Agencies Only - Social Media and Online Marketing Survey

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This survey of almost 300 insurance agencies shows an overview of how social media is being used, and the kinds of results they are starting to see.

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Agencies Only - Social Media and Online Marketing Survey

  1. 1. Social Media and Online Marketing – What’s the Real Deal? A short and objective survey of what insurance agencies are currently doing in the online worldOften when I speak with an agency owner, COO, or marketing manager about social media, I get askedabout the results other agencies are seeing, in particular their return on investment (ROI). (I’m sure forthe most part they’re seeking this information to help them make an informed decision on whether toinvest in these new marketing methods, but I sometimes suspect it may also be a defensive question tojustify not delving into the topic further.) As a result of lacking good solid data to provide an answer, Idecided to put together this survey to learn what industry people were doing in online marketing withsocial media. I’m not making any recommendations in this report, just presenting the results for you touse as you see fit. With that being said, the following three findings were the most eye-opening to me: More than 60% of those of you who responded are not measuring the return on investment of your current marketing efforts! So until you do, why ask about social media’s ROI? (OK, that was an editorial comment.) Close to half of respondents who are not using social media will start to do so within a year. Of those who responded, a bit more than 60% do not have a coordinated marketing plan of any kind.Our survey received responses from 293 agencies across 41 states and Canada. Just about 60% ofrespondents identified themselves as agency principals or management. Another 40% or so said theyworked in IT, marketing, or sales. Throughout the summary that follows, the term nontraditionalmarketing encompasses both social media and online marketing.©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution. 1
  2. 2. As you can see below, the three most popular traditional marketing methods (used by approximatelyhalf the respondents) are the Yellow Pages, direct mail, and local newspapers newspapers. Percentage of Agencies Who Use the Traditional Marketing Platforms Shown Below 60.0% 50.0% 53% 51% 51% 40.0% 39% 30.0% 30% 20.0% 22% 10.0% 15% 14% 2% 10% 0.0%Respondents’ most-used online marketing method, far and away, is their website. After that, in order,come Facebook, LinkedIn, and e-mail blasts. mail Percentage of Agencies that Use the Nontraditional Marketing Platforms shown Below 100% 96% 80% 60% 60% 60% 56% 40% 32% 37% 20% 25% 21% 17% 6% 12% 5% 0%©B. H. Burke & Co., Inc., 2012, may be reproduce with attribution. reproduced 2
  3. 3. Across all agency sizes, respondents’ Facebook page have an average of just over 200 Likes; the average espondents’ pages 00Twitter account has 440 followers. Respondents in the $2.5MM-$5MM and $5MM-$10MM revenue llowers. $10MMranges are the most active — with the most Likes, Followers, and Contacts — in the various social-media socialplatforms. Those in the $25MM+ revenue range (which may skew toward large regionals) were also + regionalsmuch more active in on-line marketing. Additionally, agencies in the $1MM and lower revenue range lineshowed a greater usage of LinkedIn and Twitter. Close to the majority of respondents indicated thatthey maintain their platforms internally, including the creation of the content they post on them. includingOf those who responded, about 40% have a coordinated plan for traditional and/or nontraditionalmarketing. About 60% do not include nontraditional channels in a coordinated marketing plan. Marketing Efforts in Traditional Channels General marketing actions (or ad- ad 2% hoc) and advertising with a budget. 34% 29% General marketing actions and advertising without a budget. Part of a coordinated marketing plan with a budget. 35% Part of a coordinated marketing plan without a budget. Marketing Efforts in Non Traditional Channels Non-Traditional General marketing actions (or ad ad- 12% 17% hoc) and advertising with a budget. 27% General marketing actions and advertising without a budget. 45% Part of a coordinated marketing plan with a budget. Part of a coordinated marketing plan without a budget.©B. H. Burke & Co., Inc., 2012, may be reproduce with attribution. reproduced 3
  4. 4. Almost 70% of the agency respondents indicated that they do not have a formal or documented social 0%media plan, either as a part of an overall marketing plan or as a stand alone document. 32% of the stand-alone 3agencies did say they have a documented social media plan in place.The percentage of respondents who allow unlimited use of social media during the workday is just aboutequal to the percentage who do not allow it at all (each approximately 35%), with about half this latter ,group taking the step of blocking access to social media sites. Do You Allow the Use of Social Media During Working Hours? 40% 30% 34% 35% 30% 20% 10% 14% 16% 0% Yes, without Yes, for defined Yes, but only No We block access to limitation segments of during specific these types of employees (e.g., hours (e.g., sites producers) lunchtime)Almost 50% of respondents who do not currently use social media plan to begin doing so within a yearand a total two-thirds will eventually do so. thirds If You Do Not Use Social Media, Do You Plan to Start? No, probably not. 22% 31% Yes, at some point over the next six months. 27% Yes, within a year. 20% Yes, but more than a year from now.©B. H. Burke & Co., Inc., 2012, may be reproduce with attribution. reproduced 4
