Agency - Today
George Nordhaus –
• Founder and Chairman of Insurance Marketing and
Management Services (IMMS).
• Executive V-P of Indiana and Tennessee Big I Associations.
• Industry pioneer - “firsts” such as CPCU on tape, Agency
Management Systems on tape, insurance licensing manuals
for over 20 states.
• Accomplished author - 8 books on insurance sales &
marketing, and a weekly newsletter for over 30 years.
• Industry leader - Boston Board of Fire Underwriters
“Insurance Person of the Year”, Insurance Marketing
Communications Association “Golden Torch Award”; served
for many years as an Elector to the Insurance Hall of Fame
A personal business
Mutual versus Stock
The “Big I” Campaign
Two associations IIAA and PIA
Competitors: State Farm and Allstate
Agents hiring after hours callers
Agency management systems remain
Commercial telemarketing firms appear
“Big I” program cut back
Banks enter the insurance business
Automation systems still not used for
Many national insurers disappear
Regional insurance companies flourish
The world of electronic communications
Selling by price
Appearance of the Internet, 1992
Agents establish “brochure-like” Web sites
Agents look to Internet for leads
Search Engine Optimization
GEICO, Progressive, et al. take over Internet, TV
The Age of
80% - 90% of all purchasing decisions
start on the Internet
80% Search for auto insurance
44% buy directly on Internet – 3%
increase per year
45 - 60% of Americans get their news
The Web is doubling in
power every two years.
In ten years the Web
will be 32 times
as powerful as
it is now.
The Internet is no longer just
the Internet – It is a part of
The Internet knows more than
It is common knowledge
that knowledge is
• In an effort to increase productivity and efficiency, I am beginning
a new personal email policy. I’ve recently realized I spend more
time shuffling through my inbox and less time focused on the that
at hand. It has become an unnecessary distraction that ultimately
creates long lead time on my ever-growing “to-do” list.
• Going forward I will only be checking/responding to email at 11
AM and 4 PM on weekdays. I will try and respond to email in a
timely manner without neglecting the needs of our clients.
• Cheers..and here’s to life outside of my
“No matter what I hear, read
or find on TV, radio or in a
magazine or newspaper, I
can verify it on the Internet.”
Forrester Research Report: consumer quote
Answers 35,000 inquiries EVERY
3 billon a day…90 billion a month
82% of Google searches resulted
in Offline transactions.
The combined stock-market value of
Apple and Google?
The amount that Apple stock has increased since 2005, more than
• Intel Microsoft
• Hewlett-Packard Apple and
• and Cisco Google:
Predicted 2011 profit:
over $16 billion.
• SEPTEMBER 3, 2009
• SEPTEMBER 3, 2009
in all forms:
Internet – Email - Text
Twitter - Social Media
…is now the major communications
Customers are now in
of how they communicate with or
about your business…on Twitter,
Facebook, YouTube, on mobile devices,
via email activity on your website, and
conversations with your call center.
Today’s customers want to be in charge
of making purchases. They don’t want
someone chasing them.
The way people buy
•The way insurance
needs to be sold has
Your Website is a virtual
extension of your
• “If this is what I see…then this
is what you are!?
Two Demographic Groups
The Way We Do Business
Gen Y –
• Traditionalists or Silents…..1909-1942
• Baby Boomers….1946-1964
• Generation X….1965-1980
• Generation Y’s (Millennials) Born after 1980.*
*At 60 million strong – more than three
times the size of Gen X..they are the
biggest group to hit the American scene
since the 72 million baby boomers.
There are now 200 million blogs
on the Internet
What are they looking at on Web?
1. YouTube 11. Nick, Jr.
2. Google 12. YouTube.com
3. Facebook 13. Gmail
4. Porn 14. Cartoon Network
5. Club Penguin 15. Poptropica
6. Yahoo 16. Michael Jackson
7. Webkinz 17. EBay
8. You Tube 18. Disney Channel
9. Games 19. Cbeebios
10. Miniclip 20. Hotmail
Age 7 and Under.
online family.norton 15 million page views.
American children spend 7.5 hours a
day absorbing and creating media…as
much time as they spend in school.
• They multitask across screens to cram 11 hours
of content into those 7.5 hours.
• More and more of these activities are happening
on Smartphones equipped with audio, video,
SMS and hundreds of thousands of apps.
• U.S teenagers (12-17) send 50+ messages a day.
• One-third send more than 100.
