Social Media Marketing The Best Insurance Policy for Insurance Companies
YMARKETING Social Media MarketingBest Insurance Policy For Insurance Companies eBook January 2011How social media marketing has the potential to earn insurance companies billions of dollars in untapped business.
Social Media Marketing Best Insurance Policy for Insurance CompaniesInsurance covers emotional events. You buy terminsurance in case you die suddenly. You buyhealth insurance to help pay for your recovery.Auto insurance covers the value of your car andmore in the event of a crash. Heck, there’s evenpet insurance for your cat. Protecting your lovedones and prized possessions – it doesn’t getmuch more emotional than this.Yet insurance companies are not known for their ability to interact emotionally withcustomers. And that has cost them billions of dollars.The key word here is “interact.” The big insurance companies give us emotionally ladenTV ads. But that’s branding, not interaction.In the report Reborn identity: Bringing emotion to insurance the author Oliver Wymanstates that the “resulting lack of emotional engagement and growth infranchise value has cost European insurers over 100 billion Euros in value.”(Equivalent to 133.49 billion US dollars)He goes on to offer objectives that can help insurers better engage their customers: Satisfy customer needs as customers see them. Offer tangible benefits, not ethereal concepts. Interact emotionally at all customer touch points. Build a culture of customer-focused innovation. ymarketing • 3050 Pullman Street, Costa Mesa, CA 92626 • 1.877.736.4321
How can insurance companies interact emotionally?Step 1 - Create an integrated marketing, sales and customer service plan thataddresses the above objectives.Step 2 - Make sure you include a social media marketing strategy into your marketingmix.Why Social Media?Social media is where you connect and interact with your customers in real time. It’shere where you can: Learn what your customers needs are, as they see them. Interact immediately with them, addressing their emotional concerns. Build a community with your customers and prospects that: o Involves them o Rewards feedback o Pro-actively addresses service issues o Solves problems individually and collectivelyIn fact, if insurance companies embrace social marketing, they will build an insurancepolicy for their longevity. Here’s why.Building Trust. Insurance companies fundamentally ask their clients to trust them.Put your money into my insurance and when the need arises, we will back you. Withsocial media, each time you interact honestly with your customers and prospects, youcreate a level of trust.When the insurance company responds to an individual’s concern, everyone who isconnected to the insurance company’s social network has access to it – both in real timeand as an archive. When a blog post resonates with the needs of customers, it remainson the Internet for those who find it through the search engines. It’s trust that’s builtto last and it belongs to the insurance company. ymarketing • 3050 Pullman Street, Costa Mesa, CA 92626 • 1.877.736.4321
Humanizing Insurance. One of the objectives is to interact emotionally at all of thetouch points. Insurance companies have known for years that face-to-face encountersare the most effective when selling policies or explaining claim benefits. But with lessface-to-face encounters and more people turning to the web for interaction, social mediahas become the front lines for customer/company interaction.Furthermore, with social media marketing you don’t have to wait for the complaints.You can manage the conversation by showing your human side. For example, during themost recent snow storm Allstate Insurance talked about snow fall and snowmobiles onseveral of its Facebook posts. It’s not all about selling – it’s about talking to yourcustomers about what’s of interest to them at the moment, which lies at the heart ofintelligent and emotional marketing.At the end of Reborn identity: Bringing emotion to insurance Wyman talks aboutbuilding a culture of customer-focused innovation. The aim for innovation is “toimprove the customer experience and, by doing so companies, willimprove their own economics.”He then goes on to offer the three key innovation imperatives – Focus on the i) Customer experience ii) A structured process iii) Robust measurement.By integrating a comprehensive social media marketing program into their marketing,insurance companies can accomplish all three – and as a result improve their owneconomics.That’s a good insurance policy for long term growth. ymarketing • 3050 Pullman Street, Costa Mesa, CA 92626 • 1.877.736.4321