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    Financial Services · Case

    The Challenge of Improving the Banking Customer Experience in Social Media

    The positive interactions of Lifestyle content neutralize the negative effect generated by the experiences associated with Product and Service in banking.

    Organic activity on social networks plays a very important role within the communication strategy of companies, as it allows them to develop a community of users who identify with the brands.

    The unstoppable advance of technology, and the enormous amount of data being generated in digitization processes, is transforming the way businesses conduct their operations, driving efficiency, productivity and decision-making within organizations.

    In this context, data management significantly affects customer management in a number of ways, influencing the way companies interact with consumers and deepening the ability to deliver personalized products and services, according to their demands and interests.

    Personalization and customer experience

    In turn, personalization has a profound impact on improving the customer experience, which is one of the main drivers of companies’ success in terms of business growth.

    Thus, personalized communication enables targeted marketing campaigns, ensuring that customers receive relevant messages based on their preferences and behavior. In this way, organic media activity, which focuses on the value proposition of companies to their community, contributes medium- and long-term benefits, establishing authentic and lasting connections with their customers.

    Organic activity by content pillar

    So, taking as a reference a company in the banking industry, a category whose Net Promoter Score (NPS) is 8.9% below the market average, the impact generated by the organic activity of content on social networks is analyzed according to the three strategic pillars of brand content: Product, Service and Lifestyle.

    Chart 1
    NPS by industry
    NPS index by industry; market average = 1.00
    Professional services
    1.67
    Manufacturing
    1.47
    Health
    1.38
    Retail
    1.29
    Construction
    1.29
    Consumer services
    1.21
    Automotive
    1.14
    Technology
    1.07
    Travel
    1.01
    Media & entertainment
    1.00
    Financial services
    0.98
    Delivery
    0.88
    Banking
    0.91
    Hospitality
    0.84
    Telco
    0.68
    Utilities
    0.45
    Hover or tap a bar to see the detail.
    Source: naawa, 2024.
    View data
    NPS
    Professional services1.67
    Manufacturing1.47
    Health1.38
    Retail1.29
    Construction1.29
    Consumer services1.21
    Automotive1.14
    Technology1.07
    Travel1.01
    Media & entertainment1.00
    Financial services0.98
    Delivery0.88
    Banking0.91
    Hospitality0.84
    Telco0.68
    Utilities0.45

    Companies should consider that the development and growth of a community on social networks is based on establishing a good customer experience with the brand and an emotional bond with the users.

    On the one hand, this company’s main objective is to minimize the negative comments that users make about the brand; and, on the other hand, to increase the net balance of users on social media, mainly on Facebook and Instagram, the latter an aspirational social network, in which brands are a natural reference of the community’s lifestyle.

    Thus, with a 50% distribution of organic content activation on both platforms, 46% of organic activity is distributed under the Lifestyle pillar, 36% under Service, and the remaining 17% under Product.

    Chart 2
    Content pillars: posts and comments
    Distribution by pillar of organic activity and of negative (−) and positive (+) comments
    All content (FB + IG)
    46.4%
    36.1%
    17.4%
    Negative comments · Facebook
    16.6%
    29.7%
    53.7%
    Negative comments · Instagram
    12.9%
    45.2%
    41.9%
    Positive comments · Facebook
    61.7%
    35.3%
    Positive comments · Instagram
    93.6%
    Hover or tap a segment to see the detail.
    Source: naawa, 2024.
    View data
    LifestyleServiceProduct
    All content (FB + IG)46.4%36.1%17.4%
    Negative comments · Facebook16.6%29.7%53.7%
    Negative comments · Instagram12.9%45.2%41.9%
    Positive comments · Facebook61.7%3.0%35.3%
    Positive comments · Instagram93.6%3.7%2.6%

    Between 80% and 90% of the negative comments are concentrated on Product and Service, while the Lifestyle pillar drives up to 93.6% of the positive comments on Instagram, neutralizing the negative impact of the bank’s Product and Service offering.

    Followers and positive mentions

    Applying machine learning techniques, it is observed that 8 out of every 10 new incremental followers generated by the bank on Instagram come from organic content within the Lifestyle pillar, and only 2 from Product. This makes the growth of the brand within the community on this platform unviable in the medium term, as the low positive contribution of Product and Service, vital in the bank, on new users limits the final net balance. Also, the Lifestyle pillar on Instagram generates 1 out of every 2 positive mentions of the brand, while Product generates the rest, with Facebook contributing 2 out of every 3 positive mentions, and Instagram just one.

    Chart 3
    Where the brand’s new Instagram followers come from
    79.9%
    Instagram · Lifestyle (+)
    20.1%
    Instagram · Product (+)
    Source: naawa, 2024.
    Chart 4
    Where the brand’s positive mentions come from
    49.7%
    Instagram · Lifestyle (+)
    34.1%
    Facebook · Product (+)
    16.3%
    Instagram · Product (+)
    Source: naawa, 2024.

    The impact on NPS and revenue

    In addition, it is worth noting that, among other studies, the London School of Economics (LSE) estimated that an average increase of 7 points in NPS correlates with a 1% increase in revenue, highlighting the importance of delivering good service and tailoring products to the real needs of customers.

    In other words, the negative experience with the bank reported by users on social networks, in terms of Product and Service, limits the organic growth of the community in a sustained way, something that is also reflected in the lower NPS levels of the Banking category.

    This implies a strategic need for the bank to boost the improvement of customer relations, which is fundamental to consolidate the bank’s growth.

    Therefore, the implementation of machine learning techniques allows, on the one hand, to identify the contribution of companies’ organic activity on social networks and, on the other hand, to establish realistic benchmark indicators that maximize profitability and strengthen organizations’ revenue growth strategies.

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