Will Social Networks Sell Insurance?

The research firm Gartner recently published a business development analysis which looked into social networks’ need for a sound revenue stream, and came to the conclusion that to maintain viability and competitiveness, these platforms will soon enter the financial services industry. One Gartner analyst, Juergen Weiss said, “Offering insurance products to their communities would be a natural extension of social media providers’ financial services strategies and would allow them to capitalize on their extensive set of information they constantly collect about their users.”

face to face relationships
face to face relationships

Free image courtesy of FreeDigitalPhotos.net

Insurance is changing. It was not that long ago that we called travel agents to book flights and business trips. People can get insurance quotes for life, auto, and home through websites. Most young people are not hanging out at the local country club or lunch counters with insurance agents.

Insurance agents need to know how to engage clients and prospective clients online because that’s where they network and transact business. But you should never lose your appreciation for building and nurturing personal face-to-face relationships. Doing so puts you at risk of being disintermediated—whether by another agent or a computer.

Social Friendships an Illusion?

In any conversation about the use of social networking sites, someone inevitably questions whether these technologies actually separate people from the real world, and only provide them with the illusion of connection. According to a recent study by the Pew Internet and American Life Project, that’s not actually the case.

social friends

social friendsThe study asked 2,255 Americans about their social networking habits. The answers challenge beliefs held by some. Facebook users actually have more close relationships than non-users, and are more trusting, more politically engaged, and get more social support than other Internet users.

According to Pew, of the 79% of American adults using the Internet, nearly half (47%) use at least one social networking website. Ninety-two percent of these social networking users are on Facebook, 29% on MySpace, 18% are on LinkedIn, and 13% use Twitter.

Facebook and Twitter have the most engaged participants, with 52% and 33% of users logging on daily, respectively, compared with 7% who visit MySpace daily and 6% who do the same on LinkedIn.

On Facebook in particular, participation, as opposed to passive consumption, appears to be a common trend. Fifteen percent of users update their status on an average day, 22% comment on another’s post or status, 20% comment on others’ photos, 26% “like” another user’s content and 10% send a private message to a friend.

This daily use and engagement leads to generally positive feelings among Facebook users, specifically, in how they perceive their relationships with others and the world around them. Facebook users who use the site multiple times per day are 43% more likely than other Internet users to be trusting of others—that is, they feel that most people can be trusted.

Regular Facebook users are also, on average, 9% more close to their friends than other Internet users. And they score higher when it comes to social support than other online users. Pew says they are 5 points higher in total support, 5 points higher in emotional support and 5 points higher in companionship than Internet users with similar demographics.

The study also showed a general increase in the use of social networking services to stay in touch with close friends. In 2008, only 29% of users said they had friended all of their core “confidants.” Today, that number is 40%.

Users tend to revive their “dormant” relationships (high school friend requests, anyone?), and these connections can become important sources of information, even though they’re not active relationships.

Finally, Facebook users are more engaged with politics, no doubt thanks to the numerous political conversations that occur online via status updates and political cause pages.

This study shows, says Pew, that there is little validity to claims that people who use social networking sites have smaller social networks, less closeness with others, or are exposed to less diversity. In other words, your Facebook friends are real friends because Facebook allows you to mirror your offline connections via the Internet; it does not isolate you from them. It may even enable you to have more close ties, if you are a frequent Facebook user.

Time on Facebook Exceeds Google

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Americans spent more time socializing on Facebook than searching with Google for the first time in August, and Yahoo edged out the search giant in monthly traffic, according to recent data from marketing research firm comScore.

Users spent 41.1 billion minutes on Facebook in August, 39.8 billion minutes on Google, and 37.7 billion on Yahoo. Yahoo beat out Google in monthly traffic, with 179 million unique visitors to Google’s 178.8 million. Microsoft came in third with 165.3 million.

When looking at these numbers, it is important to understand that Google is a gateway to the Web. People go to Google to be directed to someplace else, hopefully in milliseconds. On the other hand, Facebook and Yahoo want you to linger on their sites for hours, reading the news, liking things, and generating ad impressions.

The other consideration is that users can only increase the amount of time they spend on these sites by spending more total time online. At some point, however, total time spent online will flatten. When that happens, time spent on one site will come as a result of less time spent somewhere else. That’s when the competition will really get fierce.

Facebook Announces Updates for Groups

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Social media marketing is a great way to market your agency. Social media can also provide the opportunity to build your group of followers (i.e. past, current, and future clients). Yet, many agents struggle with what to share on social networking sites like Facebook. There is a fine line between getting too personal with your potential clients and simply showing that you have a life outside of work. One of Facebook’s newest update features could help.

Last month, Facebook announced an update to their existing Groups feature. The new groups are designed to make communicating with your Facebook friends more like how it’s done in the real world. For example, there are some things you might share with your friends that you wouldn’t want your clients to read. Groups now provide you with this type of control. You can now create a smaller group and automatically add people to it. If your agency has a Facebook page, it is worth the time to go to Facebook and read about how to set up and use Groups.

“We’ve long heard that people would find Facebook more useful if it were easier to connect with smaller groups of their friends instead of always sharing with everyone they know,” said Mark Zuckerberg, the CEO of Facebook. The new Groups are a step in that direction.

A Healthy Reminder — Are You Addicted?

A recent post by Chris Brogan is a good reminder that the social web can be addicting. “Just because you can connect to a lot of people does not mean it is very sustainable.” Listen to Chris’ thoughts. It’s only 1:30 minutes long.

So what about you? Are you connecting just to connect? Or, are you really working on your business?