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W14686

Teaching Note

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BANKING ON SOCIAL MEDIA (A) AND (B)

Luisa Mazinter, Nicola Kleyn, Michael M. Goldman and Jennifer Lindsey-Renton wrote this teaching note as an aid to instructors in
the classroom use of the cases Banking on Social Media (A) And (B), No. 9B14A070 and 9B14A071. This teaching note should not

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be used in any way that would prejudice the future use of the case.

This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com.

Copyright © 2015, Richard Ivey School of Business Foundation Version: 2015-01-28

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SYNOPSIS

This case chronicles the management of a social media strategy by First National Bank (FNB), one of
South Africa’s “Big Four” banks, which under the stewardship of CEO Michael Jordaan has invested in a
strategy of innovation to grow its market presence in both South Africa and a number of other emerging
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market African countries and India. In line with its strategy to lead digital banking in the South African
context, FNB has invested in building a social media strategy to enable the brand to strengthen its
relationships with customers. The A case, seen through the eyes of Lana Strydom, FNB’s head of digital
marketing and media, describes how, in addition to building customer knowledge and stickiness through a
number of digital strategies including campaigns to promote financial literacy, FNB has used two
personae to humanize its brand — the fictitious RB Jacobs, and CEO Michael Jordaan. While contrasting
the use of these personae relative to one of FNB’s major competitors, Standard Bank, the case also details
No

the internal shifts that the adoption of a social media strategy entails. In addition to the obvious IT system
and process adaptations required, the execution of a successful social media strategy calls for a culture
that emphasizes responsiveness and respects the voice of the customer. This case is followed by the B
case, which extends the discussion to focus on the benefits of a social media strategy targeted at building
relationships with customers, particularly when an organization is faced with reputational risk, as well as
the need to consider all stakeholders when developing and executing its social media strategy.

CASE A
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TEACHING OBJECTIVES: CASE A

At the end of engaging with the A case, students should have a better understanding of the following:

 The role of social media in building brand and customer equity

 The principles that support effective customer engagement through social media

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 The organizational support required to execute an effective social media strategy

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This case is appropriate for an undergraduate course in marketing communications. It can also be used in
the context of graduate-level programs such as MBAs or executive development programs, where more
emphasis would be placed on the second and third case objectives.

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ASSIGNMENT QUESTIONS

1. How has FNB used digital and social media to engage with its customers?
2. What benefits does FNB obtain from investing in a social media strategy?
3. What lessons can we learn from FNB about developing and implementing a social media strategy?

ADDITIONAL MATERIALS

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The case is self-contained and can be taught without additional materials. However, the instructor may
wish to use the following additional materials, which can increase students’ engagement with the case:

Video: “Case interview with Lana Strydom and Camilla Meszaros,”

https://www.youtube.com/watch?v=2ik9CLOYtFk; this video (3:35) provides interview comments from
Lana Strydom and Camilla Meszaros about FNB’s digital marketing activities.
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Video: “FNB CEO Michael Jordaan talks innovation and explains GeoPay on the FNB App,”
https://www.youtube.com/watch?v=8c7NpeYMKB4; this video (3:11) is an FNB Geopayments product
review in which Michael Jordaan talks about innovation at FNB.
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TEACHING PLAN TIMING

The timing for a 90-minute class is as follows:

Introduction 5 minutes
 Case interview video
 Digital media versus social media
No

Using digital and social media to engage with customers 30 minutes

 Categorizing FNB’s activities
Benefits of social media 30 minutes
 Twitter & Facebook
 Four roles of social media
Lessons from FNB 20 minutes
 Five-step process
 Platform selection criteria
Key learnings and postscript 5 minutes
Do

ANALYSIS

The A case discussion can be introduced by playing the case interview with Lana Strydom and Camilla
Meszaros, after which the instructor can ask which of the class members use a) digital media and b) social

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media to interact with brands/organizations. This question will challenge students to clearly understand

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the difference between these concepts.

