5 Ways Insurers Can Harness Social Media
5 Ways Insurers Can Harness Social Media
Social media platforms have allowed players across all industries to connect with consumers on a more personal level. The impact of social media on fashion, beauty, and wellness brands has been undeniable. It’s time for insurance providers to tap into the power of social media to expand their businesses and increase their profits.
From engagement photos to newborn announcements, people use social media to engage with each other on a very intimate level. Similarly, the average consumer engages with insurance providers to protect some of the most intimate and emotional aspects of their lives: their health, their children, and their homes. Here, we’ll cover how insurance companies can take advantage of this incredible tool to reach customers on a meaningful level.
Social media platforms are a marketer’s gold mine. The average American spends 42 minutes per day on Facebook alone. This represents a significant opportunity to engage with the public in a new way. Informative web and mobile content will make your insurance services more visible and draw potential customers to your brand.
With more and more consumers relying on online reviews and social media endorsements when making big life decisions, a positive online presence has never been more critical. Well-crafted, informative blogs and videos can give consumers the insurance guidance they need in an appealing format.
Having active social media accounts also allows users to leave reviews on widely-seen platforms, such as Instagram, Facebook, and Twitter. Good reviews can bolster traffic to your website. Even less-than-stellar reviews can give your company the opportunity to respond to customer complaints in a positive way. Potential customers like to see how your company will work to resolve their complaints. In the end, you can never have too much positive visibility for your company.
Customer service through social media platforms is another modern feature of customer engagement. As the modern consumer increasingly provides feedback via social media, companies have taken to addressing consumer feedback directly through those same social media platforms.
Many companies respond to tweets, Instagram posts, and Facebook comments. Your company can reach more consumers and develop a reputation for customer-centric support by interacting with customers where they are most comfortable.
While the potential for increased profits and improved customer-service presence is undeniable, social media-based customer service presents some challenges of its own, especially with regard to:
Providing support on a public social media channel can be tricky when sensitive information needs to be transmitted. In these cases, it’s prudent to move the discussion to private channels after the initial request is made.
Companies often use chatbots to deliver automated responses in the initial stages of providing customer service. While scripted responses are often necessary and desirable to a certain degree, they can be off-putting to the consumer. It’s essential to have a wide range of well-crafted automated messages to avoid giving the impression that customer service is a low priority for your company.
Social media data can also be used as part of data-driven pricing models for insurance plans. New York’s Department of Financial Services recently determined that insurance providers can use their customers’ social media data to determine their life insurance premiums, as long as their methodology is non-discriminatory.
In other words, you can’t use social media data analytics to discriminate on the basis of race, color, creed, national origin, status as a victim of domestic violence, past lawful travel, sexual orientation, or membership in any other protected class.
Insurance companies can also use social media data to create new products or update existing products to meet market needs. Learning potential customers’ lifestyle habits and personal values can help you create more customized products to meet their needs.
Social media investigations are becoming increasingly popular in insurance underwriting. Customers’ social media posts can be mined to verify the veracity of their claims, especially for medical cases. Insurers have used social media postings to dispute claims and even recover payouts after the fact. Considering that some estimates claim that up to 10% of insurance claims are fraudulent, this can be a powerful tool for minimizing loss and protecting your insurance business.
How to Get Started
While social media platforms hold enormous profit and growth potential for insurance companies, they also provide enormous opportunities for public embarrassment. A comprehensive marketing strategy is essential for navigating the potential minefield that social media engagement presents.
You need to figure out how to effectively communicate your company’s vision in a way that resonates with the public and takes the nuances of various platforms into account. Here are some tips for starting:
- Become intimately familiar with your competitors’ social media presences and how they resonate with the consumer. Monitor their pages so you can listen in on their social media activity.
- Connect with other local business’ social media pages.
- Create high-quality, engaging content on a consistent basis, preferably several times per week. Be sure to include educational content, not just sales material.
- Engage with proven methods of data analysis for interpreting social media feedback.
Harnessing the power of social media data should be a primary goal for companies in all consumer industries, not just insurance carriers. Whatever your social media strategy, you will need exceptional technological support. Our award-winning platform for CRM, underwriting, billing, claims, analytics, and broker and policyholder portals is designed for small to mid-sized insurers.
With our software, you can keep all your insurance operations in one place. Built by insurance administrators, CHSI Connections understands your business needs and has designed a best-in-class architecture that offers speed, reliability, and scalability. Don’t get left behind in the digital revolution. Contact us today for a demo and see why we were ranked #1 in Customer Implementation Experience by 2018’s Risk Management Information System (RMIS) report.