Curious on your comments….

Let’s use a fictional example.  Let’s say a niche agency, national, is expanding their lines to include some new products.  The products have been market tested by a handful of agents and seem good to go.  Now they want to recruit more agents and scale the new lines up. Thus the interest in a broker portal.  Should we buy or build?  Here’s a sample budget and timeline if outsourced to IdeaStar: $160k over about 12 months.

• Phase One: Portal design and architecture, laying the foundation.  Recruited agents first complete a simple on-boarding process, an admin login facilitates the new-agent approval and continuing portal access.  The admin can also manage sales and marketing materials.
• Phase Two: First product.  Most revenue, biggest perceived market.  Agent-driven Indication workflow, mapped PDF, data stored and accessible to both the agent and the H.O. admin.  Off-line quoting by the H.O. (or online quote engine), upload to the portal for agent review and presentation.  Binding Quote workflow, mapped PDF, data stored, etc.  Renewal workflow.
• Phase Three: Second product, same functionalities modified to suit 2nd market.
• Phase Four: 3rd Product, same functionalities modified to suit 3rd market.
• Intentional Exclusions: Inbound and outbound data feeds, quote engines, state variations of mapped PDF’s.

So pretty straight forward in concept, but a LOT of work and a tremendous amount of potential portal development landmines every step of the way: 

• design
• architecture
• usability
• functionality
• hosting
• security
• integration
• maintenance
• enhancements
• marketing…

Unknowns/Uncertainties/Risks:

• how many agents they will be able to recruit
• how many of those will adopt the portal
• and how well the product will sell.

If you do it in-house, perhaps you can test the waters at a lower cost, even understanding that this investment might be a throw-away if they then decide to outsource the full-blown portal.  However, by building it in-house with little experience, and thus potentially a less than optimal agent experience in the pilot, they would be risking making a critical long-term business decision based on imperfect decision (something I have seen over and over in our business).

Based on either your personal experience, your industry observations, and/or your understanding of agent-driven insurance sales and marketing, any advise or guidance?  Comment anonymously is fine, but it would be better if you’d give a little transparent background.  Our industry desperately needs transparency.

Thanks for your input.  GREATLY appreciated.  Happy to answer follow-up questions.

Btw, I tweeted this article from Forresters yesterday.  I think it’s not only relevant to this post, but it seems extremely relevant to the Life and Health insurance industry.  I know a few CEO’s get it, but the vast majority don’t seem to.

Oh yeah, on a lighter note, my son was on ESPN again!  Too funny.  Daughter Kelle made the sign.

Oh, and the mission trips to Peru and the D.R. were fantastic…

Saw this article from AHIP and found some encouragement by it.  Seniors are happy with Medigap.  Not sure the same can be said with Medicare Advantage.  There’s a link in there for the source documentation.  Might be interesting for those in the senior life and health insurance…

Took a business trip to Boston last week.  Great conversations with folks out there.  I could be wrong, but it seems like there’s a renewed vigor around direct-to-consumer, Web-based insurance distribution, agent portals, and agent-driven quote engines.  There’s also some interesting dialog around ’sponsored-by’ communities, especially as a way of reaching an audience with your brand without being obligated to the whole compliance routine and requirements.  Have you read Groundswell yet?  Great discussion in there about Communities.  Vovici seems to be a useful technology for Community building.

After Boston, I took an adventure into my past, 30 years past to be specific.  I went to Northfield Mt. Hermon School back in the late 70’s and was able to return for my 30th reunion.  Great time.  Brought back fond memories, and of course regrets.  Not sure which one this is:  I remember asking 8 girls to senior prom.  They all said no.  :-)  So I ended up on the campus frisbee golf course instead.  It’s OK.  I got the best bride in the end!!!

Grabbed this pic before a lunch at Fanueil Hall… guys are from Peru where my son happened to be at the time on a Houghton College Mens Soccer mission trip.  Interesting coincidence.  Great sound.  Very popular on the mall.