Digital media refers to audio, video and images that exist in a computer-readable format, and can reside
on a local device (CD, DVD or hard drive) or remote location such as a website.1 Social media is a subset
of digital media and is defined as “a group of Internet-based applications that build on the ideological and

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technological foundations of Web 2.0, and that allow the creation and exchange of User Generated
Content.”2 Unlike Web 1.0, which refers to an Internet platform that entails one-way access to
information (monologue), the notion of exchange and collaboration amongst individuals and groups
(dialogue and multilogue) underpins the design of the Web 2.0 platform.

Once the differences between these have been established, instructors can delve into FNB’s specific use
of digital and social media, with the question:

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1. How has FNB used digital and social media to engage with its customers?

FNB’s use of digital media incorporates the following media: Internet banking, Facebook banking,
mobile banking, the dotFNB store and the banking app for iPads. Its digital media portfolio also includes
social media, specifically Twitter and Facebook.
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FNB uses Twitter very effectively as a real-time customer contact centre — the RB Jacobs team publicly
responds to customer queries, compliments and complaints in close to real time and also uses the channel
to keep customers updated in times of crisis. FNB has also used Facebook as the platform for its eWallet
Money Magnet Game. The objective of the game is to educate consumers on how to use FNB’s new
eWallet product. Not only is the product directly integrated into the game mechanics, but customers score
bonus points when they invite their Facebook friends to play.
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Instructors may wish to point out that digital marketing with a broadcast focus can also occur on social
media platforms. FNB has used social media to amplify messages designed for digital media by placing
content on YouTube, Twitter, its Facebook page and its LinkedIn company page. Exhibit TN-1
summarizes the case references to FNB’s engagement on social and digital media.

Previous research identified categories of social media applications and classified these in a matrix that
No

maps them in terms of richness of the medium (the amount of information that can be transmitted in a
particular time interval) and the degree of self-disclosure allowed (see Exhibit TN-2).3 Instructors may
wish to ask the class to identify which applications FNB uses and to explore why the organization has
chosen not to use blogs and virtual social worlds.

2. What benefits does FNB obtain from investing in a social media strategy?

We suggest that instructors begin by focusing on the benefits of using RB Jacobs as well as the eWallet
Do

Money Magnet Game before moving onto a more general discussion of the benefits of social media. The
benefits of each of the three platforms are listed in Exhibit TN-3. Cumulatively, they have enabled FNB
1
A. Caputo, P. Wolf and S. Borho, “Digital Media,” Technology Brief, University of Guelph, September 2006,
www.uoguelph.ca/tss/pdfs/TBDigMedia.pdf, accessed November 16, 2014.
2
A.M. Kaplan and M. Haenlein, “Users of the World, Unite! The Challenges and Opportunities of Social Media,” Business
Horizons, 53:1, 2010, pp. 59–68.
3
Ibid.

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to strengthen both its brand and its relationships with customers. Using a “free” platform like Twitter has

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allowed the company to lower its costs of doing business (call centres are a very large cost for most retail
banks), and to appear very trendy and cutting-edge while doing so. Brand evangelists have also used the
platform to respond to negative comments and smear campaigns on behalf of the bank (such as in the
Standard Bank example), which generates positive public relations and brand affinity. For most people,
interacting with their bank is a frustrating experience due to limited levels of communications, a general

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lack of responsiveness to queries and complaints, limited degrees of product knowledge and low levels of
business model transparency. FNB’s transparent, responsive and helpful approach to interacting with its
customers overcomes the common social failures that banking customers experience when doing business
with banks.

Organizations have embraced the adoption of social media because it represents an opportunity for firms
to engage in timely, cost-effective and direct customer contact.4 Communicating through social media can

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enable firms to target and customize their messages, and to engage with consumers in a more authentic
and human way than they might using traditional media channels.

Organizations that embrace social media recognize that the emergence and growing popularity of social
media is underpinned by the development of technology that increasingly enables individuals to create
their own content on digital platforms coupled with social trends that emphasize enhanced and rising
individual (consumer) power creativity.5 Prior to the advent of social media, much of the content and
dissemination of brand-related content was controlled by organizations. Social media-savvy organizations
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recognize that although the emergence of social media has shifted the power of communication from
organizations to consumers, the adoption of a social media strategy provides an opportunity to inform
customers and to influence their opinions, discourse and buying patterns.

