The WellsFargovia Blog: Social Media Meets Merger Communications

In the 12 years or so that we've been monitoring the retail financial services landscape, we've witnessed firms merging, splitting, and merging again. Since we've had financial accounts all over the place (banks, brokerage firms, mutual funds, etc.), we've witnessed this evolution from the client perspective. Sadly, the only consistent thing among all the mergers has been the overall lack of quality communication to customers about what the merger will mean to their accounts, fees, and so forth. Sure, there are exceptions to the rule, but by and large from the time a merger is announced to the time the acquired company's brand goes away, clients are often met with deafening silence from both firms.And, unless you fell down a well in September and are only emerging now, you know that the industry is going through another bout of merger-mania. While this time around the circumstances might not be particularly happy ones, the recent mergers are among the first to happen in the age of social media and thanks to Wells Fargo and Wachovia, we're going to get a taste of how social media can assist clients during the transition. On January 2nd, the first business day after the approval, Wells Fargo launched a new blog on its public site that features posts from employees at Wells and Wachovia.

According to Wells Fargo, the blog is supposed to keep Wachovia customers informed of news and updates as the takeover moves along. It's a great idea - Wachovia customers will have a lot of information thrown at them in the next few months. Having a centralized place to find information and ask questions can help make the whole process a little less daunting. And it makes sense to have voices from both firms, to let Wachovia customers know that many of the same people are still working behind the scenes.

Only a handful of posts have gone up so far, most of which have been of the "We're here to serve you" variety - kind of obvious, sometimes corny, and a little press release-y. The most interesting dialogue we've seen has taken place in the comments sections, particularly regarding this post by Wachovia's Matt Wadley, which has received 54 responses to date. Wachovia customers responded with a number of frank questions about the transition: Will Wells Fargo honor Wachovia's CD rates? Why doesn't Wells Fargo offer a free checking account? Why does Wells Fargo charge for bill pay?

How Wells Fargo responds to these concerns will play a big role in determining whether or not Wachovia customers take to their new bank. Wachovia was voted highest in customer satisfaction for seven straight years, so clients clearly had some loyalty to the bank and the customer experience.

It's also interesting to consider that this may be the first major bank takeover in which firms have had to integrate different social media strategies. Neither firm is a stranger to social media. Wells Fargo was one of the first banks to dip its toes into the virtual waters, with its Stagecoach Island virtual world and Guided by History blog. Wachovia got on board with social media a bit later, but has been quicker to utilize third-party social media resources like Twitter. Wachovia's Twitter strategy seems to tie in well with the new blog. It's no coincidence that Matt Wadley's post has received the most comments so far. Wadley moderates Wachovia's Twitter page, so customers already have a rapport with him. (And Wachovia has been promoting the blog on Twitter.)

It's usually helpful to take the long view in gauging the success of a new social media initiative, and this blog is no exception. Allowing a frank dialogue between customer and staff is a good start. Only time will tell where it goes from here.

Michael Ellison is EVP with New York-based market research and consulting firm Corporate Insight.On January 2nd, the first business day after the approval, Wells Fargo launched a new blog on its public site that features posts from employees at Wells and Wachovia. According to Wells Fargo, the blog is supposed to keep Wachovia customers informed of news and updates as the takeover moves along. It's a great idea - Wachovia customers will have a lot of information thrown at them in the next few months.