Most credit card industry professionals believe social media will become a “significant factor” in customer service, with Twitter and Facebook outpacing blogs as the most popular methods for card brands to connect with consumers, suggest the results of a survey Firstsource Solutions conducted recently.
The customer-service and collections firm, headquartered in Mumbai and New York, conducted its own one-on-one interviews of 100 executives attending Card Forum & Expo in Miami Beach, Fla., April 27 to 29. SourceMedia Inc., publisher of PaymentsSource, sponsors the annual event.
The survey results suggest social media is a hot button for the card industry.
Nearly three-quarters, or 74%, of respondents agreed that social media will become a “significant factor” in customer service. Some 66% of respondents said social-media platforms already play a critical role in enhancing customer experiences.
Thirty-three percent of respondents said their organizations use Twitter to connect with customers and monitor online conversations about their brands, while 30% use Facebook to do so. Only 20% of respondents use blogs, while 18% use video-sharing or other forms of social media to communicate with customers.
“Despite contrary belief, social-media adoption has become much more sophisticated in the payments industry,” Tim Smith, Firstsource senior vice president, banking financial services and insurance, said in a press release. “Banks and credit card issuers are using social-media platforms not only to improve the customer experience but to develop new products and service offerings based on customer preferences.”
Asked which regulatory issues preoccupied them, 45% of respondents said they were concerned about new financial rules and regulations prompted by the Dodd-Frank Act, while 9% cited the Credit Card Accountability, Responsibility and Disclosure Act, which went into effect last year.
Half of respondents surveyed said they expect to see continued growth in the prepaid card industry, and 30% said they expect consumers to continue to load greater amounts of funds into prepaid card accounts. But 40% of respondents said they expect increased scrutiny from regulators regarding reload fees and other costs associated with prepaid cards.
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