At the Dublin Chambers of Commerce business owners network meeting last Friday Roel van Veggel the General Manager of RaboDirect.ie gave a very interesting presentation about how RaboDirect is coping in a very difficult banking market and how they are using social media as part of their marketing efforts. RaboDirect is a savings only bank and does not have a loan book but as a foreign bank with no government guarantee trust is very important.

We talk a lot about trust in social media because the more you trust a brand online the more you will want to do business with them. Only 14% of people trust advertisements so you can see why companies such as Rabodirect are using social media to promote their services.

RaboDirect is aware that trust has gone way down in banks but banks don’t openly talk about this. As RaboDirect is the straight talking bank they decided to set up a website that would allow people to talk the truth about financial issues and get help with some answers. They were even braver than this as they allowed people to discuss relationship, personal, professional and ‘other’ type issues. Certainly not the type of thing a traditional bank would do!

Roel said that they are getting new accounts opened because of this site. There are several reasons that would explain this:

a). You don’t go to a bank website to read but you may go to truthbank.ie and when you’re there you can open up a bank account.

b). RaboDirect stick out more as different than other banks and it makes them appear more approachable and friendly.

c). It’s another site to get more traffic, more traffic = more leads.

d). There is a whole section for money related issues so there’s a good chance a selection of these people may still have money to save!

[singlepic id=60 w=320 h=240 float=center]On the site they also include some pictures of their team in RaboDirect. This shows that even an internet bank has real people and these are based in Dublin. This is very important for a foreign internet bank. This is also good for the brand so show it’s not a big corporate you’re dealing with it’s an individual. A lot of social media is about getting access to real people. What’s also nice is they each give their own statement of truth!

RaboDirect have also done some work on Facebook and they have a facebook page with over 3,000 fans. That’s not bad for a bank in a time when banks in general they don’t really have many fans. Over time Rabo should add functionality within the page to open up an account. When people are in facebook the prefer to stay in facebook, having the ability to open an account within facebook will increase the number of accounts open.

On twitter they have 270 followers but as Roel said they (like many other companies) are just trying it out to see how beneficial it can be. Why would people follow Rabodirect on twitter? It won’t be to hear about their savings account but they could promote other organisations that are providing good deals. Maybe even their finance guys could provide some analysis on why they are good deals. Just a thought!

You will also find blogs, webinars, newsletters, podcasts (typically voice recorded material), contributions onf forums (e.g.Askaboutmoney) and much more to help keep in touch with new and potential customers.

Roel and his team have not ignored traditional marketing but have a more integrated approach using a variety of communication tools. They do view social media as important part of their marketing strategy going forward. It’s not something any company can ignore. You don’t have to use twitter, facebook etc but you do have to recognise that people are online talking about your product and brand and if you’re not involved then you can’t influence.

I don’t recommend that companies get rid of their current marketing strategy but I recommend that you add social media to your mix. Over time you will add more and more social media to the mix as you see the benefits. RaboDirect are a company that have embraced social media and are now seeing the benefits. Is it time that you should consider this more seriously? What are your thoughts?