TRENDS IN CONSUMER INTERNET USE AND SOCIAL MEDIA

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TRENDS IN CONSUMER INTERNET USE AND SOCIAL MEDIA

• The 7th Annual InsuranceDirect Marketing Forum
• September 21, 2009
• Todd A. Silverhart, Ph.D.

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The Sales Process
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Who Did We Survey?
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(No Transcript)
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How Needs Are Identified
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Differences by Demographics
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Actual Triggers
Of consumers triggered by something online
2009 2006
Something read on an insurance or financial company Web site 50 35
A link from a Web site I was on 37 23
Something read on an non-insurance or financial Web site 24 16
Based on an online calculator or worksheet 20 na
A sponsored link/commercial ad listed alongside search results 20 14
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The Role of the Internet
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Consumer Internet Use for Individual Product
Information
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Differences by Demographics
More
Less
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Information Sources Used
Of consumers who sought information from any
source
2009 2006
Insurance professionals 48 50
Friends, relatives, parents, coworkers 37 25
Employer/benefits department 36 20
Internet Web site of an insurance company 34 22
Information received in the mail 26 17
Internet Web site of a non-insurance company 24 18
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Women and Men
Of consumers who sought information from any
source in 2009
Men Women
Insurance professionals 44 54
Friends, relatives, parents, coworkers 32 44
Employer/benefits department 35 36
Internet Web site of an insurance company 39 28
Internet Web site of a non-insurance company 30 16
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Use of Social Media
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How Insurance Web Sites Are Found
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Types of Information Sought
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Information Sought Online Varies by Demographics
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Reasons Did Not Look Online
Reason Percent More likely
Preferred to meet with an agent/advisor I/we knew already 32 Silents Less than 50K income Married with children
Preferred to meet with someone in person 27 Silents No college education
Wanted to ask questions 26 Boomers
Already had all the information I/we needed 24 Gen Ys/young Xs
Did not think of it 18 Gen Ys Less than 75K income Single
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(No Transcript)
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How Consumers Buy
How did consumers buy life insurance within the past 24 months? How did consumers buy life insurance within the past 24 months?
In-person 41
By mail or phone 22
At work 21
On the Internet 15
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Online Buying
14 to 17 percent in 2009
7 percent in 2006
Men
Gen Ys and Xs
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Reasons Consumers Buy Online
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What Would it Take to Buy Online
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Consumers Can Be Encouraged to Buy Online
At Least 7 in 10 Agree They Would Be More Willing
to Buy Online if
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(No Transcript)
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Consumers Service Preferences
2009 2006
Call a toll-free number 40 38
Connect to the company online via live chat 17 9
Check FAQs 16 15
Connect to the company by having the company call you 10 Not asked
Email the company 8 14
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Importance of Online Services
Percent rating very or somewhat important on a
4-point scale
Gen X and Gen Y rate online services the highest
but Boomers and Silents want them too.
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Women and Men
Percent rating very important on a 4-point scale
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The Role of the Internet
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Monitor Trends in Online Shopping and Buying

• Interest in information and purchase online is
  increasing will it continue?
• Reach out to younger generations

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Offer What Consumers Want Online

• Ease-of-use
• Education

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Offer What Consumers Want Online

• Men are happier online can you attract more
  women?
• Offer contact especially by phone

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Watch for New Ways to Reach Out
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Social Media What comes to mind ?
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(No Transcript)
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So what is social media?
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Social Media Includes

• People Creating
• People Connecting
• People Collaborating
• People Reacting to Each Other
• People Organizing Content

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Groundswell, 2008
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(No Transcript)
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Social Media Challenges

1. Compliance/regulatory concerns
2. Finding business benefits
3. Lack of understanding
4. Fluidity of the medium
5. Losing control of your brand

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Types of Carriers
Active Users
Passive Users
Non-Users
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Emerging Best Practices

1. Develop high-level strategies
2. Recognize its out there
3. Immerse yourself
4. Create atmosphere of collaboration
5. Be flexible
6. Provide guidance (policies procedures)

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• Todd A. Silverhart, Ph.D.
• 860-298-3903
• tsilverhart_at_limra.com