to attract and retain talent, and 64% say that their employees are now more engaged than they were before the transformation.

3. Become a Consultant

Good CIOs have long needed to be internal consultants to the business. Ever since technology moved out of the glasshouse and onto employees’ desks, CIOs have not only needed a deep understanding of the goals of a given project but also to make sure that the project didn’t stray from those goals, even after the businesspeople who had ordered the project went back to their day jobs. “Businesspeople didn’t really need to get into the details of what IT was really doing,” recalls Ferro. “They just had a set of demands and said, ‘Hey, IT, go do that.’”

Now software has become so integral to the business that nobody can afford to walk away. Businesspeople must join the ranks of the IT consultants.

But that was then. Now software has become so integral to the business that nobody can afford to walk away. Businesspeople must join the ranks of the IT consultants. “If you’re building a house, you don’t just disappear for six months and come back and go, ‘Oh, it looks pretty good,’” says Ferro. “You’re on that work site constantly and all of a sudden you’re looking at something, going, ‘Well, that looked really good on the blueprint, not sure it makes sense in reality. Let’s move that over six feet.’ Or, ‘I don’t know if I like that anymore.’ It’s really not much different in application development or for IT or technical projects, where on paper it looked really good and three weeks in, in that second sprint, you’re going, ‘Oh, now that I look at it, that’s really stupid.’”

4. Learn Horizontal Leadership

CIOs have always needed the ability to educate and influence other leaders that they don’t directly control. For major IT projects to be successful, they need other leaders to contribute budget, time, and resources from multiple areas of the business.

It’s a kind of horizontal leadership that will become critical for businesspeople to acquire in digital transformation. “The leadership role becomes one much more of coaching others across the organization—encouraging people to be creative, making sure everybody knows how to use data well,” Ross says.

In this team-based environment, having all the answers becomes less important. “It used to be that the best business executives and leaders had the best answers. Today that is no longer the case,” observes Gary Cokins, a technology consultant who focuses on analytics-based performance management. “Increasingly, it’s the executives and leaders who ask the best questions. There is too much volatility and uncertainty for them to rely on their intuition or past experiences.”

Many experts expect this trend to continue as the confluence of automation and data keeps chipping away at the organizational pyramid. “Hierarchical, command-and-control leadership will become obsolete,” says Edward Hess, professor of business administration and Batten executive-in-residence at the Darden School of Business at the University of Virginia. “Flatter, distributive leadership via teams will become the dominant structure.”

5. Understand Process Design

When business processes were simpler, IT could analyze the process and improve it without input from the business. But today many processes are triggered on the fly by the customer, making a seamless customer experience more difficult to build without the benefit of a larger, multifunctional team. In a highly digitalized organization like Amazon, which releases thousands of new software programs each year, IT can no longer do it all.

While businesspeople aren’t expected to start coding, their involvement in process design is crucial. One of the techniques that many organizations have adopted to help IT and businesspeople visualize business processes together is design thinking (for more on design thinking techniques, see “A Cult of Creation“).

Customers aren’t the only ones who benefit from better processes. Among the 100 companies the SAP-Oxford Economics researchers have identified as digital leaders, two-thirds say that they are making their employees’ lives easier by eliminating process roadblocks that interfere with their ability to do their jobs. Ninety percent of leaders surveyed expect to see value from these projects in the next two years alone.

6. Learn to Keep Learning

The ability to learn and keep learning has been a part of IT from the start. Since the first mainframes in the 1950s, technologists have understood that they need to keep reinventing themselves and their skills to adapt to the changes around them.

Now that’s starting to become part of other job descriptions too. Many companies are investing in teaching their employees new digital skills. One South American auto products company, for example, has created a custom-education institute that trained 20,000 employees and partner-employees in 2016. In addition to training current staff, many leading digital companies are also hiring new employees and creating new roles, such as a chief robotics officer, to support their digital transformation efforts.

Nicolas van Zeebroeck, professor of information systems and digital business innovation at the Solvay Brussels School of Economics and Management at the Free University of Brussels, says that he expects the ability to learn quickly will remain crucial. “If I had to think of one critical skill,” he explains, “I would have to say it’s the ability to learn and keep learning—the ability to challenge the status quo and question what you take for granted.”

7. Fail Smarter

Traditionally, CIOs tended to be good at thinking through tests that would allow the company to experiment with new technology without risking the entire network.

