The Travelers Companies scored a YouTube success thissummer by uploading its humorous television commercial starring alovable pooch that is afraid that a prowling "cat burglar" mightrob his doghouse. But Travelers isn't the only insurer seeing abump in Web traffic thanks to the ad.

After requesting Travelers' permission to embed the video in hiscompany blog, "we're getting about 25 hits a day from people whohave Googled the video," says Nibby Priest, vice president of theindependent Vaughn Insurance Agency Co., in Henderson, Ky. "Theseare people who have been directed to our Website who wouldn't havecome otherwise." And the hope is that some of these visitors willlinger on the site long enough to become new customers.

Priest's use of the Travelers commercial illustrates thebeneficial relationship that can exist between local agents andnational carriers as they use social-media tools. In striking theright balance that plays to each others strengths, agents areleveraging the sizable brand recognition and knowledge base ofcarriers—while at the same time emphasizing their own local rootsand connections.

The chief reason why agents should consider joiningsocial-networking sites is, quite simply, that their customers arealready there and expect them to be as well. The most-successfulplayers have learned that social media is not just a marketingchannel, but a powerful vehicle for providing customer service.

One of Priest's clients, for instance, recently sent him aprivate message on Facebook requesting that he remove an automobilefrom the client's insurance policy. "It was easier for him to findme on Facebook than to look up my email or phone number," Priestobserves, "so I've got to be on there."

Whether it's providing this kind of quick customer service orsupplying tips about disaster preparation and loss recovery, agentsare using social-media tools to engage their customers inconversation. And that's what matters most.

"Agents who maintain regular contact with customers have a moresolid relationship and their customers are less likely to shop fora new provider," says Jeff Yates, executive director of the Big I'sAgents Council for Technology (ACT). "Social media is an additionalway to maintain regular contact, an additional arrow in yourquiver."

SEPARATE & DISTINCT

Building customer loyalty is crucial for agent survival in acrowded and uncertain landscape. And, according to experts, thisneed to establish a personal relationship between potential andexisting customers creates a strong incentive for independent andcaptive agents alike to carve out a distinct online presence thatis separate from national carriers they represent.

"We advocate that individual agents brandthemselves, rather than relying on a carrier to do the branding forthem," says Jim Fish, executive director of the NationalAssociation of Professional Allstate Agents. "If they have anestablished brand of their own, they'll be able to carry on withtheir own name if a carrier terminates the business relationship inthe future."

Even the carriers agree that local agents should have asocial-media presence that reflects the agency's own culture andlocal concerns.

Agencies affiliated with Allstate "tend to have the same focusas the corporate team" in the social-media space, says Roger Tye,Allstate's director of consumer engagement and e-Business. But heconcurs that "it is important for the agent's presence to beauthentic" rather than simply mirror what the national carrier doesonline.

"Authenticity rules the day," agrees David Beigie, vicepresident of public affairs for State Farm. "We would rather seerobust agent platforms over and above anything we're doing insocial media as a company because it's at that level of engagementwhere people are able to talk about the local issues and topicsthat are most relevant to policyholders."

NATIONAL HELP

Where national carriers can provide agents with appropriateassistance, he continues, is in the area of best practices. Beigienotes that although State Farm is a mutual company, it isnevertheless subject to federal regulations that limit whatrepresentatives may disclose about its financial-servicesproducts.

For this reason, State Farm requires agents to complete trainingbefore they establish their own social-media presence. "It's a newworld and they appreciate that guidance," Beigie says. "They don'twant to have the distraction of doing things that either aren'tproductive or, frankly, are not in compliance with state andfederal laws."

Agent associations similarly are providing members witheducational resources. Both ACT and the National Association ofProfessional All State Agents, for instance, offer Webinars abouthow to set up and manage Facebook pages.

ACT, in particular, provides a deep shelf of reports andresearch on its Website to help agents implement an effectivesocial-media workflow. "It's important to establish exactly whatyour objectives are for using social media and then discuss withyour staff the extent to which they can use it during businesstime," Yates says.

