Web 2.0 Puts New Spin on Insurance Prospect 

You schedule face-to-face appointments to discuss your clients’ finances and insurance needs. You dial their phone numbers when you have questions or need more information for their application. And you join networking groups, bringing stacks of business cards to every event. These are all common and viable prospecting and customer service options that have been, and can be, very effective when applied correctly.

But what if, in addition to more traditional approaches, marketing, prospecting, and sales could be enhanced with the application of some simple, interactive technology? Additional prospecting tools, such as Web logs (blogs), podcasts, and business networking sites, could help generate more prospects — and these tools are available 24 hours a day, seven days a week, so clients do not need to rely on scheduled appointments and after-hours phone calls. You can even use the technology to touch base with a prospect before you meet with them, leading to faster closes and more referrals.

Welcome to Web 2.0.

What is Web 2.0?
Its definition is still fairly fluid, but according to a July/August 2007 edition of BizEd magazine, Web 2.0 typically refers to Internet-based tools where users can share information and interact with one another. Such tools include social networking sites, “wikis” (sites that allow users to edit information and add material to articles on specific topics), and other collaborative formats. Web 2.0 technology can motivate all users — agents, clients, and prospects — to interact with one another and gain more personalized information about the carriers, brokers, and agents they are considering dealing with.

But how can Web 2.0 help you increase your personal pro­ductivity and bottom line? David McFarlane, COO of Nexaweb, describes Web 2.0 as a collection of multifaceted experiences that help professionals surpass traditional expectations of what the Internet can deliver to consumers.

“As an agent, you’re going to have access to much richer information to be able to help you and support you,” McFarlane explains. “(With Web 2.0), you now have access to a wealth of information that allows you to engage your customer in a much more meaningful way and to be able to provide them with specific solutions that fit their lifestyle and needs.”

The information presented on your blog, wiki, etc., itself is invaluable to both agents and clients. According to Michael Kitces, director of financial planning for Pinnacle Advisory Group, the pre-sales call interaction between clients and agents can speed up the sale and eliminate confusion or questions on their part regarding your practice. The result is a better sales appointment without much extra work on your part. “What you’re going to end up having is a much warmer call and a much more promising prospect,” Kitces said.

Finding your role
Though Web 2.0 technology is being implemented more and more in other industries, the insurance and financial sectors have been slower in adopting these techniques. Compliance certainly plays a factor, as well as the time commitment involved in doing it both quickly and effectively.

Another more pressing issue, however, is that while Web 2.0 tools can increase efficiency and revenue, the cost can be prohibitive for a field agent or BGA. According to McFarlane, some starter plans can cost about $17,500, with more robust programs requiring a more significant investment.

Given the cost, insurance companies could begin making these tools available to their agents rather than placing the financial burden on agents' shoulders. Over time, McFarlane says, he does expect such carrier-initiated interactive Web tools to become more prevalent.

Until then, says Kitces, you can still do quite a bit on your own, even utilizing a number of free resources while staying within a modest budget.

“A lot of it is extremely modest on expense,” Kitces says. “(But) you’re going to have some time investment in order to make that work and make that effective. The first thing you can do to head in the right direction is find out where you are now.”

Web 2.0 for networking
Kitces also suggests using networking venues that can help market your business to both clients and potential partners. By subscribing to a site for professional contacts, which usually requires little to no financial commitment, you can use the opportunity to introduce yourself as an expert in the insurance arena while meeting other professionals who could help generate referrals and offer guidance — or even become clients themselves.

“There is some possibility of generating business directly, and there is some possibility of developing professional relationships that can ultimately turn into subsequent referrals,” Kitces said. He also suggests taking the time to answer questions or enter discussions and forums presented on these sites so readers browsing such sites can become acquainted with your expertise before they even meet you, and they can follow up with you via your profile and contact information if they have more questions.

While it can be difficult to track clients’ usage of Web 2.0 tools, the value they provide could result in warmer calls, faster closes, and better relationships with clients in a shorter amount of time. Kitces said that a more personal Web experience can also help you rise above your competition.

“Would you rather work with a stranger you’ve never met, haven’t heard of and don’t know, or a stranger you’ve never met and haven’t heard of but you’ve heard three of his podcasts and he sounds like a good, confident guy who knows what he’s talking about?” Kitces asks. “I’m going to do business with the second person.”

As time goes on, experts believe that it will become more important to incorporate these tools as an integral part of business. McFarlane said that clients are becoming more familiar with Web 2.0 applications, and it’s only a matter of time before insurance companies — and successful agents — will have to get on board. “In two years, if your Web site does not include a rich user interface, it’s going to be like you were looking at an IBM green screen,” McFarlane said. “It’s just going to be like a dinosaur.”

Michael Murillo is a freelance writer and frequent contributor to the Agent’s Sales Journal. For more information, email vivamurillo@hotmail.com.