Despite priding themselves on conducting customer surveys offline for many years, banks have found it difficult to harness the ‘two-way’ nature of social media and actively engage with customers online. Historically this could have been a result of the stigma attached to discussing personal finances in public, but much of this has been removed by the arrival of the ‘comparison’ sites and money forums.  More recently, as this has been a tough year for the banks, (irrespective of who is to blame) some have steered well clear of the social media arena, through fear of being pilloried. All, that is, save one.

Perhaps recognising that there is a natural synergy between their business model and social networking, First Direct – the internet-only bank – have tackled consumer participation head-on, creating an environment on their site for customers and non-customers to post their thoughts on the bank and its service-provision. This is unquestionably a pioneering move. Most in the financial services industry have tried to avoid this form of customer interaction owing to an ill-placed preconception in the minds of brand-owners that social media has an inherently negative angle (with people only posting when they are unhappy). By hosting a forum for discussion, crucially stating that they cannot respond, First Direct have roundly disproved this thought-process. Yes, there are negative comments, but First Direct see the value in this feedback.

Consumer admiration and customer loyalty can be difficult commodities to acquire in the financial services industry. However First Direct have taken considerable steps to achieve both (with first-rate feedback thrown-in). By directing the ‘chatter’ that takes-place on the internet and bringing it in-house, not to moderate it, but to accept that people’s buying decisions are increasingly influenced by their ‘peer group’, First Direct have taken a brave, but most-likely rewarding step. Somewhat appropriately, the move can be best summed-up by one of the existing posts: ‘I am impressed both with the innovative concept of this, and the willingness of some customers to ‘defend’ their bank against criticism. Not many brands I have experience of have achieved that.’

Fortune Favours the Brave…