This is another unfamiliar skill that smart managers are trying to pick up. “There’s a lot of trial and error in the best companies right now,” notes MIT’s Ross. But there’s a catch, she adds. “Most companies aren’t designed for trial and error—they’re trying to avoid an error,” she says.

To learn how to do it better, take your lead from IT, where many people have already learned to work in small, innovative teams that use agile development principles, advises Ross.

For example, business managers must learn how to think in terms of a minimum viable product: build a simple version of what you have in mind, test it, and if it works start building. You don’t build the whole thing at once anymore.… It’s really important to build things incrementally,” Ross says.

Flexibility and the ability to capitalize on accidental discoveries during experimentation are more important than having a concrete project plan, says Ross. At Spotify, the music service, and CarMax, the used-car retailer, change is driven not from the center but from small teams that have developed something new. “The thing you have to get comfortable with is not having the formalized plan that we would have traditionally relied on, because as soon as you insist on that, you limit your ability to keep learning,” Ross warns.

8. Understand the True Cost—and Speed—of Data

Gut instincts have never had much to do with being a CIO; now they should have less to do with being an ordinary manager as well, as data becomes more important.

As part of that calculation, businesspeople must have the ability to analyze the value of the data that they seek. “You’ll need to apply a pinch of knowledge salt to your data,” advises Solvay’s van Zeebroeck. “What really matters is the ability not just to tap into data but to see what is behind the data. Is it a fair representation? Is it impartial?”

Increasingly, businesspeople will need to do their analysis in real time, just as CIOs have always had to manage live systems and processes. Moving toward real-time reports and away from paper-based decisions increases accuracy and effectiveness—and leaves less time for long meetings and PowerPoint presentations (let us all rejoice).

Not Every CIO Is Ready

Of course, not all CIOs are ready for these changes. Just as high school has a lot of false positives—genius nerds who turn out to be merely nearsighted—so there are many CIOs who aren’t good role models for transformation.

Success as a CIO these days requires more than delivering near-perfect uptime, says Lenovo’s Hu. You need to be able to understand the business as well. Some CIOs simply don’t have all the business skills that are needed to succeed in the transformation. Others lack the internal clout: a 2016 KPMG study found that only 34% of CIOs report directly to the CEO.

This lack of a strategic perspective is holding back digital transformation at many organizations. They approach digital transformation as a cool, one-off project: we’re going to put this new mobile app in place and we’re done. But that’s not a systematic approach; it’s an island of innovation that doesn’t join up with the other islands of innovation. In the longer term, this kind of development creates more problems than it fixes.

Such organizations are not building in the capacity for change; they’re trying to get away with just doing it once rather than thinking about how they’re going to use digitalization as a means to constantly experiment and become a better company over the long term.

As a result, in some companies, the most interesting tech developments are happening despite IT, not because of it. “There’s an alarming digital divide within many companies. Marketers are developing nimble software to give customers an engaging, personalized experience, while IT departments remain focused on the legacy infrastructure. The front and back ends aren’t working together, resulting in appealing web sites and apps that don’t quite deliver,” writes George Colony, founder, chairman, and CEO of Forrester Research, in the MIT Sloan Management Review.

Thanks to cloud computing and easier development tools, many departments are developing on their own, without IT’s support. These days, anybody with a credit card can do it.

Traditionally, IT departments looked askance at these kinds of do-it-yourself shadow IT programs, but that’s changing. Ferro, for one, says that it’s better to look at those teams not as rogue groups but as people who are trying to help. “It’s less about ‘Hey, something’s escaped,’ and more about ‘No, we just actually grew our capacity and grew our ability to innovate,’” he explains.

“I don’t like the term ‘shadow IT,’” agrees Lenovo’s Hu. “I think it’s an artifact of a very traditional CIO team. If you think of it as shadow IT, you’re out of step with reality,” he says.

The reality today is that a company needs both a strong IT department and strong digital capacities outside its IT department. If the relationship is good, the CIO and IT become valuable allies in helping businesspeople add digital capabilities without disrupting or duplicating existing IT infrastructure.

If a company already has strong digital capacities, it should be able to move forward quickly, according to Ross. But many companies are still playing catch-up and aren’t even ready to begin transforming, as the SAP-Oxford Economics survey shows.

For enterprises where business and IT are unable to get their collective act together, Ross predicts that the next few years will be rough. “I think these companies ought to panic,” she says. D!


About the Authors

Thomas Saueressig is Chief Information Officer at SAP.

Timo Elliott is an Innovation Evangelist at SAP.

Sam Yen is Chief Design Officer at SAP and Managing Director of SAP Labs.

