how to win the modern insurance consumer in turbulent times: 5 simple but powerful steps to ...
TRANSCRIPT
© 2017, Agency Revolution, All Rights Reserved
How to Win the Modern Insurance Consumer in Turbulent Times: 5 Simple but Powerful Steps to Market Dominance for the Independent Agent
Michael Jans Executive Chair Agency Revolution
Michael Jans
© 2017, Agency Revolution, All Rights Reserved
25.89%
© 2017, Agency Revolution, All Rights Reserved
25.89%Rate
it takesto grow
10x10YRS.
© 2017, Agency Revolution, All Rights Reserved
© 2017, Agency Revolution, All Rights Reserved
© 2017, Agency Revolution, All Rights Reserved
www.thegrowthanalyzer.com
© 2017, Agency Revolution, All Rights Reserved
But... Consumers Have Changed
© 2017, Agency Revolution, All Rights Reserved
get free today at www.michaeljans.com
© 2017, Agency Revolution, All Rights Reserved
81% Research online before shopping
http://www.chainstoreage.com/article/study-81-research-online-making-big-purchases
GE Capital
© 2017, Agency Revolution, All Rights Reserved
88% Trust online reviews as much as personal recommendations
http://searchengineland.com/88-consumers-trust-online-reviews-much-personal-recommendations-195803
BrightLocal AnnualCustomer Review Survey
© 2017, Agency Revolution, All Rights Reserved
65% Read 4-52+ reviews
http://searchengineland.com/88-consumers-trust-online-reviews-much-personal-recommendations-195803
BrightLocal AnnualCustomer Review Survey
© 2017, Agency Revolution, All Rights Reserved
98.4% Check their emailat least once a day
http://www.businessinsider.com/how-often-do-people-check-their-email-2015-8
Statista
© 2017, Agency Revolution, All Rights Reserved
10X to'Throughout the day'
http://www.businessinsider.com/how-often-do-people-check-their-email-2015-8
Statista
39%
© 2017, Agency Revolution, All Rights Reserved
Average use of smartphone
http://www.networkworld.com/article/3092446/smartphones/we-touch-our-phones-2617-times-a-day-says-study.html
Networkworld
145MINUTES
© 2017, Agency Revolution, All Rights Reserved
Separate Sessions
http://www.networkworld.com/article/3092446/smartphones/we-touch-our-phones-2617-times-a-day-says-study.html
Networkworld
76
© 2017, Agency Revolution, All Rights Reserved
Check phone betweenmidnight and 5AMat least once/5 days
http://www.networkworld.com/article/3092446/smartphones/we-touch-our-phones-2617-times-a-day-says-study.html
Networkworld
87%
© 2017, Agency Revolution, All Rights Reserved
http://www.networkworld.com/article/3092446/smartphones/we-touch-our-phones-2617-times-a-day-says-study.html
Networkworld
2617 Of discreet touches#
© 2017, Agency Revolution, All Rights Reserved
Of internet users use Facebook
http://www.pewinternet.org/2016/11/11/social-media-update-2016/
Pew Research Social MediaUpdate 2016boomer
79%
© 2017, Agency Revolution, All Rights Reserved
Of adults use Facebook
http://www.pewinternet.org/2016/11/11/social-media-update-2016/
Pew Research Social MediaUpdate 2016boomer
68%
© 2017, Agency Revolution, All Rights Reserved
Boomers spend 15 hours/week online (more than millennials)
https://betanews.com/2015/10/21/baby-boomers-spend-more-time-online-than-millennials/
Limelight Networks
Not JustMillennials
© 2017, Agency Revolution, All Rights Reserved
Surpassed desktop forinternet access in 2014
http://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/
comScore Mobile Metrix,August, 2016
MobilePhone Usage
© 2017, Agency Revolution, All Rights Reserved
http://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/
comScore Mobile Metrix,August, 2016
MobilePhone Usage87
Hours/monthbrowsing on mobile
© 2017, Agency Revolution, All Rights Reserved
the insurance consumer?? Are WeStill With
© 2017, Agency Revolution, All Rights Reserved
Quoted in the NY Times,January, 2016:"There are 40,000 agencies in the US. You could absolutely see them shrinking by a quarter."
