For the first time in three years, there is a decline in positive banking experiences, according to the 2014 World Retail Banking Report from Capgemini. This is partly due to the trend that people between 18 and 34 want to conduct more of their banking through social media. However, most banks are not keeping up in this area.

In the 18-34 age group only 41.7 percent cited positive banking experiences, compared to 63.4 percent of those in other age groups. Banks have incorporated the Internet into their channel mix, and they have done enough to keep their customers satisfied, but now they are expected to go further.

A social banking example
The challenge for banks is to use social channels to revive the personal aspect of their customer experience – and social media fits this perfectly. One bank who did this well is Citibank. The Senior Vice President of Social Media at Citibank, Frank Eliason, realized that security is an important thing to consider, as he knew that giving account information on Twitter would be dangerous.

Here’s how Citibank succeeds at customer service on Twitter: when someone mentions Citibank or Citi in a tweet, the Citibank social team takes the conversation into Direct Messages. Then, they guide the person towards a chat application, so they can easily ask any question they have.

Fit the customer’s style
According to the article, Citibank now speaks with 160 customers each week in conversations that originated on Twitter. The roll out was slow in the beginning, but the bank's managers soon came to realize that the number of customer interactions has not increased, they have just moved from traditional channels to social channels. And now, more of the interactions are being solved. The bank is now getting in touch with the customers in the way customer wants, and in a way that fits the customer’s style. Citibank is looking to expand the service to other social media sites.

All banks should design their customer service in a way that fits their customers. As this world evolves to being populated solely by digital natives, social media fits perfectly with what this generation needs from their banks. To keep up with these needs, Social Media Managers and Marketing Managers in banks should soon find a way to engage with their customers online, measure the results, and analyze to see where there is room for improvement. Engage with your Gen Y and Gen Z customers in a way that fits them. Do it before an other (social) bank does.

One integrated view
To integrate social media data with already existing data, banks need a single view of the customer. Combining external and internal data together in one view makes it easier to define actions for one customer.  With a channel that combines inbound and outbound information, as well as actions, rules and insights about the customer, you can take the appropriate action for every customer. A data-driven customer hub with these features can provide the best results for both the bank and the customer.

Learn more about creating consistent customer experiences.