Social Media, Financial Services and YOU! Get Connected! · Social Media, Financial Services and...

Social Media, Financial Services

and YOU! Get Connected!

Marvin Jones Senior Associate, Management Solutions

[email protected]

© LL Global, Inc.SM

What is Social Media ?

• Social Media …. “an umbrella term that defines the various activities that integrate technology, social interaction and the construction of words, pictures, video and audio”


How many ways are there to communicate ?

3


The Impact of Social Media in 2012

http://www.youtube.com/watch_popup?v=3SuNx0UrnEo&vq=medium

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It is here to stay….

5

In June 2011….

• 65 million tweets per day

• 650 million Facebook users

• 100 million LinkedIn members

Today….( in less than one year )

• 200 million tweets per day (source: )

• 845 million Facebook users (source: )

• 150 million LinkedIn members (source: )


In the Caribbean Nations…

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Top Social Networks in the Caribbean

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Ranking is based on number of members, mentions in news and social

media channels and Alexa rank.

http://www.alexa.com/help/traffic-learn-more


Most Active Nations

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Haiti

Trinidad and Tobago

Jamaica

Dominican Republic


Who Uses Social Media?


Your company

here

Consumers

Competitors

Policyowners

Producers

Increased Pressure to Use Social Media

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Social Media Adoption Up 30% in just a year…

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Nearly 8 in 10 insurance

companies currently

engage in social media.

Another 18 percent plan to use social media

within the next 12 months.


Insurers Adopting Mobile Technology

13 Source: LIMRA, U.S. Individual Annuities survey.

9 in 10 life insurers in the United States and Canada

have current mobile initiatives or are planning them.

Keep pace with producer demand

Provide better service for producers

Keep pace with competitors

Drive to increase sales

WHY?


Social Media Use is Becoming Standard

14 Source: 2011 Social Media Study, LIMRA

20%

40% 40%

25%

54%

18%

4%

Active Tentative Planning* No plans

2010 2011

More companies are using social media, with very few not at least planning to do so within the next 12 months.

* Option not offered in 2010


Areas Involved in Social Media Programs


71%

86% 86% 86%

57% 64%

32% 39%

81%

94%

23%

48%

Customer service HR Marketing Compliance eBusiness Technology

Areas Involved in Social Media

Active Tentative


The Current Environment

How are financial services companies currently

using social media?


ACTIVE USERS


PASSIVE USERS


NONUSERS


Which category are you in?

If Passive or a Non User….Can you afford to stay there?


Primary Objectives for Social Media

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Expand brand awareness/ consideration (56%)

