The following three key concepts are foundational lessons that have emerged in the past couple years – that must be recognized and incorporated into any successful social networking initiative:

1.     It’s not about the technology. Success with social networking isn’t just about the latest technology. Technology is transitory. It is the means to an end: Connecting with people. Social networking represents a permanent cultural transformation and a market disruption.

Many of the old ways of doing business are no longer effective. For example, traditional Yellow Page advertising is no longer effective in reaching most consumers.

The way consumers search, research, find, evaluate, choose and connect with their service providers has changed. How an organization appreciates this change, learns to adapt, and engages the new connected consumer—at the time and in the place where he/she wants to connect—will determine the firm’s future viability.

2.     It’s more than a marketing tactic. Launching a Facebook Page does not equate to social networking success. Effective social networking is more than a marketing tactic. Rather, success requires that social networking be an integrated part of a comprehensive business strategy. A good social networking implementation will involve and impact all business units within the agency. There are many social tools (Facebook, Twitter, LinkedIn, YouTube, Google+, and Pinterest) that can be used by an agency to build and strengthen their brand. Yet, like any successful agency initiative it must be well managed, monitored, measured and evaluated.

3.     It’s not magic. Stop waiting for the pixie dust. Social networking requires sweat equity. Social networking does not magically transform or solve an agency’s marketing or communication problems.

Successful agents have learned that using social networking is an effective way to grow a community of online relationships and, perhaps, advocates. Rather than use the tools to amplify a sales message, these producers use social networking to build and strengthen relationships, connect and build trust. Relationships, whether online or off, take time.

Comment and let us know the most important lesson you have learned.

What a great term—Digital Darwinism—to describe the fear many agencies and carriers feel as they struggle at make sense of the many challenges they face in today’s rapidly evolving environment.

Mobile, cloud, and social technologies are evolving faster than ever. These technologies are also transforming our society and giving rise to a new empowered and connected consumer. The reference to Darwin suggests that failure to adapt eventually will lead to the demise of the business of insurance, as we know it.

I believe that the challenge facing our industry is not just about making sure agents have blogs, Facebook pages, Twitter accounts and are using Pinterest to curate relevant business information. Yes, it is important to learn how to effectively use new technology.

But it is critical to pay close attention to the evolution of consumer behavior and ultimately understand how to engage with the new connected consumer.

The technologies that are fueling all the disruption can, when effectively used, provide a window into the psyche of the consumer and provide the means to connect and engage. But real success will require an organization to change its work and evolve its brand. That is, become a social business. For example, engaging in social technologies must become more than a marketing department project. Today, consumers are demanding that their business partners be transparent, accessible, open, socially responsible, and honest. They want to feel that they know their favorite brands on a personal or personalized level. These traits become woven into the fabric of the agency—and every employee plays a part.

Keeping up and adapting to new technology and the changing demands of customers and prospects has always been a challenge. What is different today is that advancements in technology and changes in consumer behavior are happening “scary” fast.

Future success isn’t just about the latest technology. Rather, it’s about cultural transformation and market disruption. How an organization recognizes and adapts to new opportunities will determine its future viability. How are you learning to adapt?

But what exactly does “24/7” mean and is it really necessary?

If you believe the argument that auto insurance is a commodity, then the 24/7 expectation is justified. Yet, what your customers are buying from you, the agent, is more than a quote or a policy—they also are getting a personalized service built on a trusted relationship. Perhaps geckos don’t sleep but living, breathing insurance agents need their rest.

Clearly, mobile, social, and Internet technologies have created more channels to reach the consumer and for the consumer to reach you. Whether it is high noon, midnight or a weekend, 24/7 capabilities have made predicting when a customer will want access more difficult than ever—and added a level of expectation that for most agents is impossible to achieve. Rather than getting pulled into the 24/7 games of the online and direct carriers, use these technologies to amplify the unique value you offer as an independent agent. Use those technologies to build a strong online brand personality and engage with your community.

Don’t get me wrong. I am not saying that you don’t need to have “after hours” emergency contact numbers and a website with some self-service options. Just don’t lose sight of the fact that your customers are doing business with you because they value your expertise and have access to you and your advice and guidance in time of need. I think your customers value that more then being able to “shop” insurance at 2 a.m.

What’s your take and how are you using the new technologies to strengthen your brand?

As part of the ACT meeting held later that day, McQuivey answered audience questions for an hour or so. One line he shared during this follow-up Q&A exchange caught my attention. He said, “You need to show this technology has people in it.”