96% of GenY’s have
joined a social network
54% post content or tweet daily…
34% post opinions about products and
78% of consumers trust peer
only 14% trust
They see your Website as a
virtual extension of the
Adopting more online
technology is a priority..
89% want web-based support
76% want online chat
69% want on-line blogs
67% want instant messaging
Need instant gratification and
For the Millennials...
who increasingly comprise
and influence your
…the use of the social web is
simply part of everyday life…
mind-set is “we” -
compared to the
Millennials typically use up to seven
devices, apps and programs at
once..in texting, G-chatting,
tweeting and listening to music.
Half of students 8 to 18 are using the
Internet, watching TV or using some
other form of media either “most”
(31%) or “some” (25%) of the time
that they are doing homework.
Millennials don’t have
traditional boundaries or
an old-fashioned sense of
They live out loud, sharing
details of their lives with
thousands of other
You could read…
You can e-mail, text, instant
message and decipher and
understand a bewildering amount
of direct media
I have 8 loaded
Video calling comes to iPod touch. So
now your friends can be there with
you, even when they’re not!
What is Mobile
“The use of wireless media as an integrated content
delivery and direct response vehicle within a cross-
media marketing communications program.”
Layman’s terms: Your cell
phone isn’t just for talking
2000. 2 millon handsets
2010…545 million handsets
Cellphones still for talking?
More houses disconnecting land lines…I in every 4 U.S. homes
has no land line.
Half of all adults 25-29 live in wireless-only households.
Text, e-mail, music, streaming video, etc. surpasses amount of
Conversations shorter…average length of call 1.8 minutes,
down from 2008’s 2.27 minutes
“By texting I can multitask between two or three conversations
There is little question that apps are changing the way we
interact with brands, each other and the Internet itself.
Some argue that apps will take over the Web as we know
it…that surfing the Web through apps will replace the
process of hunting for Web pages, even “websites”
Steve Jobs: “The average IPhone user spends over 30 minutes
each day using apps.”
E-Bay…$1.5 million sales via its smartphone apps in 2010.
50% of the U.S. population will be
using smart phones by the end of
80 million Americans..approximately one
out of three smartphone users, will be
armed with either an Apple iPhone or
an Android-powered device by the
start of 2012.
U.S. market research firm ASYMCO
So what happens when most of the
residents of the planet Earth…
..carry a device that gives them instant
access to pretty much all of the world’s
The top companies in desktop
computing….Apple, Google and
Microsoft, must shift their focus to
mobile devices to remain competitive…
Yes, Apple still sells
Twice as much of its
revenue comes from
hand-held devices and
Why Mobile apps?
Find new customers
Deepen relationships with
Maybe it’s time to reinvent
your business model?
Who has apps Insurance Shopper
now…at least on •Annuity
my 3GS… •Auto
• State Farm
• Progressive •Cancer
• USAA •Disability
• Allstate •Health
• Nationwide. •Home
• Schultheis Insurance
• American Family •Life
• Hartford •LTC
• McMinnville Insurance •Rent
•If you have an iPhone, go
see the Nationwide app.
On Google’s Android operating system…
Get car insurance quotes and buy a
Make payments and update policy
Get directions to a local independent
Compare relative costs to insure different
types of cars…
Report and track claims…
Watch the latest Progressive TV
commercials….PLUS two online games..
USAA Bank has a
app allowing the
to snap a photo of an
endorsed check and
deposit the amount into
the appropriate account.
Four steps to a mobile app!
• 1. Browse various apps for similar
apps and read the user reviews.
• 2. Do a mobile version of your
• 3. Think Small
• 4. Decide on one or two key
AO providing IPhone apps…
…..Roadside service assistance
…..How to (change tire, jump start a
…..Taking Photos from the scene
…..Customer Service (make a payment,
request policy changes)
…..Access to 24/7 (if you have this service)
…..Agency Website links
By 2011 85% of handsets sold
worldwide will have a Web
But why type?
Voice Actions, an Android app,
allows you to tell your phones to
call, email or text a contact,
listen to music, set the alarm, go
to a Web site, view directions on
a map, or e-mail a note to
“Some of our competitors
are getting ahead of us…
…so we are now focusing on
mobile technology. Stay
Shop Online | Find a Store | 1-800-MY-APPLE
• ..is so fast and light…
• Multi-touch screen bright and
A good goof- • Software so easy to navigate
proof computer ….Processor so much faster…
for That it qualifies as a new category of
the aged and It is infinitely more convenient than laptops for
the young. consuming books, music, video, photos, e-
mail and of course ...
