Social media is changing the way organizations communicate with customers (Wright & Hinson, 2008). Evidence shows that social media continues to grow and new technological advancement of devices such as mobile phones, are facilitating communication on social sites. Using modern technology is important for the adaptation of new banking products and services; modern technology plays a critical role in the increased competition for preservation and/or expansion of market segments (Balaceanu, 2011). Banks are starting to know that consumers like to hear from them, so banks are placing an emphasis on online communication (Balaceanu, 2011). The quick availability of Internet on many devices has facilitated consumer’s use of social media sites. Social media has become a normal daily routine for many consumers.
Social media also brings an important tool for banks to gather information using analytical data on social sites. Analytical programs track readers’ use of websites and show a writer the customer’s interest in order to revise content quickly (McEachern, 2011). Common social media sites that offer analytics include Google Analytics, QR Code Analytics, Facebook Insights, and YouTube Analytics. Analytics can assist financial institutions to gather consumer habits, location of traffic, age, amount of visitors, and much more. These built in programs can help businesses who promote certain products or services targeted towards a particular demographic group. Analytics data also helps determine where most of the traffic generated on online social sites comes from, thus facilitating the location where businesses can promote future products or services. Facebook has a built in analytical program for business pages that gives administrators critical information for decision-making, such as (Facebook.com, 2012):
- How many visits is it getting?
- Is it grabbing attention?
- How long did they stay on their visit?
- Is it persuasive enough?
- How many times did they come back?
- Was a sale made?
- Age, sex, location?
- What day of the week was it?
- Where are most visitors located?
- What kind of device did they visit from?