Central Mass. Banks Learn Value Of Social Media

A few banks in Central Massachusetts have placed social media at the forefront of their marketing strategies. From top, the Facebook pages of UniBank and Avidia Bank, and Avidia's page on Twitter.

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Citing compliance and regulation concerns, banks have traditionally been slow to adapt to social media as the rest of the world has forged ahead with Facebooking, Tweeting and more.

A 2012 survey by research and investment site Assetinum.com assessed the world's 50 largest banks on a variety of social media factors and determined that most had "amateurish" social media strategies. It found that 27 of them didn't reach half of a possible 100 points in the survey. A third of banks analyzed didn't have active Facebook profiles, and little more than half of those with profiles responded to test requests sent by Assetinum.

Meanwhile, 42 of the banks had Twitter profiles, but half didn't respond to tweets.

In addition, a J.D. Power & Associates analysis found that customers talk extensively in the social media realm about banking processes and that not responding to customer feedback presents a huge missed opportunity for banks, especially those trying to build customer relationships in a highly regulated industry.

Such reports are something Bruce Spitzer, director of communications for the Massachusetts Bankers Association (MBA), is acutely aware of. He recently held a seminar for members titled, "Social Media and the CEO."

"The new marketing paradigm is not speaking at your target audience as you do in traditional advertising, but engaging in a give and take with your target audience, and it's taking a while for some companies, not just banks, to recognize that," he said. "There are also some conservative members of senior management that may be reluctant to present a forum for customers to complain about certain aspects of their business … But smart companies are realizing it's better to engage in that conversation, because it's going on with or without you anyway, (so) why not have the ability to present your point of view and be part of that conversation?"

Janet Amorello, vice president of marketing for Whitinsville-based UniBank For Savings, said the nine-branch bank decided to launch a Facebook page in late 2009, saying it realized social media is not going away and that "ignoring it was not the right answer."

"I think it's yet another way to get your name in front of people," she said. "It's a good way to talk to customers, to take their pulse."

The bank's Facebook page has more than 460 likes, and Amorello and Marketing and Public Relations Coordinator Katie Hunt share posts that include trivia, resources for weather information and the bank's recent charitable sponsorships.

"If all we're doing is selling, people aren't going to listen to us," Amorello said.

Spitzer agrees.

"Users of Facebook expect it to be more social than business," he said. "In fact, Facebook has put up a good deal of barriers to make sure that it's primarily social. So the typical bank, if they're using Facebook properly, would be wise not to do a hard sell of products."

Avoiding pitching products and services also gives banks room to breathe in social media, too, ducking the tough scrutiny of regulators, who Spitzer said have shifted rules governing traditional avenues of advertisement to also cover social media.

Jessica Bonetti, online marketing manager for Hudson-based Avidia Bank, said she avoids compliance issues by not using Facebook to market the bank's interest rates or products.

"We don't write anything that would require disclosure," she said. "If we do advertise anything, it's typically like our mobile banking service," linking users to the bank's website.

Instead, Bonetti makes Avidia's Facebook more of a hub of community news, while sharing information from the bank's newsletter and links to financial news outside the bank.

"I think people tend to start tuning out if you put too much banking in front of them," she said.

Avidia has notched more than 660 likes since its 2009 Facebook launch, and Bonetti said the goal is to spread the bank's name and recognition to as many as possible. Avidia is one of the few banks in Central Massachusetts that has a Twitter presence. But for that, the bank outsources work to a New Hampshire marketing firm.

While most community banks in the region have an active Facebook presence, some, like Commerce Bank & Trust Co. and Webster Five Cents Savings Bank, have so far opted out. Representatives from Webster Five were unavailable for comment.

In a statement, Commerce said it's "weighing options in the social media arena."

Meanwhile, Middlesex Savings is working on a social media strategy it hopes to launch by early summer.

Ashley Waddicor, the bank's marketing project manager, said social media plans were put on hold last year when the person working on them passed away. Waddicor picked up the efforts a few months ago, but said it's been a slow process because she has had to wade through compliance and regulations. Meanwhile, a 13-person task force meets bi-weekly to address concerns from various departments and work on a plan.

Waddicor said she has experience developing social media plans for nonprofits, but her experience at Middlesex has been different.

"This is a whole different animal," she said.
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Editor's note: An earlier version of this story included an incorrect number of UniBank branches.

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