  5. 5. Among those respondents who use social media in their daily operations, Facebook and LinkedIn are thefavorites by far, with Twitter coming in a distant third. Just over a quarter of respondents do not useonline marketing methods. Apart from Marketing, Do You Use Social Media 60% in Your Daily Operations? If So, Which Platform(s)? 50% 57% 52% 40% 30% 20% 28% 27% 10% 11% 11% 0% 6% We do not Facebook LinkedIn Twitter Foursquare Google + YouTube use social media.Nearly every respondent reported having a website, close to two thirds have a Facebook page, just entunder half use LinkedIn, and approximately a third use Twitter, a website blog, and Google Places. Which of the Following Platforms Are Used at Your Agency?100% 95% 80% Axis Title 60% 65% 40% 46% 33% 34% 32% 20% 16% 18% 19% 0% 7% Website Blog - On Blog - Not Facebook Custom LinkedIn Twitter Multiple Google YouTube your on your Page Facebook Company account Twitter Places account / website website Page / Profile accounts profile channel TabsIn addition, 13% indicated that they use some sort of locat % location-based platform, and about 23% use a rm, 23third-party sales or marketing platform (not their primary management system). party©B. H. Burke & Co., Inc., 2012, may be reproduce with attribution. reproduced 5
  6. 6. In both traditional and nontraditional marketing, respondents said that “New Leads” and “BrandRecognition” were their primary goals with “Relationship Building” cited third. goals, Agencies Marketing Goals 100% Traditional Non-Traditional Non 80% 60% 87% 86% 81% 80% 77% 67% 40% 61% 58% 55% 50% 19% 20% 0% New Leads Brand Organizational Relationship Improved Improving Research Recognition Image Building Prospecting service / adding a new service channelWell more than half the respondents do not measure the results of their marketing, whether traditional oreor nontraditional. Of those who do track it, use of a sales-management or agency-management system managementand use of a spreadsheet or similar document was fairly even. And although 64% of the respondents %said that they do not measure the return on inv investment of their marketing, one respondent stated:“We measure it (ROI) by growth, but also in the quality of client we are getting, what type of call-ins and callreferrals we are generating. Our mar marketing is for branding purposes; we use our sales force to sell Do You Measure the Results of Traditional Marketing? No. 3% 18% Yes, and we input them into a marketing or sales management system. 15% 57% Yes, and we input them into our agency management system. 7% Yes, and we put them into a manual spreadsheet/document. Yes, OTHER.©B. H. Burke & Co., Inc., 2012, may be reproduce with attribution. reproduced 6
  7. 7. Do You Measure the Results of Non Traditional Marketing? Non-Traditional No. 6% 15% Yes, and we input them into a marketing or sales management system. 10% 60% Yes, and we input them into our agency 9% management system. Yes, and we put them into a manual spreadsheet/document. Yes, OTHER. How Do You Measure the ROI of Your Marketing? 80% 60% 64% 40% 20% 16% 18% 12% 12% 0% We do not By the number of By the number of By the amount of By the number of measure it. leads that are leads that are agency revenue. fans, likes, quoted. sold/issued. followers on the various platforms.For respondents who use social media, Twitter and Facebook are the most frequently updated sites,LinkedIn and Google Places Profiles, the least. About 65% of the respondents said they updated theirFacebook Pages at least weekly (Note: this result does contain all respondents, not just agencies agencies.)©B. H. Burke & Co., Inc., 2012, may be reproduce with attribution. reproduced 7
  8. 8. We also looked at the survey responses to learn how much new business can be attributed to social-media platforms. Because not all respondents provided answers and those who did may have onlyprovided estimates or may not have had access to hard data while they were taking the survey, thissection of our findings cannot be relied on for complete accuracy. With that caveat notwithstanding,these facts stood out:Respondents with annual revenue in the $500,000-$1MM range reported that an appreciablepercentage of their monthly new-business commission could be tied to online efforts, with theirwebsite, Facebook, and Google AdWords making up the largest portion of this business.Respondents with annual revenues in the $10MM-$25MM range reported that about 7% of theirmonthly new-business commission was attributable to their website. Respondents in all other revenuegroupings reported that from approximately 1% to 2.4% of monthly new-business revenue was a resultof their online marketing.(Note: This last section was not updated for agency-only respondents.) ♦ ♦ ♦I hope this survey has shed some light on how the almost 300 insurance agencies across 41 states andCanada are using online marketing and social media and that the results assist you in making strategicdecisions about the use of these platforms in growing your firm’s client base and online presence. If youhave any further questions on these results, please do not hesitate to contact us via email(jason@bhbco.com).This survey was created, evaluated, and the report written by Jason Hoeppner, CIC, an independentagency consultant at B. H. Burke & Co., Inc. of Westbrook, CT. You can learn more about us athttp://www.bhbco.com.©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution. 8

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