Special thanks to Laura Newman in our sister program, the Communications Executive Council, for inspiration on this topic by way of her original post on the CEC Insider blog.
As my past posts indicate, I spend a lot of time waxing poetic about social media and its expanding role in business-to-business marketing. My research coworkers and I have heard a lot of reasons for why some companies are not yet pursuing new media strategies with gusto - despite recognizing their importance. Reluctance is based on a variety of things including lack of internal support, lack of knowledge or expertise, lack of resources, and the list goes on. Another worry we sometimes hear - particularly from financial services firms - is the challenges of pursuing social media in a regulated industry.
It is true, marketers in highly regulated industries, like financial services, have less creative license than those in other fields. After all, rates and returns are what they are - no room for embellishment. All outgoing communications need to be precisely crafted and vetted by the legal department to ensure they comply with the letter and spirit of the law. The idea of increasing the volume and informality of consumer/customer contact makes many financial institutions feel a bit woozy. However, this doesn't make social media a No Man's Land for companies working within regulation constraints.
It is true that financial services firms have to be more careful and can't just allow employees to blog or Tweet willy-nilly about any topic they choose. But honestly, that is true for every company in social media. Lest you need a reminder, I offer this now infamous example from Detroit. Social media it should be part of a larger strategy, not a stand-alone, or bolt-on activity without a clear business objective and guided by the same principles that overlay all your marketing efforts.
Our sister program, the Communications Executive Council offers some advice on Social Media policy for highly regulated industries. Three key tips include:
- Put a formal policy in place - keep it short, sweet, and linked to your overall code of conduct.
- Be a good listener - customers are talking about you whether you are in social media or not. Even if you initially choose not to actively communicate through social media, it is a fantastic opportunity to know what is being said about you.
- Befriend the lawyers - internal cooperation from your legal team is a must. Educating them is top priority.
For a more in-depth take, check out the Forbes.com article, Social Media: Rules for Jittery Execs, penned by two CECers.
A request to those in regulated industries like Financial Services and Insurance - tell me more about what you are doing using new channels like social media. Whether you have made progress on establishing internal processes or have early success stories about engaging customers through these non-traditional channels, I want to know. Email me or use the comments section below.