Communication: A Tale of Three Perspectives
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Since 2004 we have heard about Web 2.0 as a catch phrase to describe how the web - applications, how consumers and businesses use the internet, in short everything - has evolved. Over time, what Web 2.0 really means has become more defined and accepted, although there is still some ambiguity surrounding the term. For our purposes I want to talk about two aspects that are widely accepted and vitally important for an insurance agency business to grasp: Do-It-Yourself, and One-to-One/Community Communication.
'Broadcast Yourself' is the slogan used by YouTube. Move over to blog service WordPress and you will be encouraged to 'Express Yourself'. Do-It-Yourself and the ability for non-technical people create their own web content and functions is a requisite theme for any Web 2.0 service. MySpace, Facebook, Twitter, Blogger, and the aforementioned YouTube and WordPress all make it possible to anyone for create and easily update rich web content. Keeping websites updated and refreshed is one of the biggest problems most agencies face with their websites, and a Web 2.0 approach removes this problem.
A blog can be set up as a parallel website and can be used to supplement your more formal insurance agency website with fast changing or less traditional content. You can use the blog to create and participate in discussions about (insurable) hobbies, safety issues, business tips, or community concerns. Just remember the blog will be tied to your agency business, so tread carefully when it comes to controversy.
Another characteristic of Web 2.0 services is the ability to create a community around the type of content you choose to feature. Blogs are produced for avid boaters, 
fans of sports teams, and those with passionate political views, among others. YouTube Channels are often created around technology interests, musical tastes, or just to share videos with friends. Most Web 2.0 services permit posting - the ability to leave a comment. These comments become part of the 'content' of the blog, or other service, and can be viewed by anyone who has access to a particular Facebook page, to take one example. This transparency of communication is another facet that sets Web 2.0 services apart from traditional websites. Guest posts can usually be reviewed and authorized before the post can be viewed by the community, but suppressing too many posts can backfire by alienating the very community you are trying to create.
Web 2.0 is an established part of the communication habits of younger consumers; that is, the elusive Generation Y. So if you have been wondering how to attract more Millenials to your insurance agency, wonder no more. Start providing information and value in the Web 2.0 mediums they frequent. Depending on the Web 2.0 service, there is often no cost involved; if you can launch an email, you can set up a blog. What are you waiting for?
What is the most important piece of information to make certain you and other producers in your insurance agency are spending time with the right prospect? Hint: The answer to the question has nothing to do with types of vehicles, deductibles, liability limits or policy forms. The correct answer is: The prospect's satisfaction level with their current insurance provider.
Your prospect's level of satisfaction with their incumbent insurance agent or company is an extremely powerful indicator of their willingness to switch. This indicator should dictate the amount of time, energy and other valuable resources you will want to spend developing any lead into a client. According to the recent J.D. Power and Associates 2008 National Auto Insurance Study, 86% of High Satisfaction customers declare they "Definitely Will Renew" with their current insurer. As a group, customers expressing high levels of satisfaction with their current insurance provider will be hard to convert.
| Customer |
Definitely Will Renew |
Plan to Shop |
Definitely Will Recommend |
No. of Positive Recommendations |
Will Not Switch for Any Price |
| High Satisfaction |
86% |
9% |
82% |
7.5 |
52% |
| Medium Satisfaction |
44% |
21% |
30% |
3.1 |
28% |
| Low Satisfaction |
10% |
42% |
3% |
1.1 |
18% |
The above table, culled from a recently released study by J.D. Power and Associates, identifies some very interesting, and actionable facts. The table suggests that 74% of those surveyed were less than Highly Satisfied. Those prospects represent the best opportunity for conversion to customers. Not only do they plan to shop (21% of "Medium Satisfaction" clients and 42% of "Low Satisfaction" clients) but a large number have indicated they are willing to move with a relatively low number of "Definitely Will Renew" responses.
The results above indicate that there is a considerable opportunity for agents who can cut to the chase and quickly identify those prospects that have less than "High Satisfaction" with their current insurance agent or carrier. By identifying those who are in the Medium Satisfaction and Low Satisfaction tiers you can significantly increase your chances of conversion and avoid the costly mistake of quoting and courting somebody who "Will Not Switch for Any Price".
The study is indicative of the overall marketplace and shows there is a significant chance for conversion within nearly three-quarters of the market - the Medium and Low Satisfaction consumers. This gives your agency one more reason to carry on or increase your current marketing activity. Think of how much more revenue you could generate for your insurance agency if your producers just asked, 'how satisfied are you?' If they did that, the time they are wasting on 25% of their leads could be spent on more of the right prospects - those that are willing to listen and buy.