The benefits of social media to FNB are perhaps best summarized by Michael Jordaan:
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Social media is a critical part of FNB’s strategy. It allows us to build and reinforce ongoing
relationships with both existing and potential customers right across the business: marketing uses
social media to drive awareness, deliver valuable information and enable discovery; customer
support leverages social channels to enhance education, solicit feedback and respond to
complaints; our sales departments increasingly look to social media to support our customer
acquisition strategies.6
No

Focusing on the benefits that FNB has gained through the effective use of Twitter and Facebook sets the
scene for a discussion on the general benefits of social media. It may be useful for instructors to ask if
there are any additional reasons why marketers are increasingly investing in social media. In an advanced
class, the service-dominant logic and the shift to consumer co-creation can be discussed. The four benefits
of social media may be a useful checklist.7

Social media has been found to benefit organizations by enhancing their ability to monitor, respond,
amplify and lead consumers.8 Tracking consumer conversations across the social media landscape enables
Do

4
Kaplan and Haenlein, op. cit.
5
P.R. Berthon, L.F. Pitt, K. Plangger and D. Shapiro, “Marketing Meets Web 2.0, Social Media and Creative Consumers:
Implications for International Marketing Strategy,” Business Horizons, 55:3, 2012, pp. 261–271.
6
Michael Jordaan, “Banking on Social Media. The Secret to FNB’s Success,”
www.kpmg.com/be/en/issuesandinsights/articlespublications/the-social-banker/pages/week-6.aspx, accessed November 16,
2014.
7
R. Divol, D. Edelman and H. Sarrazin, “Demystifying Social Media,” McKinsey Quarterly, 2, 2012, pp. 66–77.
8
Ibid.

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organizations to develop a deep picture of how consumers understand, evaluate, purchase and respond to

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products and communications. The interactive nature of social media enables organizations to not only
understand, but also respond to customer feedback in a timely, personalized manner. Social media also
enables customers to amplify both positive and negative brand messages to their networks. Lastly, social
media can drive behavioural change. Reference to the case shows that FNB has used social media to not
only understand customer experiences with the organization, but to build its knowledge of banking and

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ultimately to deepen customer relationships with both the corporate brand and the leadership.

Note: If the B case is being taught, we suggest that instructors delay any conversations around the risk of
social media strategies until this time (if not, please refer to later in this teaching note for the B case to
focus on risks at this point in the case).

3. What lessons can we learn from FNB about developing and implementing a social media

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strategy?

Although there are a number of ways to surface the discussion of why FNB’s social media strategy has
worked well for it, a useful way to introduce the drivers of its success is to begin by asking the class to
compare FNB’s and Standard Bank’s approaches to social media.

Previous research has suggested that companies who wish to use social media to guide their strategies
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should follow a five-step process: prior to engaging with consumers on social media platforms,
organizations need to take time to immerse themselves in the digital world, reflect on how to align their
social media strategy with their brand and organizational strategy and define their social media strategy
objectives.9 Objectives may focus on information gathering, building brand awareness and engagement,
and increasing revenues. The final step of the framework emphasizes the need to develop appropriate
measurement systems to evaluate the results of the engagement in social media. Although the case does
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not detail Standard Bank’s approach to social media, it clearly shows that FNB has a) built a deep
understanding of the social media context, b) linked the use of social media to a broad strategy of
innovation and c) defined the role that social media should be playing. Strydom’s quote on page 6 (case
A) explains how FNB uses social media for marketing, sales, support and transacting.

In emphasizing the selection of social media platforms, seven criteria need to be considered:10


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Identity (the extent to which users reveal their identities in a social media setting)
 Conversations (the extent to which users communicate with other users in a social media setting)
 Sharing (the extent to which users exchange, distribute and receive content)
 Presence (the extent to which users can know if other users are accessible)
 Relationships (the extent to which users can be related to other users by, for example, sharing,
conversing, sharing objects, meeting up or simply just listing each other as friends or fans)
 Reputation (the extent to which users can identify the standing of others, including themselves, in a
social media setting
 Groups (the extent to which users can form communities and sub-communities)
Do

FNB has elected to use social media to predominately enable conversations, sharing and relationships.
Although its focus has been to strengthen consumer relationships with the brand, rather than with each

9
S. Gupta, K. Armstrong and Z.S. Clayton, “Social Media,” Note 510-095, Harvard Business School, 2011.
10
J.H. Kietzmann, K. Hermkens, I.P. McCarthy and B.S. Silvestre, “Social Media? Get Serious!
Understanding the Functional Building Blocks of Social Media,” Business Horizons, 54:3, 2011, pp. 241–251.