“Online search” is one way to do this. Independent agents need to find ways to increase their ranking in search results. The Consumer Access Portal initiative unveiled at the IIABA meetings should help agents do this. Incorporating local presence will, as McQuivey said, “add the trust to the web experience.”

The hybrid digital/personal customer relationship plays an important role after the sale is made—and not just 10 or 11 months after, either. Ongoing communication and interaction, online and in person, reinforces the connection, leads to new sales opportunities, and builds customer loyalty.

This hybrid relationship can actually start before the sale. Social networking—Facebook and YouTube, in particular—is ready-made for such connections. “Introduce your business on Facebook, ask people to like it, and tell them if they do you’ll periodically post things about how to handle a car accident or other issues when you learn them,” McQuivey suggested. “At least the customer will have your contact info.” This is especially important with younger customers, many of whom prefer Facebook communication over other forms—including email.

McQuivey cited our friend, Lisa Parry Becker, who chose not to attend the meeting so she could stay home and help customers with flood claims, as a prime example of how to tie digital and personal. “Share the news of Lisa staying away from this meeting to help clients,” he said. “You as agents have always been personal. You’re connecting to human beings who live in your community. You just need to let people know that.”

Have you found success building out hybrid digital/personal customer relationships? Are you too focused on one or the other? How do you find balance? Are some agents or other businesses doing a really good job of combing the technology and people? If so, what’s making a difference?

Often, I hear agents who are not yet actively participating in social networking question its value and/or its return on investment (ROI).Clearly, the use of social networking by our industry during the past couple of weeks has demonstrated that “social” is not just about ROI. During the earthquake and now the hurricane many East Coast agents, carriers and associations effectively used social networking to connect with their followers and communicate valuable information.  Some examples include:

• New York agent, Ryan Hanley who created a video blog offering, “6 Hurricane Preparedness Tips for Homeowners”
• Connecticut agency The Founders Group blog posting, “Hurricane Irene is on her way – Tips for protecting your home!”
• Many Facebook posts and status updates by Connecticut agent V.F. McNeil Insurance including links to the town’s emergency preparation and a request by the governor to sign up for CT Alert Emergency Notification.

Other examples of agents effectively using Facebook include:

• New York agent R.J. O’Brien Insurance
• New Jersey agent Henry D. Young
• Pennsylvania agent William B. Parry & Son

Several carriers including Travelers and Harleysville also did a great job posting storm-related risk management information on their websites and Facebook pages. Marsh USA, @Marsh_inc did a particularly nice job using Twitter. IIABA, New Jersey, Virginia, North Carolina and IIABNY all used social networking to communicate relevant information.

I also found our industry actively involved in Twitter conversations and followed them using the hashtags #irene, #hurricaneirene and #insurance.

Our industry shines in times like this. In contrast to popular media stories about increased premiums and uncovered losses, this is our chance to demonstrate the value of the Independent Agency System. I congratulate all of you who worked to make sure your customers had access to the information they needed to properly prepare and recover from Irene.

(The agencies, carriers, and associations listed above are only a small sampling of the many who took advantage of social networking during Irene. Please let us know how you used the social space to communicate and stay connected during this disaster.)

To help drive home the importance of innovation, she quoted Henry Ford as saying, “If he’d asked the American people what they really wanted, they’d have said faster horses.”

I have been thinking a lot about it lately because I think our industry has a tough time making the distinction—let alone acting—on situations when innovation rather than improvement is needed. Sometimes, improvement simply is not good enough. We fail if we apply new technology to old processes. New technologies give us the chance to innovate and create new processes.

All the “social” technologies provide opportunity to reinvent the way we communicate, market, sell and service to the insurance consumer. More significant is the impact technologies such as mobile and cloud computing could have on many of our industry’s outdated processes. For example, rather than just improve certificate of insurance processing why not rethink, reinvent and create an entirely new and different way to access and validate the existence of coverage? Could we invent a new and better way to confirm identity and insured acceptance or approval and eliminate the need for signatures altogether? I get that there are legislative and regulatory constraints but I don’t think that is an excuse for our failure to improve and progress.

You get the idea. Given the technology available to us today, what process do you think would be better served by innovation vs. improvement?

Today more than ever brand is being defined by consumers and what they think is more important or has more influence than your brand messaging. Interestingly enough, even if you are not engaged in social networking it is having an impact on your brand. In fact, not engaging in social networking may be doing great harm to your brand.

