BY RADDON RESEARCH
Social media is a staple of everyday life, and most financial institutions are spending time, money and effort to build their profile on social media. In that light, Raddon explores the influence of social media on consumers’ financial decision process in our recent study, Payments Insights: Rise of the Digital Pioneers.
The typical consumer has been well aware for some time now to not believe everything they read or hear on the internet. However, after consuming so much information from so many sources, what sort of influence does that have? Maybe more than the doubters think. Raddon’s research finds that overall, 30% of consumers say that information or advice they found on social media are influenced them to purchase a type of product or service. When it comes to making a financial product or service purchase decision, the odds increase, influencing almost 4 out of 10 of us.
Source: Raddon Research Insights
Consumers are most likely to gather financial product information from a social network site (e.g. Facebook), followed by a blog, but as a whole they remain cautious to the accuracy of the information they’re getting. When asked how confident they are in the information they received, fewer than a quarter (23%) of consumers are very confident/confident.
There’s even more caution when clicking on financial advertisements. Thirty-four percent of the time, consumers will click on a product or service advertisement, but if a financial institution is advertising a product or service, the percentage of clickers drops down to 15%.
Among these behaviors, we see consistent trends that transcend throughout the financial industry. Younger national consumers (think Millennials) are more likely to gather financial information from social media, they have higher confidence levels in the information they’re obtaining online, and they show a higher likelihood to click on advertisements from a financial institution, compared to older generations. Much of this could simply be due to their comfort and familiarity with technology. Or perhaps, it could be due to the generation’s openness and appetite for education when they’re faced with financial decisions.