Just 20 years ago, the answer was simple. Need an insurance agent? Pick up a phone book.
That five-pound yellow brick delivered to everyone's doorstep each year was the lifeline of new business growth.
Let's face it, it was the first place many customers would go–other than a recommendation from a friend or family member–to find an agency. In fact, the bigger your ad, the more likely you were to get a call.
Today, the world couldn't be any more different.
Now, if a customer needs information about an agent, they head to a computer and go straight to Google.
But only about 48 percent of independent agents actually have websites. And of those, roughly 20 percent keep them updated.
Social media is only making the issue bigger and more relevant. You can embrace social technology and the Web and make it work for you, or grudgingly dig your feet in the sand and hope it goes away (which it won't).
PAST VS. PRESENT
Look at where we are today compared to just two decades ago. Many communication methods have been replaced by elements of social media as people look elsewhere for help, information and recommendations.
It's no secret print publications are losing ground to the Internet. You only have to look at newspaper figures to see how quickly readers are leaving print media.
According to the Audit Bureau of Circulations, the Wall Street Journal is the only major newspaper in America that is growing in terms of readership. More and more Americans are getting their news and information online.
In the past, traditional advertising in newspapers was the gold standard for promoting your business. It was one of the most popular ways to get your name out there. But today, companies are focusing more and more on ultra-niche advertising through avenues like Facebook, Google and other websites. Using this tactic, you can hone in your advertising so it only reaches the people you want. You can literally cherry-pick your audience.
For example, if someone types "Cleveland, Ohio insurance agents" into a search engine, you can buy ad space on those search page results if you're a Cleveland agent who wants to reach those people. That way, only people who are looking for an agent in Cleveland will see your ad, which maximizes your ad spend.
Beyond advertising, social media provides the insurance industry a number of ways to engage customers, especially through the growing popularity of smart phones and iPads.
Customers are increasingly interested in communicating through mobile applications simply because it's quick and easy. Of course, an insurance agency or company can't solely do business through a mobile app, but it is one more option the consumer can choose from to communicate with us. Insurance companies are building apps to provide everything from real-time quotes to helping customers file a first notice of loss.
FINDING SUCCESS
Being successful in social media doesn't mean you have to be everywhere at all times. Should you open a Twitter account? Not necessarily.
Is it a must to build an iPhone app? Maybe. Do you need a presence on Facebook? Probably.
What about building a website? Definitely.
For an agency, you should choose what methods are best for your business. If your agency sells high-net-worth insurance, consider starting a blog about "wealth."
Do you specialize in covering restaurants? Why not create a Facebook page for a forum for restaurateurs?
These are ways you can build brand affinity with consumers.
Being successful in social media is all about finding a way to interact with the consumer. At our firm, we recently created several Facebook pages to help recruit employees, promote our philanthropy program, and offer disaster preparedness and recovery advice. Each Facebook page focuses on a very specific subject.
STAY COMPETITIVE
In today's environment, customers want to have 24/7 access to their agents. That is requiring the insurance industry to adjust to a world of constant communication, whether it be via Facebook, Twitter or e-mail.
People want to do things on their own time, on their own schedule, and we need to be there whenever they come calling.
Agencies can stay competitive by hiring talent who are versatile and familiar with how to leverage the social media technology. You don't need a tech expert to help build a Facebook page. Just ask one of your employees. They probably know everything about it.
Also, consider sending a staff member to one of the many social media conferences available every year. They'll come back with a number of new ideas you can implement in your own firm. It's a small investment which could draw big dividends.
But remember, no amount of social media will help without great customer service to back it up. With the creation of Facebook, Yelp and other sites, people now have access to peer recommendations and online reviews before deciding whether or not to do business with a company.
You may have good name recognition and be all over the Internet, but if your online reviews are negative, that could be a deal breaker.
RELATIONSHIPS MATTER
While social media offers agents a new way to build businesses, enhance their brands, and communicate with customers and the public, there's one thing it can't replace–relationships.
Building a long-lasting relationship and establishing the trust of a customer is the foundation of any successful independent agent. Social media just provides an additional set of tools to help you do that.
Michael LaRocco is the president and chief executive officer of Fireman's Fund Insurance Company in Novato, Calif.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.