The Need For Nigerian Banks To Operate A Personalized Banking System Through The Use Of Social Media

Published 8 months ago
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Over the past two decades, Nigeria’s banking sector has undergone a remarkable transformation, with technological advancements reshaping customer interactions and touchpoints. Today, the number of youths visiting bank branches can be counted on a single hand, as social media platforms have become more accessible and convenient channels for communication. This digital era has made social media an integral part of people’s lives, presenting an opportunity for Nigerian institutions to adapt to this paradigm shift. Embracing personalized banking solutions on social media is crucial for maintaining relevance and enhancing productivity.

The Evolving Landscape

Physical bank branches are witnessing a footfall decline as customers prefer the convenience of interacting with banks through social media platforms. To keep up with these changes, Nigerian institutions have begun leveraging social media handles on platforms such as Facebook, Instagram, and Twitter. This presence allows them to promote their brand, enhance visibility, cater to customers’ needs, offer real-time banking services, and keep customers informed about the latest developments.

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Embracing Technological Advancement

With the rise of cryptocurrencies and alternative financial solutions, banks must act as financial facilitators to promote generational wealth and progress. This entails realigning their goals and objectives to embrace the inevitable transformation of the banking system.

Personalized Banking Via Social Media

Direct engagement with customers and potential clients on social media has the potential to revolutionize the banking industry’s approach. Participating in events like fashion shows, sports and athletic competitions, art exhibitions, concerts, and more can foster strong connections and enhance brand loyalty.

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Effective Social Media Marketing Strategies

To excel in social media marketing, banks must focus on these key areas:

  1. Understanding the Market:

Markets are constantly evolving and never remain the same. Staying abreast of market trends, consumer preferences, and insights is crucial for banks to modify and develop their offerings accordingly. One can accomplish higher sales or give sales a major boost by promoting the services and products offered to prospective customers, however, permanent growth requires continuous refinement based on insights.

2) Leveraging Influencers:

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Building a brand from scratch demands time and consumer trust. A key strategy for expanding the brand’s reach is to find influential personalities who have a large and active social media base. These may include fashion icons, film actors, athletes, celebrities, journalists,  artists, and more. Leveraging their influence, these individuals can act as brand ambassadors, effectively marketing the brand to their followers and potentially changing their opinions which can further amplify the bank’s brand reach and credibility.

3) Competitor Analysis:

Monitoring competitors’ online activities offers insights for innovation and refining marketing strategies. Monitoring online conversations about competitors’ products, campaigns, and more offers invaluable insights. Analyzing competitor activities on social media can provide valuable insights to develop innovative marketing strategies. As the business landscape evolves, staying ahead necessitates constant monitoring of the digital sphere and utilizing the data to refine our approach and engage with customers more effectively.

4) Promoting Engagement:

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Creating engagement platforms like fashion shows, sports events, mentorship/empowerment and talent programs encourages audience interaction and dynamic marketing approaches. These initiatives encourage active audience involvement and interaction, fostering a more dynamic and effective marketing approach.

Customer-Centric Approach

Customer feedback and reviews on social media informs content tailored to specific segments, enhancing digital outreach and customer engagement. To thrive in this environment, businesses must be attentive to what consumers are saying about them. Conducting customer satisfaction surveys and seeking feedback are crucial practices in this regard. The views and sentiments expressed on social media about a company play a significant role in its growth and can be used to improve existing products or design new ones to cater to specific needs.

Understanding customer requirements is paramount. Banks must target key audiences with relevant content at every stage of their customer journey. Digital channels offer cost-effective means to approach potential customers with precision. Customers can now create accounts and apply for loans using their mobile devices while at work, making digital outreach essential.

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Social media plays a crucial function in marketing banking services. With improved advertising and compliance support, banks have ample opportunities to establish meaningful connections and attract targeted audiences, thus achieving their business objectives. Given the ubiquity of social media, it should be an integral part of a bank’s overall marketing strategy as it allows for the establishment and cultivation of valuable relationships with customers. Embracing social media’s potential can lead to enhanced engagement and long-term customer loyalty.

In Conclusion

Amid globalization and competition, allocating a budget for social media marketing or establishing one is imperative. Adopting a long-term approach to building a strong and engaged customer base makes social media a mutually beneficial strategy for all parties involved. As consumer behaviors evolve, a robust social media presence is vital for relevance and competitiveness.

In the current landscape, social media offers protection against various forms of misuse by providing privacy policies, terms of service, and technical functionalities that cover everything from safeguarding confidential content to tackling illegal activity and offensive behavior. To ensure further protection, these rules can be prominently displayed in designated sections of the bank’s social media profiles and on their official website.

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By embracing social media with a well-structured approach and adhering to best practices, banks can enhance their outreach, engage customers more effectively, and build a positive brand reputation in the digital space. As consumer behaviors continue to evolve, maintaining a strong social media presence becomes increasingly vital for staying relevant and competitive in the banking industry. Embracing personalized banking solutions through social media is imperative for Nigerian institutions to enhance productivity and retain relevance in an ever-changing world.

By investing in social media marketing and engaging with customers effectively, banks can establish strong relationships, cultivate loyalty, and foster long-term growth. As the digital landscape evolves, social media will continue to be a critical component of a successful bank’s marketing strategy.

Nnenna Kayode-Lawal is an accomplished Head of Corporate Bank with diverse experience in Corporate Finance, Investment Banking, Commercial/Retail Banking, Banking Operations, Business Strategy, Financial Analysis and Marine Financing.

She graduated from University of Nigeria Nsukka, Alumna of University of Cambridge, University of Leicester and University of California, Berkeley HAAS School of Business.  She is a Transformation and Executive Coach with 24 years experience in the Banking Industry.

She is passionate about empowering the youth and women. As a wife and mother of two lovely daughters, she is committed to driving positive change in the banking sector.

DISCLAIMER: Brand Voice is a paid program. Articles appearing in this section have been commercially supported.