Misconceptions exist about what social media actually is and how it can be used by the protection industry as a sales and marketing channel. Christopher Tuite explains
All too often, discussions on social media lead to blank stares and tongue-in-cheek comments about it being just for watching dogs riding skateboards on YouTube, seeing pictures of inebriated friends on Facebook or outing celebrity faux pas on Twitter.
The fact is that excellent opportunities for interacting instantly with consumers, clients and businesses now exist in ways that they never have before. Those that harness the power of social media first are likely to benefit from a huge commercial advantage.
Wikipedia - itself a form of social media - defines it as "a term used to describe the type of media that is based on conversation and interaction between people online. Where media means digital words, sounds & pictures which are typically shared via the internet and the value can be cultural, societal or even financial."
Unstoppable growth
The reference to the potential financial gain is a salient one. There is little doubt that social media is growing in popularity and will continue to do so. Twitter has 200 million users posting 350 million tweets worldwide. Facebook has more than 750 million active users, with 50% of them logging on in any given day, and more than 100 million professionals use LinkedIn to swap information.
With such huge numbers, it is clear to see the growing role the internet and social media has had, and will continue to have, in changing the way we purchase financial services and products.
But despite these compelling numbers, a recent study by Earnest Agency revealed that just 16 FTSE 100 companies use Twitter in any meaningful way. This is despite the fact that at least 20% of all Tweets contain a reference to a product or a brand and nine out of ten client marketers agree it is unwise to ignore social media outlets as part of a marketing strategy.
The fact is that most people now research and buy from the web. Making your online presence and third-party recommendations today is absolutely crucial no matter how big or small you are as an organisation.
Even a cursory glance at the popular personal finance forums or a simple search on Twitter, Facebook and LinkedIn shows just how much is being said online in the world of financial advice alone. People talk and make recommendations in cyberspace about providers and advisers they trust - or identify ones they don't.
As a result, by the time a prospect comes to you they will more than likely already have formed an opinion of your service.
This begs the question: "How do I get involved in these conversations while protecting the reputation of my business and generating sales leads?"
It is vital that you have all the basics in place. Your website should be regarded as your 21st century shop window. How interactive, easy to find and navigate it is will play a vital role in defining how successful your sales are likely to be.
As with any shop window, its success should not be defined by how good it looks, but how effective it is at increasing footfall through the door and to the tills.
In the online world, this means driving traffic to your site and social media is one of the most important tools to do this. A social media presence that is well integrated and consistent will generate links while improving search engine rankings and potential new business prospects. It is personal by nature, so therefore relationships can be created and maintained with customers. Social media also allows you to influence the opinion formed of your offerings prior to engaging with potential customers and other influencers (such as journalists and bloggers).
Advisers and providers alike need to be involved in the right "conversations" to ensure they don't miss out as buyers become increasingly armed with impressions of a business before they commit to spending their hard-earned cash. So how does one go about implementing a social media strategy?
To begin with, a thorough analysis of what is being said online about your organisation and your competitors is a good place to start. Once you have an idea of what perceptions already exist about you, you can then seek to change or enhance these.
