The Mintel study also found that of those consumer using social media, 43% report using social networking sites for purposes other than connecting with friends and family.  Mintel concluded based on this finding that the diverse number of ways people use such sites leaves a window open for financial institutions to make meaningful connections with unlikely customers and build loyalty with current ones.

Supporting this conclusion, the survey reported that 22% of consumers said that they think that social media sites help them make good decisions about purchases, and an equal number say that social networking sites help them make good decisions about their life in general.  Given the size of this segment, Mintel suggests that a sizeable portion of consumers are likely to be receptive to social marketing from financial institutions that offer tips and advice for making financial decisions.

"Nearly one in three social network users value the opinions and recommendations of family and friends over industry experts, or any other source of information," notes Susan Menke. Ideally, banks can create social networking sites that allow established customers to recommend their bank and its services to friends and family, effectively building relationships with consumers they might not otherwise reach.  Menke adds, "Banks can take advantage of that established trust to promote confidence in their brands."

Mintel's research also suggests that the most effective ways for financial companies to engage consumers on social networking sites is to offer incentives, such as coupons to local businesses or donations to social causes.

"Social media is a relatively new channel for many financial companies, but indications are that it can be a very effective way to reach consumers," states Susan Menke.

About Mintel Comperemedia