I was doing some light research while drafting copy for target market website landing pages, and once again, allowed the internet to pull me into a digressive side alley. So of course I have to drag you all in with me.
The cover article in a periodical widely read by agents and companies, Rough Notes caught my eye. The September, 2008 issue features an agency that is able to provide high levels of service thanks to technology: Technology Backs High-Service Approach at 7-Person Agency.
What is instructive about the article is that all the ‘technology’ referenced in the piece is internally focused: insurance company-to-agency via download and real time rating, internal efficiencies gained going paperless (that can mean several different things, but that is a post for another day). There are a handful of platitudes about ‘service’ in article: ‘customer-focused’, ‘service “through the internet'; ‘Technology has allowed us to communicate with the younger generation…through email’; ‘We’re able to meet with clients more frequently, assist with claims, and provide them with quotes from other companies if that’s what they want’. These are the same kind of general, ‘service’ claims agents have been making since eight seconds before the advent of dust.
My point is not to cast doubt on the featured agency's ability to deliver these service generalities better than other agencies. The point is that too often we assume internally focused technology and efficiencies result in better service. There is an old and well validated axiom: work expands to fill the time available. If we create time through efficiencies, but do not explicitly fill that time with measurable, customer focused activities, the void is often back filled with more internal work.
What caught my eye about the article's title was the juxtaposition of the words 'technology' and 'high-service'. My mind leapt to the assumption that some kind of customer facing technology was at work in the featured agency. That I made the assumption is my problem, but it does raise another point. Technology for pushing data around the agency, or to and from the company, is not technology that consumers care about. Too often I still see agency websites touting a 'state of the art computer system' when all there is to brag about is an agency management system and some kind of comparative rater. That will engender a great big, consumer yawn every time. If a consumer is to care about technology, direct benefits need to be described - that is, here is how you will save time, or here is why your protection will be better. Indirect benefits - we're more efficient so we might be able to spend more time with you - just don't resonate.
There is nothing to suggest that the featured agency is using technology to systematically develop their customers and differentiate their agency. It’s all about saving time, and putting that time savings to work in an ad-hoc way will result in'higher-service' that is inconsistent at best.
I don’t mean to suggest that efficiency is not important; it is a key to profitability and sanity. But having more time is not the same as providing value-added service (which the Rough Notes cover suggests the article is about). That is a point we felt was being missed too often when we conceived Confluency Solutions four years ago, and the point is still being missed, I'm afraid.
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Tuesday, September 23, 2008
Tuesday, August 26, 2008
Flesh and Blood and Circuits
I have been ruminating lately on a tale of unusual personal service, and have found myself considering the lessons for local, independent agents in a wired world.
I traveled across the country recently, and was able to catch up with an old friend. During my visit, we started swapping stories about kids becoming teenage drivers and he shared with me a service provided by his insurance agent that, more two years after the fact, still engendered a sense of wonderment in the telling.
His agent called dad and lad in for an hour long meeting about the nuts and bolts of liability and driving responsibility. It seems that this particular agent used to counsel the kids solo, but she was so effective that many of the new drivers tossed their keys to their parents on their return home, muttering they weren't ready for the responsibility.
A lot of us think that 'risk management' isn't really part of personal insurance, but this is an example of risk management at its finest. Not only that, the teen driving counseling story has been told countless times to friends, neighbors, co-workers, and... me. Two years later, the story is still going strong. You can't buy word-of mouth referrals like that. And what about the improvement in retention resulting from this kind of service? (For more on that, take a look at the August 2008 National Auto Insurance Study, published by JD Power, and the effect improved loyalty has on price sensitivity. 36 percent of auto insurance customers have actively shopped for a new insurer in the past year - how many of your agency customers actively shopped for a new insurer or agent?)
Too often we are tempted to compete head-to-head with GEICO by providing online quotes, leaving a personal insurance prospect or customer to figure out their own needs, and manage risk on their own. There is nothing wrong with having articles, videos and helpful information on your agency website to help mitigate teen driving accidents. But when those web resources can be combined and promoted along with personal counseling service, a value is created that is unassailable by blandishment of quick quotes and arms-length relationships - even in the face of massive advertising.
I traveled across the country recently, and was able to catch up with an old friend. During my visit, we started swapping stories about kids becoming teenage drivers and he shared with me a service provided by his insurance agent that, more two years after the fact, still engendered a sense of wonderment in the telling.
