Social Media in Regulated Industries: How to Participate

By Tracy DiMarino | Posted January 14, 2010 | 0 Comment(s) | Filed in: Social Media

(This is part 2 of a 2-part blog series on Social Media in Regulated Industries.)

Earlier this week, I outlined some of the restrictions that may hinder social media participation in regulated industries.

While these regulations may seem overwhelming, it is important to remember that they have been established with your target audiences’ best interests in mind. For example, restrictions exist to protect privacy, guarantee fair and accurate information, and keep individuals safe from misleading information.

Also, by not letting the regulations stand in the way, you can reach your target audiences where they are already communicating. According to a Nielsen Online study, cited by Jeremiah Owyang (@Jowyang), “time spent [on social networking sites] is growing at three times the overall Internet rate, accounting for almost 10% of all Internet time.”

By working closely with your legal department and establishing clear policies and procedures, it is possible to participate in social media, while staying compliant with industry regulations. Below are best practices and tips on how to do so.

Get Support From Upper-level Management

Without buy-in from upper-level management, your social media campaign is likely to go nowhere fast. Present executives with the benefits of social media, so that they fully understand the importance of active participation. Some benefits include: enhanced relationships with key audiences, increased brand awareness, larger reach, ability to gather customer feedback and improved customer service.

You’ll also want to show them how you’ll measure the effectiveness of social media in reaching your organizational objectives. Review analytics' data to track metrics such as: social media reach, blog subscribers, page rank, inbound links, keyword rankings, Website traffic, brand mentions, conversion rates, leads and sales. This data can be collected through a variety of free and paid tools, for example: Google Webmaster Tools, Google Analytics and HubSpot Inbound Marketing Software. By benchmarking data and then tracking changes, you’ll be able to see what strategies work for your organization, and determine your return on investment.

To see an example of how PR 20/20 measured the effectiveness of its Internet marketing activities, read: “Does Inbound Marketing Really Work?”

Educate Within Your Organization

Education is vital to the success of a social media campaign in a regulated industry. All members of your organization need to have a firm understanding of how social networking works, as well as the industry regulations that may affect what can and cannot be shared.

Note: Your legal team’s reservations about social media probably stem from a lack of understanding of how the tools work. For example, they might not be aware that it is okay to moderate and pre-approve comments, if a policy is posted. [Jason Falls (@JasonFalls), Leveraging Social Media in Regulated Industries]

Educate your legal team on how social tools work and what will be required for effective participation (i.e. regularly published content, quick approval timelines), and make employees aware of industry regulations and acceptable online behavior.

Establish Social Media Policies and Procedures

In order to avoid social media blunders, build a social media policy that establishes guidelines and processes for monitoring and participating on social media. This policy can be created as a stand-alone document or it can be incorporated into an existing communication policy. To ensure all industry regulations are met, get support from your legal department before finalizing.

According to Dave Fleet (@DaveFleet) in his article, “Social Media Policies for Your Company: Internal Policies,” the following areas should be addressed in your social media policy:

Boundaries — Are employees actively encouraged to engage in conversations regarding the organization (may depend on organizational culture)?
Transparency — Are employees required to identify themselves as employees when discussing the organization (likely: yes)?
Confidentiality — May employees discuss confidential information (likely: no)?
Financials — May employees discuss financial information (likely: no)?
Consequences — Outline the consequences both for the company and the employee when someone says something ill advised.
Work Use — Is social media use permitted during work hours (may differ depending on whether employees are encouraged to engage in conversations regarding the organization)?

In addition, you should discuss review timelines and procedures with your legal department — as almost all content published by the company will likely have to be pre-approved. Some items to consider include:

What content needs pre-approval (all content, only content relating to promotions, etc.)?
How should this content be submitted to legal for review? Who should it be sent to and in what format?
How long is legal’s turnaround once content has been submitted for review? Note: Strive for short review timelines, as social media requires timely communication with audiences. According to Jason Falls, “There’s a good chance they [legal] will agree to a 24-48 hour response time on certain items for approval.”
Can urgent content be pushed through the review process faster, if necessary?

There are more than 30 sample social media policies at “Social Media Policy Examples,” including those for Harvard Law School, the US Air Force, Dow Jones and Wells Fargo. While many of the companies are not in a regulated industry, they can still offer guidance when creating your policy.

Depending on your industry, you may also want to create a commenting policy for your social profiles. For example, in his article “Social Media: Risk Management Strategies for Financial Institutions,” attorney Andrew M. Baer (@baerbizlaw) recommends that financial institutions provide clear messaging on all social networking profiles, informing consumers that individual issues should be taken offline, as a means to protect secure data. Additionally, healthcare organizations might want a policy that deters people from sharing personal medical information.

Become Active, Engage Audiences & Have Fun

Publish relevant and link-worthy content, share content created by others, answer questions, offer advice and support, and, most importantly, have fun!

In doing so, you’ll be able to connect with customers, prospects and other target audiences in a personal and authentic way.

Thoughts?

So what do you think?

Which companies in regulated industries are using social media effectively?
What regulations have you faced? How did you overcome them?
What does your social media policy look like?

Social Media in Regulated Industries Blog Series Links

Part 1 – Social Media in Regulated Industries: What You Are Up Against
Part 2 – Social Media in Regulated Industries: How to Participate

Tracy DiMarino is an associate consultant at PR 20/20, a Cleveland-based inbound marketing agency and PR firm. Follow Tracy on Twitter @TracyDiMarino.

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Photo Credits: Robert S. Donovan