ACORD | The Value of Standards in Insurance

THE DIGITAL TSUNAMI:Why U.S. Independent Agents

Must Optimize Online Tools Now

March 2017

About ACORD

Founded in 1970, ACORD is a non-profit organization that provides the global insurance industry with data standards that promote accurate, effective, and efficient exchange and use of information. Since its inception, when it first began standardizing P&C forms, ACORD has been an industry leader in identifying ways to help its members make improvements across the insurance value chain.

Currently, ACORD engages more than 4,000 participating organizations, spanning 20 countries. With the tools and resources provided by ACORD, these participants are equipped to deal with the current business environment while influencing and shaping the future of the industry. Learn more at www.acord.org.

Copyright © 2017 Association for Cooperative Operations Research and Development (ACORD)

No part of this report may be reprinted or reproduced in any form or used for any purpose other than educational without the express written consent of ACORD. If you reference anything from this report, please cite the following in your source page: ACORD/Wetzel, The Digital Tsunami: Why U.S. Independent Agents Must Optimize Online Tools Now, March 2017.

About Thomas H. Wetzel & Associates

Thomas H. Wetzel & Associates, Inc. is a full-service, insurance marketing communications firm dedicated to helping independent insurance agents master the use of digital tools, including websites, social media, mobile applications and other services. The firm has helped agencies of every size across the country, and its widely praised Social Media Content Roadmap© delivers a program tailored to each agency—no cookie-cutter, one-size fits-all approach.

To learn more, go to www.wetzelandassociates.com, or visit them on Facebook (at Social Media Management for Insurance Industry), on Twitter and LinkedIn.

Special Offer for ACORD Members

In conjunction with this co-branded white paper, Thomas H. Wetzel & Associates, Inc. is offering a free, no-obligation digital footprint evaluation for ACORD members. Wetzel and Associates will evaluate the organization’s website and social media activity and will provide specific recommendations for immediate improvements. If interested, please email Wetzel & Associates at twetzel@wetzelandassociates.com and include “ACORD Special” in the subject line.

Thomas H. Wetzel & Associates, Inc. Forest Park, IL 60130 708-771-1533 twetzel@wetzelandassociates.com www.wetzelandassociates.com

Enhanced ACORD Functionality for Agents

Recently, ACORD made significant investments in the development of its Forms Portal, fundamentally changing the way ACORD currently serves agents and carriers. The core of this new solution is improvements in downloading ACORD forms. Agents will be able to find an electronic, fillable version of the form they are looking for as well as related forms in a centralized, searchable library. Additionally, the portal allows carriers to extract the data through ACORD messages, reducing manual reentry during the underwriting process. The result is a reduction in the cost, time, and risk associated with the application process.

1 ACORD | The Value of Standards in Insurance

The vast majority of independent agents and brokers in the U.S. need to embrace and optimize customer-facing digital technology. Most insurance buyers expect it, and failure to do so can drain agency value and cede business to competitors.

Digital tools can help agents maintain a personal approach while reaching clients and prospects in a way that is convenient for them.

Insurance is complex. Agents need to lower barriers for clients and prospects by making the most of digital technologies.

Customer-facing tools include a modern and interactive website, engaging and responsive social media activity, and mobile connections to primary services. Using these tools does not mean an agency or broker must give up its local, independent, and personal approach. To the contrary, it means promoting those same qualities that have served them so well using the power of digital tools. Most of today’s clients and prospects, including those in the commercial sector, already use these tools in both personal and professional capacities because it saves time and money and the competitive marketplace demands it. Not surprisingly, they expect others they do business with to use the same tools for the same reasons. With banks, doctors and hospitals, and financial advisors making at least some of their services available through their websites and smartphones, agents who fail to use these effectively will likely be left behind. Every agency need not become a digital superstar but does need to maintain a standard of competency that most agencies do not yet meet.