Ellen Carney, Forrester; Quoted in the NY Times, January, 2016:
Ellen Carney Forrester, Principal Insurance Analyst
© 2017, Agency Revolution, All Rights Reserved
“Right now, consumers are looking for a great experience. Other industries have raised the bar for insurance carriers and agents. Consumers aren't just ready to defect but to tell the world about their crappy experience.
So, we're seeing a lot of startups, obviously. We're tracking about 400
insurtech startups.”Ellen Carney, Forrester; Quoted in the NY Times, January, 2016:
Ellen Carney
© 2017, Agency Revolution, All Rights Reserved
? Where’sThe Value
© 2017, Agency Revolution, All Rights Reserved
“No service above and beyond shopping.”
60%Sam Friedman: Deloitte, “Small business insurance in transition: Agents difficult to displace, but direct sellers challenge status quo”https://www2.deloitte.com/global/en/pages/financial-services/articles/gx-small-business-insurance-in-transition.htmlSam Friedman
Deloitte Insurance Research Leader
© 2017, Agency Revolution, All Rights Reserved
Small business respondents 'very' or 'somewhat' likely to
buy online
Sam Friedman: Deloitte, “Small business insurance in transition: Agents difficult to displace, but direct sellers challenge status quo”https://www2.deloitte.com/global/en/pages/financial-services/articles/gx-small-business-insurance-in-transition.htmlSam Friedman
Deloitte Insurance Research Leader
100%
© 2017, Agency Revolution, All Rights Reserved
? Where’sThe
Relationship
© 2017, Agency Revolution, All Rights Reserved
Report that they have hadZERO interactions in 18 months
http://www.ey.com/Publication/vwLUAssets/ey-2014-global-customer-insurance-survey/%24FILE/ey-global-customer-insurance-survey.pdf
EY Global Customer Survey
44%
© 2017, Agency Revolution, All Rights Reserved
Of insurance consumersare not “very satisfied” with communications from their insurer
http://www.ey.com/Publication/vwLUAssets/ey-2014-global-customer-insurance-survey/%24FILE/ey-global-customer-insurance-survey.pdf
EY Global Customer Survey
86%
© 2017, Agency Revolution, All Rights Reserved
"Be ruthless with brokers who are damaging the long-term economics of your business."
http://www.ey.com/Publication/vwLUAssets/ey-2014-global-customer-insurance-survey/%24FILE/ey-global-customer-insurance-survey.pdf
EY Global Customer Survey
© 2017, Agency Revolution, All Rights Reserved
‘…most have felt secure enough to cede customer contact to intermediaries. Today, however, customer access and “ownership” are keys to the largest profits, and
insurers must fight for them.’
http://www.ey.com/Publication/vwLUAssets/ey-2014-global-customer-insurance-survey/%24FILE/ey-global-customer-insurance-survey.pdf
EY Global Customer Survey
© 2017, Agency Revolution, All Rights Reserved
https://www.cbinsights.com/blog/2016-insurance-tech-funding/
CBI insights
$1.7Billion
Last year, venture capital invested $1.7 billion dollars into disruptive insurance technologies
© 2017, Agency Revolution, All Rights Reserved
https://www.cbinsights.com/blog/2016-insurance-tech-funding/
CBI insights
© 2017, Agency Revolution, All Rights Reserved
Not Incremental,But
Transformational Change
© 2017, Agency Revolution, All Rights Reserved
• Venture Capital • Conferences • Magazine and Journals
An Entirely New Industry: Insurtech
© 2017, Agency Revolution, All Rights Reserved
Matteo Carbone #1 insurtech influencer
“All insurance will be insurtech.”
https://www.linkedin.com/pulse/future-insurance-insurtech-matteo-carbone
© 2017, Agency Revolution, All Rights Reserved
http://www.mckinsey.com/industries/financial-services/our-insights/insurance
© 2017, Agency Revolution, All Rights Reserved
Where does the ‘Broker’ fit into the
New world?
© 2017, Agency Revolution, All Rights Reserved
? ? ?
Price Convenience Peaceof Mind
1 2 3Three values compel insurance purchase:
Digital Direct Broker
Three Major Channels:
© 2017, Agency Revolution, All Rights Reserved
Price Convenience Peaceof Mind
1 2 3Three values compel insurance purchase:
Digital Direct Broker
© 2017, Agency Revolution, All Rights Reserved
Price Convenience Peaceof Mind
1 2 3Three values compel insurance purchase:
Digital Direct Broker
© 2017, Agency Revolution, All Rights Reserved
Price Convenience Peaceof Mind
1 2 3Three values compel insurance purchase:
Digital Direct Broker
© 2017, Agency Revolution, All Rights Reserved
$The
Money is in the
Relationship
© 2017, Agency Revolution, All Rights Reserved
$5,000,000
$10,776, 128
An Increase of $5,776,128in Just 5 Years.
