The insurance industry is aware of the growing number of the millennial population that is why it has adopted social marketing strategies to build brand awareness, to develop the business and to generate customer support. Based on the recent survey made by Vertafore, a developer of insurance software, at least 50% of people make use of social media for business purposes.
The results of Vertafore survey echo the findings of 2015 Putnam Investment Social Advisory survey that interviewed 800 financial advisors. The results of Putnam survey revealed that 79% of financial advisors who use social media gained new clients compared to the 29% gained by advisors who boast of more than $1 million in new assets.
The survey also found out that the average industry respondent is active on at least 5 social media platforms. LinkedIn proved to be the most successful socially for financial advisors with roughly 70% of them using LinkedIn to improve their referral networks. LinkedIn is also being used to connect with peers in the industry and to enhance relationships with present clients. Considering that LinkedIn is highly effective, at least 85% of the financial advisors allow their employees to use the social media platform.
On the other hand, Facebook also plays a key role for financial professionals because it allows them to cultivate and enhance their social relationships with their customers. Facebook is heavily used to find out when customers are celebrating their birthdays. In the acquisition of new referrals, Twitter ranks fairly high. At least 28% of the respondents regularly tweet to gain new customers.
What the insurance industry is now facing is the new era of social selling. The Putnam study also dispelled rumors that only young professionals use social media. The age of the typical respondent to the Putnam survey was 44 with at least 10 years experience in an industry.
Social media is a relatively effective medium for marketing and advertising because it has the power to reach a lot of people. It makes sense for a business to pay attention to insurance marketing tips suggested by expert financial advisors to enjoy the benefits of different social media platforms.