3.2 million IPads sold
Liberty Mutual , in
iPAD partnership with Time
“After totaling your Magazine is providing
new car, things will iPAD users with
never be the same.
Except the interactive advertisements.
replacement car we • “…combining online, print
give you. That will be
the same.”……. and broadcast into one
Scrolling down, interactive, digital
viewers watch a experience that literally
jumps off the page..”
enhanced video that
shows a totaled car
replaced with a brand
“Independent agents can take
back personal lines market share
from direct writers and direct
However, success will depend on
the use of technology like
social networking, which will
be used as business
development tools by younger
American Agent and Broker Future panel
Michael Jackson’s death
was announced to the world…
six minutes before the
coroner pronounced him
There are over 1,000,000,000,000
text messages sent each day…sent
by what is called “the thumb tribe.”
Members spend an average
of SEVEN hours a week on Facebook.
Only 11% of teenagers email daily.
Is the primary driver of traffic to global
websites, 48% of social media hits …550
In less than seven years…Facebook
became a window into our souls
Wired together one-twelfth of humanity into a
Built a social entity twice as large as the U.S.
Nearly half of all Americans have a Facebook page
But 70% of Facebook users live outside the U.S.
We have entered the Facebook age.
Most visited Web site?
Wrong! …Facebook the most, from
Jan1 to November 30 of
2010..approximately 1 in 10 visits to
Facebook wants to…
• Populate the wilderness...
• Tame the howling mob…
• Turn the lonely antisocial world of random chance
into a friendly world, a serendipitous world….
• You’ll be living and working inside a network of
people..you’ll never have to be alone again…
• The Internet and the whole world will feel
more like a family or a college dorm, or as an
office where your co-workers are also your
Can you say no to Facebook?
The bigger social networks get the
more pressure there is on
everybody else to join them.
They tend to pick up speed as they
• “Every 12 t0 18 months the amount
of information being shared by
people on the web DOUBLES.”
• Over time people will bypass more
general websites such as Google in
favor of sites built atop social
networks where they can rely on
Results of Zuckerberg’s double
Companies grow faster
on the web, and web
faster when they are
62% of respondents (business owners)
to a Constant Contact query replied:
“A Facebook presence is
now as important to our
business as face-to-face
interaction with our
Facebook for Dummies
• State Farm’s social game on Facebook…”Car
Town” Bring “Multi-car”, “safe-driver”
good neighbor” discounts. Lets players collect
and customize virtual cars, build their dream
garages and help their friends do the same.
Giving away virtual items. Give away “blue
points” in-game virtual currency normally sold
with real money. Already claims 7.2 million
Expansion of Social Networking
The amount U.S. companies spend marketing
themselves on social networking sites is expected to
grow from an estimated $4.5 billion last year to
nearly $38 billion by 2015.
1,181,194,905… Hours users spent on Facebook in
July, 2010. August was first time U.S. Internet users
spent more time on Facebook than on all of
Google’s sites combined.
October, 2007: 81% of Facebook’s 50 million users
were younger than 24.
Today: 45% of its 550 million users are 35 or older.
What is the fastest-
growing company in the
• Another fast grower: LivingSocial
Is Social Media measurable?
• Web site visits
• Page views
• Time on Web site
• Referring sites
• Keyword rankings
• Followers, friends and fans
• Speaking opportunities
• Downloads (articles, white papers, case studies, videos, etc.)
• Social media on its own is like a brochure without a
sales person. It does some of the work, but is really
dead in the water without a complete marketing
strategy surrounding it
SMO..a form of Search Engine
You optimize your site by advertising it
through the social media sites, online
communities and community
websites such as blog sites, message
boards, podcasts, wikis and vlogs
Ask yourself these questions.
1. Who are our customers..how much time are
they spending on the Web?
2 What is their mobile behavior. What devices?
3. What is their social behavior. What social sites
are they using?
4. At what time and place might they think of, or
need our services?
5. How are mobile and social users impacting our
eMarketing Associates Network
Insurance Sales and Marketing Ideas
Insurance Marketing Masterminds
Association of Strategic Marketing
So many links…so little time.
Ten years ago:
360 million Internet users worldwide
1.7 billion users and growing.
