Social media is risky business

Credit unions have become more aware of the importance of having a strong online presence and many are equipping themselves with the information and talent needed to be successful. In fact, if you are succeeding in today’s business environment, chances are you have an online presence—and having a strong online presence dictates that you become an active participant in the world of social media.

With research showing that seven in 10 Americans are on social media today, and that four out of 10 (39 percent) consumers are influenced to purchase a financial product/service via social media, this channel continues to play a significant role in marketing strategies. International author and keynote speaker, Erik Qualman, summed it up aptly when he said, “We don’t have a choice on whether we do social media. The question is how well we do it.”

As with all other business decisions, there are inherent risks in using social media, particularly when it is used as a channel for advertising a credit union’s products and services. For example, you run the risks of disclosing insufficient information about a credit card or HELOC promotion, omitting the NCUA advertising statement in a share account advertisement or using misleading language to make a product more appealing.

Creating and distributing relevant and timely content, as well as monitoring and measuring engagement numbers are among the key ingredients in doing social media well. But much of that should be left to staff.


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