Source: 2011 Social Media Study, LIMRA


Engaging with the Public


85%

65%

54%

65%

98%

95%

81%

88%

45%

15%

Facebook

LinkedIn

Twitter

YouTube

Google+

Tumblr

Presence on Social Media Sites Current or Planned

2010 2011

65% 56% 59%

47% 43%

Facebook LinkedIn pages

LinkedIn groups

Twitter YouTube

Companies Increasing Presence on Social Networks


Top Objectives by Platform

23

23%

3%

13%

17%

13%

10%

7%

3%

10%

Expand brand awareness …

Recruit staff

Drive traffic to your website

Build community

Communicate brand position/personality

Maintain relationships

Generate word of mouth

Enhance customer service

Enhance product awareness

All others

Facebook

52%

10%

10%

10%

19%

LinkedIn

11%

5%

16%

11%

5%

16%

11%

11%

11%

Twitter

Source: 2011 Social Media Study, LIMRA

*YouTube not included due to insufficient response


Facebook


81%

100%

77%

All companies Active Tentative

Facebook Presence

15%

85%

7% 15% 11%

56%

11%

Unobserved Listening Responding Participating Storytelling

Facebook Engagement

Active Tentative


Facebook Strategies


•Brand awareness

•Public relations Tentative

•Engagement

•Communities

•Customer service Active


LinkedIn


23%

62%

15% 8%

31%

8%

54%


LinkedIn Engagement

Active Tentative

90% 92% 96%


LinkedIn Presence


LinkedIn Strategies


Producer-centered •Supporting producers •Recruiting talent


Twitter


15%

38% 46%

4%

41%

11%

37%

7%


Twitter Engagement

Active Tentative

79% 92%

81%


Twitter Presence


Twitter Strategies


•Distributing information •Brand awareness


YouTube


15% 8%

46%

31%

19% 22%

4%

44%

11%


YouTube Engagement

Active Tentative

74%

92%

65%


YouTube Presence


YouTube Strategies


•Brand awareness •Search leverage


Social Media use by Producers


19% 17%

10%

20%

4%

10% 17%

50%

70%

58%

12% 10% 4%


Social Media Policy for Producers

Forbidden

Guidelines

Minimal control

Multiple policies

No policy

73% 79% 77%


Producer Initiatives

Forbidden — Producers are forbidden to establish a social media presence for business/professional use

Guidelines — Producers are permitted to use select social sites with specific guidelines governing use

Minimal control — Producers are encouraged to have a social media presence, with minimal control from company

Multiple policies — Policies vary based on type of producer


Companies are Supporting Producer Use of Social Media


58%

67%

67%

25%

33%

75%

24%

38%

28%

10%

21%

38%

Compliance training

Social Media training

Pre-appoved content

HO Content

3rd party monitoring

HO monitoring

Activities to Mitigate Risk

Active Tentative 73% 64%

33%

5%

52%

19%

3rd party tools

Custom tools HO monitoring

3rd party monitoring

Do not monitor

Monitoring Tools

Active Tentative

100%

91%

73%

45%

64%

36%

73% 81%

57%

38% 29%

19% 19%

52%

Policies Best practices

Soc/compl training

Other social training

Templates Soc mgmt tools

Content

Producer Support Active Tentative


Why do I need to get connected?

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The Old Way of “Telling and Selling” is Dead….there is a new way in town!!!

You must Demonstrate, Involve, and Empower

Create Virtual Trust

Your Prospects are Researching Online for Information….

Just having a website is not enough…people buy from people they like, trust and respect


Why do I need to get connected?

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Create your own Brand… over 80 million names are Goggled every day…

Increase your Viability as a Professional and Expert….

Create a Blog….Demonstrating your knowledge builds credibility and trust… it defines who you are and how you will be perceived

An important takeaway…

The sale is still offline, but the communication is moving online


The Challenges of Social Media

• The risks are real and should not be taken lightly.

• Taking the wrong path or a misstep using social media can have many negative repercussions.

• Consult with your General Counsel to make sure that you are in compliance with all Federal Regulations…

FINRA Regulatory Notices 10-6 and 11-39

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Top Challenges to Using Social Media


88%

31%

42%

38%

35%

19%

80%

49%

27%

2%

18%

7%

Compliance concerns

Lack of human resources

Branding and public affairs concerns

Don't know enough about it

Issues getting executive buy-in

Lack of financial resources

2010 2011

FTEs Dedicated to

Social Media (mean)

3.7 1.7 0.7

Active Tentative Planned

FTEs

=3.7 =1.7


An example of how Social

Media can hurt your brand..

• United Breaks Guitars

• http://www.youtube.com/watch_popup?v=5YGc4zOqozo&vq=medium

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http://www.youtube.com/watch_popup?v=5YGc4zOqozo&vq=medium

http://www.youtube.com/watch_popup?v=5YGc4zOqozo&vq=medium


Best Practices

1. Develop high-level strategies

2. Build a better mousetrap…but don’t reinvent the wheel

3. Social Media is collaborative… be sure your approach is also

4. Think “Relate” rather than “Convince”


Some Final Thoughts…

Stop thinking about:

“How I can sell” and start thinking about “How I can help?”

Your Future depends on it……

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Questions

[email protected]

mailto:[email protected]

Social Media, Financial Services and YOU! Get Connected! · Social Media, Financial Services and...

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