New media is an insatiable flexible
This fact has become
“Every prospect, every customer
of every agency knows that he or
she can buy insurance from
someone else and pay less in the
“But I would be
agreeable to pay
more, if only …”
In this age of conversational
…the path from lead to
sale has become a lot
longer and more
“Computers are going to get smaller
Ultimately they will go inside our
bodies and brains and make us
healthier, make us smarter. We’ll
be on line all the time.
Search engines won’t wait to be
Futurist Ray Kurzwell
How has communications changed?
In Person Telephone calls Letters
= = =
Virtual Meetings Text messages Emails
Newsletters Communicate to Belong
= a group via a to
Electronic blog Social Networks
Have your own Websites now
URL Address and entertain
• Yellow Pages • Internet Yellow
• Direct Mail Pages
• Newspapers • Search Engine
• Cold Calling – Optimization
Telephone • Exciting
• Email direct contact
The irony is that while there have
never been more ways to reach
It has never been harder to connect
Only one out of every 9
Americans now use the WHITE
...The rest use the Internet or call information.
Regulators are giving phone companies
permission to stop printing white pages.
• Microsoft offers free 411 service. 800-BING-411 (800-246-4411)
• This is especially helpful with cell phone calls as 411 calls are typically an
• You can also get weather, movie times, directions, etc... Neat service.
Will drop 14% in volume
Over 200,000 mail boxes have disappeared
100,000 jobs lost in 2010
USPS operating at over a $8.0 billion deficit
Goodbye Saturday deliveries?
“E-mail jumped this shark years ago”
Linked-in Strategic Marketing Group
The 2011 way to reach
Showing up at their house….
But, it needs to be more than one
dimensional or your site won’t be
= 1 Words
Words plus, audio, video,
integration, chat, quoting, and
so much more. Surprise and
= 6 delight your clients!
3 dimensional - to the power of 6! 91
Video will account for
80% of Internet data
traffic within four years!
of 11 billion
DVD’s, or 3.5
million years of
Huge change in attention
In just 6 years…
2 billion daily views
Up from 1 billion last October.
Every minute 3.5 hours of video
Tufts University now takes
applications on YouTube
Marketing Facts of Life
No way to compete
No way the average
agency can stay
The GEICO Effect
Google: “Auto Insurance” 56,700,000 entries
• In the first ten pages, these are the major players who claim they
can save you money on auto insurance. In order of appearance,
• AAA.com Online Auto Insurance
• Progressive Insurance.com
• Autoinsurancequotes Thegeneral
• Esurance Safeauto
• Allstate Carinsurance
• State Farm (40 million autos) Smart Auto Insurance
• 21st Century Car Insurance Rates
• 2insure4less Kanetix
• Choice auto insurance 800-Insurance
The GEICO Effect (continued)
• Direct General Auto Insurance Select
• Autoinsurancequotes4U Auto Insurance Remedy
• Your Auto Insurance Site Insure
• Insureme Netquote
• Insurance Hits Insweb
• Discount-car insurance-rates Auto Insurance Rates.direct
• Quotescout Home Town Quotes
• Car insurance quote.net Get-Online-Quotes
• USinsuranceonline Insurancedeals4u
• Insure Me insure Car Quotes
• You Tube Auto Insurance-Advantage
• USA Home Town Quote
• Cheap Auto insurance.net Carseek
• Auto/insurance in depth Insure4USA
• Car.insurance quotes Peppercoin
The GEICO Effect (continued)
• DMV.Org/car-insure Auto insurance Rates Direct
• Best Cheap Auto insurance Advantage One/Insurance
• Qualityautoinsurance AutoMotive
• Carinsurance list Insurance4USA
• Advantage Auto Quotes Auto Insurance Quotes Free
• Auto Insurance Planners USInsurance
• Cheap Auto insurance Quotes Internet Auto Guide
• QuoteYou Choice auto insurance
• Quoter-R-us Insurewish
• A! quotes InsuranceAgents
• Click Insure Compuquotes
• Free Insurance rates AIS Insurance
• Car Insurance Reduction Car Insurance Quotes
• Quotes.Insurance Quotes
• Serenity Group
• 4Free Quote
Any Independent Agencies?
Products or services that are essentially
the same no matter who is selling them.
…They are differentiated on the market
only by price, brand, and perhaps some
relatively minor features.
Half of its new customers make contact through
its Web site
$500 million in premiums through its direct
Direct premiums growing at 25% in 2010
The share that comes in through direct
channels is rising dramatically
Just announced a 5% “safe driving” bonus,
State Farm’s new “Pay as you go” (based
on actual mileage) auto insurance.
