Social Media and Marketing Essay

Social Media Marketing for Insurance Services

Marketing is one of the functions where social media can be of great value to insurance companies. Social media can be used to reach out to new customers, engage consumers on a more individual level, promote insurance products, and reinforce brand messages. Thus, deployment of social can be a useful tool to generate positive outcomes such as greater brand awareness, increased customer base, improved customer satisfaction, and revenue growth.

An important objective for any organization from a marketing perspective is to increase awareness of its new and existing offerings. For insurance companies, social media can be a useful tool in this regard. Twitter, Facebook, Youtube, Linkedin, and other popular social networks can be used to educate or familiarize consumers with the various types of insurance covers and their benefits, discount plans, promotions, as well as newly introduced covers and benefits. Such awareness can influence purchase decisions. A major advantage of social media is that it offers a significantly cheaper way of marketing and promoting products to a much larger audience compared to traditional channels such as television, radio and the print media.

Insurance companies can also rely on social media to engage consumers. Today, consumers increasingly yearn for relationships. They want organizations that engage them in meaningful ways. They want to be involved in stimulating conversations and desire quick two-way communication. Since it is primarily about building relationships, social media has transformed the manner in which individuals and organizations interact with one another. With social media, consumers can offer their feedback about brands and products, and spread messages through word of mouth to their social circles. This feedback can then be used effectively to address customer needs, service inadequacies, and engage consumers in key issues of concern. In addition, word of mouth can be important for getting referrals and bringing in new customers, thereby accelerating sales (Balinas).

The applicability of social media in consumer engagement, particularly, stems from the fact that insurance products tend to cover events that are emotionally important to consumers (Ymarketing). For example, one buys insurance to cover their health, loved ones, and valuable property. Consumers attach a lot of meaning to insurance products that affect the family. Given that social media is about building relationships, insurance providers can exploit it to engage consumers emotionally, initiate meaningful discussions, and build a consumer-centered service culture. According to Morgan, building and maintaining relationships is fundamental to selling insurance products. Consumers generally seek trustworthy providers. By listening to consumers, building communities, sharing experiences, and cultivating transparency through social media, insurance organizations can create enduring relationships with their…