• by Mark Walsh  @markfwal, September 6, 2011

Back in February, Augie Ray left his post as a senior analyst for social media marketing to practice what he was preaching as executive director of community and collaboration at USAA.

A Fortune 500 financial institution, USAA has long provided banking, investment and insurance services to members of the U.S. military and their families. The company now runs its business mostly over the Internet or through telephone services, providing a natural pathway to the use of social media as a business tool. Online Media Daily caught up with Augie to find out what he's been up to at USAA this year.

OMD: Can you briefly describe what your job at USAA entails?

Ray: I'm responsible for the social media team at USAA, which consists of community managers who share content and connect with our members in social networks, and social media strategists who develop and execute programs in social channels.

My team acts as a social media center of excellence, assisting others throughout the enterprise to develop and own their own social media strategies. We also work to make operational our core business processes in social media so our members can have as seamless an experience as possible, no matter which channel is their preferred way to interact with USAA.

OMD: How have you found the transition from social media analyst to social media manager?

Ray: There are aspects of my former analyst position at Forrester that I miss, but I am enjoying the benefits of my move to the "client side," primarily the opportunity to see the end result of my contributions. At Forrester, I would often consult with clients and write reports without really seeing the impact of my efforts, whereas here at USAA I can see, feel and measure the effect I am having.

It's also energizing to sign on for the great mission at USAA -- we don't just use social media for social media's sake, but are looking for new social ways to realize our commitment to facilitate the financial security of those who serve or have served in the U.S. military, along with their families.

OMD: Can you describe one or two initiatives you have pursued since joining USAA earlier this year?

Ray: It will come as no surprise that we are seeing an increase in the number of our members who turn to us on Facebook and Twitter to offer praise, provide feedback and request service. In my first six months, we implemented tools to permit our Member Service Reps to meet our members' needs in social networks as they do on the phone or email.

We're already working on a second iteration of those tools that will launch before year's-end. Another big initiative was to consider how social media might change the way we conduct business with our members years from now. The convergence of mobile and social is a key piece of our plans for future innovation.

OMD: What, if any, particular challenges are there in developing social tools for a financial institution?

Ray: As with all companies in regulated industries, USAA has to deploy social media strategies that reflect not only the few regulations that are well-defined, but also the regulatory changes we foresee in the future. Every organization has to consider the social media implications of regulations and decisions by the FTC and other federal agencies, but in the financial services industry we also have to consider the regulations and guidance from FINRA, SEC, state insurance regulators and others.

Being in a regulated industry increases the cost and limits some of the flexibility that firms in other categories enjoy. For example, the SEC has an advertising restriction that prohibits investment advisers from using testimonials of any kind. As a result, we cannot feature ratings and reviews for certain of our investment products and prohibit our registered representatives from collecting recommendations on LinkedIn.

OMD: USAA already has a strong reputation for customer service. How does social media enhance that?

Ray: Our primary goal in social media isn't to sell products, but to protect and enhance USAA's reputation. Our reputation is a reflection of USAA's mission and values and is an asset that provides USAA with a competitive advantage.

The importance of that asset will only grow as we shift from the social media era into the social business era. One of the tangible benefits we see from our strong reputation is the number of people who have friended us in Facebook without any sweepstakes, rewards, gifts or discounts. With 190,000 fans, the USAA fan page is one of the largest in the insurance industry.

We accomplish our reputation goals in a number of ways. One is to respond to virtually every post on our Facebook wall within two business hours, which demonstrates our care and responsiveness. We also offer a steady flow of links to original content that USAA produces to help educate and inform our members. Lastly, we never forget who we serve -- our social media feeds offer opportunities to highlight the commitment, sacrifices and hard work of US service members.

OMD: You still keep an eye on the wider social media landscape. What's your take on Google+, and are there any other trends this year you find noteworthy?

Ray: I've written about Google+ several times on my blog, ExperienceTheBlog.com. Unlike Orkut, Wave and other past Google social offerings, it's clear Google+ is here to stay, but I also think many social media leaders were far too quick to hype Google+ and abandon other networks.

It was easy to see the initial surge of registrants and predict rapid and significant changes in social media habits, but data indicates many who signed up for Google+ are not using the social network. Much will change once Google releases business tools for Google+, and I anticipate USAA will begin to maintain a presence in the social network in Q4 or Q1, but mass adoption of Google+ is not nearly as imminent as one might surmise from headlines.

OMD: How do you see social media evolving in the coming years?

Ray: We're in a period when social media is getting very serious for organizations. In the next several years, social media will become mission critical and begin to separate winners and losers, based on who can best transform to conduct business in more social ways. Many people still see social media as fluffy -- something nice to have that humanizes brands and reinforces reputation for certain audience segments -- but that is the same way many felt about the Web back in the late '90s.

A decade later, the Web has changed everything about the way we develop, market, support and deliver products. Social will do repeat that process. Some firms will end up being Blockbuster and Borders, while others become Netflix and Amazon. We're in for some interesting times. I'm reminded that the maxim, "May you live in interesting times" is considered a curse.