It seems you can’t go anywhere without hearing about social media. Facebook and Twitter are no longer experiments, but are essential touch points of marketing campaigns, customer experience and communication.
While other industries have been faster to adopt social media, that doesn’t mean that it’s too late for insurers. In fact, adoption of social media is more important than ever for an industry that is driven by consumer trust.
Social media is not all fun and games
As I mentioned in a previous chart of the week, the insurance industry is currently dealing with low—and declining—customer trust and loyalty. And yet, the industry is based upon trust between consumers and their advisors or agents.
Social media can help build this trust. Through social networking platforms, consumers share information that is vital to building strong insurer-consumer relationships. Not only does social networking offer an opportunity for insurers to keep up with consumer needs, it also provides a way for insurers to maintain presence during the periods when customers aren’t thinking about insurance.
Also consider the advantages that social media offer to new insurers. It’s easier today to achieve scale, sales and service than it was before. Further, insurers can take advantage of viral marketing and real-time data.
Challenges for insurers using social media
Like I say, it’s not all fun and games. Though social media offers advantages, insurers must take into consideration the industry regulations for using these channels. For example, insurers must publish explicit social media policies and monitor conversations. More regulations are shown in Figure 1.
In addition to considering these regulations, it’s also a good idea to provide social media training before using these channels for business use.
Find out more about how to leverage social media in insurance.