© oliver wyman | nyc-ocr02301-018 realizing the roi of social media in insurance listen to the...
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© 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
Au
tom
ated
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
44© Oliver Wyman | NYC-OCR02301-018
Social engagement continuum
Va
lue
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
Ma
rke
tin
gU
nd
erw
riti
ng
Op
erat
ion
s
Defensive Offensive
55© Oliver Wyman | NYC-OCR02301-018
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
66© Oliver Wyman | NYC-OCR02301-018
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%
77© Oliver Wyman | NYC-OCR02301-018
Overall sentiment
Negative48%
Positive46%
Mixed3%
Somewhat Positive1%
Somewhat Negative1%
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Who were customers talking about?
Company1 Other (7 companies) Company2 Company3 Company4 Company5 Company6 Company7
44%
14%12%
7% 6% 6% 6% 5%
99© Oliver Wyman | NYC-OCR02301-018
Service sentiment
Positive63%
Negative23%
Mixed11%
Somewhat Positive2%
Somewhat Negative2%
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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.
1111© Oliver Wyman | NYC-OCR02301-018
You have to be listening in the right places
Sites used when discussing auto insurance
Sites used for discussing auto Claims and Service
Faceb
ook
Blogs
Forum
Rep
lies
Forum
s
Comm
ents
Videos
Imag
esBlog
s
Forum
Rep
lies
Faceb
ook
Forum
s
Comm
ents
Videos
Imag
esBlog
s
Forum
Rep
lies
Faceb
ook
Forum
s
Comm
ents
Videos
Imag
es
Claims Service
1212© Oliver Wyman | NYC-OCR02301-018
Where people discuss insurance varies by product
Sites used when discussing auto insurance Sites used when discussing homeowners insurance
Faceb
ook
Blogs
Forum
Rep
lies
Forum
s
Comm
ents
Videos
Imag
esBlog
s
Faceb
ook
Forum
Rep
lies
Comm
ents
Forum
s
Videos
Imag
es
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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
1414© Oliver Wyman | NYC-OCR02301-018
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
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Social Risk Profile
CustomSocial
Reports
Social Graph
Postings to Social
Sites
Social Score
3rd Party Data
Sources
Customer Relationship
Management System (CRM)
Policy Adminis-
trationClaims Billing
Social system environment
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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© Oliver Wyman | NYC-OCR02301-018 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 [email protected]
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CONDITIONS
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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.