Pros & Cons of Social Media For Your Insurance Business

Cold calling and roadshows were the norm for insurance agencies in Singapore. However, as of late, Facebook Ads, Instagram stories and LinkedIn messages are now the preferred channels for insurance agents in Singapore (powered by the Covid-19 situation) to reach the younger, more tech-savvy generation.

Considering the average millennial's media consumption habits, it's no surprise that insurance agents have turned to social media to generate fresh leads. Insurance agents have also recognized the need to move to digital channels to complement their face-to-face interactions by building trust and credibility with prospective clients. This is done by the sharing of client testimonials, extend invitations to upcoming webinars, and tell personal stories.

Let us now look at the 3 Pros of Social Media Marketing:

1. Costs Less but Gives More

It is obvious that social media marketing costs way less than other marketing mediums such as telemarketing and road shows. Although setting up a social media account is free, and you may be able to learn to create your own content, but real effectiveness comes by working with a digital marketing expert or agency to manage your online presence while you focus on your core business.

2. Direct Connection with Your Audience

Traditional means of sales and marketing face a challenge to maintain good and lasting relationship with their existing customers due to the lack of engagement. On the other hand, social media marketing allows you to connect and interact with your audience directly. You will not only know who is interested in your brand because they have chosen to follow you on social media. You will also be able to nurture regular engagements with your audiences in order to develop better and longer term relationships – that could spell profitable results for your business.

3. Brand Awareness

Building your brand effectively is key to set you apart from your competitors. As people become exposed to your brand, they become more familiar with it. Increased familiarity helps you get more conversions in the long run because most consumers tend to buy from the brands that they know well enough.

Social media also helps you build your brand through network sharing. The ideal scenario is when your followers choose to share, retweet, or re-pin your content on various social media platforms. This would help expose your brand to a wider audience. It is a great way for you to get more leads, leads that you would not be able to get from anywhere else.

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Now let us look at 3 Cons of Social Media Marketing:

1. Time Consuming

Reports show that up to 64% of digital marketers spend at least 6 hours and 37% of them spend more than 11 hours on social media marketing. This is relatively time consuming for insurance agents, considering all the other responsibilities they have in their business. If not enough time is scheduled to manage one's social media presence, no real benefits will be seen. Not to mention, without the proper know how, one could spend hours creating content that does not garner any engagement or even miss out opportunities that result from the lack of daily monitoring.

2. Spammers, Scammers & Trolls

A major turn off when it comes to social media is that it attracts all sorts of people, even the negative and malicious ones that may do harm to your online reputation. That is why building brand awareness using social media marketing is double-edged. As quickly as you can build up a following of interested parties through the network effect that social media presents, one can also risk negative comments and feedback spreading far and wide uncontrollably.

3. ROI is Hard to Define

While networking on social media, one thing should always be kept in mind: the budget you set for audience engagement and reach does not directly convert into a lead. Not every user who likes your post or follows you on Instagram or Facebook is a potential customer. For instance, if you run a sponsored ad to reach 1,000 people, your actual customers might be 10 or even less.

Social Media Marketing in the Insurance Industry

After learning both the pros and cons of social media marketing for your insurance business, you also will need to understand the specific stakes involved in the industry when it comes to social media marketing. As we all know the insurance industry is a highly regulated one where insurance agents need to ensure that the amount of content is just right to keep consumers engaged without compromising on the comprehensiveness of the content. Insurers here have therefore stepped up to ensure strict social media rules are in place on top of churning out pre-approved content.

In addition, before a sale can be completed, supervisors of the insurance agents are required to ensure the advisory process has been properly conducted, and the recommended products are suitable for the customer. Insurers must also disclose to customers all information on an investment product, such as potential risks and benefits and fees. Even after a sale, consumers can change their minds and cancel a purchase within a cooling-off period. These are all in place to ensure that consumers are making informed decisions on their purchase.

With all these safeguards, in place, we can conclude that social media marketing is great and should be embraced but it should not be the only strategy that insurance agents implement to position their business for the future. Just like peanut butter and jam are the perfect match for a sandwich, social media marketing and the Insuree platform works hand in hand to enable you to take your insurance business to the next level.

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