We in the United States live in an “I want it now” society. We don’t like to wait in line at the grocery store, be put on hold, or wait for answers to our questions. Insurance may not be sold in the same way as a loaf of bread. That, however, does not mean agents shouldn’t do what it takes to make it as easy as possible for their clients to do business with them and for prospects to decide whether or not they want to.

The objective for any agent or broker should be to create a compelling digital presence in which all these tools work together as one for optimum impact. Just as information-sharing standards have evolved over the years, so, too, have the standards changed for digital tools—their form, function, and how and when they are deployed.

2 ACORD | The Value of Standards in Insurance

When the Internet was still in its infancy, independent agents may have only needed an online address to create a website that was more novelty than necessity. Today, most agents recognize the importance of an up-to-date website, though many have not kept pace with how consumers use them and how to make them stand out.

The Insurance Digital Transformation Survey reported that only 8% of respondents rated their websites as excellent, and 60% of agents said their sites are average to poor. The study, sponsored by ACORD, the Independent Insurance Agents & Brokers of America’s Agents Council for Technology (ACT), and the National Association of Professional Insurance Agents (PIA) also reported that only 21% of agents maintain a mobile app. (Source: Insurance Digital Revolution, Insurance Digital Transformation Survey, August 2016)

ACORD President and CEO, Bill Pieroni, said this about the report:

“Apart from the explicit findings, I think there is a critical implicit conclusion that agents now recognize that the time for digitization is now and that the focus needs to be on how to do it effectively. The first step is to develop a true digital strategy, including objectives, measurable targets, and the required resources. Half-measures do not work well. For example, just having a Facebook page is not a social media strategy.”

The time for digitization is now. The first step is to develop a true digital strategy.

More than 4,000 agents participated in the Insurance Digital Transformation Survey. The survey results illustrate that there are immediate opportunities for agents to embrace technology to make a significant difference in their businesses.

3 ACORD | The Value of Standards in Insurance

ACT’S Ron Berg believes agents do recognize the urgency of going digital, but for many smaller to mid-sized agents, the process appears too overwhelming, and they don’t perceive a strong customer demand.

“The tools are out there—mobile apps, agency website quoting, live chat assistance, and eSignature. Of more concern is the agent’s perception of the need. More than 90% of agents said their customers are not asking for a client portal – but just because their customers aren’t proactively asking for a client portal does not mean they do not expect it.”

Mike Becker, Executive Vice President & CEO of PIA, is equally blunt:

“Agents can’t take the position that ‘no news is good news’ when it comes to their customers’ digital requirements, which will evolve and become more refined going forward. Consumer expectations are changing dramatically. It’s critical that agents are able to have functional web sites, service their customers 24/7, and have the most up-to-date automation in place so that they are efficient.”

THE DIGITAL LAGGARD

The urgency for developing a compelling digital presence is driven by rising consumer expectations and technological innovation. Agencies lacking a strong digital presence may lose business in the following three ways.

First, agents can lose business to more digitally-savvy competitors who make it easier to get answers and stay in touch 24/7. While it is true that most agents do their best to keep in contact with clients, it’s almost impossible to do so consistently. If an agent contacts a client three times during a policy year, that leaves 362 days in which no contact is made. For example: a regular newsletter can increase

Just because customers are not asking for something, doesn’t mean they do not expect it.

Consumer expectations are changing dramatically.

Agencies without a strong digital presence may lose business to competitors who have embraced digital technologies.

4 ACORD | The Value of Standards in Insurance

the number of “touches”. However, a newsletter is only effective to the extent that its content is original, personalized, and crafted to educate. Digital marketing software programs such as iContact allow an agency to create e-newsletters that target specific client or prospect groups and automatically post content to social media pages. Keep in mind, however, that in today’s connected marketplace, touches need to be continual and largely initiated by the customer at his or her convenience, most often via a smartphone.

