realizing the roi of social media in insurance listen to the mirror

© Oliver Wyman | NYC-OCR02301-018

REALIZING THE ROI OF SOCIAL MEDIA IN INSURANCELISTEN TO THE MIRROR2 MAY 2013

Mike Fitzgerald, CelentCraig Beattie, Celent

CONFIDENTIALITY Our clients’ industries are extremely competitive. The confidentiality of companies' plans and data is obviously critical. CELENT will protect the confidentiality of all such client information.Similarly, management consulting is a competitive business. We view our approaches and insights as proprietary and therefore look to our clients to protect CELENT's interests in our presentations, methodologies and analytical techniques. Under no circumstances should this material be shared with any third party without the written consent of CELENT.

Copyright © CELENT

33© Oliver Wyman | NYC-OCR02301-018

Social activity distribution

Passive Active

Man

ual

Aut

omat

ed Social Media Score Card

Posing as friends in social networks

Searching for public data and images

Sentiment Analysis Sharing relevant

information

Searching for key phrases and group membership

Games

Invite customer to share more for discounts

Understanding friends and influence

Seek out customer advocates and customer stories

Offering Money for Information

Reserved for high value policies and claims activity


Social engagement continuum

Valu

e

Social Engagement

Listening

Responding to customer service inquiries

Engaging customers ex:sharing stories,games etc.

Seek out good risks; Pre-profile customers;Discounts for good behavior

Mar

ketin

gU

nder

writ

ing

Ope

ratio

ns

Defensive Offensive


Research methodology

Company14

Company13

Company12

Company11

Company10

Company9

Company8

Company7

Company6

Company5

Company4

Company3

Company2

Company1

453

1,528

3,145

7,511

7,976

12,248

16,656

18,434

20,747

22,872

29,701

67,873

74,398

112,945


Distribution of customer posts

Twitter Facebook Blogs Forum Replies Comments Forums Videos Images

48.86%

25.59%

10.34% 9.52%

2.40% 1.99% 1.08% 0.23%


Overall sentiment

Negative48%

Positive46%

Mixed3%

Somewhat Positive1%

Somewhat Negative1%

8© Oliver Wyman | NYC-OCR02301-018 8

Who were customers talking about?

Company1 Other (7 companies) Company2 Company3 Company4 Company5 Company6 Company7

44%

14%12%

7% 6% 6% 6% 5%


Service sentiment

Positive63%

Negative23%

Mixed11%

Somewhat Positive2%

Somewhat Negative2%


Post 3

Post 3

Listen Respond

Recordings of client calls into the service center should be examined to identify phrases being used by personnel that might imply negative attitudes (re client expressions of “jerk” and “punk”). Appropriate training interventions should occur.

Opportunity Poor Practice Functions Call Center Operations, Agency Management

I have been with them a long time. In the old days, they use to have a bunch of grandma types answering the telephone. They were very helpful and always went over the top to please their customers. These days the customer service is not good. Just a bunch of punks and jerks on the telephones.


You have to be listening in the right places

Sites used when discussing auto insurance

Sites used for discussing auto Claims and Service

Twitter

Faceb

ook

Blogs

Forum R

eplie

s

Forums

Commen

ts

Videos

Imag

esBlog

s

Forum R

eplie

s

Faceb

ook

Twitter

Forums

Commen

ts

Videos

Imag

esBlog

s

Forum R

eplie

s

Faceb

ook

Twitter

Forums

Commen

ts

Videos

Imag

es

Claims Service


Where people discuss insurance varies by product

Sites used when discussing auto insurance Sites used when discussing homeowners insurance

Twitter

Faceb

ook

Blogs

Forum R

eplie

s

Forums

Commen

ts

Videos

Imag

esBlog

s

Faceb

ook

Forum R

eplie

s

Twitter

Commen

ts

Forums

Videos

Imag

es


Voice of the customer – Homeowners claims

Sample exchange from Facebook Key points

• Who repairs what and when it gets repaired is a hot topic for homeowners customers in the event of a loss

• Broadly positive result but…• Insured didn’t understand what was and

wasn’t covered• The way the work was organized and

communicated resulted in more costs to the insurer


Stages in social network adoption

Sharing Repeating Engaging Promotion Social Network

Customers re-share

Increase website traffic

Searchable online content

Reduce assistance calls

Content from other sources appears authentic

Requires team mustn't be seen to

endorse linked content

Defend brand Answer customer

complaintsBuilds an on-line

FAQ Increases customer

engagement

Requires team Regulation Audit Privacy – difficult in

public forum

Promotes brandRewards word of

mouthNetwork specific

voucher codes Sign up friends

Analytics can be difficult

Control over network

Full visibility of data

Significant costs to set up and promote

Needs an adjacent theme

Why would your customers join an additional social network?

Source: Leveraging Social Networks, Celent 2010


Social Risk Profile

CustomSocial

ReportsSocial Graph

Postings to Social

Sites

Social Score

3rd Party Data

Sources

Customer Relationship

Management System (CRM)

Policy Adminis-

trationClaims Billing

Social system environment


Insurers are encouraged to

• Broaden the use of social search tools to core insurance operational areas such as service, claims, and product development

• Listen to customers’ posts

• Use these reflections to map their response to as many operational areas as possible

• Adjust people, processes, and incentives required to embed the necessary changes in their organizations

• Perform ongoing monitoring to ensure the sustainability of the adjustments


Thank you!

• This webinar is based on the Celent report:

Realizing the ROI of Social Media in Insurance: Listen to the Mirror, published February 2013–http://

www.celent.com/reports/realizing-roi-social-media-insurance-listen-mirror

• A recording of today's webinar and copy of the presentation will be available to Celent clients on our website at http://celent.com/user/login

• If you have any follow-up questions about the presentation, please contact Chuck Smith at [email protected]

http://www.celent.com/reports/realizing-roi-social-media-insurance-listen-mirror

http://www.celent.com/reports/realizing-roi-social-media-insurance-listen-mirror

mailto:[email protected]

QUALIFICATIONS, ASSUMPTIONS AND LIMITING

CONDITIONS

This report is for the exclusive use of the CELENT client named herein. This report is not intended for general circulation or publication, nor is it to be reproduced, quoted or distributed for any purpose without the prior written permission of CELENT. There are no third party beneficiaries with respect to this report, and CELENT does not accept any liability to any third party. Information furnished by others, upon which all or portions of this report are based, is believed to be reliable but has not been independently verified, unless otherwise expressly indicated. Public information and industry and statistical data are from sources we deem to be reliable; however, we make no representation as to the accuracy or completeness of such information. The findings contained in this report may contain predictions based on current data and historical trends. Any such predictions are subject to inherent risks and uncertainties. CELENT accepts no responsibility for actual results or future events.The opinions expressed in this report are valid only for the purpose stated herein and as of the date of this report. No obligation is assumed to revise this report to reflect changes, events or conditions, which occur subsequent to the date hereof.

All decisions in connection with the implementation or use of advice or recommendations contained in this report are the sole responsibility of the client. This report does not represent investment advice nor does it provide an opinion regarding the fairness of any transaction to any and all parties.

realizing the roi of social media in insurance listen to the mirror

Documents

copyright celent oli

customer advocates

homeowners customers

customer storiesoffering

distribution of customer

service center

service sentiment

social networkssearching