Classmate Jim Louderback, CEO of Rev3.  Obsessed with the cheese! Check out his HS Senior Pic on the nametag! :-)

Went down to the river for the 7am morning row.  I used to be the coxswain (when I was a LOT smaller). Guy in the bow is James Philcox.  See his B&B here.  Looks nice.

With my class (I’m bottom right).  See more pictures here.  I did the Memorial video for fallen classmates.

Btw, we organized our class through Facebook - an interesting use of the Social Network.

OK, I know this may sound obvious to some, but I just ran across yet another prospective client who does not have analytics (or at least access to analytics) on his Web site.  Just want to post a quick solution to that incredibly critical issue.  Not going to rant about why it’s so critical, just going to say three things:

1. It’s free.
2. It’s comprehensive.
3. It takes 5 minutes to install.

Yes, it takes a few more minutes to set up a funnel for e-commerce (a necessity if you are trying to get someone through an enrollment process).  But the main thing is knowing

• where your traffic is coming from,
• where they are going on the site,
• where they are leaving,
• how long are they staying,
• and what are the month-to-month trends

on those data-points.

Click here to get Google Analytics and follow the prompts.

Check your analytics often, especially as you try new marketing campaigns, add new pages, new content, etc.

Oh yeah, also add ShareThis to your site and test viral marketing - very interesting.

Tell you what:  If you want to do this right, cover ALL your bases, and maximize the Web channel, reach out to me.  Happy to help.  I can almost guarantee positive ROI no matter what state your Web presence is currently in.

I added the following content as a comment on the previous podcast post with Steve Snell, but thought it might be better suited for a post all its own.  These thoughts are in reference to an insurance affinity/association Web site overhaul project.  The project ROI can be clearly seen by the business unit.  Now we’re making a case for executive sponsorship, and of course, IT sign-off.  Can’t go into all the details obviously, but the following notes will give you a glimpse into cost justification.  The same concepts hold on the agent-driven side as well.  (Btw, really appreciated the comments from Steve Snell, John Pogas and Mark Seghers on the ROI podcast.  Great reinforcement and added value.  Love to get more input.  Approaching 100 ‘listens’ already - must be a timely topic.)

************

I just did an ROI exercise for a client. Here’s what I came up with relative to overhauling a term life affinity distribution site and converting from PDF download to an e-app:

Tangible Revenue gains, so NEW revenue, that should come from the following sources as compared to the site in its current state:

• Higher conversion rates from existing traffic flow with existing product set (this factor alone could fund the project)
• New traffic, and possible enrollments, from new viral marketing components
• Likely even higher conversion rates with the ‘new traffic’
• Increased persistency rates due to automation - some proprietary ideas
• New revenue from automated cross-sell and up-sell processes

Tangible Bottom-line cost reductions:

• Straight-through paperless processing (HUGE cost savings - this factor alone could fund the project)
• Automating the provision of ID cards and policy information - e-Issue (BIG cost savings)
• Possible member self-service automation

There are also several significant intangible ROI possibilities. And as always, there are also significant positive ROI things that will become apparent post-launch.  One definite BIG intangible - collecting prospect/new client contact information, esp email., so as not to be dependent on the association for marketing contact information.

************

I attended an amazing and unforgettable event this week - one of those last-minute things that come up suddenly and completely blow you away.  As soon as I get a link to the recording, I’ll write a blog post on the event.  Let me put it this way - I was flattened by the talk.  Sneak preview of the talk in pictures here.

************

Got a chance to make a picture for Bernhard Langer, 2-time Masters Champion, last week, as well as Dana Quigley, Tom Randall, and Joe Coffey - 4 mighty men of God.  See the pictures here.

