Why Insurance Companies Should Use Social Media Strategy to Engage the Consumer

Social media is now becoming part and parcel of the mainstream business aspects. Like other businesses, insurance companies need a social media strategy to help reach and engage the consumer. Insurance company is highly regulation field and despite these charges, it also needs to understand that its survival lies on how well it engages the consumer. Social strategy cannot be ignored by businesses including insurance companies no matter how it is perceived and therefore, there is need for social media management.

In the insurance industry, there are been a notion that social media is crippling insurance business by exposing too much of the negatives than the positives. Whereas this may be true, it is certain that social media has far much better things to offer than bad in terms of marketing and branding insurance products, and services.

There is need for insurance firms to apply social media management strategies to enhance their presence in social media networks and influence their existing, prospective and potential clients. Insurance companies can benefit in various ways if they create their social presence on the internet.

They understand their weaknesses through the posts and discussions which are raised by customers through social media networks such as Facebook, Google+, Twitter and LinkedIn. These companies are able to know where they are failing to offer what consumers want. However, insurance firms they argue that the comments may just be too negative and spread so fast. On the other hand, failing to react to these comments is a retrogressive business approach. This is the reason why social media management needs to be applied by insurance companies.

Through social media, insurance firms are able to develop their product and services. Consumers contribute in providing key information, which help formulate better insurance products that meet to the expectations of the insurance buyers. Social media can reduce the overall cost of formulating new products. If these companies apply social media management strategies they can win the clients confidence.

Insurance firms are able to manage their reputation through social media participation. Engaging the consumer in social discussion forums shows how committed insurance companies are to their clients. When clients’ comments are responded effectively, this nurtures a bond that can go a long way in spreading good word about the insurer.

Through the social media, insurance firms enhance their sales growth. Peer recommendations have become very effective in advertising. Insurance coverage buyers are now seeking for information about insurance policies such as quotes, premium rates, and claims issues through social sites. This influences their buying behaviour and therefore, insurance firms should focus on social media management.

In summary, social media is offering an unprecedented representation of business internet marketing campaigns and it cannot be ignored and insurers need to embrace social media management as a core marketing aspect. Consumers are now controlling the social media. Insurance companies cannot afford sidelining social media participation in their marketing strategy.