social media and online marketing survey for the insurance industry

©B. H. Burke & Co., Inc., 2012, may be reproduced with attribution.

Social Media and Online Marketing – What’s the Real Deal?

A short and objective survey of what insurance agencies and carriers

are currently doing in the online world

Often when I speak with an agency owner, COO, or marketing manager about social media, I get asked

about the results other agencies are seeing, in particular their return on investment (ROI). (I’m sure for

the most part they’re seeking this information to help them make an informed decision on whether to

invest in these new marketing methods, but I sometimes suspect it may also be a defensive question to

justify not delving into the topic further.) As a result of lacking good solid data to provide an answer, I

decided to put together this survey to learn what industry people were doing in online marketing with

social media. I’m not making any recommendations in this report, just presenting the results for you to

use as you see fit. With that being said, the following three findings were the most eye-opening to me:

� More than 60% of those of you who responded are not measuring the return on investment of

your current marketing efforts! So until you do, why ask about social media’s ROI? (OK, that

was an editorial comment.)

� Close to half of respondents who are not using social media will start to do so within a year.

� Of those who responded, 60% do not have a coordinated marketing plan of any kind.

Our survey received responses from 328 agencies and companies across 41 states and Canada. Just

about 56% of respondents identified themselves as agency principals or management. Another 40% or

so said they worked in IT, marketing, or sales. Throughout the summary that follows, the term

nontraditional marketing encompasses both social media and online marketing.

©B. H. Burke & Co., Inc., 2012, may be reproduced wi

As you can see below, the three most popular traditional marketing methods (used by approximately

half the respondents) are the Yellow Pages, direct mail, and local newspapers

Respondents’ most-used online marketing method, far and away, is their website.

come Facebook, LinkedIn, and e-mail blasts.

48%

16%

29%

0%

10%

20%

30%

40%

50%

60%

Percentage of Respondents Who Use the

Traditional Marketing Platforms Shown Below

22% 15% 6%0%

20%

40%

60%

80%

100%

Percentage of Agencies That Use the

Nontraditional Marketing Platforms Shown Below


can see below, the three most popular traditional marketing methods (used by approximately

the Yellow Pages, direct mail, and local newspapers.

marketing method, far and away, is their website. After that, in order,

mail blasts.

29%

3%

47%

28%

53%

39%

Percentage of Respondents Who Use the

Traditional Marketing Platforms Shown Below

85%

50%

29%

54%

19% 11%33%

Percentage of Agencies That Use the


can see below, the three most popular traditional marketing methods (used by approximately

ter that, in order,

15% 9%

53%

5%



Across all agency/company sizes, respondents’ Facebook pages have an average of just over 700

the average Twitter account has 525 followers. Respondents in the $1M

seemed to be the most active — with the most Likes, Followers, and Contacts

media platforms. Those in the $25M

much more active in on-line marketing. Close to the

maintain their platforms internally, including the creation of the content they post on them.

Of those who responded, about 40% have a

marketing. About 60% do not include nontraditional channels in a coordinated marketing plan.

More than half of the respondents indicated that they do not have a formal or documented social media

plan, either as a part of an overall marketing plan or as a stand

they have a documented social media plan in place

documented marketing plan too.

32%

38%

3%

Marketing Efforts in Traditional Channels

28%

12%

Marketing Efforts in Nontraditional Channels


espondents’ Facebook pages have an average of just over 700

the average Twitter account has 525 followers. Respondents in the $1MM-$2.5MM revenu

with the most Likes, Followers, and Contacts — in the various social

media platforms. Those in the $25MM+ revenue range (which may skew toward carriers) were also

line marketing. Close to the majority of respondents indicated that they


Of those who responded, about 40% have a coordinated plan for traditional and/or nontraditional

include nontraditional channels in a coordinated marketing plan.


plan, either as a part of an overall marketing plan or as a stand-alone document. About 35% did say

they have a documented social media plan in place – the same amount who indicated they have a

27%

32%

Marketing Efforts in Traditional Channels

General marketing actions (or ad

hoc) and advertising with a budget.

