Improving the Online Customer Experience © 2012 The Customer Respect Group Inc. Social Media: Time to Separate the Wheat from the Chaff Terry Golesworthy.

Improving the Online Customer Experience

© 2012 The Customer Respect Group Inc.

Social Media: Time to Separate the Wheat from the Chaff

Terry GolesworthyThe Customer Respect Group



“We are all scared to death about social media within our industry. We want to start with it. But we’re all just looking at each other, and nothing material is happening.” Insurance CEO



“We are all scared to death about social media within our industry. We want to start with it. But we’re all just looking at each other, and nothing material is happening.” Insurance CEO

Why Not Wait?



Willie Sutton Rule

4



Expectations – Not Under Your Control



“The world of communication is evolving at a fast pace. In the past we needed premium advertising to create effective consumer impressions. Today consumers are much more empowered. You need to communicate with them.”

“Five years ago social media was 3% of our total media spend. Today it’s more than 20% and growing fast.”

6

Muhtar Kent, CEO Coca Cola – October 2011





“From 1995 to 2000, the web went from something only some people used to something almost everyone used to conduct business. I view social media in the same way—we’re approaching the stage when almost everyone will have to figure out how to use it to conduct business successfully.” U.S. Financial Services CEO



The Age of the Customer

What was once a message is now a conversation. Shoppers today find and share their own information about products, in their own way, on their own time





Organizations used to be able to control the conversation through marketing and advertising.

Now they are just a part of a conversation they might not have even started.



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“For the first time in my career, I feel old. People in their 20s work and think about this social stuff in a different way. We’re using it as a way of connecting with friends and socializing; the kids coming up are using it as a way of life.” - U.K. insurance industry CEO



Influencing a Purchase

To purchase insurance, consumers use an average of 11.7 sources of information over 3 months Google Zero Moment of Truth

Consumers trust peers Neilsen

People like to share – #1 way to share information is “a link”Speed of Information

13

Social media is the plumbing

“Engagement with the customer today isn’t just pouring a message down on their head and hoping they get wet.

It really is understanding that you must be present in a conversation when they want to have it, not when you want to.

— Bob Thacker, Gravitytank Strategic Advisor and former CMO of OfficeMax



Industry Strategy 1.0Recruit a Social Media Team





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Industry Strategy 1.0

Fans – Size Counts



“With our Facebook fan base approaching 100,000, we’re now averaging over 125 million positive brand impressions per month—a rate of 1.5 billion per year—when our posts, advertising, and resultant fan engagements are considered.”



Social Media 2.0 – Turf War

Impacts on the entire company communication strategy

Brand awarenessCommunity development Agent sales supportCorporate communicationsCustomer service Crisis managementConsumer news update – disasters, deadlinesMarket research and social analyticsLobbying and advocacyCustomer research, including underwriting and claims Recruitment



“We’re not yet comfortable that social media has matured to the point we’ll benefit more than we’ll suffer”

Social Media Goes Both Ways



Social Media Goes Both Ways

We’re especially disappointed that this individual case eroded the trust we’ve built with our customers over the past 75 years.

“We’re not yet comfortable that social media has matured to the point we’ll benefit more than we’ll suffer”



Social Media 2.0 – Turf War

Impacts on the entire company communication strategy

Brand awarenessCommunity development Agent sales supportCorporate communicationsCustomer service Crisis managementConsumer news update – disasters, deadlinesMarket research and social analyticsLobbying and advocacyCustomer research, including underwriting and claims Recruitment



Brand Awareness

Promotions, sweepstakes and advertising-driven recruitmentExtensive use of photos–highly visual – easy, simple to like Fun, trivia questions, competitions, fill in the blank

Limited business contentWeak connection, limited brand loyalty or advocacy Digital Marketing – Reach

“Market entrants are young folks, and those people are watching less and less TV. That’s certainly part of our calculus, trying to get to those consumers when they’re making their initial insurance purchase.”

