Less than one percent of financial institutions have a blog according to a new report from Javelin Strategy & Research.
According to the study of more than 3,500 consumers, one in five online consumers read blogs. The report found that banks are losing control of discussion about themselves in the blogosphere. Javelin says that bankers will find that none of the traditional customer interaction rules apply to blogging and that blogging offers an important, low-cost marketing benefits available through no other avenue.
James Van Dyke, President and Founder of Javelin, notes, “Blogs are quickly becoming vital to many consumers that seek advice or opinions on a variety of topics with a more informal tone.”
“Financial Institutions need to realize that brand management, customer-centricity and loyalty can be strengthened through a blog at relatively little cost, but only if the new rules are understood by established bankers.”
The study also found that 34 percent of tech savvy consumers read blogs and 20 percent of all online consumers read blogs. As social media becomes more wide spread, it impacts the financial lives of consumers and blogging is an extension of social media.
According to study author and research analyst Jean Garascia, “Blogging only brings risks to financial services executives that are unprepared, and banks must not miss out on a way to positively impact their brand through this unique online communication mode by dismissing it without a full evaluation.”
“Successful blog sites require preparation and research of both consumers and peers, and can pay big dividends through higher customer interaction levels.”