His agent called dad and lad in for an hour long meeting about the nuts and bolts of liability and driving responsibility. It seems that this particular agent used to counsel the kids solo, but she was so effective that many of the new drivers tossed their keys to their parents on their return home, muttering they weren't ready for the responsibility.
A lot of us think that 'risk management' isn't really part of personal insurance, but this is an example of risk management at its finest. Not only that, the teen driving counseling story has been told countless times to friends, neighbors, co-workers, and... me. Two years later, the story is still going strong. You can't buy word-of mouth referrals like that. And what about the improvement in retention resulting from this kind of service? (For more on that, take a look at the August 2008 National Auto Insurance Study, published by JD Power, and the effect improved loyalty has on price sensitivity. 36 percent of auto insurance customers have actively shopped for a new insurer in the past year - how many of your agency customers actively shopped for a new insurer or agent?)
Too often we are tempted to compete head-to-head with GEICO by providing online quotes, leaving a personal insurance prospect or customer to figure out their own needs, and manage risk on their own. There is nothing wrong with having articles, videos and helpful information on your agency website to help mitigate teen driving accidents. But when those web resources can be combined and promoted along with personal counseling service, a value is created that is unassailable by blandishment of quick quotes and arms-length relationships - even in the face of massive advertising.
Wednesday, August 13, 2008
Video on Your Insurance Agency Website, Part III
Professional or Amateur?
There’s a lot that can be done with video, and having video production capabilities in the family (the kid with the Mac)gives you options. Clearly there is a place for professionally done video production, as well as a place for (reasonably professional), low/no cost, self-made videos (the 50-something with the digital camera).
In fact, there was a recent news item featuring CNN’s opening of ‘bureaus’ in seven cities where they previously did not have one. Expense is a determining factor in opening and maintaining a network news bureau – equipment, technical personnel, etc. The new CNN bureaus will provide broadcasts via web casts, ‘directed, filmed, and produced’ by the reporter. The vastly reduced cost of that kind of production makes it possible for CNN to provide direct coverage in more areas – an example of how fast and inexpensively produced video can coexist with higher production value programming. In fact, CNN has taken this a step further with their iReport service, where virtually anyone can report news and publish video 'story'.
You have to wonder if there is a 'best' balance between videos that are slick and professional, and videos that are not edited with layered soundtracks. I'm sure there is no one right answer, but I'm going to throw this out there: providing only slick, commercial grade videos may suppress total views. Allstate Insurance has had a YouTube video channel for over two years, and the total views have been somewhat underwhelming at 7,114 (and 4 videos account for nearly 75% of all views). There are 37 videos on the Allstate channel, most have been seen fewer than 200 times. I'm not suggesting that Allstate has not achieved acceptable ROI from its YouTube channel; remember, production and publishing costs should be low. I am suggesting that commercial grade videos may not always be the best way to go on the web, particularly when videos are published to a social site like YouTube.
What does this mean for your insurance agency? Don't be afraid to have employees, customers, and others in the community produce videos for you. Worry less about matching TV quality production values, but focus on quick publication and community relevance. Your video views, and site traffic, should go up.
There’s a lot that can be done with video, and having video production capabilities in the family (the kid with the Mac)gives you options. Clearly there is a place for professionally done video production, as well as a place for (reasonably professional), low/no cost, self-made videos (the 50-something with the digital camera).
In fact, there was a recent news item featuring CNN’s opening of ‘bureaus’ in seven cities where they previously did not have one. Expense is a determining factor in opening and maintaining a network news bureau – equipment, technical personnel, etc. The new CNN bureaus will provide broadcasts via web casts, ‘directed, filmed, and produced’ by the reporter. The vastly reduced cost of that kind of production makes it possible for CNN to provide direct coverage in more areas – an example of how fast and inexpensively produced video can coexist with higher production value programming. In fact, CNN has taken this a step further with their iReport service, where virtually anyone can report news and publish video 'story'.
You have to wonder if there is a 'best' balance between videos that are slick and professional, and videos that are not edited with layered soundtracks. I'm sure there is no one right answer, but I'm going to throw this out there: providing only slick, commercial grade videos may suppress total views. Allstate Insurance has had a YouTube video channel for over two years, and the total views have been somewhat underwhelming at 7,114 (and 4 videos account for nearly 75% of all views). There are 37 videos on the Allstate channel, most have been seen fewer than 200 times. I'm not suggesting that Allstate has not achieved acceptable ROI from its YouTube channel; remember, production and publishing costs should be low. I am suggesting that commercial grade videos may not always be the best way to go on the web, particularly when videos are published to a social site like YouTube.