Jon Beamer,

Exploiting the plumbing







Weak connection, limited brand loyalty or advocacy Digital Marketing - Reach





You are an insurance company Who will realistically like you?Customers have personal connection with their agent not the carrier



Community Building

Perceived value and common bond for fansHighly targeted and engaged communityStrong community trust

Community relevant contentMicro-marketingCONTENT and a lot of it!

Develop environment for enhancing trust, advocates and referrals



Raffi’s Law



How much does peer advice play in buying decisions?

31

Why would people make decisions based on the opinions of strangers?

They don’t. They make decisions based on the opinions of people like themselves



Community Building



Hispanics

Over 50’s

Pet Owners

Farmers

Truckers

Teachers, Nurses

Small business



1) Strengthen the bond with our policyholders, potential policyholders, and agents and

2) Reinforce with our agents that ACUITY is the go-to carrier for that particular market.

3) Facebook is one tool we use to demonstrate our knowledge, expertise, and focus which in turn has lead to an increased demand at the agency.

Results

Written premium up nearly 16% through the end of August.

An uptick in rate of retention.

Of course, there are many reasons which are contributing to this growth, but a successful social media strategy is certainly among the mix.





The Agent Channel

Changing Consumer behavior disrupting traditional interaction

61 percent of consumers who researched individual insurance or annuity products looked online69 percent sought information from agents, brokers and advisors Agents often viewed as the most valuable and influential information source



Agents and Social – A Natural Fit

Social media is a relationship toolAllow constant touch-pointsAbility to show they are a valuable and influential information source

Connections into the networkContent distributionIndirect introduction to your customers and prospects





Convincing Agents



2.2 million Facebook fans

Average 4,000 interactions/month

0.2 interactions per 100 fans

Big Corporate Insurer – Brand

1,900 Facebook fansFacebook Interactions (July) – 4,867270 interactions per 100 fans

Authentic community member

Joel McKinnon - Farmers




“I am a fan of personalized marketing – I need to know what is happening in every customer’s life and social media provide a stream of incredibly rich information to make that easier. My Facebook fans are customers, prospects, friends, and neighbors, and they post about events in their lives. I can now reach customers at the right time, with the right information, and not waste my or my customers’ time calling about products they don’t need.”




• I need to know what is happening in every customer’s life • My fans post about events in their lives. • I can now reach customers at the right time, with the right information



We are a group of Farmers agents who have created a forum for us all to learn and share information that will help Agents utilize Social Media effectively

Increase Sales and RetentionImprove Customer ServiceGrow ProspectingConnect with Centers Of InfluenceGain ReferralsBuild Authority as Trusted Advisor



Agent Support - Listening

Social Media is a stream of Life Events

New homeNew carBirthsGraduationsJob changesNew teen drivers

Insurance TriggersSales Opportunities



Summary

Corral the chaos.Understand the social media buzz that surrounds the brand - get it under control

Develop corporate strategyBrand, customer, community and agent mixDevelop corporate personality

Target the message Deliver the right message to the right person at the right time, equals 100 percent conversion



Summary

Connect the entire enterprise.Especially important for companies such as insurance that have many agents communicating with customers

“Claims-handlers and lawyers working for insurers typically operate strictly by the book, which is usually a valuable attribute for their employers. But someone in the chain of command needs to keep in mind how their actions will be perceived by the public, even when they are acting within the rules.”



Your Questions

Terry [email protected]

978-412-0019www.customerrespect.com

www.customerrespect.com/blogwww.customerrespect.com/presentations/IFCA

Facebook.com/customerrespect@TerryCRG

http://www.linkedin.com/in/terrygoGooglePlus

http://www.customerrespect.com/blog

Improving the Online Customer Experience © 2012 The Customer Respect Group Inc. Social Media: Time to Separate the Wheat from the Chaff Terry Golesworthy.

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