Building the Network
Insurance Networking News, April 1, 2009
If you build it, will they come? While that mentality may have worked for Kevin Costner in the movies, has fantasy now become reality for insurers trying to attract and retain customers with social networking? The answers to that question from people within the insurance community are mixed, but the one thing they all agree upon is that the people - and the potential - are certainly there.
Eighty-five percent of all online adults currently use some form of social networking, according to Chad Mitchell, a senior analyst with Forrester Research Inc., Stamford, Conn., citing an A.M. Best study - research that Forrester has backed up. He confirms that the interest and activity is present, and that social networking is definitely now part of insurers' marketing strategies.
Advertisement
Social networking, while popular among the Millennial generation (born between 1981 and 2001), is expanding to be a major part of everyone's life. Professionals, "adults," and people of all ages and walks of life have flocked to join social networking sites such as Facebook, MySpace and LinkedIn, among myriad others. The networks, now woven into the fabric of our increasingly technological society, allow people to have a perpetual dialogue with friends, family, coworkers and, literally, everyone else.
Chad Mitchell
People also join groups devoted to specific interests, giving people access to a ready-made, virtual community of individuals with similar tastes and values. The proliferation of mobile devices able to run applications devoted to the social network of choice is creating interconnectedness and a vast pool of potential customers, inciting insurers to jump in.
"It's where certain segments of the market are," says Andrew Rose, president & CEO of Admiral Americas LLC, a newly formed direct-to-consumer auto insurance company located in Richmond, Va., and subsidiary of UK-based Admiral Group PLC. "If we want to remain connected and relevant to them, then we need to play in that space. If we're focusing on a younger demographic, then we need to hone in on those types of networking sites, and use the different attributes of what's broadly defined as Web 2.0."
Shawn Morton, senior consultant for Web user experience at Nationwide Insurance Co., agrees with Rose, but counters that social networking is by no means replacing any of the traditional channels.
CONSTRUCTING COMMUNICATION
The key to getting the most out of any foray into social networking is remembering that engaging customers on social media sites isn't necessarily about selling insurance. Instead, it's all about brand recognition, and building trust with the consumer base.
"People often think marketing on social media sites means buying an ad on Facebook, or buying banner ads on MySpace, but it's really about having content that people want to pass around on these networks," says Kristin Brewe, the director of brand and public relations for San Francisco-based Esurance. "It helps you connect with conversations people are having about your brand, and helps you target people who may or may not have previously interacted with you to get them to come and take a look at you."
Beyond that, Forrester's Mitchell asserts that the true value of a social network is its unique, user-generated content characterized by someone providing a comment, rating or criticism around the product or company. "We've seen huge failures where companies come in and try to disguise themselves as a customer," he says. "They really shoot themselves in the foot."
Rose, who is currently developing Admiral Americas' Web site and marketing strategy while evaluating what tools and networking components work best, expands upon Mitchell's message, citing his concern about the legitimacy of any social networking presence. "The dangerous part of playing in this space is that if it looks like it's a marketing ploy, people will see right through it, which can quickly become a negative," he says. "It has to be done with the legitimate intent of becoming a part of the social fabric first, and if it results in benefit to your brand, that's an additional, ancillary benefit."
WATCHING THEM COME
For more information on related topics, visit the following channels:
