What Enterprise2.0 has brought to Citibank

Web2.0 tools open up opportunities for business to interact directly with customers through implement appropriate social media strategies. Socail media such as Twitter, Facebook and Yelp also provide similar potential and resources for small business owners to compete with larger enterprises. Even finacial institutes catch the trend and utilize socail media as a direct channel to disseminate message to their customers.

Citigroup has long adopted Twitter to distribute organization news, upcoming events and market updates; together with blog, Facebook fanpage and Youtube, the website of Citigroup is like a web2.0 platform, connecting to miscellaneous channels for users to interact with the company.

Citi has integrated a few social media to the website

CitiGroup applies different marketing strategies for different platforms to attract attention from customers. While they use Youtube
to deliver speaking from executives about market news and commercial videos about organization’s insight, they post breaking news and provoke interesting discussion on Twitter and Facebook.

Citi uses Twitter to distribute news and upcoming events

Citigroup has successfully achieved desired outcome through adopting the concept of Enterprise2.0:

1. Productivity and efficiency:

Through the news posts and users engagement on socail media, Citigroup has boosted productivity by receiving and monitoring users’ feedback and comments on their distrubuting content, and further improve the product. At the meanwhile, using socail media to disseminate messages enhances the efficiency of information delivering, comparing with traditional channels such as TV or newspaper advertisements, it enable the business to communicate with customers more effectively.

2. Staff engagement & knowledge sharing:

Citigroup’s Global Transaction Services unit is in charge of monitoring outlets of respective social media, to collect data from user feedback about potential direction to improve the products. Besides, Citi has employed a social networking based intranet since 2005, and in 2009 the cooperation adopted Citi2.0, which is a sharepoint-based platform, for improving the efficiency of collaboration and knowledge sharing. And it features idea generation function which encourages ideas created, voted on, and refined by the community of global employee.

3. Enhance reputation:

Citi utilizes numerous social media to directly reach and interact with end-users, through real-time information updates and news distribution, customers can gain thorough idea about the market and the company, and build up strong connection or even loyalty with it.

But even web2.0 tools give enterprise abundant opportunites to engage with their customers, it brings hidden dangers as well:

1. Security

Citibank suffered a major information security crisis in 2011 while around 360000 customer’s financial data have been exposed through a large-scale cooperation hacking. Security experts have addressed that Citi should not have embedded bank account numbers directly in the URL. While according to Harvey Koeppel, CIO of Global Consumer Group, Citigroup, “Financial service has a risk-averse nature”, the exposurer of customer data may have tremedous negative impact on customer retention and reliability of organization.

2. Loss of Control & Impact on Reputation

According to Customer Service Scoreboard, Citi has only 10 positive comments out of 286 total submitted comments, furthermore, there are 3 negative comments from employee which are seriously against the banking service of Citi. Despite the reliability of whether it is submitted from “real Citi employee”, the comments will impose a brutal impact on customer retention and loyalty.

So what can Citi do?

1. Focus on Diversity:Apply different socail media and platforms with specified strategies for different countries. Some of the regional websites of Citi have not employed any Web2.0 tools to facilitate their engagement with customers.2. Enhance the security to recover customer retention:It is very crucial to guarantee customer high information security since no one will like to risk exposure of financial statement. Since the apporach which the hackers applied to hack into Citibank’s website is quite simple, which reveals even worse concern about reliability of Citi.

3. Encourage active users engagement on social media:

Citi has many customers like the fanpage but only a few talk about it

It is easy to have customer like your fanpage while what shall be taken into concern of Enterprise2.0 is how to encourage customers to actively participate in the discussion, and be willing to recommend this product to their acquaintance, thus to improve retetion and attract more potential customers.

American Express Open has illustrated great examples of how to successfully get your customers talk about your products and further bring more customers in. Focusing on what customers would be interested in and providing them with appropriate contents and service are the key to keep customer stay, instead of using socail media to disseminate repeating commercial advertisements.

References:

1. Seize the Conversation

2. Banks use Web 2.0 to increase customer retention

3. How Citigroup hackers broke door using banks website

4. How Citigroup uses social media in its quarterly reporting

5. Building Citi’s social media presence-Citi Blog

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11 thoughts on “What Enterprise2.0 has brought to Citibank

  1. Hello, Edie. I am interested about your CitiGroup example. They are introducing Enterprise 2.0 in their corporation, and get some benefits, such as productivity and efficiency, staff engagement and knowledge sharing and reputation. However, they also get some risk. Thus, benefits and risk must in a safe balance area.

    • Yeah, what interests me most is only 10 out of 286 users gave positive feedback on CitiBank’s service. Even one post came from employee and urged the public not to use Citibank. It might be intentionally attack from competitor, but Citibank still need to think about what caused this.

  2. Hi,
    The Citigroup example is a nice case study where companies should implement and incorporate idea from social media into their website. Some website have been doing this for a long time but did not execute it very well or did not give it much importance.

  3. Hey Edie,

    I really like your post, especially how you have used images to support your conclusions.

    Was the security breach you mentioned a result of using enterprise 2.0 ideas/tools or just bad security practices?

    Keep up the good work.

    • Hey Blake 😀

      Thanks for taking time read through my post and it’s a very good question 😀
      I’ve thought about that as well, but I still put it as example since Citibank has long integrated its website with social media. I can’t said the hacking is incurred by employing social media, but it may somehow contributed to the reputation, thus resulted in the breach.

  4. Hi
    Nice blog post in relation to the citi bank adoption of web 2.0 services.
    With regards to the negative feedback, would it be better if they had a rep or moderator of the company constantly sifting through the social media sites and querying customer complaints to improve customer satisfaction.

  5. Hi Edie,
    Do you know what CitiGroup did with regards to the negative feedback they received? It would be interesting to see how they handled such overwhelming criticism.

    – Matt

  6. Hello Edie,
    Very interesting case study. I have wrote one about Telus if you are interested but I haven’t thought about checking their Facebook fans. However, I wanted to show you this formula that I was using during my internship last year to calculate the engagement rate of any facebook page : http://www.socialbakers.com/blog/467-formulas-revealed-the-facebook-and-twitter-engagement-rate/

    It is a great tool because it makes it easier to compare different fan page and demonstrate the engagement of your community.

    Laters !
    Claire

  7. Hi Edie, I really like your post and how you use relevance picture to illustrate your opinion nicely. I think Citigroup should have treat their employee better since they didn’t have much defense from their employee when lots of people writing negatively about the Citigroup(Some employee even attack the group themselves). The social medias use can encourage people to be a part of the company but it won’t help if the company doesn’t treat their employee nice.

    Cheers,

    Prapat W.

  8. Pingback: 5 Key Microblogging Strategies for Finance Corporation « LET'S Enterprise 2.0

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