Starting up social media.

• Author: Fields, Nicole

WHEN A BANK THINKS ABOUT USING SOCIAL MEDIA, it should first put itself in its customers' shoes. "Ask yourself: Why would you want to be 'friends' with your bank?" says Matt Wilcox, vice president of interactive services at Zions Bancorp, (assets: $50 billion), Salt Lake City. "What kind of value can you offer your customers through social media? Don't just act as their bank--be the go-to resource for financial tips, advice, giveaways and promotions." Zions operates banking business in 10 states has a reputation for progressive social media presence.

Wilcox also points out that social media interaction should be a two-way conversation, noting that, in addition to sharing information, it is important for financial institutions to ask customers for feedback and insights.

The use of social media by financial institutions has become increasingly relevant during the last year. Pioneering financial institutions have proven that with basic upfront planning and ongoing coordination, it is possible to extend customer relationships and build a community in the virtual world.

Five steps for getting started

Social media should be thought olds a marathon, not a sprint. Managing social media sites requires a long-term commitment of both time and resources. Depending on the engagement levels of your customers, managing social media can range from an hour to several hours a day. It takes time and attention to cultivate relationships through online platforms and demonstrate trustworthiness and responsiveness.

It is also important to enter into social media with a plan in place. There are five critical steps to getting started: monitoring the conversation, developing a strategy, laying the groundwork, integrating marketing and, last but not least, reporting and metrics. Here is more information about each of these steps.

1. Listening to and monitoring the conversation Financial institutions can take a first step into social media by simply listening to what consumers are savings about their brand, their competitors and the industry. You can start listening at any time. In fact, listening prior to developing a strategy can pay dividends by influencing the strategy you decide upon. Listening can be done by using a variety of free and paid tools. Reputable free tools include socialmen-t ion.com. Twitter search or Google alerts.

2. Strategy development

   Developing a social media strategy includes assessing customers' current social activities, determining goals and objectives, and deciding which social technologies to use.

   When considering the launch of a social media presence, you must first take a step back and look at how your target audience interacts online. If you have been lrstening, you will know where customers and prospects are participating online and what topics are top of mind for them, guiding your decision on which social sites to focus. You will also have an understanding of the topics and concerns being discussed in relation to your financial institution and the industry so you can determine conversation topics relevant to your target audience.

   Your goals for social media may be related to reputation management, increasing positive sentiment for the brand or improving customer service, among others. Once you have identified your goals and objectives, you can put together a plan to accomplish them, just as you would with any marketing plan. Deciding on what technology and social sites to leverage to...