Figuring out how much time a business needs tospend on social networks is far from easy. Priest was an earlysocial-media user, but these days he's seeking to limit the amountof time that he and his staff spend online. "I was finding myselflooking at customers' vacation photos on Facebook," he admits. As aresult, he recently blocked his office's direct access to Facebook.So that he doesn't miss anything important, though, he set up aforwarding service that directs all customer messages to hiscompany's regular email system.

To this extent, Priest says, national organizations and carriersshould help agents stay on top of the latest time-savinginnovations in social media. Tools such as TweetDeck and HootSuiteallow people to schedule Twitter and Facebook posts in advance,alleviating some of the daily burden incurred by updating thesesites, while consultants such as Hearsay Social provide strategiescustomized for the insurance industry.

Another area where national organizations and carriers can helpis by providing quality content—not just videos like the cuteTravelers dog, but weatherization tips, advice for handling aproperty loss, and other expert-authored resources for local agentsto customize. "

The key for agents in using generic content successfully ispersonalizing the messages to make them relevant for theircommunity. "You want people conducting genuine conversations," saysBeigie. If you over-automate that, why bother? It's better to havea genuine dialog."

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Tips for Success:
Keep It Personal and Local

Like it or not, customers are already talking about insuranceagents and carriers on social-media sites including Twitter andFacebook. Rather than ignore what they say in these spaces, expertssay, it's much better to join the conversation—particularly whenthe comments are negative.

"You want to protect your reputation on social media," says JeffYates, executive director of the Agents Council for Technology(ACT). "If somebody says something negative, you need to know aboutit—and you should contact that individual and turn a negative intoa positive."

"Don't just say 'call me for a quote,' but talk about localevents and make referrals to your community partners," recommendsRobyn Sharp, a social-media consultant to the insurance industryand blogger on sharpsocialmedia.com. "Make it about yourpersonality. Show off who your agents and staff are and helpcustomers create a loyalty to you."

It might seem like a paradox, but Yates says the best way tobuild a brand locally is to avoid talking about your business. "Ifyou have a Facebook page, you're not promoting your agency so muchas talking about what's going on in your community or supportingcharitable initiatives that are meaningful to the employees of youragency. That's how you really give your brand a personality."

Making local recommendations is a great way to do this. "UsingFacebook, Twitter, LinkedIn, it is not OK to just say 'Buy fromEncharter, buy from Encharter, buy from Encharter,'" says KenPetersen, CEO of Encharter Insurance in Amherst, Mass. "But it isokay for me to say, 'I had this terrific sandwich down at theHarvest Bakery, and you should try it. And, by the way, I have thisdiscount coupon on my Website if you happen to be goingthere.'"

Coupons, in particular, have had a remarkableresurgence recently with the rise of social-buying sites such asLivingSocial and Groupon. Insurance agents can tap into some ofthis buzz, as well as the growth of smartphone apps, by usinglocation-based software to send coupons when customers enter theneighborhood surrounding their local business partners.

"A lot of users now access Facebook only through their phones,"explains Sharp. "P&C agents are doing deals through Facebookthat show up if you're in a certain area. You get a $10 gas card,for instance, if you refer a friend for an auto quote."

Another excellent strategy in localizing your social-mediapresence is partnering with hometown charities. "I have clients whohave really taken this as part of their growth strategy for theirFacebook page: 'We're donating a dollar to the local animal shelterfor every friend we get on Facebook between now and Friday,' thatkind of thing," Sharp says. "The shelter talks about it, your fanstalk about it, and it brings in new fans at the same time. It's agreat strategy."

It's not just the locals that can take advantage of forgingpartnerships with other businesses and charities online. "Theeffort around the Big 'I' Trusted Choice promotion of theMake-A-Wish Foundation is the best example I have seen of this,"says Rick Morgan, senior vice president of Aartrijk, a branding andmarketing-communication firm with an insurance focus. "Carriers,other associations, user groups, and individual agents all pickedthis up and helped it go viral. As a result of all the sharing, adonation of tens of thousands of dollars to the Make-A-WishFoundation was generated. It sent a good message about the industryto the insurance consumer."