A new joint study by LIMRA and Life Happens, released April 10, has found that social media is a “critical marketing tool” for life insurance advisors’ success.
The study of American consumers showed that people will often ask their contacts on social media for recommendations on products and services, including financial services. In addition, social media sites are a common source for reviews and recommendations of products by peers.
Asking for recommendations
More than one third of Americans, and over half of those in the Millennial generation, are likely to ask for recommendations for a financial advisor over social media, says the study.
Meanwhile, 54 per cent of Millennials and 44 per cent of Gen Xers are likely to check an advisor’s social media pages, such as Facebook, Twitter and LinkedIn.
Playing an increasingly important role
“This year’s study reinforces the increasingly important role that social media has on an advisor’s marketing efforts,” said Marvin Feldman, CLU, ChFC, RFC, president and CEO of Life Happens. “Advisors and agents must ensure their profiles are regularly updated and provide consumers with quality content and information.”
Despite an increase in the importance of an online presence, the study found that 73 per cent of Millennials, 64 per cent of Gen Xers and 69 per cent of Boomers still want personal contact with an advisor when purchasing life insurance.
Offer a seamless experience
“This year’s study paints a clear picture of what consumers expect from the life insurance industry today,” said James Scanlon, director, LIMRA Market Research. “Financial professionals need to provide consumers with a more seamless experience, blending online resources, social platforms, with in-person consultation.”