Bennett Voyles is a Berlin-based business writer.

Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.
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CEO Priorities And Challenges In The Digital World

Dr. Chakib Bouhdary

Digital transformation is here, and it is moving fast. Companies are starting to realize the enormous power of digital technologies like artificial intelligence (AI), Internet of things (IoT) and blockchain. These technologies will drive massive opportunities—and threats—for every company, and they will impact all aspects of business, including the business model. In fact, business velocity has never been this fast, yet it will never be this slow again.

To move quickly, companies need to be clear on what they want to achieve through digital transformation and understand the possible roadblocks. Based on my meetings with customer executives across regions and industries, I have learned that CEOs often have the same three priorities and face the same three challenges:

1. Customer experience – No longer defined by omnichannel and personalized marketing.

Not surprisingly, 92 percent of digital leaders focus on customer experience. However, this is no longer just about omnichannel and personalized marketing – it is about the total customer experience. Businesses are realizing that they need to reimagine their value proposition and orchestrate changes across the value chain – from the first point of interaction to manufacturing, to shipment, to service – and be able to deliver the total customer experience. In some cases, it will even be necessary to change the core product or service itself.

2. Step change in productivity – Transform productivity and cost structure through digital technologies.

Businesses have been using technology to achieve growth for decades, but by combining emerging technologies, they can now achieve a significant productivity boost and reduce costs. For this to happen, companies must first identify the scenarios that will drive significant change in productivity, prioritize them based on value, and then determine the right technologies and solutions. Both Mckinsey and Boston Consulting Group expect a 15 to 30 percent improvement in productivity through digital advancements – blowing the doors off business-as-usual and its incremental productivity growth of 1 to 2 percent.

3. Employee engagement – Fostering a culture of innovation should be at the core of any business.

Companies are looking to create an environment that encourages creativity and innovation. Leaders are attracting the needed talent and building the right skill sets. Additionally, they aim for ways to attract a diverse workforce, improve collaborations, and empower employees – because engaged employees are crucial in order to achieve the best results. This Gallup study reveals that approximately 85 percent of employees worldwide are performing below their potential due to engagement issues.

As CEOs work towards achieving these three desired outcomes, they face some critical challenges that they must address. I define the top three challenges as follows: run vs. innovate, corporate cholesterol, and digital transformation roadmap.

1. Run vs. innovate – To be successful you must prioritize the future.

The foremost challenge that CEOs are facing is how they can keep running current profitable businesses while investing in future innovations. Quite often these two conflict as most executives mistakenly prioritize the first and spend much less time on the latter. This must change. CEOs and their management teams need to spend more time thinking about what digital is for them, discuss new ideas, and reimagine the future. According to Gartner, approximately 50 percent of boards are pushing their CEOs to make progress on digital. Although this is a promising sign, digital must become a priority on every CEOs agenda.

2. Corporate cholesterol – Do not let company culture get in the way of change.

The older the company is, the more stuck it likely is with policies, procedures, layers of management, and risk averseness. When a company’s own processes get in the way of change, that is what I call “corporate cholesterol.” CEOs need to change the culture, encourage cross-team collaborations, and bring in more diverse thinking to reduce the cholesterol levels. In fact, both Mckinsey and Capgemini conclude that culture is the number-one obstacle to digital effectiveness.

3. Digital transformation roadmap – Digital transformation is a journey without a destination.

Many CEOs struggle with their digital roadmap. Questions like: Where do I start? Can a CDO or another executive run this innovation for me? What is my three- to five-year roadmap? often come up during the conversations. Most companies think that there is a set roadmap, or a silver bullet, for digital transformation, but that is not the case. Digital transformation is a journey without a destination, and each company must start small, acquire the necessary skills and knowledge, and continue to innovate.

It is time to face the digital reality and make it a priority. According to KPMG, 70 percent to 80 percent of CEOs believe that the next three years are more critical for their company than the last fifty. And there is good reason to worry, as 75 percent of S&P 500 companies from 2012 will be replaced by 2027 at the current disruption rate.

Download this short executive document. 

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Dr. Chakib Bouhdary

About Dr. Chakib Bouhdary

Dr. Chakib Bouhdary is the Digital Transformation Officer at SAP. Chakib spearheads thought leadership for the SAP digital strategy and advises on the SAP business model, having led its transformation in 2010. He also engages with strategic customers and prospects on digital strategy and chairs Executive Digital Exchange (EDX), which is a global community of digital innovation leaders. Follow Chakib on LinkedIn and Twitter