HOW SOCIAL MEDIA MAKES MONEY FOR INSURANCE AGENTSROI MODEL:

This Insurance Social Media ROI model is the result of a joint effort between InsuranceSocial.Media and Drake University. Social media can impact an insurance agent’s sales across virtually every line of personal and commercial insurance. For this model, only the impact of new auto insurance sales was considered, along with the potential of cross-selling homeowners insurance as the result of those new auto insurance sales. The InsuranceSocial.Media Basic Plan posts to both Facebook and Twitter, but for this model only the impact of Facebook was included.

This model assumes an agent using InsuranceSocial.Media has 2 new customers per month posting a comment of satisfaction regarding service, claims, or pricing. InsuranceSocial.Media facilitates this function. Assuming each new customer has 400 Facebook followers, statistics show that 10% of them will see the posted comment. That would be 960 views annually. Assuming 31% of those viewers own autos, statistics show that 39% of them, 117 people, would be shopping their auto insurance in a given year. Statistics also show that 29% of those shoppers end up switching carriers. Given that 48% of consumers, consider social media comments prior to making an insurance purchase (according to Accenture), and assuming that 25% of those consumers live in the geographic service area of the agent, an agent would have 4 new auto insurance sales per year by using InsuranceSocial.Media services.

These new auto insurance sales and one new homeowners policy as the result of cross-selling would yield the average agent a 226% return on their social media investment.

SOCIAL MEDIA REFERRAL MODEL1 line of coverage (auto insurance)

Facebook only

SOCIAL MEDIA CIRCLES OF INFLUENCE

FAMILY

FRIENDS + COWORKERS

COMMUNITY

RETURN ON INVESTMENT1 line of coverage (auto insurance)

INSURANCE SOCIAL MEDIA

Sources: Jon Loomer, JD Power, Forbes, and Stanford University

www.InsuranceSocial.Media support@insurancesocial.media 866-673-7083

2 CUSTOMERS/MO.

= 800 USERS

= 960 TOTAL ANNUAL REFERRAL VIEWERS

10% SEE REFERRAL= 80 USERS

= 4 NEW AUTO INSURANCE SALES PER YEAR

BY USING INSURANCE SOCIAL.MEDIA SERVICES

X 400 FOLLOWERS

X 12 MONTHS

25% IN YOUR GEOGRAPHIC AREA= 4 CONSUMERS

39% SHOPPING FOR AUTO INSURANCE= 117 CONSUMERS

31% OWN AUTOMOBILES= 300 CONSUMERS

29% SWITCH CARRIERS= 34 CONSUMERS

48% CONSIDER COMMENTS= 16 CONSUMERS

Avg. annual auto insurance premiumAuto ins. social media referrals

New auto ins. premiumCommission (15%)

Average homeowners premiumCross-sell homeowners (25%)

New home ins. premiumCommission (15%)

Total Annual CommissionSocial Media Annual Cost ($39/mo)

$1,510 x 4

$6,040$906

$1,034 x 1

$1,034$155

$1061$468

= 226% RETURN ON INVESTMENT

INSURANCE SOCIAL MEDIA