Big Future:10000 Clients,89% Retention 14% New Client 5% $ /Client
Bigger Future:10000 Clients,92% Retention 14% New Client10% $ /Client
Current:10000 Clients,86% Retention 14% New Client0% $ /Client
Growth Analyzer tm
Year 1
Year 5$7,397, 801
© 2017, Agency Revolution, All Rights Reserved
+DelightAt Every Stage in the Process
Attract Convert Optimize Retain
The ACOR+ Marketing Model
Prospects Buyers Clients PromotersLeads
C O RA
© 2017, Agency Revolution, All Rights Reserved
You can’t fix a leaky bucket by pouring more water into it.
© 2017, Agency Revolution, All Rights Reserved
SEVEN times the lifetime customer value of a low loyalty client and,
THREE times the value of a neutral client!
Yup… SEVEN times!*
97% Retention
2.5Referrals
25% More Insurance
The Highly LoyalInsurance Client
© 2017, Agency Revolution, All Rights Reserved
Convert
COptimize
ORetain
RAttract
A
$$$$$$$
$$$Cost
Value
Leverage
Wealth and Equity
Reliable Income
New Income
Future Income
© 2017, Agency Revolution, All Rights Reserved
You can't win on price.
“GEICO”
201220092008 2010 2011
$11 billion
$6
$3.5 billion
$7
$9
© 2017, Agency Revolution, All Rights Reserved
Industry providers divided into two camps.
2
Sells through retail channels,
with exceptions.
1
Acquisition marketers.
Price Driven Loyalty Marketers
© 2017, Agency Revolution, All Rights Reserved
“Advertising spending directly correlates with customer acquisition rates. The top performers in acquisition spend 50% more than average on advertising per customer.”
http://www.bain.com/publications/articles/customer-loyalty-and-the-digical-transformation-in-p-and-c-and-life-insurance.aspx
Bain and Co.
© 2017, Agency Revolution, All Rights Reserved
You're best suited to win on peace of mind, and those customers will reward you richly.
Good news:
© 2017, Agency Revolution, All Rights Reserved
How much money is in the relationship?
referrals
retention
size of purchase
share of wallet
© 2017, Agency Revolution, All Rights Reserved
High loyaltyMid loyaltyLow loyalty
Retention 74% 88% 97%
Value on$5mil/10yrs.
$18mm $30mm $44mm
1-6 7-8 9-10
© 2017, Agency Revolution, All Rights Reserved
Share of insurance wallet: 10% more
81%
84%
86%
88%
Low Loyalty High Loyalty
80%
88%
© 2017, Agency Revolution, All Rights Reserved
Likelihood to buy more from same provider: 5.9 times greater
15%
30%
45%
60%
Low Loyalty High Loyalty
9%
53%
© 2017, Agency Revolution, All Rights Reserved
Amount of insurance purchased: 25% more
0%
33%
65%
98%
130%1.25
1
Low Loyalty High Loyalty
© 2017, Agency Revolution, All Rights Reserved
Number of referrals: 250% more likely than neutral clients
0%
75%
150%
225%
300%
2.5
1
0Low Loyalty Mid Loyalty High Loyalty
© 2017, Agency Revolution, All Rights Reserved
Highly Loyal Insurance Client
Refers2.5
© 2017, Agency Revolution, All Rights Reserved
“Promoters beget promoters… Referrals from an existing customer to other potential customers, play the biggest role in building customer lifetime value.”
http://www.bain.com/publications/articles/customer-loyalty-and-the-digical-transformation-in-p-and-c-and-life-insurance.aspx
Bain and Co.
© 2017, Agency Revolution, All Rights Reserved
The Big Lesson:
High LoyaltyLow Loyalty Mid Loyalty
Lifetime ValueClients
7 times the Value
3 times the Value
© 2017, Agency Revolution, All Rights Reserved
“But I have to sell on price.”
© 2017, Agency Revolution, All Rights Reserved
0.1
0.3
0.4
0.5
0.20
0.13
0.24
0.43
1st 2nd 3rd 4th & 5th
Which quote gets approved by the consumer?