You can always count on good stuff from Steve Snell.  Recently rif’d by Cventry [sic] (as they position the company for sale, cut the best and brightest resources, eliminate all technology and innovation projects, and put thousands of people out of jobs in the process - geez, I wish I didn’t share the same last name with the culprit), Steve has about as deep of a resume with insurance technology, and the ROI there-of, as anyone I know.  I think readers/listeners will appreciate the reinforcement of knowledge as well as perhaps some less well-known concepts. Btw, Steve is ‘available’.  Anyone that ends up with him is going to ROCK! - if they turn him loose.  Meantime, have a short-term project?  Hire Steve as a consultant?!

Please come back to the blog and ShareThis on your Linkedin page and/or post a comment or two at the bottom of this page.  Let’s see if we can take the conversation even further and really nail the subject.

Steve’s background eAMS, WellCarePro.com, secure broker portals, automating contacting and appointing, etc.

Listen in here

My favorite points:

Often over-looked item - compliance and avoiding regulatory fines for failure to comply with a bullet-proof audit trail.

“A bad business process automated is just a bad business process made faster.”

Intangible ROI:

• Perception of being easy to do business with
• Don’t have to be the cheapest rate
• Don’t have to pay the highest commission
• Nimbility
• What else do you think?  Comment below.

Tangible ROI:

• Reduced headcount - 53 people on a process that should be done by 4-6 people.
• Increased productivity of existing agents, selling more product faster in more states
• Increased number of agents who want to do business with a savvy, not just a me-too, company
• Nimbility
• What else?

Problem: These sites are viewed as technology projects instead of ‘products’.  Listen to Steve’s take.  What’s your take on this idea? Might explain the insurance executive mentality of ‘expense’ versus ‘investment’ and the “sea of mediocrity”?

Agile versus Big Bang deployments - What’s been your experience?

“…very difficult to get that money back…” Yep

“The days of enterprise software are over.”  Amen, bro.

“Now is a good time to be investing in this technology.”  Several very valid rationales.  “…first out of the flames…forethought…vision…”

Please comment.  Lurking is lame!

Steve and I at a Tribe game couple years ago

Media mentions:

A.M. Best: Best’s Review See it here (Part 2 Page 2)  Btw, check out the stats as well.  Jaimie Pickles - awesome article.

Insurance Journal: Closer Look: Agency Technology - Social Networking, Web 2.0 Changing the Way the Industry Does Business

A flood of articles this week reinforcing the critical nature of the Web within insurance marketing.  If this is all true, why aren’t more insurance folks knocking the cover off the ball with new sales and profitability from the Web channel?  What’s “the catch” in your opinion?

• Internet’s Growing Presence Challenges Traditional Insurance Practices
• No Shortcuts for the Long Term
• Empowering Your Agent
• Why Aren’t More U.S. Consumers Using Insurance Comparison Shopping Sites?
• In an Economy - And a World - Gone Haywire, Creativity and Flexibility Are the Keys to Entrepreneurial Success

Question:  Why would the board of directors of a very large insurance distribution company allow the leadership team to “cut costs” by RIF’ing the “do-ers”, retaining the mid-managers, and retaining the executive bonus structures?  Sure thing - such a strategy will increase the EPS for a couple quarters.  But then the bomb will explode as new revenue, innovation, and competitive advantage shifts with the disgruntled remaining employees who opt-out of the climate of rape and pillage and move to a company with a soul.  And when that bomb explodes, what’s left of the company will vaporize.  Help me understand:  How is this different from what Bernie Madoff did?  Looks like we’re sending him to jail.  How about these execs and boards that are intentionally and knowingly putting at risk thousands of jobs and potentially compromising hard-earned insurance policies - all so they can tell their Harvard or McKinsey buddies how much they made on the deal and retire in style in Naples?  All I gotta say is, What comes around, goes around.  As you sow, so shall you reap.  Enough of my rant.  Seriously.

I can’t wait for the world to see a few new sites we will be launching shortly.  I could be out in left field, and of course I’m biased (just hope I’m not blinded), but I think these sites will advance the ball like FTJ.com did last year.

