On Friday, I met with the team that’s putting together the social media report to discuss initial findings. It’s going to be a great report, featuring reviews of the social media features of all of the firms we cover for our Monitor services, as well as some others outside our coverage group (like Quicken) that we feel are worth understanding. Our research reveals a few overarching themes that firms need to consider:

• Financial services firms have a long way to go using social media– Well, not all of them, certainly, and we’ll be showing some excellent examples of social media by such firms as Zecco and Quicken. But, as an industry, financial services hasn’t yet reached the potential offered by social media.
• To be successful in social media, financial services firms MUST come to terms with the compliance department – Notice I didn’t say they must beat down the compliance department. Given recent events on Wall Street, compliance areas will likely be strengthening. However, marketers and e-commerce teams need to figure out a way to work with compliance. Other firms have done it and it will likely prove helpful to study their implementations as a means to educate more restrictive compliance departments. In our report, we’ll be sharing the compliance and disclosure statements that some of your competitors post with their social media content.
• The “Field of Dreams” Strategy Won’t Work – Building it no longer guarantees that they will come; there’s simply too many other sites out there competing for the financial consumer’s attention. Firms need to figure out how to get people to their social media sites and encourage their use. In the report, we review one site (AXA) that has the foundation for an interesting social media site, but practically no activity. If tumbleweeds existed in the Internet, they’d be blowing through this site. Part of the solution here is for firms to understand their target audience (will seniors use an online social site?) as well as competitor offerings – both traditional and non-traditional (if seniors are willing to go online, is AARP beating financial firms to the punch?).
• Start Small – Rome wasn’t built in a day, nor can a comprehensive and effective social media strategy be launched in one feel swoop. It’s much simpler to start with a smaller component (e.g., a blog) than to launch multiple, complex initiatives simultaneously (if that’s even appropriate at all). Wells Fargo started small when it launched its Guided by History blog in March 2006. The firm has steadily expanded its social media efforts since then. Don’t be afraid to follow the same model.

Our report, which will be completed in a few weeks, will walk readers through the good, the bad, and the ugly when it comes to how financial services firms have implemented social media strategies. If you’re interested in purchasing a copy, please contact Jaclyn Silverbeg via email at jaclyn.silverberg <at> corporateinsight.com or by phone at 212-832-2002 x.127.