Technology

Social Media Risks and Rewards

Social media strategies can give your CU marketplace legitimacy.

January 12, 2011
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A hot topic of our times is how to make the best use of social media. To start, you must understand the terms.

“Media” means methods of communication—whether for social or business reasons—typically between people in different locations and not involving a face-to-face meeting. The communication can be for social, business, or other purposes, and can be anything from one-way communication to multidirectional, real-time interaction.

Media include:

  • One-way print and broadcast formats—such as newspapers, magazines, radio, and television;
  • Conventional time-honored forms of social media—such as telephone communication and postal mail; and
  • Multidirectional expanding forms of Internet and social networks—such as Facebook and Twitter.

Web 2.0 interaction, collaboration, and sharing—spurred at least in part by the advent of blogging—have moved Internet use beyond simply a one-way delivery of information.

Websites provide a wealth of information about businesses and individuals. But before blogging and chat, the electronic avenue to providing thoughts, opinions, and information requests in response to content on websites was through e-mail. While it offers interaction, e-mail has limitations and lacks many features of newer social networks.

Blogging and chat, when introduced, became popular, immediate, and active methods of socializing, with features e-mail didn’t have. While bloggers and texters can share pictures and video remotely, they also share with e-mail the benefit of not needing to be in the same physical location at the same time, but rather in a shared virtual location.

Businesses soon discovered that using social media allowed them to interact with consumers of their products and services. Social media allows them to provide greater service and more useful information in response to that interaction, and to create communities of people similar to those that exist purely for social interaction.

There are, however, perceived and very real dangers in using social media, including:

  • Reputation risk. What your members say about the credit union on social networks can spread virally and might require a quick response by the credit union.
  • Productivity risk. Employees who have access to the Internet and social media sites can be tempted to spend significant amounts of time on these sites. A social media policy helps guide them in appropriate use.
  • Security risk. Both incoming and outgoing messages introduce risk. Employee education and technical safeguards, such as antivirus software, can reduce these risks.
  • Discrimination risk. Using social media as a source of information about job candidates and to monitor employee postings can lead to discrimination claims. Experts often suggest you designate third parties to handle these tasks.
  • Compliance risk. Employees’ mention of products in social media, even casually, might require a disclosure statement to comply with regulations.

Social media use can also yield many rewards, including:

  • Branding. Your credit union can take its website to the next level—providing not just a brand or information, but also a personality that interacts with members and the community.
  • Building relationships. Social networks have fans, followers, and friends who participate in discussions. They become more attached—hopefully leading to stronger and deeper commitments and relationships with the credit union.
  • Creating community. While select employee groups provide a sense of community and interest in a credit union and its products and services, social media can assist in this effort.
  • Saving money. Social media provides access to audiences your credit union might otherwise access only through more expensive methods, or perhaps not at all.

If you don’t adopt social media strategies, you risk losing an advantage and possibly even marketplace legitimacy. Credit unions must deal with the risks, embrace the rewards, and actively participate in the burgeoning world of social media.

ROBERT REH is chief information officer at Nassau Financial FCU, Westbury, N.Y., and vice chair of the CUNA Technology Council. Contact him at 516-240-1257. For more information about CUNA Councils, visit cunacouncils.org.

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Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

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