For consumers, there are two key insurance moments: when coverage is bought and then when it’s used, with hopefully a long span of time between the two. And if there is a claim, then it’s up to the insurer to react to help the claimant recover. But too often, the claims experience spurs policyholders to consider changing insurers, especially among policyholders who’ve been customers longer (and have been paying premiums longer).[i] What else happens when there’s a policyholder unhappy about a claim? Claimants readily take to social bully pulpits with their claims grievances, effectively using Twitter and Facebook to “regulate” insurers into action.
In addition, they also file complaints with state insurance regulators, an activity that about 34,000 US consumers did in 2013.What’s their biggest gripe? A look at the National Association of Insurance Commissioners (NAIC) stats reveals that 56% of consumer complaints filed in 2013 were issues related to claims handling, with the biggest chunk, 24%, because of perceived delays. And that’s not counting delays associated with getting referrals, pre-authorizations, and finding willing providers.[ii]
Over the past year, I’ve been involved in a variety of client advisories focused on the claims experience for both consumers as well as insurer work teams responsible for getting claims paid. Why is the claim experience so easy to go off track? For starters:
How much stuff do you own? The answer for most people ranges from a few changes of clothing to a large house full of possessions – your material self. It turns out that most of us also have a digital self – the information and items we create or that others collect about us. It is your footprint, your impact on the digital world. Without a digital self, you don’t exist in the world of computers and the Internet.
The era of Internet has spawned riotous new forms of business disruption as cheap tools and services combined with Internet reach and social media have empowered anyone on the planet to compete with the largest, most established businesses. James McQuivey’s reports and book on digital disruption highlight the fast rise of new hardware devices such as Microsoft’s Kinect and Apple’s iPad, and the fast mainstreaming of new Internet services such as Dropbox, Twitter, and Facebook. Companies in the business of retail, books, movies, and music have been toppled or transformed, with more to come.
Most of the large marketers we survey tell us their companies are active on Twitter. But just as marketers say they’re not getting enough value from Facebook, Twitter marketers are still looking for greater value as well. In fact, our new report today reveals that only 55% of companies that market on Twitter say they’re satisfied with the business value they achieve:
Why are Twitter marketers still looking for greater value?
Marketers are using Twitter for the wrong objective. Marketers’ most common objective on Twitter is to build brand awareness. But consumers are most likely to become a fan or follower of a company in social media after they’ve already bought from that company. This means that marketers would have more luck using Twitter to engage their existing customers than to find new ones.
Twitter must do more to support marketers. Twitter’s marketing business is still relatively young — its ads have been generally available for only about 3 years — but that business must mature quickly. Marketers say they need more guidance, education, service, and support if they’re going to use Twitter successfully. And just 44% of marketers say they’re satisfied with Twitter as a marketing partner today.
In our research on eBusiness and channel strategy, we often come across clusters of innovation where innovation by one company in a sector causes its competitors not only to match it, but to try to leapfrog it -- resulting in a rapid cycles of innovation. Among the examples of these clusters are insurance companies in the US (Progressive, Geico and a growing number of others) and banks in Spain (Bankinter, La Caixa, BBVA and Banco Sabadell).
Another of those clusters is the retail banking market in Turkey. Last week I was in Istanbul and was able to see some of the innovations in person and meet a number of heads of eBusiness at Turkey's big banks. Turkey's banks have been quick to adopt digital technologies and achieved some world firsts for the banking industry. Here are a few examples you might like:
Ziraat Bank has deployed a network of unstaffed video kiosks (see picture, right), which it calls video teller machines, that use video-conferencing to connect customers with agents in the bank’s contact centre. Customers can use the kiosks to deposit and withdraw money, buy and sell foreign exchange, pay bills, transfer money and buy bonds. The kiosks let the bank expand its network much more quickly than building conventional branches would do.
If you’re marketing in China, social media offers an enormous opportunity: Chinese online adults are the most socially active among any of the countries we survey worldwide, and a whopping 97% of metropolitan Chinese online adults use social tools. And this isn’t only driven by the younger generations — we find that on average Chinese Internet users ages 55 to 64 are more active in most social behaviors than US Internet users ages 25 to 34.
But a Chinese social media strategy is not that simple to implement, especially for Westerners accustomed to marketing on sites like Facebook, Twitter, and YouTube – none of which operate in this market. So before you take the leap into social media in China, be sure that you:
I've been hopscotching Europe this week, seeing clients and colleagues in London and Istanbul — but my thoughts have been in Los Angeles, where in a couple of weeks I'll be giving a speech called "Taking Social Media From Cool To Critical" at the 2012 Forrester Marketing Leadership Forum.
