Other parts of this series:
- Social has come of age for business—and five keys bring success
- To truly capture the value of social, insurers must design initiatives with ROI in mind
- Data and analytics are key to insurers’ ability to capitalize on social opportunities
- Making room for social: The importance of effective governance
Though most businesses report they use social media, few are comfortable that they gain enough from their efforts. Here are five tenets to social success, starting with the customer.
At first glance, it’s perplexing. Nearly 90 percent of businesses report they are using social media for marketing and 40 percent use social data, yet 67 percent find it difficult to assess the value of their social media campaigns and 60 percent find it challenging to turn the data gathered from social media into something actionable.
In a business climate where we value data and strategy and where the tools for reaching social’s potential are now available, what is going on?
It’s clear that social has come of age for business. Most are using it and some are reaping great benefits. Social can help insurers better understand their customers—and more important, enable them to foster trusted and value-based customer relationships. But to paraphrase Orwell, “All businesses are social, but some businesses are more social than others.”
So how can an insurer become a more social business? In a recent report, Accenture Digital outlines five tenets:
- Center on the customer
- Require tangible return on investment (ROI)
- Be exceptionally analytic
- Build muscle memory for speed to market
- Govern effectively
Over the course of this blog series, we’ll look at each in detail, along with examples of how insurers have successfully leveraged social data.
Center on the customer
In recent months, I’ve written quite extensively about the value of customer-centricity, especially for the insurance industry, so I’m not going to go too deeply into this here. However, I want to reiterate that perspective is very important to any organization. Businesses traditionally look at customers from the inside out but social gives insurers the opportunity to take an outside-in look to see how customers view them. That can be a real eye-opener.
Insurance is a data-driven business, benefiting immensely from information all along its value chain. Social could provide sophisticated insurers with a wealth of data for everything from product development to loss prevention. Used in contact centers and other service-related areas, social can improve customer loyalty leading to long-lasting customer relationships.
And integrating social media into marketing activities can allow an insurer to tap into a continuous source of data to better understand and adjust marketing strategies in real time. Slick ad or marketing campaigns may win prizes, but a campaign that engages and then moves target customers to take action is what wins business.
Example: Switch takes the conversation to its customers
Social opens up the possibility of a real conversation with customers. For example, Switch, AXA’s fully digital offering targeting young people, recently became the first insurer to use Facebook Messenger to connect with customers. This is a move that aligns with the expectations of its young target audience for “fast, personalized, one-to-one service that is fully integrated with their conversation interface.” Crucially, Switch has taken the conversation to its customers, rather than waiting for customers to come to Switch.
Join me next week as I look at the second tenet of a social enterprise: tangible ROI.
- Download Boil a Better Ocean: Five core tenets for creating the social enterprise (PDF).
- Read my blog, “It’s time for insurers to rethink their approach to insurance personalization”
- Email me to discuss how Accenture can help insurers leverage social to become more customer-centric.