What else -

A company that ‘gets it’…  American Collectors

Aartrijk Brand Camp in Chicago in September.  All I can say is, if you’re in insurance marketing, try to be there…

Three strategic partnerships pending.  Good to see some companies seem to be getting it.  “Watch out” to those still limping along with the IT department.  (Listen, I’m sorry to the IT directors out there that don’t outsource front-end, customer-facing Web development.  No disrespect intended, but you gotta focus on what you do best and outsource the rest.  The Web is extremely specialized - no more room for OTJ training.)

A bunch more, but gotta go.

Oh yeah, one of my pictures from last weekend made a national soccer Web site!

See the rest here.

What about product???

With all that’s going on with Medicare Advantage, Medicare Supplement, Group Retiree Health, etc., etc., I thought it might be interesting to do an informal poll of conference attendees and get their takes on what going to happen with product.

Listen in.  Please comment below re your thoughts, not only on product, but also on the conference itself, the industry, and anything else.

Oh, while you’re listening, browse pictures from the conference here.

I’m SO excited to publish this content.  I could be way out in left field, but it just seems like a LOT of people are going to be VERY interested in these comments on Web usability, consumer behaviors, and best practices from an ex-Prgrssv subject matter expert, Tonya Busic.

Grab a note pad, listen in, and please come back and COMMENT on your thoughts below.  Tonya would LOVE to answer questions and ping ideas back and forth.

Awesome conference.  Extremely well-attended.  Jesse said, “Amazing when you throw a party and everyone shows up!”

Misc notes -

Jeff Burrows -

Passion, Performance, Persistence - Tiger Woods is a great example.

If you want someone to remember something, say it three times.

Use technology to your advantage - don’t fight the texting, twitter, social networks, etc.

The Internet has removed the corner office. (Access to information..)

Warren Hunter

Med Supp carriers - “Are you taking enrollments online? If not, might miss the boat.” I say, You should be in panic mode right now.  If you wait until 2010/11 to get started with a serious Web presence, you’re dead meat for a good two years, perhaps forever if you really get ruined by popular opinion because you are so apparently cluelessly behind the Internet curve.

77mln boomers entering the ’senior market’ nearly 4mln in 2011 drawn to customized svc, question everything, rite media mix

Start educating you future prospects NOW!  NOW!  NOW! (Jeff, see that?  I said it 3x!)  Begin at age 64.  Build relationship with your prospects.  (Btw, wrt to SEO and ranking, need to have that content out there a good 6-18 months before it impacts your ranking.)

Blogs, chat rooms, online chat, Linkedin groups - all kinds of communities. [Have you read Groundswell?]

Microsites - timely, small product sites, build it into your marketing programs, don’t do it with IT, use a supplier like IdeaStar! (Thx for the plug Warren.)

http://www.youtube.com/watch?v=jTA65iDWaWs Good example of social media marketing.

Newsletters, TV, mail, blogs, seminars, product, brochures….Surround your prospects

Great podcast, IMHO, on the conundrum of independent agents and Web sites.  Please join this conversation via Comments below.  Peter and I and the other readers will enjoy pinging your ideas back and forth with you.

Listen in [Couple boggles with the tech on the front-end, but it goes away - phew!]

Insurance Journal podcast with Rick Morgan, Peter van Aartrijk as referenced.

Younger owners doing well… large, forward-thinking brokers doing well…The rest?  Opportunity out there.

Think of the Web site as the busiest office of the agency.

Agents get business from referrals…but are they being found via ‘referred’ searching?

And once they get found, what is the Web site saying?  How do they handle the care-and-feeding of the Web site?

Interesting comments about Agents and Blogging - Wow, POWERFUL stuff!

Great suggestion about finding sales people - people good at solving problems and helping people, not prima-dona producers.

Aartrijk Brand Camp in Chicago.  This is going to be VERY cool.

Word: “You’re good communicators.  Leverage it.”

THANKS Peter!

On deck: Tonya Busic, a diamond in the rough, on Web Usability and other “Progressive” ideas!

In the hole: Steve Snell on the ROI of insurance technology.