As prevalent as social media has become in our society, questions remain when it comes to its power in the world of advertising. Most businesses today, including credit unions, have one or more social media accounts and regularly post in the hopes of reaching their prospective customers. Many financial institutions have done the same, but do consumers take into account the information in those posts when making financial decisions?
Generally speaking, when it comes to the internet, people don’t believe everything they read, which is the smart thing to do. However, there are signs that there are those on social media who take the ads they see into account when making a purchase. According to a HubSpot report from Yahoo Money, 71% of consumers are more likely to make purchases based on referrals from social media. So consumers are paying attention to social media ads, but that doesn’t necessarily mean the ads are resonating with them.
For example, members of Gen Z have grown up in a digital world and regularly use smart devices. According to a survey from Raddon Research Insights, 60% of Gen Z individuals use social media to help them make purchasing decisions. However, in that same survey, they found nearly two-thirds of those surveyed said they did not rely on social media for any kind of financial advice. So, while your potential audience may easily see the ad, it is easy for them not to click. What could be the reason for this?
The primary reason behind the response to financial services ads on social media is trust. Earning the trust of potential borrowers is a key hurdle for credit unions to overcome. One solution to this problem is simply to let your consumer base speak for you! Word of mouth has been around even before social media existed, and now that people can share their opinions instantly about a business, it is easy to find out what people think of your business. Consider ways to engage your audience online, and you can begin to earn the trust of potential borrowers and eventually their business.