Social media is used these days by businesses and consumers for just about everything imaginable.
So it should not come as a big surprise that more and more shoppers are using social media venues to look for deals on their auto insurance needs. With that being the case, auto insurance companies are also stepping up their social media games, knowing that it is yet one more avenue where they can turn and connect with consumers.
A recent Gartner research firm survey indicated that a larger percentage of consumers trust online commentary and reviews from other individuals online, noting "The majority of consumers rely to some extent on social networks to guide them in their purchase decisions." The survey went on to note that some 78 percent of shoppers fall back on user-generated commentary and product review when shopping for auto insurance. Meantime, a recent J.D. Power survey reported that 54 percent of car insurance acquisitions start online.
Whether you are a consumer looking for auto insurance quotes or the insurer trying to sell the product, social media should definitely be on your list of go-to areas.
For the consumer, some of the reasons they are turning to social media to shop around for new auto insurance options include:
* A life-changing event;
* Not happy with the current provider's service and/or price increases;
* Variety of opinions from online consumers related to insurance providers presents the individual with more options to choose from;
* More insurance companies are putting more time and effort into their social media profiles, meaning consumers can get the latest offers on coverage in real-time.
For the insurer, some of the reasons they are turning to social media to advertise and promote their new auto insurance options include:
- Real-time interaction with both current and potential customers is second to none. While insurance companies still rely on phones, emails and walk-ins to sell insurance, social media provides instant ability to talk to consumers;
- Insurance companies can provide deals to consumers at a moment's notice via their company Facebook or Twitter pages. Instead of waiting to send a mailing out or calling consumers to see if they are happy with their present insurance needs, social media can be done 24/7/365;
- Working with current and potential customers over social media cuts down on chances you wouldn't have had opportunity to talk to them in the first place. If you send out email blasts or insurance offers/updates using regular mail, there are no guarantees consumers will read the message;
- Insurers can use social media to monitor conversations about their companies. As an example, if you are State Farm and there is some questionable information floating around social media about the company, you have the opportunity to update and correct any misinformation about the company instantaneously via social media;
- Lastly, insurance companies can take advantage of recent technology to provide quotes and offer customer service to consumers through mobile devices. It is important for those insurers that are not already involved with mobile technology to help consumers access cost and data details on the go. Remember, many consumers these days will not take the time to read your emails and regular mailings, so give them what they want, which is real-time information.
Whether you find yourself looking for personal auto insurance or trying to sell it, the idea of being social about it seems to be driven home these days.