The Social Media Equation: Agency and Insurer

Thomas H. Wetzel & Associates, Inc. 1

THE SOCIAL MEDIA EQUATION:AGENCY AND INSURER

April 21, 2011


Thomas H. Wetzel & Associates, Inc.

SOCIAL MEDIA IS:

Productive

Cost-Efficient

Risk-Averse

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Provided

THAT IT IS DONE RIGHT!

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Playing Offense AND

Defense --At the Same Time

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On Offense… Promote your brand Generate leads Strengthen customer relationships Build a community around customer

needs Develop advocates Tell the insurance story Listen, learn and engage

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It Does Not Mean:

Just setting up a Facebook page Treating social media as just another

corporate mouthpiece Buttonholing social media in the

marketing department

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It Does Mean:

Listening, not preaching Educating, not lecturing Building a community around your assets Facilitating conversation Encouraging “social sharing” Using data effectively

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On Defense…

Defend your brand Know how to respond to criticism and

turn it your advantage Build legal protections Create risk management plan

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It Does Not Mean:

Blocking all employee access Tuning out the complainers Waiting for the first compliance violation

to take action Putting it on the backburner when

business improves

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It Does Mean:

Creating a strategy and plan for formal participation

Educating and guiding employees and producers

Establishing usage guidelines and enforcing them

Managing your social media profile

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Using Data Effectively

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Some insurance departments are now monitoring social media activity and more will start soon

Regulators concerned about absence of research protocols

All insurance functions affected Transparency a must

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Regulatory Concerns

Advertising Testimonials and Endorsements Consumer Privacy Record Retention Agent Monitoring (or lack of it)

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Legal Issues

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Case law is evolving Many areas of law affected: employment,

contracts, intellectual property, privacy, data security

# 1 concern – online terms and conditions

Four must-haves: policy, guidelines, monitoring, training

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TACTICS• Microblogging

Social Network Participation Monitoring

Video Marketing Blogger Relations

Influencer Engagement Community Creation & Engagement

Word-of-Mouth Marketing Training Blogging

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Monitoring Mandatory Should be done daily More than checking your own sites Use two or more services Use variety of metrics Know what your competitors and

producers are doing

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Share of Voice – Media Types Top AuthorsShare of Voice – Sources Brand

ReferencesDaily Volume Content ToneVolume By Date Content EmotionKey Themes Demographics

(Age, Share of Voice - Products Gender,

Location)Top Domains

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Agency – Carrier Cooperation

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How Much Will It Cost?

May use existing staff to start Cost vs. value How much is protecting your brand

worth? Recalibrate marketing expenses Minimize compliance, litigation costs

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What’s New in 2011 Pressure to demonstrate ROI Increasing regulatory scrutiny Litigation challenges Greater carrier-agent cooperation Corporate-based communities (Facebook is

not all there is) Mobile marketing growth

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THE SOCIAL MEDIA STARS USAA New York LifeState Farm ThriventWestfield Insurance Farmers Foremost Alfa InsurancePEMCO VPI Pet Insurance Allstate Erie InsuranceAmerican Family Insurance Shelter Insurance GEICO Florida Association Progressive of Insurance Agents

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BEST PRACTICES Strategy first, tactics second Don’t experiment, construct a roadmap Every department plays a role Engage legal counsel early Revise existing guidelines Train, train, train Monitor and measure

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FIVE CRITICAL TAKEAWAYS

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TAKEAWAY #1

Social Media is mainstream communications

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TAKEAWAY #2

Avoiding corporate-sanctioned and managed participation is no longer a viable option. Neither is ineffective participation.

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TAKEAWAY #3

Social Media affects every insurance function and every function needs to play a role.

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TAKEAWAY #4

Hit or miss experimentation is no substitute for a carefully-designed plan.

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TAKEAWAY #5

The time to start was yesterday, but immediately will do.

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Join our Facebook discussion at Social-Media-Management-for-Insurance-Industry

Follow our blog at www.thegoodrisk.com For information on our services, see

wetzelandassociates.comSocial Media Management Program

Short-term ConsultsInsurer Profiles

Employee, Producer Training

Email us at [email protected] Phone: 708-524-4944 Cell: 708-577-8658

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Documents

The Social Media Equation: Agency and Insurer