General marketing actions and

advertising without a budget.

Part of a coordinated marketing

plan with a budget.


plan without a budget.

17%

42%

Marketing Efforts in Nontraditional Channels

General marketing actions (or ad





plan with a budget.



espondents’ Facebook pages have an average of just over 700 Likes;

revenue range

in the various social-

carriers) were also

majority of respondents indicated that they


nontraditional

include nontraditional channels in a coordinated marketing plan.


alone document. About 35% did say

he same amount who indicated they have a

General marketing actions (or ad-





plan with a budget.



General marketing actions (or ad-





plan with a budget.




The percentage of respondents who allow unlimited use of social media during the workday is just about

equal to the percentage who do not allow it at all

group taking the step of blocking access to social media sites.

Almost 50% of respondents who do not currently use social media plan to begin doing so within a year

and a total two-thirds will eventually do so.

30%27%

0%

10%

20%

30%

40%

Yes, without

limitation

Yes, for defined

segments of

employees (e.g.,

producers)

Do You Allow the Use of Social Media

25%

23%

If You Do Not Use Social Media, Do You Plan to Start?



not allow it at all (each approximately 30%), with about half this latter

group taking the step of blocking access to social media sites.

50% of respondents who do not currently use social media plan to begin doing so within a year

thirds will eventually do so.

27%

13%

31%

Yes, for defined

segments of

employees (e.g.,

producers)

Yes, but only

during specific

hours (e.g.,

lunchtime)

No We block access

to these types of

Do You Allow the Use of Social Media

during Working Hours?

32%

21%


No, probably not.

Yes, at some point over the

next six months.

Yes, within a year.

Yes, but more than a year

from now.


ith about half this latter

50% of respondents who do not currently use social media plan to begin doing so within a year

14%

We block access

to these types of

sites


No, probably not.

Yes, at some point over the

next six months.

Yes, within a year.

Yes, but more than a year


Among those respondents who use social media in their daily operations, Facebook and LinkedIn

favorites by far, with Twitter coming in a distant third.

online marketing methods.

Nearly every respondent reported having a website,

under half use LinkedIn, and approximately a third use Twitter, a website blog, and Google Places.

In addition, 12% indicated that they use some sort of location

third-party sales or marketing platform (not their primary management system).

27%

55%

0%

10%

20%

30%

40%

50%

60%

We do not

use social

media.

Facebook

Apart from Marketing, Do You Use Social Media

in Your Daily Operations? If So, Which Platform(s)?

96%

31%

16%0%

20%

40%

60%

80%

100%

Website Blog - On

your

website

Blog

on your

website

Which of the Following Platforms

Are Used at Your Agency/Company?


Among those respondents who use social media in their daily operations, Facebook and LinkedIn

favorites by far, with Twitter coming in a distant third. Just over a quarter of respondents do not use

dent reported having a website, close to two thirds have a Facebook page, just


12% indicated that they use some sort of location-based platform, and about 20% use a

party sales or marketing platform (not their primary management system).

52%

28%

5% 12%

Facebook LinkedIn Twitter Foursquare Google +



16%

64%

19%

48%

37%

10%

Blog - Not

on your

website

Facebook

Page

Custom

Facebook

Page /

Tabs

LinkedIn

Company

Profile

Twitter

account

Multiple

Twitter

accounts

Which of the Following Platforms

Are Used at Your Agency/Company?

Among those respondents who use social media in their daily operations, Facebook and LinkedIn are the

Just over a quarter of respondents do not use

two thirds have a Facebook page, just


orm, and about 20% use a

13%

Google + YouTube



10%

29%22%

Multiple

Twitter

accounts

Google

Places

profile

YouTube

account /

channel


In both traditional and nontraditional marketing, respondents said that

Recognition” were their primary goals

More than half the respondents do not measure the results of their marketing, whether traditional or

nontraditional. Of those who do track

and use of a spreadsheet or similar document was fairly even.

said that they do not measure the return on inv

“We measure it (ROI) by growth, but also in the quality of client we

referrals we are generating. Our mar

77

%

76

%

72

%

72

%

0%

20%

40%

60%

80%

100%

New Leads Brand

Recognition

Respondents' Marketing Goals

8%

14%

19%

4%

Do You Measure the Results of Traditional Marketing?


