Money well spent

Rough Notes, Mar 2003 by Ashenhurst, John

SOUND INTERNET SOLUTIONS

Agency Web site success stories

Only one in four agencies has a Web site. Can that be right? According to research we completed in December 2002, there are about 7,500 sites in a universe of about 30,000 agencies. Of those agencies with sites, many agency principals have expressed disappointment in them. On the other hand, some agents report getting real value from their sites. Why the disparity? What follows are some success stories about agencies that consider their investment in a Web site money well spent.

Modest expectations

Dave Carlson of Carlson Insurance, Inc. (www.carlsoninsurance.com) believes that agents who are disappointed in the return they get from their Web site had unrealistic expectations with respect to the Internet. Many agents, he thinks, naively expected a flood of new business to roll into their agencies through their sites. That was the atmosphere of the Internet boom times. It didn't happen for agents. In fact it didn't happen much for anyone. So agents with high expectations were disappointed and withdrew, and those sitting on the sidelines watching concluded there was no point playing.

The key, Carlson says, is to have realistic Internet expectations. Agency Web sites are not absolutely necessary today, but they are key elements of the emerging insurance and general business environments. Agency Web sites are part of an evolutionary-not revolutionary-process, just as other agency technology has been.

The Carlson Insurance Web site enjoys about 150 visits per month and has assisted in the sale of perhaps 20 auto policies and more life policies. With an initial investment of only $1,000 (and little agency time) and annual hosting costs of $300, Carlson thinks the money is well spent. Carlson reports modest though consistent efforts to publicize his site to his customers. For instance, out-going envelopes are stamped with a reminder about the Web site.

Customers have access to online self-service through the site and especially like being able to pay premiums via credit card. That's convenient-and perhaps more important-it allows customers to pump up their frequent flyer points as a painless by-product of paying premium.

Though Carlson sees benefit from his site, he'd like more information about how shoppers and customers actually use it. He doesn't know today how many make use of his reference information and self-service areas. He does know that when he follows up with customers who have bought online, without agent assistance, he can often help them understand that the choices they've made don't meet their real needs. He shows them how to make better choices and thus demonstrates the value of having an agent behind online services.

Some agents are skeptical about the benefit of agency Web sites. Carlson isn't. He knows he receives real, though modest benefits. The point, for him, is to provide channels for all of his customers-- Internet enthusiasts as well as the Internet-anxious-and to make incremental improvements to his site over time.

Attracting prospects

Some agents have been disappointed that merely having a Web site doesn't automatically mean an increase in sales. One problem, of course, is that prospects may not be able to find the agent's site. John Berkowitz at www.medequote.com has found an effective way to lead prospects to his site via search engine optimization.

Consumers often use popular search engines like Google and Yahoo to find potentially relevant Web sites. Web sites that appear high on the results list (the first page) are much more likely to enjoy click-throughs (and thus visitors) than sites that appear lower down (subsequent pages).

Berkowitz uses an outside service that optimizes his site (keywords and so on) on a regular basis to ensure that certain searches (the ones that his best prospects would likely use to find him) put him near the top of popular search engine results lists.

Berkowitz reports that his Web site is a success and a major source of new business. Search engine optimization brings prospects to the site, and useful elements of the site (for instance, needs analysis information, quote request forms, and real time quoting) move the sales process along.

Putting a face on the agency

Gateway Insurance Agency (www.gatewayins.com) recently had its Web site redone to better represent the focus and personality of the agency. Debra Zambrana says the agency wanted its customers to have a better idea about who was actually serving them in the agency. The result is a series of agency team photos on the site so that when customers look up an e-mail address they have a chance to match a face with a name.

Zambrana added that staff photos on the site have been a help to job candidates who come back to the site to review and remember whom they talked to and what was discussed.

Personalizing the site, showing that the agency is a team of friendly insurance experts, people you can talk to and get help from, is supplemented with convenient ways to communicate information to the staff-for instance, through e-mail and an easy-to-use survey form.