In April of 2009, Consumers performed 137.2 million financial need-based search queries compared to only 16.6 million product and brand based queries. What does this tell us?  By looking into Consumers’ online search behavior, one can see that broader need-based searches capture significantly more attention than product-based and company-based searches.  Need-based searches (e.g. “debt” and “financial advice”) dwarf product and company searches (e.g. “life insurance,” “annuities,” “MetLife,” and “Northwestern Mutual”) by nearly 8 to 1.

In just the last decade, the rapid proliferation of the internet and technological advances in communication have transformed the user experience from a static, ancillary business afterthought to a revolutionary commercial force that has redefined industries and fundamentally altered the marketplace. We see two fundamental changes in the way consumer interact with the online channel:

• Rich Interactivity: Consumer behavior has evolved as a result of growing connectivity and bandwidth, which has given rise to a new engagement model: rich, dynamic, and experiential interaction. The new paradigm is seamless, ubiquitous, and “always on” connectivity and rich, multi-media, interactive engagement;
• Social Interaction: Consumer behavior has also evolved from purely ‘search’ based interactions to ‘social’ interactions. From anonymous consumers visiting company and product sites the interactions have evolved to consumers participating in multiple professional and social networks and companies ‘visiting’ consumers to spread their message.

The rapid adoption and consumption of technology has empowered consumers to define the marketplace themselves, forcing companies to pay attention to the power of their communities and listen to their now Word of Mouth-magnified voices. Companies that have recognized this new paradigm have extracted significant value, capitalizing upon dis-intermediation opportunities, accelerating the dissolution of traditional barriers, and harnessing the power of data to drive impactful customer analytics.

The broader trend suggests that consumers are seeking experiential interaction online, which has shaped internet behavior and technology use. What does this all mean? Online consumer behavior is migrating toward intimate, intelligent, and immersive interaction and, as a result, the engagement model needs to evolve similarly. As the engagement model moves further into adjacencies it creates an opportunity to create awareness for your brand and products.

Companies now need to meet the Consumers where they are instead of relying on them to come to you. Insurers are finding ways to reach out to consumers via:

1. Search Engine Marketing – Strategically purchasing keywords on engines like Google.  45%-50% of insurers’ online marketing budgets was spent on paid search in 2008¹
2. Social Media – Insurers are capturing Consumers’ attention by engaging social media sites such as Facebook and even creating their own.  For example, Liberty Mutual’s Responsibility Project has had over 300,000 monthly unique visitors in 2010²
3. Niche Content Sites – People concerned with financial security target sites that offer expert financial information and tips (e.g. Motley Fool)
4. Niche Customer Segment Sites – For example, Baby Boomers or other people close to retirement look for advice on how to get the most out of their savings on retirement specific sites (e.g. AARP)
5. Online Opinion Leaders –By reaching out to individual opinion makers or bloggers, insurers can tap into their ‘loyal followings of Consumers

By weaving your brand message into the fabric of Customers daily lives it allows for Companies to drive the conversation and anchor on their value proposition instead of the dialog becoming about price or more commoditized attributes.

As highlighted in recent post, Are You Catering to your Customers’ Anxieties?, New York Life is an excellent example of this with their recently launched Guarantees Matter micro-site. (Full disclosure: New York Life is a client, and we helped it with this initiative.) The site serves a different purpose that their Corporate website by delivering a targeted message around the need for Insurance related solutions in the wake of the recent Financial Crisis. The site has been the recipient of several awards, a Webby Awards Honoree, IMA’s Best in Class for Insurance and most recently awarded GOLD in the Consumer Retail Website category at the 16^th Annual Financial Communications Society (FCS) Award ceremony.

For a company whose primary customer touchpoints are its field agents, the Guarantees Matter micro-site allows New York Life to directly engage consumers through animated videos, interactive tools and simplified textual content. By interacting directly with consumers, the site positions New York Life as a company Consumers can trust with a storied history helping consumers navigate through tough economic times.

Through a diverse set of digital channels, New York Life has adapted to Consumer’s changing online behavior as it becomes more broadened and evolved. The Guarantees Matter micro-site is one example of a larger digital strategy effort being led by New York Life. New York Life has also experimented in other Web 2.0 avenues, exhibited by their recent success with Facebook and LinkedIn pages which serve to attract recruiting prospects.  The result is a richer more intelligent experience across all channels allowing New York Life to broaden and deepen their Customer relationships.

In closing, we are curious as to your opinions on this topic. How are you driving traffic to your site today? Are you aware of the broader customer needs that your product/service fulfills? Do you know where your consumers go today to talk about these needs? Please feel free to comment below.

¹ USDM.net Report: Taking the Mystery out of Search Engine Marketing for the Insurance Industry

² Compete.com

Driving Traffic to your Site: From ‘Build it they will come’ to ‘ Go wherever your customers are’ is a post from: Connections