What is the ROI on Social Media for Insurers?

Is social medias cost worth its value in gold?

As an Insurance Marketer who assists agency with social media I have heard this question hundreds of times. Agents want to know that they are getting leads and new customers from every marketing effort they pay for. Which is completely reasonable, but it might be time to stop for a moment and look at the bigger picture of using Social Media. After Hurricane Sandy it became extremely clear what the true ROI on Social Media is for Insurance Agents. 

The true Return-On-Investment for using Social Media is communicating instantly, with millions of people, in a time of confusion, danger and need. As Katie Peet, the social media director at Sate Auto Insurance put it, “For an insurance company, what is the ROI of being able to reach your customers, in their worst moments, so they know exactly where you are and how they can get help from you?” Connecting with customers during any disaster is difficult and has always been a hurdle for insurance agents in the past. Now with social media agents can connect with their customers giving them instructions on how to get to safety, where local aid stations are set up, where food and supplies are being given out and how to file a claim to receive the correct amount of compensation. 

The hard part is that you cannot wait till a natural disaster like Hurricane Sandy to connect with your customers on Social Media. You have to build those connections now. So when a disaster strikes you can mobilize your workforce to distribute important information to your customers as quickly and cost effectively as possible. 

Need some more proof that social media is a good investment for insurers? The hashtag “#Sandy” was used nearly 20 million times in tweets during the storm. The mayor of NYC used his @MichaelBloomberg Twitter account to give instructions to residents quickly and efficiently. Cory Booker, the mayor of NJ, FEMA, the Red Cross, National Weather Service, and numerous other insurance companies used social media to communicate and respond to people affected by the super storm Sandy. 

Could you as an insurer responded to your customers in a quicker more cost effective way during a disaster? If the answer is no, then it might be time to start building your social media presence. 

Blog Source:Commentary:Sandy Shows Social Media is Practically Made for Insurers by Katie Peet