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other, the use of Facebook and Jordaan’s use of Twitter has allowed communities to form around the

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brand and the CEO. Instructors may wish to debate the extent to which the product category limits or
enables the building of digital communities. Banking is typically regarded as a low-engagement “grudge”
product that is not associated with high levels of consumer engagement.

Despite the rapid proliferation of social media, some organizations have been reluctant to embrace social

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media. This may be due to increased cost and time to execute, a lack of knowledge on the part of senior
managers, traditional agency incentive structures, measurement issues and a belief that embracing social
media means that marketers will lose control over the brand.11

KEY LEARNINGS

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Instructors can conclude the case with a summary of how the social media marketing team at FNB has
used social media by:

 Understanding the need to converse with, rather than dictate to, its consumers
 Leveraging social media platforms to communicate and deliver value in line with its brand promise
 Working with the organization to be responsive and sincere in its engagement with consumers
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WHAT HAPPENED

On February 23, 2012, Standard Bank posted a number of tweets related to advertising by FNB that it was
the only bank with free online, mobile and phone services, and that FNB was the first bank to have an
account with no monthly management fee. @StandardBankZA stated that it “instruct[ed] attorneys to
lodge complaint with Advertising Standards Authority (ASA) against FNB for advertising that misleads
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the public.” The Twitter account when on to post: “We believe that South Africans are entitled to accurate
advertising. Ultimately the ASA will make a decision with your interests at heart.”12

Standard Bank argued via its blog that the announcement, “…was made in social media because we value
our online communities and felt that they should hear it first hand from us. We respect our community’s
views and value the transparent relationship we share with them.”
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Some observers suggested that the social media announcements backfired on Standard Bank, as they were
followed by a “high volume of tweets from angry FNB customers defending their favorite bank and
pointing out Standard Bank’s lack of customer centricity and other weaknesses.”13

FNB CEO Michael Jordaan commented on Twitter: “Customers responding on Twitter to competitor’s
complaint against FNB. Go check it out.” Although @RBJacobs added, “Really no time for a Twitter
fight. Too busy making #FNB customers happy,” media analyst Walter Pike suggested that @RBJacobs
actively engaged in the conversation 161 times, while @StandardBankGrp participated only 59 times.
Do

Standard Bank’s own customers also responded to its Twitter announcement and blog posting, with one
suggesting that, “I had a Standard Bank account for eight years and had nothing but bad service. Switched

11
Gupta, Armstrong and Clayton, op. cit.
12
@StandardBankGrp, Twitter profile at www.twitter.com/standardbankgrp, accessed August 16, 2012.
13
www.visiblebanking.com/fnb-wins-twitter-battle-launches-mobile-vouchers-facebook by Christophe Langlois on February
28, 2012, accessed December 16, 2014.

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to FNB, never looked back. Maybe spend more time dealing with your inadequate service than

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complaining about trivial stuff. You know what they say: if you can’t beat em, criticize them!”14

In response to Standard Bank’s complaint to the ASA, FNB also lodged a complaint about Standard Bank
relating to the latter’s use of the term “free” in its advertising. The ASA ruled in April 2012 that both
FNB and Standard Bank were guilty of contravening the Code of Advertising Practice.

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CASE B

TEACHING OBJECTIVES: CASE B

Case B is designed to deepen student appreciation of:

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 Extending online corporate brand management from a customer focus to a stakeholder focus
 Averting and managing online brand crises

ASSIGNMENT QUESTIONS

1. Other than customers, what other stakeholders does FNB need to take into account when managing its
digital and social brand communication?
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2. What are the risks for FNB of the ANC’s condemnation of the campaign and FNB’s subsequent
response?
3. What do you think FNB managed well? How could it have improved its management of brand risk in
the online environment?
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ADDITIONAL MATERIALS

The case is self-contained and can be taught without additional materials. However, the instructor may
wish to show the FNB advertisement that was aired: “FNB You Can Help - Live Broadcast, a message
from South Africa’s children,” www.youtube.com/watch?v=m7Vyj9b1NyY.

