Understanding the role of social media in bank marketing

Abstract

PurposeThe purpose of this paper is to investigate the role of Web 2.0 and social media in relationship marketing (RM) in banking. The aim is to understand why some banks resist the Web 2.0 trend, how this is aligned with their RM approaches and what the alternative paths for advancing customer relations could be. The paper focuses on the practices of banks in the less‐researched yet dynamically evolving South East European (SEE) region.Design/methodology/approachA qualitative case study approach was employed for this study. In total, three case studies were constructed, describing practices and RM approaches of retail banks in SEE. Data used for the construct of case studies were collected through in‐depth interviews with top management, documentation and banks’ official web sites.FindingsPrimary reasons for refraining from social media included: low customer demand for such form of interaction with banks; concerns over safety of Web 2.0 for banking; and lack of alignment with current RM strategies. While social media were not discarded for the future, they were deemed more appropriate for smaller or younger banks seeking innovative ways to capture market share.Practical implicationsThe paper identifies requirements for the adoption of social media in bank marketing and offers insights on possible alternative RM strategies that combine electronic channels with a personal approach to banking.Originality/valueCase studies offer insights on marketing practices of banks in the SEE region. The paper unveils challenges banks encounter in their RM efforts and their vision of the future of RM in a contemporary online setting.

Social media as a bridge to e-commerce adoption in SMEs: A systematic literature review

“…As a result of this exhaustive research, twenty-eight studies between the years of 2008 and 2013 have been acknowledged that identify the factors that influence SMEs to use social media to adopt e-commerce in different countries throughout the world including the United States, the United Kingdom, Germany, Netherlands, Finland, Romania, Croatia, Australia, New Zealand, India, and Indonesia. The most significant amount of research in this field began to take place in 2011 (Derham et al, 2011;Gligorijevic & Leong, 2011;Handayani & Lisdianingrum, 2011;Harris, Rae, & Misner, 2012;Kuitunen, 2012;Nakara et al, 2012;Zeiller & Schauer, 2011). In contrast, the least number of studies was found in 2009 with only two studies (Blinn et al, 2009;Chua et al, 2009) (Figure 1).…”

“…In fact, company websites started to use richer presentation media by using multiple cues to distribute information, including text, photos and videos, aiming to lead to more positive social judgements, and greater degrees of user trust (Cho, Phillips, Hageman, & Patten, 2009). Companies began to look for leverage into the 'people's Internet' and to gain knowledge to pull the 'likes', 'shares' and 'comments' for profit making (Mitic & Kapoulas, 2012). Nowadays, it is common to see businesses launch 'Facebook' pages, 'Twitter' accounts, 'YouTube' channels and blogs, in an attempt to maintain significance amongst the competition and to create or strengthen links with customers (Mitic & Kapoulas, 2012).…”

“…Companies began to look for leverage into the 'people's Internet' and to gain knowledge to pull the 'likes', 'shares' and 'comments' for profit making (Mitic & Kapoulas, 2012). Nowadays, it is common to see businesses launch 'Facebook' pages, 'Twitter' accounts, 'YouTube' channels and blogs, in an attempt to maintain significance amongst the competition and to create or strengthen links with customers (Mitic & Kapoulas, 2012). They start by creating product pages which users are invited to 'join' in order to 'follow' the products (Coulter & Roggeveen, 2012).…”

Counterfeit purchase typologies during an economic crisis

“…The information gathered through the e-mail questionnaires was processed into categories or themes (Mitic and Kapoulas 2012). The data was divided into categories in order to be analyzed (Kapoulas et al, 2002).…”

Exploring interactive communication using social media

“…For instance, some businesses have utilized social media as an advertising medium to promote products and services to a wider customer base (Hansson, Wrangmo, & Søilen, 2013). Others have attempted to use social media as a communication channel to provide customer support, keep their customers updated about their products and services and publish news releases, thus staying connected with their customers to create and strengthen the bond between them (Mitic & Kapoulas, 2012).…”