Gas prices: going up. Gas station lines: getting longer. Inevitably, your clients may be a little less willing to drive to your office.
And either your producers will visit fewer accounts, or extra travel costs will have to be absorbed by your agency (or the producer). Fewer face-to-face meetings will take place. Every agency has a list of accounts that receive special attention and in-person attention. In the face of rising travel costs, the accounts at the bottom of that list might see your producers less often. All else being equal, less personal contact means lower retention, reduced account development, and fewer referrals; in short revenue will be lost. It doesn't have to be that way.
There are a number of simple, effective tech tools that close the gap between less personal email and phone calls and those conversations over coffee. New web services and applications are being introduced all the time. These tools will allow producers to maintain high quality relationships with accounts that might otherwise slide off the A-list, and creative use of these inexpensive and simple services might just allow you to improve contacts and relationships with accounts your producers rarely see.
Here is a summary of some tools and suggested situations where you might use them.
Web Conferencing - Products out there that range from somewhat costly and feature rich, like WebEx and Microsoft Live Meeting, to free and adequate, like Zoho Show. We have tried several, and keep coming back to GoToMeeting. It offers a reasonable range of features, installs and launches quickly, and is easy to use. What all these products allow you to do is share your computer desktop, and web conferencing is a great way to break down a proposal or spreadsheet, to walk a prospect through a PowerPoint presentation, or reference various policy documents and checklists during an account review. The presenter can be changed with a mouse click so your customer or prospect can also share their desktop with you. This is great tool when visuals are required, or when you want to go through a document and really control what your viewer sees. You can also use web conferencing for presenting to groups, but this requires a little more skill with this medium, and we recommend starting with one-on-one meetings.
Live Video Meetings - This option was once expensive, requiring a hefty investment in equipment and internet bandwidth. But no more. Skype, a free service that has been around for years, makes video meetings available to anyone with a web cam, microphone, and an internet connection. Recent releases of Skype permit video calls of excellent quality and reliabily, and most laptops have built-in web cams and microphones now. Skype does need to be downloaded and installed in advance of a video call, so use of this service - at least for the near term - may be limited to use with existing accounts. Video is an excellent way to personalize a call, you still benefit from non-verbal cues from facial expressions, plus you know your customer or prospect is paying attention (one downside to web conferencing is the inability to know if your meeting partner is playing solitaire or entertaining the interruption of a co-worker).
Video Email - Eyejot is a fairly new service that allows you to instantly create a video using your webcam and send it as an email. The video itself sits on Eyejot's server so you don't have to worry about huge email attachments stopping your email. 
There are three levels of service, including a free version that allows you to record and send an unlimited number of videos up to a minute in length; the top level version is only $100 a year. There are several features that make Eyejot a useful tool, but in our experience, the most frequent application for Eyejot is firing off quick video emails in place of ordinary emails. The video can soften and personalize a message. You won't use Eyejot in place of evey email, but Eyejot is a superior way to ask for a review session, highlight program benefits to a prospect, or summarize a complex message. The top level Pro Plus version will let you add attachements to a video email and will track when the video is viewed.
Sit down and do a quick inventory of the meetings you now hold in-person. You should also include meetings that have not been practical for a face-to-face discussion in the past, but that you would like to conduct through more personal mediums than phone or email. Consider the all time spent (including travel and preparation) and the change to that average time expenditure after blending in the new medium. Two columns missing from the table should also be included: total account income before using the new tools, and total account income after implementing the new communication options.
| Type of Meeting |
Type of Account |
Number of Accounts |
Average Meeting Time (include travel) |
No. of Meetings Held (current) |
Medium to be Used |
Average Meeting Time (include travel) | No. of 'Meetings' to be Held (new medium) |
| Annual Review |
Lg Commercial |
80 |
3 hours |
65 |
In Person, Video Conf, Web Conf |
2.5 hours |
90 |
| Annual Review | Sm Commercial |
230 |
2 hours |
50 |
Web Conf |
1 hour |
100 |
| Annual Review | Lg Personal |
100 |
2 hours |
0 |
In Person, Video Conf, Web Conf |
1 hour |
125 |
| Annual Review | Other Personal |
1000 |
2 hours |
0 |
Web Conf, Video Email |
1 hour |
200 |
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