Today, brands focus on likes and fans, but rising above the social media noise has never been more difficult. At the same time, financial services firms face a crisis of trust with consumers — a problem social media is particularly well suited to help resolve. What is the trust gap and how can financial services companies leverage social media to close it? In this presentation, you'll find data from Forrester, Edelman and others that define the trust crisis in insurance, banking and financial services and also provide the basis for the solution--using social media to build trust.

1. Rising Above the Noise
Facebook’s EdgeRank and
Solving the Trust Gap
Augie Ray
Director of Social Media Strategy
@augieray

2. More Facebook Fans
Fewer Facebook Fans
Quick Survey:
Less Engagement
More Engagement
@augieray #LLSMC

3. More Facebook Fans
Fewer Facebook Fans
Quick Survey:
Fewer Facebook Fans
More Facebook Fans
@augieray #LLSMC

4. Look! Lots of engagement!
Company #4
Company #3
Company #2
Company #1
0% 50% 100%
Use/Choose/
Recommend
Switch
Not use/
Drop/ Not
Want
Total Insurance Conversation
Volume by Brand
Percentage of Social Media
Conversations by Topic
@augieray #LLSMC

5. Look! A fan surge!
10/22
66,353
11/19
159,577
BankTransferDay
10/20 10/23 10/26 10/29 11/1 11/4 11/7 11/10 11/13 11/16 11/19
170,000
160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
70,000
@augieray #LLSMC

6. All fans are not created equal
High Value Fans Low Value Fans
+$ -$
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7. ∑ Ue We De = Success
The simple Facebook equation
FansA *
@augieray #LLSMC

8. The (slightly less) simple Facebook equation
∑ Ue We De = SuccessFansA * * b
@augieray #LLSMC

9. You’re followed, but are you on Twitter lists?
You’re followed on LinkedIn, but who cares?
It’s not just a Facebook issue
It’s easy to forget that the goal isn’t to be liked
or followed, it’s to earn
attention, consideration, intent, usage and
advocacy.
@augieray #LLSMC

10. Chicken or egg?
1.
2.
3.
Follow/Like
Engagement
Trust
@augieray #LLSMC

11. • Millennials are 4 times more likely than baby
boomers (28 percent vs 7 percent, respectively) to
say they are unwilling to act on the advice of a
financial advisor without first consulting other
sources.
(Accenture)
• 55% say “It’s hard for me to know who to trust
for financial advice.”
(2012 Household Financial Planning Survey, Certified Financial Planner Board of
Standards & Consumer Federation of America)
The trust gap
@augieray #LLSMC

12. The trust gap
Source: Edelman 2013 Trust Barometer
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13. Trust
is strongest
person to
person.
Credit: http://www.flickr.com/photos/mikebaird/

14. Data point: Consumers trust each other
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15. Data point: Consumers don’t trust us
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16. Ameriprise borrows the trust inherent in relationships
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17. Fidelity furnishes community for trusted P2P dialog
Fidelity’s Stock Plan Services communities
allow sponsors to discuss with peers:
• New regulations and industry trends
• Opinions of Fidelity’s products and services
• Administrative best practices
45% of Fidelity's SPS client base registered
to use the site
@augieray #LLSMC

18. Transparency
Increases
trust.
Credit: http://www.flickr.com/photos/thebarrowboy/

19. Data point: Consumers value transparency & honesty
0% 50% 100%
Individual is honest and trustworthy
Individual provides transparency & keeps me informed
Investment track record
Fees or commissions charged
Depth of products & services
Offers products from a variety of companies
Choosing a new advisor: Households w/ $100k to $1mm
Source: National Association of Personal Financial Advisors
@augieray #LLSMC

20. Vanguard lowers barriers in social media
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21. is built with
interaction.
Credit: http://www.flickr.com/photos/jorislouwes
Trust

22. Data point: Social interactions build FP business
Source: July 2012 “Collaborative Advice,” Forrester Research by Bill Doyle
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23. Data Point: Mass affluent engage w/ FinServ content
Source: Influencing the Mass Affluent, LinkedIn and Cogent Research, 2013
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24. Prudential builds relationships between FPs and Clients
• 190% increase in LinkedIn
connections to intermediary
partners, Prudential Retirement’s
key sales channel.
• 161% increase in first-degree
connections, extending reach
and the strength of their
LinkedIn network within target
industries.
190% Increase
Intermediary Partners
161% Increase
1st-Degree Connections
Prudential Retirement worked with PeopleLinx to assist FPs to grow their
networks and engage in an appropriate, results-oriented manner.
• 40% increase in advisor connections
• 30% increase in alumni connections
• 3 opportunities directly sourced
@augieray #LLSMC

25. USAA builds trust with social responsiveness
1 hour
1 hour
2 hours
2 hours
• USAA earns the most trust from its
customers across 246 companies in 19
industries per the Temkin Trust Ratings.
• USAA was one of only 50 companies to
earn the Customer Service Champion
distinction from J.D. Power.
• USAA Bank's Net Promoter Score of 83%
is the highest score among more than 200
brands across 22 sectors.
@augieray #LLSMC

26. Goal: Increase followers of Christopher Taylor, head of Financial
Institutions.
• Posted content
• Banner Ads
• Targeted InMail to
VPs, Owners, Partners & C-
level in FinServ
• 700,000 ad impressions
• 850+ ad clicks
• 1,000 new connections in six
weeks
• Email had open rate of 14% &
CTR of 15%
Zurich creates interactions with content
@augieray #LLSMC

27. increases
trust in
products.
Credit: http://www.flickr.com/photos/jdhancock/
Co-creation

28. Data point: Consumers buy products they helped build
Source: The Collaborative Marketing Future, Crowdtap, 2013
@augieray #LLSMC

29. Barclaycard launched the world's first
community-designed credit card.
• Transparent about
financial performance and engages
cardmember community to build a
better credit card experience.
• More than 50 crowdsourced customer ideas and suggestions
implemented
• Barclaycard’s cardmember community has helped drive customer
retention up 25% versus typical programs, and decreased customer
complaints by 50%
Barclaycard lets customers set product terms
@augieray #LLSMC

30. Build trust:
• Person to person
• With transparency
• With quality interactions
• With co-creation
Thank you!
Augie Ray
@augieray