MySpace Moves to CU Space

Mary Mink, Credit Union Magazine
April 23, 2008 | COMMENTS

The web has moved much further than the dot-org website. Now it's about managing your online identity on social networking sites, conversing with members on their blogs, and keeping up with what's being said about you and your brand," says Trey Reeme, director of channel integration for the $1.3-billion-asset Texas Dow Employees Credit Union, Lake Jackson, Texas.

Until recently, Reeme was a credit union website consultant for Trabian, which operates from FORUM Credit Union's corporate headquarters. He also was Trabian's chief evangelist—that is, chief moderator for its blog, Open Source CU.

"Few financial institutions have stepped out this way as far as hiring someone to manage their social networking," he says. Tech Credit Union , Crown Point, Indiana; Addison Avenue Federal Credit Union, Palo Alto, California; VanCity in Vancouver, British Columbia; and Wells Fargo, San Francisco, are the only other institutions he knows of with social media teams.

Texas Dow Employees' decision to create Reeme's position "speaks to where the credit union wants to be soon and not necessarily where it has been as far as social media," he says. His new position encompasses social networking, the credit union's website, and mobile banking.

A 2007 report from eMarketer says, "Social networking is not a fad. In 2007, 37% of the U.S. adult Internet population and 70% of online teens used online social networking at least once a month." That translates to about 56.9 million social network users who are adults, 13.6 million teens, and 1.5 million children.

"By 2011, 49% of online adults and 84% of online teens will use online social networking each month," the report continues.

Social networking sites, blogs, podcasts, and the like are aspects of what's commonly referred to as Web 2.0—a new generation of web communities and hosted services featuring interactivity and user-generated content, says Josh Jones, CUNA's manager of young adult programs.

Users span the generations, but Web 2.0's interactivity appeals particularly to young people. "They're less worried about making mistakes and willing to explore," Jones says.

Credit unions are experimenting with social media as a new means to interact with members and potential members—particularly young adults—in various ways. Some are dipping in a toe; some are jumping in headfirst.

Social Networking Sites

MySpace, Facebook, and Classmates.com are the most popular social networking sites in the U.S.

According to the Online Computer Library Center, Dublin, Ohio, and Wikipedia:

• Classmates.com, Renton, Washington, founded in 1995, was the first social networking site. Its owner is Classmates Online Inc. The site's members use it to connect with former high-school classmates and co-workers.

• Facebook, Palo Alto, California, started in 2004 as a digital version of a photo directory of incoming freshmen at Harvard University . Its founder and owner is Mark Zuckerberg, a former Harvard student. Facebook soon expanded to include other colleges, and now anyone with a valid e-mail address can become a user.

• MySpace, Santa Monica, California, is owned by Fox Interactive Media, Beverly Hills , California . MySpace started in 2003 as a website to promote new musicians and connect fans. Today it's considered the most popular of the social networking sites. User profiles are linked through networks of friends, and its content includes profiles, blogs, groups, photos, music, and videos.

How to Use Social Networking Sites

A conversation about promoting a car sale to college-age members led to the MySpace page of Fox Communities Credit Union in Appleton, says Amanda Brown, marketing coordinator. "It was free and easy," she notes.

Brown advises other credit unions, "Get out there. Don't pressure, just educate."

Reeme echoes that and cautions against rushing into a MySpace or similar presence just because it's a congregating place for young people. "Kids are on MySpace to meet their friends and find out what they're doing this weekend," he stresses. "They're not on MySpace to find out loan rates. That's what any credit union looking at social media needs to understand: why consumers are attracted to these tools."

Reeme outlines these general steps for exploring use of social networking sites:

• Visit the sites. See what they're about and how they work.
• Reserve your domains. If you don't own your domain name and someone else does, they could take advantage of that—for example, by posting negative and/or false comments.
• Consider your goals. Fit your plans with the social networking tools available rather than trying to make the tools fit your plans.

This story first appeared at www.creditunionmagazine.com and is reprinted with permission.