What does this mean for your insurance agency? Don't be afraid to have employees, customers, and others in the community produce videos for you. Worry less about matching TV quality production values, but focus on quick publication and community relevance. Your video views, and site traffic, should go up.
Web 2.0 and a Blast from the Slow to Adapt Past
In the earlier days of the internet, companies big and small limited access to the web to a few key employees and frequently did not provide email addresses. That reflex to restrict was born of a combination of two things: the clarity with which businesses recognized potential employee abuse of web surfing and non-business emailing coupled with the inability to grasp the advantage of quickly gathering information and communicating instantly using the same tools.
Most businesses learned how to manage concerns about productivity and resource drains, and employees now routinely use the web and email. In fact, particularly as web services begin to replace networked or desk top office suite applications, most of us couldn't conduct business at all without web access.
We're seeing a similar reaction from businesses, particularly larger ones, in response to Web 2.0. Facebook, YouTube, and other social networking apps are switched to the always on position at home for employees in their 20's and 30's, but are locked down in the off position at work. But change is taking place, just as it took place in the 90's with email and web use in general; check out this article from IT Week.
YouTube is often Web 2.0 non grata. Of course band-width is an issue; a bunch of employees watching videos via the web simultaneously could bring internet browsing to a crawl company-wide. But an increasing number of companies and agencies are using YouTube videos for instructional, promotional, and general business communication purposes. Locking YouTube out, whether for band-width or productivity concerns (aka screwing around)is a short sighted reaction. Companies are starting to get past the fear of Web 2.0 unknown. Those that persist in the just-say-no approach are bound to miss out on a competitive advantage.
Most businesses learned how to manage concerns about productivity and resource drains, and employees now routinely use the web and email. In fact, particularly as web services begin to replace networked or desk top office suite applications, most of us couldn't conduct business at all without web access.
We're seeing a similar reaction from businesses, particularly larger ones, in response to Web 2.0. Facebook, YouTube, and other social networking apps are switched to the always on position at home for employees in their 20's and 30's, but are locked down in the off position at work. But change is taking place, just as it took place in the 90's with email and web use in general; check out this article from IT Week.
YouTube is often Web 2.0 non grata. Of course band-width is an issue; a bunch of employees watching videos via the web simultaneously could bring internet browsing to a crawl company-wide. But an increasing number of companies and agencies are using YouTube videos for instructional, promotional, and general business communication purposes. Locking YouTube out, whether for band-width or productivity concerns (aka screwing around)is a short sighted reaction. Companies are starting to get past the fear of Web 2.0 unknown. Those that persist in the just-say-no approach are bound to miss out on a competitive advantage.
Monday, July 28, 2008
Sneezing Insurance
Comic-Con, the convention for all things comic books, is a highly sought after event. Cities are now falling over each other in an attempt to attract the 2010 convention. Yet, Comic-Con goers are light spenders. If the local economy isn't getting a boost via premium hotel bookings and restaurant expenditures, then why the competition to host Comic-Con, and what could that possibly have to do with your insurance agency?
Comic-Con attendees are prodigious bloggers and users of social and web 2.0 media and communication tools. In the parlance of viral marketing, they are 'sneezers' - people who spread the word. Viral marketing is predicated on the exponential communication effect of one person sharing a message with five friends, and then those friends in turn sharing with five more friends each. Pretty soon thousands, perhaps hundreds of thousands of people have received the same message within a short period of time. Sneezers are critical to a message going viral. Does your agency have any sneezers in your customer base? How could you attract more sneezers, and how can you make it easy for them to share your message with others?
Here are a couple of thoughts...
Insurance newsletter articles can be a little on the dry side. Why not lighten those up by including related, but humorous videos, courtesy of YouTube. The articles might not get 'sneezed' around, but the videos might. Here's two:
Road Rage
Driving with Distractions
Comic-Con attendees are prodigious bloggers and users of social and web 2.0 media and communication tools. In the parlance of viral marketing, they are 'sneezers' - people who spread the word. Viral marketing is predicated on the exponential communication effect of one person sharing a message with five friends, and then those friends in turn sharing with five more friends each. Pretty soon thousands, perhaps hundreds of thousands of people have received the same message within a short period of time. Sneezers are critical to a message going viral. Does your agency have any sneezers in your customer base? How could you attract more sneezers, and how can you make it easy for them to share your message with others?