I chose that topic because it’s a concern I hear almost every day — and sure enough, I heard it from several clients on my travels this week. "We’ve put time and resources into social media marketing, because it seemed like we had to, but . . . it’s just not having much of a business impact." By comparison, four or five years into the era of search marketing, most companies were making a killing from their SEM programs. The same goes for email marketing. But here we are four or five years into the era of social media marketing — and for many companies, social media is still a curiosity, a sideshow that attracts lots of interest but adds little value. It's still cool, but at most firms, it's just not a critical part of the marketing plan.
I think the main reason marketers still struggle to make social pay is simple: They overestimate social media as a marketing tool. Let me be clear: I'm not bashing social's value for marketing; social media can have an enormous impact on the success of your marketing programs, as we’ve seen time and time again. The point I'm making is that it can’t create that success all on its own. You need to use it as merely one tool in your marketing tool kit.
Our London-based Interactive Marketing Research Associate James McDavid chimes in with this great tale of how listening to and embracing your fans in social media can create powerful word-of-mouth marketing:
As every dance music aficionado knows, Miami is the place to be every March as it hosts the Winter Music Conference (WMC), an event that brings together leading lights from the industry to party, share records, and make fun of Paris Hilton. So when Dutch airline KLM announced they'd be launching a new route between Amsterdam and Miami at the end of March 2011, a couple of Dutch DJs tweeted KLM to see if the airline could move the flight forward a week to coincide with the WMC. The DJs claimed that they could fill a flight from Amsterdam to Miami solely with revelers and ravers. KLM, seeing a great opportunity to show off their social savvy, offered the DJs a challenge — if they could get 150 people to register in seven days, then KLM would move the inaugural flight forward — and, as a bonus, let the DJs spin some records in the cabin.
The Groundswell is now global. Social media has entered the mainstream in every single market Forrester regularly surveys — and in most of those markets, social media use is at 75% or higher. Australian, Japanese and Italian online users all show stronger adoption of social media than Americans do – and Chinese, Dutch and Swedish users have nearly pulled level with the Americans. And in 2010 Facebook reported that more than 70% of its active users were outside the US, while Twitter said more than 60% of its accounts come from outside the US.
The simple fact is that if your company has a social media program, that program is global — whether you want it to be or not. And this isn’t just a nuisance or a language issue. Failing to recognize the global nature of your social programs means you might be telling foreign users about products that aren’t available in their countries (for instance, Toyota UK reached more than 100 million people with a fantastic blogger outreach program for its iQ model; but it turns out that more than 95% of those people live in countries where the iQ isn’t for sale). Or you may be advertising discounts and promotions to which many users don’t have access (for instance, while Amazon’s Facebook page promoted a special price of $89 for the Kindle last November, a Kindle cost almost twice as much in the UK — and wasn’t available at all in most other markets). If you work in a regulated industry like financial services or pharmaceuticals, you risk running afoul of government regulators.
As some of you might know, I'm quite an active twitterer. Earlier this month, there was a lot of discussion on Twitter about how unique we all were. Why? Because only a very small percentage of people actually tweet regularly. Forrester's Technographics® data shows that only 11% of US online consumers tweet monthly, while more than 84% say that they never tweet.
So who are these “tweeps,” and why are they so attractive to marketers? As one would assume, people who tweet monthly or more display many characteristics of early adopters: They are more educated, more likely to own a smartphone, more likely to be male, and more likely to have a higher income.
What really makes them unique, and at the same time very interesting for marketers, are their attitudes:
I've always loved examples of the crossover between online and offline influence; my 2009 report The Analog Groundswell contains some of my favorite examples of that overlap. Our new London-based Interactive Marketing Research Associate James McDavid is here with the story of how Smirnoff brought social media into the real world -- and how it had a bit of fun in the process:
The weekend of November 27th saw the culmination of a multinational marketing campaign by Smirnoff that showed the extent to which a clear, well-executed social media strategy is able to drive engagement with a brand across multiple regions and interactive channels.
Using Facebook pages and Twitter accounts, Smirnoff asked fans and followers in 14 cities (such as London, Rio, Miami and Bangalore) what made the nightlife in their city unique -- and then wrapped all the best elements from each city into shipping containers and delivered them to other host cities. Smirnoff posted a steady stream of Facebook status updates asking fans to say which city they’d like to exchange with. The company also made videos showing the shipping containers being filled -- as well as videos of the parties to celebrate the crates' departures -- and posted them to its YouTube channel. Once the crates arrived, Smirnoff threw the parties in its new locations, with its fans and attendees generating even more content and sharing it online.