These digitally-savvy competitors include both existing and yet-to-be-created companies that may attract clients and divert prospects. In 2015, the company of concern was Google’s much anticipated entry—GoogleCompare—into the U.S. insurance market. That venture failed, but many more will take its place. Dozens of new ventures are expected in the next several years. CB Insights reported funding to insurance tech startups reached $1.7 billion in 2016. (Source: CB Insights, “Insurance Tech Startups Raise $1.7B Across 173 Deals in 2016”, January 4, 2017) Skeptics dismiss these ventures at their own peril. Many will fail, but some will likely experience success and pose a threat to independent agents.

Second, agencies may lose the opportunity to begin a sales conversation with some prospects when they project an image of a “digital laggard.” The prospect may never give them a second look after his or her initial impression.

The third, and perhaps most insidious path to lost business is that some clients may question the competence of agents with these digital deficiencies, particularly but not limited to cyber coverages.

Agencies without a strong digital presence may lose business because they appear “behind the times” to consumers.

Agencies without a strong digital presence may also lose business because clients question their competence in related areas.

Contact with customers should be frequent but primarily initiated by customers via their preferred mode of communication.

In 2016, investment dollars to insurance startups topped $1 billion for the second consecutive year.

5 ACORD | The Value of Standards in Insurance

The premise is logical. Competitive pressures are pushing most businesses to go digital with better internal systems and websites, consistent and original social media activity, and heavier reliance on smartphone technology. At the same time, cyber risks, including malware, viruses, data and identity theft, and breaches via personal smartphone access, pose a growing threat for both personal and commercial lines clients. Many agents, however, are still unprepared for these threats and present a decidedly outdated digital presence, yet more of their clients look to them for help in understanding digital risks and insuring them. As a consequence, if an agent does not practice what they preach, some clients may question the value of their insurance counsel on these coverages. It may not be fair or even accurate; however, perception is often reality.

Is your agency a digital laggard? Ask yourself these questions:

1. Does your website allow customers to easily use or read it on a smartphone?2. Do you regularly review the metrics of your website? Do you know how many clicks it takes for someone to find what they’re looking for on your site? 3. Does your website look the same as your competitors’ websites? If a prospect didn’t know you, what would make them look at your website first? How often do you make changes to your website, including photos and text, to keep it fresh and compelling?4. If you use social media, does your website display prominent links to the appropriate sites? Do you display social media badges that are either connected to an actual site or link to one in which the agency posts regularly?5. Do you post on social media more than once a week? Are posts tailored to your agency or could the content just as easily be used by a competitor?6. Do you have a mobile app and is it branded to the agency? 7. Do your digital tools function as one? Do they promote each other, project the same style and tone, and link content?8. Does your digital presence project a distinctive, personalized brand message?9. Do you maintain a digital presence that is also promoted in email signatures, newsletters, phone calls, and face-to-face meetings?10. Does your agency offer your clients a secure portal that allows them to securely view and obtain certificates of insurance, auto insurance ID cards, claims, and policy documents?

Clients may be looking to agents for help in understanding digital risks and coverage for them, providing a rich opportunity for the agent willing to digitize their business.

6 ACORD | The Value of Standards in Insurance

SOCIAL MEDIA IS NOT NEW

The growth of digital marketing and social media has not been lost on agents who are increasingly leveraging these channels to reach customers. In 2015, 56% of independent agencies surveyed by the Independent Agents & Brokers of America included these channels in their overall marketing plan, an increase over the 48% of agencies surveyed in 2013. (Source: Independent Agents & Brokers of America, 2016 Agency Universe Study)

However, despite the increase in adoption, agencies still struggle with social media: how to use it, how often to use it, and if and when to deploy ads. It need not be so complicated. Social media is not a new technological concept but a throwback to the days of the small town merchant of the 19th century. In neighborhoods and small towns, everyone knew each other. The local storeowner knew what customers wanted because he or she was one of them. A customer could complain or pay a compliment to the owner and tell their friends and neighbors about their experience. At the same time, the storeowner could respond directly to the customer to resolve a problem or thank them. In small towns and neighborhoods today, some businesses can maintain a personal relationship with customers. Our society, however, has become more mobile and people venture beyond their neighborhoods and towns to buy goods and services. Successful businesses tend to grow larger and more impersonal. Systems and processes become more institutionalized with fewer interactions with customers.