EZLynx. Brady Polansky presentation to ACT. February, 2015.
© 2017, Agency Revolution, All Rights Reserved
0
0.15
0.3
0.45
0.6
0.53
0.45
0.37
0.19
2nd 3rd 4th 5th
How much higher are subsequent quotes?
EZLynx. Brady Polansky presentation to ACT. February, 2015.
© 2017, Agency Revolution, All Rights Reserved
Bridging the gap,
What not to do
© 2017, Agency Revolution, All Rights Reserved
Bridging the gap,
What not to do
Do not run home and try harder (You're already trying)
© 2017, Agency Revolution, All Rights Reserved
Bridging the gap,
What not to do
Do not make more outbound calls
© 2017, Agency Revolution, All Rights Reserved
Don't want phone calls fromtheir insurance provider
https://www.mblox.com/wp-content/uploads/2016/04/Mblox-The-Insurance-Industry-Factor.pdf
Mblox: Closing the Care Gap:The Insurance Industry Factor
84%
© 2017, Agency Revolution, All Rights Reserved
"...the economics of thetraditional agent model are beginning to unravel."
Agents of the Future: The Evolution of Property andCasualty Insurance Distributionhttps://www.iiaofil.org/Portals/0/Documents/FutureAgents_V_FINAL.pdf
Youcan’t call anyway:
McKinsey,Agents of the Future:
© 2017, Agency Revolution, All Rights Reserved
FromPassive
toActive
FromMissing
toMeaningful
From1-to1
to1-to-many
FromImpossible
toAutomatic
Obsessover yourcustomer
experience
1
2 35 Step Plan to Protect & Grow Your Agency
4 5
© 2017, Agency Revolution, All Rights Reserved
1Obsess over
customer experience
Your customeris your most valuable asset
Your most valuable assetis a LOYAL customer
Earn their loyalty
© 2017, Agency Revolution, All Rights Reserved
2From
Passiveto
Active
Don't anxiously wait forthe phones to ring
Relationship is communication
Take control
© 2017, Agency Revolution, All Rights Reserved
3From
One-on-one to One-on-
many
1-to-1 is not just expensive. It’s too expensive.
Segment broad groups. (‘home no auto,’ etc., etc., etc.)
Ask yourself: what can I say to this group that makes their lives better?
© 2017, Agency Revolution, All Rights Reserved
4From
Missing to Meaningful
Advanced marketers know that the magic is more in giving than getting
Personalize communications
Speak to what your customers care about
© 2017, Agency Revolution, All Rights Reserved
5From
Impossible to
Automatic
Deliver the right message to the right person at the right time
Guide them through theircustomer journey
‘Scaling communication:’Only technology makes this possible
© 2017, Agency Revolution, All Rights Reserved
How can technologymake this happen?
© 2017, Agency Revolution, All Rights Reserved
ROI from email marketing
The DirectMarketing Association
43:1
© 2017, Agency Revolution, All Rights Reserved
1 • Integrate with your agency management system
© 2017, Agency Revolution, All Rights Reserved
2 • Trigger messages automatically
new lead
new customer
claim open
claim closed
happy birthday!
policy renewal
© 2017, Agency Revolution, All Rights Reserved
3 • Segment your book to cross-sell
your book of business
example: home no auto
© 2017, Agency Revolution, All Rights Reserved
4 • Always add value
Disaster preparedness &
warning
Agency Newsletters
© 2017, Agency Revolution, All Rights Reserved
5 • Use responsive design
For your website and marketing emails
© 2017, Agency Revolution, All Rights Reserved
Conclusion:
© 2017, Agency Revolution, All Rights Reserved
1.Consumer behavior has changed - radically
2.Insurtech wants to take advantage of those changes
3.Consumers are doubting if we can fulfill ourpromise of relationship
4.Only technology can 'scale relationship’
• By taking what you have- advice, advocacy and caring - and making that real in the lives of real people
© 2017, Agency Revolution, All Rights Reserved
get free today at www.michaeljans.com
© 2017, Agency Revolution, All Rights Reserved
10X:U - Michael’s Personal Rules for Multiplying Personal Productivity
1Only do what’s most important
2Ritualize everything
3Scale with technology
4Keep score
© 2017, Agency Revolution, All Rights Reserved