Where will it stop?
My friend, Barrie Wells in England, is starting
an auto insurer (Insure the Box) that uses
satellite navigation for the pricing…exact
mileage, time of day, days of week, average
speed, top speed, etc..
…even includes braking velocity as part of the
Branding the agency was
Impossible on a national
level…and even difficult on a
Best example of branding?
“Independent insurance agents need
to take notice. No longer can we sit
back and wait for the phones to ring,
or assume that the children of
our clients will automatically
become OUR clients…. and…
“We can’t compete with a multi-billion
dollar advertising budget – so we need to
connect with our clients in other ways, by
creating our own inbound marketing
Founders Insurance Group
Agency Management Systems
AMS or Applied
Vendors estimate only 20% use system to its
• Marketing Tracking Systems
• Virtual Meeting Conferencing
• Cloud Hosting
• Blogs, Twitter, Facebook, YouTube
• Chat/Instant Messaging Systems
Taking Action Communications
Ask Yourself These Questions:
Do you think the Internet and all forms of electronic
communications are the way we communicate today?
Are we happy with our website?
Are we constantly communicating with our clients?
What are we going to do about it?
Call for action in Website
Once you get people to your Website,
it’s not always apparent what you want
them to do.
Effective Websites have a clear path of
motion towards action steps.
Now being called the “Sales Funnel”.
Taking Action Marketing
Does our current business plan incorporate a well-planned marketing system to
constantly reach our business revenue and retention goals for existing clients?
Do we have an in-depth understanding of our client base?
Do we have an active marketing plan, constantly expanding, with an analysis of an
active and growing prospect list?
Can we create and implement on-going effective marketing plans ourselves? Do we
have the time and manpower?
Taking Action Technology
Do we have a website that is robust – that entertains and
Is our site search engine optimized (SEO)?
Do we utilize smart forms for our quoting?
Can we integrate with our agency management system?
Set the system up so your
clients can sign in once and
then can use all the services
you and your companies
Independent agents and their carriers need the
capability to have their customers complete all
necessary forms online, by using e-signature
technology… Jeff Yates, ACT Director
Vast Majority of Agencies
Have no constant contact with
Not even at renewal time
Very few personal lines annual
70% of clients are not aware of all the products and
services offered by their P.C insurance agent
50% of those households would consider purchasing
additional policies from their existing agency
15% of all client households will buy some form of life
insurance (including financial services) in the next
At this annualized rate, 100% of your clients will
purchase these same products…from you or someone
else, in the next seven years.
The average household owns seven policies. The
average agency writes less than two policies per
Harlan Warthen, Allstate Rep/Consultant
Our Challenges and Yours
How to make the Internet the hub of
How to bring together the best elements of
marketing, communication, and technology on
a single turn-key platform
How to compete in this new technology-driven
How to make it simple enough in application,
essentially so self-contained that activities happen
automatically without extensive agent knowledge of
Survival of the Fittest…
Rate your agency:
Are you on track for
We have a current business plan which
includes a organized marketing system
Our marketing plan is documented 1………10
Our marketing plan is tracked via our agency
management system 1………..10
We have an in-depth understanding of our
client base including number, average income
per client, one-policy customers, etc ... AND
We have an active and growing prospect
We are able to sort our client data to do target
We have the manpower and time to continue to
create and monitor our marketing plans
We do annual reviews for each of our clients
We believe the Internet and all forms of
electronic communications are the media of
today…and tomorrow 1………10
We have a “brochure”, non-interactive
We have a way of tracking activity to and on
our website 1……….10
We get a steady flow of new business from
our website 1……….10
Viewers return again and again to our site
We have a method that allows us to
track our marketing activity on our
agency management system 1……….10
Staff members use dual monitors
We are involved in social networking
(Twitter, Facebook, etc.) 1………10
We use Search Engine Optimization in
order to drive traffic to our website
Here is where your agency rates on preparation for the future
of communications, technology and marketing
If your score is…
75 or below:
Your agency is definitely in need of outside help.
You are in the mid-range of agencies. You have a good start
toward developing a more robust marketing system.
You are well on the way toward a prosperous
If you always do what you
always did, you will always
get what you always got.
We can no longer look at
the present through a
rear-view mirror. We
can no longer march
backwards into the
The future is not what it used
““ “ You won’t be doing what you are doing
wrong…long…even if you wanted to…