November 9, 2010

As new as social media is, and as much as there is still so much to learn about it, one thing has become frighteningly clear to many of us: measuring results—no, getting any type of results, measurable or not—is tricky. You can measure return on investment on ads, you can measure ROI on your Web site, e-mail marketing, and even public relations efforts. But how, exactly, can you measure ROI on your social media?

The simple answer, at least for now, is that you can’t. At least not completely, and certainly not the way you can measure ROI on other marketing efforts. But ROI isn’t everything, is it? And when it comes to financial education, you want to see changed behaviors, not more profits. It’s about helping your members not only understand the concepts of smart money management, but giving them the resources they need to actually manage their own personal finances wisely.

And here’s a thought: social media may just be the most effective way to do that.

If you can, bear with me and ignore ROI for a moment, I’m going to suggest you do something different with your social media than what you may have considered. Ignoring ROI is not a good idea in general, but social media can be used for many things and in many ways. Right now, we’re talking financial literacy, not marketing.

Using Twitter, you can give members financial tips and ideas in small pieces. And it might be helpful to do so. But if you want to encourage members to change their financial habits, please consider another option -- one that can potentially unleash the tremendous power of social media.

Don’t broadcast information. You may have a lot to say, a lot of good information to share with members, but hold off on that for now. Posting things you want members to know is a one-way stream. While people might reply to your tweets, the goal is to let people know something.

I’m suggesting that you get members to talk to you. And, even better, to each other. About personal finance.

The advantage of starting a conversation is it gets members talking, and thinking, about what they’re doing, and why they are doing it.

Is that a magic bullet for changing habits?

Of course not. But it’s a solid step -- a way to get members to question their own habits. And, if they do decide to change something (and it’s going to have to be their decision, this has to come from within if it’s going to be worth anything), they’ll have plenty of support in doing so. All the members following your tweets, all the people in on your conversation, will be there with them and for them.

So, how do you get a conversation started? Not just any conversation, mind you, but one about money, which many Americans consider a more personal issue than their sex lives?

You ask questions. That’s one way. Your questions should not be blatantly personal, nor should members feel threatened or attacked by them. Ask for their thoughts and their opinions. Ask for their advice. Yes, we are all better advice-givers than decision-makers. Somehow, it’s easier to help others resolve their problems than deal with our own. By asking for advice for other people in a situation that’s not their own, members may be able to come up with solutions that they can then use themselves …if they want to, of course.

Some examples of questions that could work:

• Do you think it’s worth spending more than you have to feel good about yourself? How about to find a better job?
• What status symbols have you paid for? Were they worth it?
• Is it hard for you to say ‘no’ to your kids?
• Does being a good parent mean you give your kids everything they want?
• When was the last time you delayed a purchase, saving up for something instead of putting it on a credit card and paying interest?
• What can you do today to save money? Please share your thoughts with our other members on our Facebook page (or blog).
• Do you have good ideas for low-cost holiday gifts? We need ideas for family, friends, co-workers, kids, and teachers. Please let us know what you’ve done that’s worked for you!
• What’s the difference between borrowing money to buy a home and borrowing money to buy a TV?

The other way to generate conversations on Twitter, Facebook, and other social media is to say something controversial. Something so provocative, people feel a need to respond and put their own thoughts into the mix. For example:

• Christmas is a religious holiday, so go ahead and spend as much as you can. It’s for a good reason, almost like giving charity. (Can you just see the responses to this one?!)
• The more credit cards you have, the better.
• If your income is not enough, go ahead and get into debt. Eventually, it’ll all work out.
• 700 percent interest from payday lenders is not a bad deal. After all, they’re helping you out!

Of course, if you decide to go the controversial route, you’ll want to be very careful to show that the credit union does not believe the statement or you could have a PR nightmare on your hands.

I believe that this is the most powerful financial literacy tool available today. It’s also the most effective use of social media. Imagine, you’ll have created an online community where your members interact with passion about smart money management! To all those who are skeptical, I can only say, it can be done, and I challenge you to try. That’s why, starting on January 2, 2011, CUcontent.com will provide subscribers with a weekly conversation starter. It may be a question; it may be a statement or a short paragraph or two. But the purpose will not be to inform.

The goal, instead, will be to start a conversation, and help members draw out what they already know, and how they already feel, about how they handle their own finances. Because the only effective financial education is that which comes from within.

Laura Enock is CEO of CUVA and publisher of www.CUcontent.com, a social media, Web site, and newsletter content service for credit unions. Sign up to receive free marketing content every week at www.CUcontent.com.