How South African Insurance Companies Are Missing The Facebook Boat

In today’s technological era, there’s no doubt that insurance companies will want to generate awareness and leads through as many channels as possible. Namely, platforms like Facebook which can often perform better thaninsurance companies other conventional advertising methods with lower costs per lead and conversions for many advertisers. The digital world enjoys some of the most expensive marketing costs, particularly when it comes to search engine marketing channels like pay per click advertising.
It is vital in today’s world to keep up with trends. More and more insurance companies are jumping on the Facebook boat as it seems to be a stable platform for generating sales. According to the Unmetric report on the state of South Africa’s insurance industry on social media, many companies are making use of Facebook marketing, but there is no clear winner. Each brand seems to be employing a rather different focus from the next and is consequently getting very different results.

A look at insurance companies making use of Facebook advertising

The loudest brand: Old Mutual is one of the leads in the insurance industry as they have the highest number of posts and the second-highest engagement score. Consumers also seem to engage a lot in Old Mutual’s posts as there are a substantial amount of likes, comments, and shares. Old Mutual generated close to four times that of their next-closest competitor, Hollard. Old Mutual is identifying their audience correctly and spending a lot of money on promoting their content. The days of the free ride on organic reach have unfortunately ended.

The most loved brand: Although organic traffic is nearly entirely dead on Facebook, that does not mean insurance companies need to switch their marketing goals to be only about generating leads, sales and making use of advertising. Companies are still able to do a lot about branding using free publicity in the form of social customer service on their Facebook pages. Active brand stories told by unbiased members of the public tend to be seen as far more trustworthy than messages generated by the brands themselves. This is where Likemoney also comes into play, generating unbiased ratings and reviews about financial institutions helping you make informed decisions about financial products on the market. A smaller page seemed to stand out with quality rather than quantity. MiWay, with 388 posts by fans on the page for the three months measured in the Unmetric report, managed to beat Old Mutual, a page which is double theirs in size. MiWay managed to get the highest sentiment score with just shy of 50% of their customer’s posts being positive in nature and they ensured that they responded to over 90% of these customers posts. How does Miway do it? The Likemoney team believes that they are asking for positive feedback from their clients and they are taking the time to show appreciation too. Every day, there are Facebook posts from the public naming specific employees and offering praises of their service and the brand always responds with a simple, yet genuine thank you comment. There is an easy thing to do, and it does not cost an extra cent. At the end of it all, the customers are happy; simply ask them to take two minutes to write about it on the Facebook page.

So who’s missing out? : Lots of insurers really battled too, or did not show much interest using Facebook as a mean to promote their brand. Companies like Prime Meridian Direct and Outsurance engaged less than 2% of their fan base. It appears that they promote only a minimal number of their posts too, begging the question as to why they bother to create this sort of branded content in the first place.

The conclusion: Insurance definitely isn’t an easy to sell product, but there is an obvious benefit in maintaining a presence on social media. Brands need to capitalize more on opportunities to generate positive stories about their company using user-generated content like reviews.

So who’s missing out?: Lots of insurers really battled too, or did not show much interest using Facebook as a means to promote their brand. Companies like Prime Meridian Direct and Outsurance engaged less than 2% of their fanbase. It appears that they promote only a minimal number of their posts too, begging the question as to why they bother to create this sort of branded content in the first place.

The conclusion: Insurance definitely isn’t an easy to sell product, but there is an obvious benefit in maintaining a presence on social media.Brands need to capitalise more on opportunities to generate positive stories about their company using user-generated content like reviews.


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