TEACHING PLAN TIMING

No

This class can be taught as a quick postscript to case A or as a fuller 45-minute class. The timing for a 45-
minute class is as follows:

Introduction 5 minutes
 “You Can Help” campaign advertisement
Corporate branding and stakeholder management 15 minutes
 Identifying FNB’s stakeholders
Do

 Describing the role of the government as a stakeholder

Managing brand risk 20 minutes
 Internal communication to prevent brand crises
 Managing during a crisis
Key learnings 5 minutes
14
http://thefinancialbrand.com/22601/standard-bank-launches-twitter-war-against-fnb, accessed December 16, 2014.

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ANALYSIS

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The case discussion can be introduced by playing the “You Can Help” clip and asking who this
communication is targeting. This question will challenge students to shift the focus of brand management
beyond individuals in their role as current and potential customers to viewing them as citizens who may
or may not be customers. The instructor can go on to identify the concept of a stakeholder in corporate

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brand management as “anyone who influences or is influenced by the corporate brand.”15

Once these have been defined, the instructor can ask the class:

1. Other than customers and citizens, what other stakeholders does FNB need to take into
account when managing its brand?

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Although the case does not specifically mention all of FNB’s stakeholders, students should be encouraged
to think about other parties who operate in the marketplace and are potentially influenced by, or have the
power to influence, brand communications. These include:

 Current, potential and ex-employees

 Suppliers
 Regulators
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 Government
 Competitors
 Intermediaries and partners
 Political parties

The purpose of this discussion is to extend students’ appreciation of the need to manage a corporate brand
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beyond a customer perspective by considering brand management in the context of all stakeholders.
Although the case focuses largely on branding in the context of digital and social media, instructors
should emphasize that corporate brand management strategies should span both online and offline
contexts.

2. What are the risks for FNB of the ANC’s condemnation of the campaign and FNB’s
No

subsequent response?

We suggest that the instructor ask the class to debate the merits of FNB’s decision to launch the “You
Can Help” campaign. The instructor should guide the class to focus on the stakeholders identified in the
previous discussion. The class can also briefly discuss the close connections between the political party
voted into power and the government, particularly in an emerging market context. In our experience, this
debate leads to an awareness of how corporate brands need to balance stakeholder expectations. Some of
the risks that may be associated with the campaign include a weakened relationship with the government
and possible alienation of customers, suppliers and partners who believe that FNB should not be
Do

criticizing the government. At the same time, FNB needs to stay true to its core value of “helpfulness”
and be aware that bowing to political pressure may anger some of its customers who admire its
progressive approach. The instructor should conclude this section of the conversation by highlighting that
the scope of brand management encompasses managing brand risk across stakeholders. Analysis of the
Twitter comments by others at the time shows that social media can amplify brand risk, as it enables
15
R.E. Freeman, Strategic Management: A Stakeholder Approach, Pitman, Boston, United States, 1984.

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multiple stakeholders to voice their opinions quickly and publicly. Instructors may wish to conclude the

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discussion by focusing on the scope of corporate brand management, which, unlike product brands,
should be driven by the CEO, target stakeholders (of whom customers are an important constituency),
involve all employees (not just those in marketing) and align with a company’s identity and values.16 A
brief discussion of corporate branding theory sets the scene for the instructor to introduce the next
question.

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3. What do you think FNB managed well? How could it have improved its management of brand
risk?

