how to win the modern insurance consumer in turbulent times: 5 simple but powerful steps to ...

© 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


25.89%


25.89%Rate

it takesto grow

10x10YRS.


www.thegrowthanalyzer.com


But... Consumers Have Changed


get free today at www.michaeljans.com


81% Research online before shopping

http://www.chainstoreage.com/article/study-81-research-online-making-big-purchases

GE Capital

http://www.chainstoreage.com/article/study-81-research-online-making-big-purchases


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



65% Read 4-52+ reviews


BrightLocal AnnualCustomer Review Survey



98.4% Check their emailat least once a day

http://www.businessinsider.com/how-often-do-people-check-their-email-2015-8

Statista



10X to'Throughout the day'


Statista

39%



Average use of smartphone

http://www.networkworld.com/article/3092446/smartphones/we-touch-our-phones-2617-times-a-day-says-study.html

Networkworld

145MINUTES



Separate Sessions


Networkworld

76



Check phone betweenmidnight and 5AMat least once/5 days


Networkworld

87%




Networkworld

2617 Of discreet touches#



Of internet users use Facebook

http://www.pewinternet.org/2016/11/11/social-media-update-2016/

Pew Research Social MediaUpdate 2016boomer

79%



Of adults use Facebook


Pew Research Social MediaUpdate 2016boomer

68%



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

https://betanews.com/2015/10/21/baby-boomers-spend-more-time-online-than-millennials/


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




comScore Mobile Metrix,August, 2016

MobilePhone Usage87

Hours/monthbrowsing on mobile



the insurance consumer?? Are WeStill With


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


“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


? Where’sThe Value


“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

https://www2.deloitte.com/global/en/pages/financial-services/articles/gx-small-business-insurance-in-transition.html


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%

https://www2.deloitte.com/global/en/pages/financial-services/articles/gx-small-business-insurance-in-transition.html


? Where’sThe

Relationship


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%

http://www.ey.com/Publication/vwLUAssets/ey-2014-global-customer-insurance-survey/$FILE/ey-global-customer-insurance-survey.pdf


Of insurance consumersare not “very satisfied” with communications from their insurer



86%



"Be ruthless with brokers who are damaging the long-term economics of your business."





‘…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.’





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




CBI insights



Not Incremental,But

Transformational Change


• Venture Capital • Conferences • Magazine and Journals

An Entirely New Industry: Insurtech


Matteo Carbone #1 insurtech influencer

“All insurance will be insurtech.”

https://www.linkedin.com/pulse/future-insurance-insurtech-matteo-carbone

https://www.linkedin.com/pulse/future-insurance-insurtech-matteo-carbone


http://www.mckinsey.com/industries/financial-services/our-insights/insurance

http://www.mckinsey.com/industries/financial-services/our-insights/insurance


Where does the ‘Broker’ fit into the

New world?


? ? ?

Price Convenience Peaceof Mind

1 2 3Three values compel insurance purchase:

Digital Direct Broker

Three Major Channels:


Price Convenience Peaceof Mind

1 2 3Three values compel insurance purchase:

Digital Direct Broker


$The

Money is in the

Relationship


$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


+DelightAt Every Stage in the Process

Attract Convert Optimize Retain

The ACOR+ Marketing Model

Prospects Buyers Clients PromotersLeads

C O RA


You can’t fix a leaky bucket by pouring more water into it.


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


Convert

COptimize

ORetain

RAttract

A

$$$$$$$

$$$Cost

Value

Leverage

Wealth and Equity

Reliable Income

New Income

Future Income


You can't win on price.

“GEICO”

201220092008 2010 2011

$11 billion

$6

$3.5 billion

$7

$9


Industry providers divided into two camps.

2

Sells through retail channels,

with exceptions.

1

Acquisition marketers.

Price Driven Loyalty Marketers


“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.



You're best suited to win on peace of mind, and those customers will reward you richly.

Good news:


How much money is in the relationship?

referrals

retention

size of purchase

share of wallet


High loyaltyMid loyaltyLow loyalty

Retention 74% 88% 97%

Value on$5mil/10yrs.

$18mm $30mm $44mm

1-6 7-8 9-10


Share of insurance wallet: 10% more

81%

84%

86%

88%

Low Loyalty High Loyalty

80%

88%


Likelihood to buy more from same provider: 5.9 times greater

15%

30%

45%

60%


9%

53%


Amount of insurance purchased: 25% more

0%

33%

65%

98%

130%1.25

1



Number of referrals: 250% more likely than neutral clients

0%

75%

150%

225%

300%

2.5

1

0Low Loyalty Mid Loyalty High Loyalty


Highly Loyal Insurance Client

Refers2.5


“Promoters beget promoters… Referrals from an existing customer to other potential customers, play the biggest role in building customer lifetime value.”


Bain and Co.



The Big Lesson:

High LoyaltyLow Loyalty Mid Loyalty

Lifetime ValueClients

7 times the Value

3 times the Value


“But I have to sell on price.”


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.


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.


Bridging the gap,

What not to do


Bridging the gap,

What not to do

Do not run home and try harder (You're already trying)


Bridging the gap,

What not to do

Do not make more outbound calls


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%

https://www.mblox.com/wp-content/uploads/2016/04/Mblox-The-Insurance-Industry-Factor.pdf


"...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:

https://www.iiaofil.org/Portals/0/Documents/FutureAgents_V_FINAL.pdf


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


1Obsess over

customer experience

Your customeris your most valuable asset

Your most valuable assetis a LOYAL customer

Earn their loyalty


2From

Passiveto

Active

Don't anxiously wait forthe phones to ring

Relationship is communication

Take control


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?


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


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


How can technologymake this happen?


ROI from email marketing

The DirectMarketing Association

43:1


1 • Integrate with your agency management system


2 • Trigger messages automatically

new lead

new customer

claim open

claim closed

happy birthday!

policy renewal


3 • Segment your book to cross-sell

your book of business

example: home no auto


4 • Always add value

Disaster preparedness &

warning

Agency Newsletters


5 • Use responsive design

For your website and marketing emails


Conclusion:


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


get free today at www.michaeljans.com


10X:U - Michael’s Personal Rules for Multiplying Personal Productivity

1Only do what’s most important

2Ritualize everything

3Scale with technology

4Keep score