When you search for a business on Google are you more likely to click on and follow-up if the business has a website link? What impression are you leaving with potential customers if they can’t find you on Linkedin or if your profile is poorly done and incomplete? If Facebook and other social sites have replaced the yellow pages, what damage to your brand is taking place if you can’t be found? How do you think consumers feel about an inactive Twitter account or a Facebook page that has not been updated for several months?

Social networking is not a project. Rather, it is about being a social business and has a great deal to say about who you are and what you do.

Are you using the new tools of social networking to help position your brand in a positive way?

Petty (who, coincidentally, was introduced to new generations by his performance at the Super Bowl halftime show in 2008) earned acclaim not just for his music but for two other things:

• First was the outreach he made to his fans in interviews, unusual at a time of rock star excesses (as tragically glorified by Pink Floyd’s album “The Wall,” which kept his breakthrough album from reaching #1 on the Billboard album charts; “Damn the Torpedoes” was behind it at #2 for seven weeks in 1979). In interviews, Petty made a point of thanking fans for listening to his band’s music and paying for their concerts. He was rumored to have used car stereo speakers to listen to the production mixes of his albums, because that was how most people would listen to it. This was in the days of vinyl albums and 8-track tapes and before the dawn of the Sony Walkman.

• Second was the practical nature of his rebellion. As a follow-up to the hit album, the band was set to release “Hard Promises.” But the record’s release was put on hold while Petty and the album’s distribution company MCA Records argued about the list price. The album was slated to be the next MCA release with the list price of $9.98, $1 more than the usual list price of $8.98 (in line with so-called “superstar pricing” of Steely Dan and Olivia Newton-John albums). Petty took his side to the media, and the issue became a popular cause among music fans. MCA decided against the price increase, and the album was released in May 1981 at a list price of $8.98. (As a dig at the record company, Petty reportedly even had the cover photo, showing himself in a music store, airbrushed to show “$8.98″ in the record bin, although it’s a bit hard to see.)

Rebellion is legendary and revered in popular culture. But I think it’s even more important in business.

In the insurance industry, the rebellion is happening on desktops, in phone conversations, and at industry meetings:

• Independent agents are fighting against the big-box insurance brands and their price competition with their slingshot tool: renewed value propositions featuring expertise and risk management.
• Standards advocates are trying to get more participants in the insurance value chain to exchange data electronically.
• Trade associations are working within the regulatory, political and legislative systems to make the industry more competitive.

How are you fighting to make the insurance industry better? Let’s count the ways.

If this sounds familiar, maybe it is time to slow down and reconsider:

- Are you providing substance?
- Are you engaged in the conversation?
- What is the right balance between quality and quantity of contacts?

After you begin to engage in social networking for your business, it is the quality of the contant that will keep your followers coming back.  Substance can come in many flavors. But any way it comes, it should be good, interesting, valuable content.  And that content should come from the heart, mind and soul of you and your company.

Granted, sizzle is good. It helps to attract prospects. But to turn them into profitable customers who are loyal to your brand, you need the steak beneath the sizzle.

The inbound, permission-based marketing of today relies on the concept of content marketing. Content marketing is based on the notion that prospects and customers want to buy insurance from someone who they perceive as providing value. They want to work with someone who is a thought leader or expert in the field of insurance. In other words, they want to buy from someone who helps them become more informed and intelligent. Content marketing is the polar opposite of lizards or wads of cash wearing glasses pitching a sales message.

This should be good news for many insurance agents and brokers. Used properly, the social Web can be an effective medium for delivering value and high-caliber communication.

I realize this is contrary to the way many “experts” operate. It is the opposite of hording information/knowledge. What I advocate is using your blog, Facebook posts, tweets or participation in Linkedin Groups not as a megaphone for your sales message, but instead to freely share your knowledge and consistently provide quality content.

Don’t we want to do business with people who are knowledgeable?

Just showing up on social networking sites does not lead to social networking success. Rather, success comes from a commitment to delivering outstanding service, being a good communicator, implementing smart marketing initiatives, and being comfortable being transparent and authentic.

Note: What I’ve said above isn’t new for independent insurance agents and other insurance brands. Those points have long applied in our business. What is new is that you, as an insurance marketer, now have a whole new set of powerful tools to help you build relationships and grow your business.

The agencies below understand the difference between just using these tools and incorporating them in the the agency culture. They are making the transformation to become “social businesses.”

McClain Insurance Services
Atlanta Insurance Live
Parker Smith Feek

How are you transforming your business?