Here are a couple of thoughts...
Insurance newsletter articles can be a little on the dry side. Why not lighten those up by including related, but humorous videos, courtesy of YouTube. The articles might not get 'sneezed' around, but the videos might. Here's two:
Road Rage
Driving with Distractions
Wednesday, July 16, 2008
Video on Your Insurance Agency Website, Part II
YouTube Videos - Using Third Party Videos
Videos produced and published by others can be a great source or video content for your insurance agency websites. But before you start embedding code, here are some considerations...
1. Copyright Infringements - Be careful what you use, policing is somewhat loose, and video uploaded by others may be be infringing on copyrights. The TV news networks generally take a dim view of others uploading news segments or snippets of television shows. Check to see who posted the video. If it is obviously the owner of the content (e.g., a TV station news broadcast posted to the TV station YouTube site - aka Channel). When in doubt, check directly with the source of the video to make sure the YouTube placement is OK.
2. Don't create a pathway to your competitors. Other insurance providers post video, so before you flag a video as a favorite for display on your Channel, make sure it does not direct viewers to a competitor.
3. Many videos display a link back to another website, just be sure that the website meets your (and your site visitors') standards of decorum.
4. Don't push your luck with attention span. It's best to assume your viewers have limited patience. Try to keep video times under 5 minutes, and make sure the video will engage a viewer within the first 10 to 30 seconds.
Coming in Part III...how to use your website videos
Videos produced and published by others can be a great source or video content for your insurance agency websites. But before you start embedding code, here are some considerations...
1. Copyright Infringements - Be careful what you use, policing is somewhat loose, and video uploaded by others may be be infringing on copyrights. The TV news networks generally take a dim view of others uploading news segments or snippets of television shows. Check to see who posted the video. If it is obviously the owner of the content (e.g., a TV station news broadcast posted to the TV station YouTube site - aka Channel). When in doubt, check directly with the source of the video to make sure the YouTube placement is OK.
2. Don't create a pathway to your competitors. Other insurance providers post video, so before you flag a video as a favorite for display on your Channel, make sure it does not direct viewers to a competitor.
3. Many videos display a link back to another website, just be sure that the website meets your (and your site visitors') standards of decorum.
4. Don't push your luck with attention span. It's best to assume your viewers have limited patience. Try to keep video times under 5 minutes, and make sure the video will engage a viewer within the first 10 to 30 seconds.
Coming in Part III...how to use your website videos
Video on Your Insurance Agency Website, Part I
There has been a steady and growing interest in using video on insurance agency websites. There are lots of options and services available, and the cost of adding video ranges from virtually $0 to several thousands of dollars. Choices can lead to pitfalls on one hand, or increased traffic and conversions on the other. To help insurance agents avoid the former and capitalize on the latter, I'm going to start a several part series on using videos.
Part I - A Few General Tips
1. Don't be gratuitous. Make sure your videos add some value, and are not merely commercials. Commercials are something we endure in exchange for free television programming (although the proliferation of paid cable and Tivo has meant we endure fewer and fewer commercials, even on TV). On a website blatant commercials can be counter productive, irritating visitors and leaving a bad impression. Infomercials can be OK, just be mindful of the balance of value vs. self-promotion.
2. Leave your website visitors in control. Videos that launch automatically, especially on the home page - no matter how cool they seem at first blush - are frequently viewed as unwanted intrusions. Videos can add real value, but let your site visitor decide if they want to switch on a video or not. Nothing is more irritating than listening to itunes, Pandora or Rhapsody while surfing the web and suddenly some audio starts talking over the music. Many companies with well established web presence have tried and discarded auto-launch video, and virtually no established retail or service oriented websites foist videos on site visitors today. For proof in an insurance context, take a look at the arch-nemeses of independent insurance agents: Geico, Esurance, and friend-foe Progressive. They all have video options, but none launch automatically. There is a reason for that.
3. Before you post a video to your site, have a clear objective for the video. Do you want to keep visitors on your site longer? Do you have certain conversion goals like more completed quote forms or phone calls? Maybe a video will have a support role for a check list or article. That's OK too. Just make sure your video(s) has a real job to do, and where possible, measure whether it is doing that job or not.
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