In both traditional and nontraditional marketing, respondents said that “New Leads” and “Brand

primary goals, with “Relationship Building” cited third.


track it, use of a sales-management or agency-management system

milar document was fairly even. And although 62% of the respondents

return on investment of their marketing, one respondent stated:

“We measure it (ROI) by growth, but also in the quality of client we are getting, what type of call

referrals we are generating. Our marketing is for branding purposes; we use our sales force to sell

49

%

59

%

52

% 69

%

55

%

45

%

Recognition

Organizational

Image

Relationship

Building

Improved

Prospecting

Improving

service /

adding a new

service

channel

Respondents' Marketing Goals

Traditional Non

54%


No.

Yes, and we input them into a

marketing or sales management system.

Yes, and we input them into our

agency management system.

Yes, and we put them into a manual

spreadsheet/ document.

Yes, OTHER.

“New Leads” and “Brand


management system

62% of the respondents

one respondent stated:

ype of call-ins and

we use our sales force to sell

45

%

17

%

Improving

service /

adding a new

service

channel

Research

Non-Traditional


Yes, and we input them into a

marketing or sales management system.

Yes, and we input them into our

agency management system.




For respondents who use social media, Twitter and Facebook are the most frequently updated sites,

LinkedIn and Google Places Profiles, the least. About 65% of the respondents said they updated their

Facebook Pages at least weekly.

8%

9%

17%

7%

Do You Measure the Results of Nontraditional Marketing?

62%

15%0%

20%

40%

60%

80%

We do not

measure it.

By the number of

leads that are

quoted.

How Do You Measure the ROI of Your Marketing?



les, the least. About 65% of the respondents said they updated their

58%


No.

Yes, and we input them into a marketing

or sales management system.

Yes, and we input them into our agency

management system.



Yes, OTHER.

15% 18% 13%

By the number of

leads that are

quoted.

By the number of

leads that are

sold/issued.

By the amount of

agency revenue.

By the number of

followers on the

various platforms.



les, the least. About 65% of the respondents said they updated their


Yes, and we input them into a marketing

or sales management system.

Yes, and we input them into our agency

management system.



13%

By the number of

fans, likes,

followers on the

various platforms.



We also looked at the survey responses to learn how much new business can be attributed to social-

media platforms. Because not all respondents’ provided answers and those who did may have only

provided estimates or may not have had access to hard data while they were taking the survey, this

section of our findings cannot be relied on for complete accuracy. With that caveat notwithstanding,

these facts stood out:

Respondents with annual revenue in the $500,000-$1MM range reported that an appreciable

percentage of their monthly new-business commission could be tied to online efforts, with their

website, Facebook, and Google AdWords making up the largest portion of this business.

Respondents with annual revenues in the $10MM-$25MM range reported that about 7% of their

monthly new-business commission was attributable to their website. Respondents in all other revenue

groupings reported that from approximately 1% to 2.4% of monthly new-business revenue was a result

of their online marketing.

♦ ♦ ♦

I hope this survey has shed some light on how more than 300 insurance agencies and companies across

41 states and Canada are using online marketing and social media and that the results assist you in

making strategic decisions about the use of these platforms in growing your firm’s client base and online

presence.

If you have any further questions on these results, please do not hesitate to contact us via email or

phone. And thank you once again for taking the time to participate in this Social Media and Online

Marketing Survey!

This survey was created, evaluated, and the report written by Jason Hoeppner, CIC, an independent

agency consultant at B. H. Burke & Co., Inc. of Westbrook, CT. You can learn more about us at

http://www.bhbco.com.

social media and online marketing survey for the insurance industry

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