The Importance of Social Media for Customer Retention
Marketers of the biggest brands will tell you that customer retention plays a key role in the profitability and growth of companies
A report by leading management consultancy firm Bain and Company says that a mere 5% increase in customer retention can propel the bottom line of a firm by as much as 95%. The reason is twofold. Firstly, customer retention is far cheaper than new customer acquisition. Plus, customers who trust your brand tend to spend more than new customers.
While these customer behaviours apply to brokers as well, they have a unique challenge. Over the past couple of years, trading has piqued people’s interest. Thousands around the world have registered with brokers, downloaded trading platforms and even tried trading in virtual currencies. But many have never deposited into their live accounts to trade. Their accounts lay dormant even while the financial markets spiked in 2020 and 2021. With the markets declining and economic growth forecasts being lowered for 2022, demo or inactive traders are even more sceptical on starting live trading.
Although these traders are not new customers, they are inactive and do not contribute anything to your profitability. That’s definitely not the kind of customer retention you’d want. So, how do you convert a registered user or even an infrequent trader into a super active one? Here’s where social media can prove to be a very powerful tool.
Unique and Engaging Content
Populate your social media pages with fresh and engaging content. It’s not merely about grabbing attention, but regularly serving your audience content that relates to them, is interesting to read and adds value.
You may have heard about the “Will It Blend?” video campaign launched by blender company Blendtec. The video went viral on YouTube and got millions of views. That was more than a decade ago. On the other hand, Slack has garnered over 460K followers on Twitter, not by theatrics, but just by regularly posting relevant, current and interesting content. That’s the reason their followers actively engage with the brand on social media, which gets them more views on the feeds of their followers’ Twitter networks.
By regularly providing unique and engaging content, you gain trust and encourage your audience to take the next steps to active trading.
Visual Market Analysis
Provide a continuous stream of easy-to-understand visual market analysis. Studies show that the brain processes visuals 60,000 times faster than text. This highlights the importance of visual content. More importantly, research indicates that 65% of people are visual learners. This means visuals not only grab attention, but also are more likely to be retained by the brain. Therefore, visual communication is remarkably more effective for conversion than text alone.
Different Content for Different Audiences
On social media, you can engage with users at different stages of their customer journey or trading lifecycle. The content strategy will need to vary according to these stages. For example, to convert from demo to live trading, the content can be aimed at increasing their confidence. To keep customers trading, there is a need for the consistent flow of reliable market information and analysis. For increased retention, the content needs to address risk management and encourage portfolio diversification.
As any firm transcends geographical boundaries, there is a need to localise content. This is more than simply sharing content in different languages. To boost engagement, the posts need to relate to people from different cultures and align with their values and preferences. For financial companies, this also means keeping the content accurate and compliant, irrespective of language.
While social media is a very powerful tool, the cost of regularly creating unique and engaging content (text and visuals) in different languages can slowly snowball into a huge burden. With the use of cutting-edge technologies, like NLP (natural language processing), ML (machine learning) and AI (artificial intelligence), Autochartist can help increase the effectiveness as well as efficiency of social media campaigns.
With cutting-edge technology solutions, brokers can also automate the publishing of high-quality content across multiple channels and in multiple languages. Contact the team at Autochartist to learn more.