Social Business for Insurance Carriers: Exploring the Future!

L E A D E R NETWORKS

Copyright © 2012 Leader Networks, LLC

SOCIAL BUSINESS FOR INSURANCE CARRIERS

Vanessa DiMauro CEO, Leader Networks

June, 2012

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Copyright © 2012 Leader Networks, LLC 2

Vanessa DiMauro is the CEO of Leader Networks, LLC., a research and strategy consulting company that helps large organizations succeed in social business and B2B online community building. She has developed award winning strategies for many organizations including LexisNexis, Thomson Reuters, Sermo, Shell, Cognizant. Her work has been covered by leading publications such as the New York Times, the Wall Street Journal and CIO magazine. Vanessa DiMauro sits on numerous advisory boards. She is an Executive-In-Residence at Babson College's Olin School of Management, holds both a B.A. and M.A. from Boston College and blogs at http://blog.leadernetworks.com.

http://blog.leadernetworks.com/



Insurance + Social Media …. Everywhere!

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And Let’s Not Forget Linkedin

• Company listings

• Independent agents

• Insurance related groups

• Profiles

• Prospecting

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More than 90% of Insurance, Annuity Providers Use Social Media.

(Source: “Social Media Leader’s” Report by Corporate Insights, April 13, 2012)

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Current Wisdom Is…

that social media is social media marketing

…..and that social media marketing is the panacea for

insurance carriers.

that every insurance carrier needs a Facebook page or a

Twitter stream in order to reach the consumer.

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Social Media Business is NOT just about using marketing tools to broadcast online.

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Is The Best Path to Social Insurance Success?

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Source: http://www.cicero-group.com/wp-content/uploads/



Most Insurance Companies Lack A Planned, Funded Digital Strategy

• Just over 60% of agency respondents say that they do not have a marketing plan for either traditional or digital marketing tactics.

• Almost 70% indicated that they do not have a documented social media plan.

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Getting Back To Basics, Why Insurance Carriers Are Investing In Social Media…

“To attain interactive conversations between insurers and customers or prospects to disrupts the traditional, one way marketing model of the brand.”

(Source: Summer 2010 issue of Forward Focus, written by Deloitte’s director in the Insurance Industry Group.)

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http://www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/90eadb66fd959210VgnVCM200000bb42f00aRCRD.htm



Social business is the strategic use of social media tools and tactics to drive stakeholder and customer value.

It is often the evolution of social media marketing activities into a larger, more integrated strategic platform.

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There Are Many Reasons Why Companies Are Celebrating Social Business

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Product Groups

Product Development

Sales & Channel Partners

Customer Service

Marketing

Social Business Strategy

Distribution

Improve the way your products and services are delivered

Help customers get more value from your products and services

Deepen buyer loyalty; Identify future trends; increase customer service ROI

Develop new and improved products and services by capturing customer insights

Market and sell more effectively by building awareness and desire for your brands

Influence the social media conversations about your company and its products

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Reduce call center activity (call deflection) saves $



The Social Business Ecosystem

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Intimacy:

24X7 member services

• Online community

• Peer discussions

• Online events

• Member directory

• User generated content shared in community

Thought Leader-

ship

• Online Events

• Newsletters

• Articles about products /services best practices

• Research based on leading trends

Marketing: traffic &

awareness

• Social broadcast and connection tools -Twitter, Facebook, G+ & LinkedIN



Getting Back To Basics, Why Insurance Carriers Are Investing In Social Media…

“To attain interactive conversations between insurers and customers or prospects to disrupts the traditional, one way marketing model of the brand.”

(Source: Summer 2010 issue of Forward Focus, written by Deloitte’s director in the Insurance Industry Group.)

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http://www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/90eadb66fd959210VgnVCM200000bb42f00aRCRD.htm



Example: AllState Online Community

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Making a Difference – Share your ideas about making a difference in your community All Things Wheels – Share your ideas on how to be safe and smart about what you drive Daily Spending – Share your ideas about managing and tracking your spending Personal Finance – Share your ideas about protecting and planning for your future



Example – AMPM Insure

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AMPM Insure is a community of 17,000 members Committed in helping people understand Insurance & shared customer discussions Not an Insurance company but a community.



At every stage

It’s all about connecting

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Which Companies Need Online Customer Communities the Most? Common Characteristics of the Early Community Builders

Customers

• Willing to share information with other customers

• Have purchased a platform product and need to communicate with each other about how to capitalize on it

• Willing to participate in off-line user groups or in-person customer summits

Customer problems

(which their products or services addresses)

• Critical, ongoing and ever-changing

• Knowledge for solving problems becomes obsolete quickly

• Customers gain major value by learning from the experiences of other customers

• Urgent need to share experiences

Products/services

• Company’s offerings solve important problems for its customers

• Company must supply continual product or service enhancements to meet customer needs

• Company revenues depend on product/ service upgrade or expansion decisions by customers

18 Source: DiMauro, V and Buday, R. Why B2B Companies Need to Build Online Communities for Their Customers (2011)



Six Sample Success Measures

1. Did we increase customer engagement? If so, how?

2. Did we see an increase in positive mentioning of our brand?

3. Were we able to reduce customer service overhead because of social media efforts?

4. Were we able to reduce PR costs because of social outreach?

5. Did our website engagements and goals increase?

6. Did our overall sales revenue increase?

Forget about measuring fans and likes unless they are tied to specific business goals!

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Copyright © 2012 Leader Networks, LLC 20 20

Current Target Outcome Delta / ROI

Performance Metrics

Engagement Metrics

Business Metrics

Corporate Objectives

Business / Functional Unit Objectives

Engagement Project Initiative (Business Case / ROI)

– Financial – Customer – Process – Learning & Growth

Measures & metrics: Stakeholder engagement initiatives should be aligned with business / functional unit and corporate

objectives



The Future of Social Insurance

New relationship activities Online community = return to the applecart

– Brand affiliation/loyalty due to new relationship building activities – Hyper affinity/personalization

• Ability to tap into passion and interests of people – Reach digital demographics (i.e. Millennial)

New insights = new opportunities – Underwriters now can risk adjust informed by consumer social profiles – Customer life events can be surfaced earlier to lead new insurance

offers

The collaborative enterprise experience – Programs and process to enable the customer to directly influence the

products and services insurance carriers provide – Social data = product and service research

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Questions

• Did you learn anything interesting?

• Do you agree or disagree with the distinction between social media and social business?

• What are your biggest concerns or challenges with social at your organization?

• How do you define social business success for your organization?

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Thank You!

For more information please contact me

Vanessa DiMauro

CEO, Leader Networks

http://www.leadernetworks.com

617-484-0778

[email protected]

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http://www.leadernetworks.com/

Social Business for Insurance Carriers: Exploring the Future!

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Transcript of Social Business for Insurance Carriers: Exploring the Future!