This question is broadly worded, giving instructors a choice to focus to varying degrees of depth on what
FNB did well by introducing the “You Can Help” campaign. The changing role of corporations to
encompass active citizenship merits a longer discussion than the time we have allowed in this case and

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instructors may want to limit the discussion to FNB’s response on learning of the criticism of the
campaign from the ANC. FNB responded quickly to the crisis and managed to retain its authenticity by
using multiple brand personae to respond to different constituencies using a combination of both social
media, traditional media and personal conversations. RBJacobs engaged with customers who perceived
that FNB was “backing down,” Michael Jordaan wrote a detailed editorial which was published by
Business Day and Sizwe Nxasana, CEO of the FirstRand Group (of which FNB is part), liaised directly
with senior members of the ANC and apologized to the Minister of Education. Previous research has
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emphasized the power of authentic communication in a crisis.17 Instructors may wish to ask the class to
comment on Michael Jordaan’s editorial,18 which is a good example of communication that not only
explains what led to the crisis and what steps the organization is taking to resolve the issue, but also
explains why the campaign was in line with FNB’s brand ideals and reinforces the bank’s commitment to
doing good business.
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A number of guidelines exist of how companies should manage their reputations during times of crisis in
an era of social media.19 Analysis of the case shows that FNB adhered to a number of these suggestions
including:

 Avoiding a disproportionate show of force

 Responding at high speed
 Reinforcing the company’s credentials
No

When shifting the conversation to managing brand risk, instructors may wish to ask students whether or
not FNB could have prevented this crisis. Jordaan’s Business Day editorial notes that the “marketing
team” had commissioned the research. The case makes no mention of a broader team scrutinizing the
communication and Jordaan’s letter suggests that he had no knowledge of the detailed content of the clips
to be loaded. Given that this campaign targeted a broader group of stakeholders than customers, a multi-
functional team representing the interests of multiple stakeholders should have collaborated on the
development and selection of campaign content. Marketing’s expertise in developing communications is
Do

16
J.M. Balmer, “Explicating Corporate Brand and Their Management: Reflections and Directions from 1995,” Brand
Management, 18, 2010, pp. 180–196.
17
S.A. Greyser, “Corporate Brand Reputation and Brand Crisis Management,” Management Decision, 47:4, 2009, pp. 590–
602.
18
M. Jordaan, “Join Us To ‘Be the Change That You Wish To See in the World,’” Business Day, February 7, 2013,
www.bdlive.co.za/opinion/2013/02/07/join-us-to-be-the-change-that-you-wish-to-see-in-the-world, accessed July 3, 2013.
19
L. Gaines-Ross, “Reputation Warfare,” Harvard Business Review, 88:12, 2010, pp. 70–76.

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 Page 10 8B14A070

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not disputed; but typically marketing focuses on customers as key stakeholders and this narrow view

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exposed the brand to significant risk.

KEY LEARNINGS

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Instructors can conclude the case with a summary of how the FNB case shows:

 The need to adopt a stakeholder perspective when managing corporate brands.

 How social media can amplify a brand crisis requiring a rapid, consistent corporate response that
should be led by the organization’s executive management using traditional media, social media and
personal conversations.

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op
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No
Do

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EXHIBIT TN-1: DIGITAL AND SOCIAL STRATEGY INITIATIVES AT FNB

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Digital Media
 Internet banking
 Facebook banking
 Mobile banking
 dotFNB store

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 Banking app for iPads

Social Media
Broadcast
 Educational series on YouTube (content marketing)
 Twitter (Michael Jordaan and RB Jacobs)
 Facebook page

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 LinkedIn company page
Dialogue
 Twitter (Michael Jordaan and RB Jacobs)
 Facebook Application (eWallet Money Magnet Facebook Game)

Source: Case authors.

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EXHIBIT TN-2: CLASSIFICATION OF SOCIAL MEDIA
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No
Do

Source: Adapted from Kaplan and Haenlein, op. cit.

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EXHIBIT TN-3: BENEFITS OF USING SOCIAL MEDIA AT FNB

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Application Benefits

Twitter (Michael Positions the FNB and its leadership as innovative, progressive and
Jordaan) human.

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Provides evidence of customer responsiveness.

Twitter (RB Jacobs) Cost-effective use of a real-time customer contact centre and news
channel.

Provides evidence of customer responsiveness. Anthropomorphizes

the FNB brand.

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Facebook (eWallet Cost-effective, impactful way to educate consumers about FNB’s
Money Magnet Games) products.

Recruitment tool for new consumers.

Source: Case authors.

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No
Do

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