An evaluation of the use of social media by financial services institutions for stakeholder engagement

Abstract

This research investigated effective use of social media by a financial service institution in engaging stakeholders. It, thus, assessed how a selected financial services institution such as Sanlam used social media in communicating with its stakeholders at a strategic level. It was revealed that there still exists a challenge in many South African financial institutions in understanding that social media tools have a strategic edge in terms of customer service delivery. The research shows a gap in social media being effectively and strategically used to enhance service delivery to its stakeholders. A qualitative research method, that is, an interpretivism approach seen as a theory-building approach underpinned by a subjectivity, was used. The aim of this research was to determine, analyse and create an understanding of the importance of financial services institutions engaging with their stakeholders on social media platforms. This researcher focused on assessing how Sanlam engaged with its stakeholders on Facebook by conducting interviews and administering questionnaires to a selected sample of staff members at the Client Care Department at Sanlam. Based on the findings, this research study confirms that Sanlam’s Client Care Department involves two Departments, the Social Media Department and the Communications Department in resolving social media complaints, and this takes unnecessary extra time to resolve issues and complaints raised on the corporate social media page.