REALIZING THE ROI OF SOCIAL MEDIA IN INSURANCE LISTEN TO THE MIRROR

1. REALIZING THE ROI OF SOCIAL MEDIA IN INSURANCE LISTEN TO THE MIRROR 2 MAY 2013 Mike Fitzgerald, Celent Craig Beattie, Celent

3. Social activity distribution • Invite customer to share more for discounts • Social Media Score Card • Sharing relevant information • Sentiment Analysis Automated • Understanding friends and influence • Games • Seek out customer advocates and customer stories • Offering Money for Information • Searching for key phrases and group membership Manual • Searching for public data and images • Posing as friends in social networks Reserved for high value policies and claims activity Passive Active

4. Social engagement continuum Underwriting Value Seek out good risks; Pre-profile customers; Discounts for good behavior Responding to customer service inquiries Operations Listening Marketing Engaging customers ex: sharing stories, games etc. Social Engagement Defensive Offensive

5. Research methodology

6. Distribution of customer posts

7. Overall sentiment

8. Who were customers talking about?

9. Service sentiment

10. 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. Post 3

11. You have to be listening in the right places Sites used when discussing auto insurance Sites used for discussing auto Claims and Service Claims Service

12. Where people discuss insurance varies by product Sites used when discussing auto insurance Sites used when discussing homeowners insurance

13. 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

14. 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 complaints • Builds an on-line FAQ • Increases customer engagement • Requires team • Regulation • Audit • Privacy – difficult in public forum • Promotes brand • Rewards word of mouth • Network 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

15. Social system environment Social Risk Profile Postings to Social Sites Social Score Social Graph Custom Social Reports 3rd Party Data Sources Customer Relationship Management System (CRM) Policy Adminis-tration Claims Billing

16. 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

17. 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 csmith@celent.com