Social media has become a business’s digital storefront—a platform in which its empathy, work ethic, personality and expertise should be on full display. Consumers who find an insurance agency’s storefront warm, inviting, and responsive may step through the business’s digital front door and begin a business relationship. Conversely, consumers will bypass agencies which present a bland or distant façade. Agents with no social media presence may not be found at all.

The general concept of social media isn’t revolutionary—it’s simply a new platform to interact with customers.

The Agency Universe Study surveys a wealth of issues about independent agencies operating in the U.S.

Social media is an extension of your office—a platform to showcase your personality, expertise, and responsiveness.

7 ACORD | The Value of Standards in Insurance

Social media use also plays a vital role in fighting commoditization. Commoditization grows when insurance buyers feel less connected to their agent, less confident that he or she supports them, and more susceptible to sales pitches from competitors. If an agent communicates with a client only when a policy is up for renewal or a claim needs to be handled, the primary differentiator becomes price. An agent’s social media program serves as a crucial platform to keep communications lines open throughout the year.

HIT-OR-MISS EXPERIMENTATIONDOESN’T CUT IT

Participating effectively in social media is neither as complicated as some imagine or as simple as others insist. It’s more than just setting up a Facebook page, checking it once a day, and posting occasionally. At the same time, most agents likely don’t need more than a part-time administrator. That said, getting the most value from using social media requires a thoughtful plan and consistent, deliberate attention.

Today’s insurance buyers are bombarded every day with more sales pitches and offers through more channels than ever. They’re also looking to save time, which is why they rely on digital tools to help them find, evaluate, and buy from carriers and agents who make it as easy as possible to do so. It’s detrimental to ignore social media for that reason. Agents should be visible and accessible not just on their websites but also on social media—where their prospects gather to share ideas, stories, and solutions to common problems.

Social media provides a tool to regularly communicate with clients, helping agents fight commoditization.

For social media to be effective, agents must be deliberate and consistent in their approach.

Agents should be visible and accessible on platforms where their clients and prospects are.

8 ACORD | The Value of Standards in Insurance

Many agents make the mistake of putting up a Facebook or LinkedIn page without a clear strategy. They may also put social media in a marketing or communications silo, separate and unconnected from other agency functions, when every employee should play a role in shaping strategy and participation. Agents can suggest content and recommend outreach to specific prospects. A connection made on one social media site can produce leads on another site and an inquiry or visit to the agency’s website. The agency that connects social media with producer and CSR activity delivers more value to its clients and prospects and realizes more benefits from its efforts.

An effective social media program resembles an iceberg. What one sees at the surface hides the tactical plans and management support that makes it all work. Just as one would not build a home without a blueprint, neither should an agent begin a social media program without a clear strategy, measurable objectives, and a prudent implementation plan.

There are important liability, security, and privacy issues that also must be addressed. After an agency develops a social media strategy and plan, management needs to create acceptable user guidelines for the staff. Employees should be encouraged to participate in the social media program only after understanding the agency’s social media strategy, including objectives, sites to be used, how employees and departments will participate, and how efforts will be measured.

An effective social media strategy should engage all agency employees and outline measurable objectives and a prudent implementation plan.

Agents should encourage employees to participate in their agency’s social media program, but parameters and guidelines need to be in place prior to participation.

9 ACORD | The Value of Standards in Insurance

TELLING THE INSURANCE STORY

The perception of the insurance industry may not always be particularly positive. However, this should give agencies added motivation to work as hard as possible to improve its standing with consumers, not just at the time of a claim or policy renewal but 365 days a year. A growing number of insurers of all sizes and markets are demonstrating how social media can build a positive image and create real human connections— one story at a time. Underwriters write corporate blogs to keep in touch with their markets and answer general policyholder questions on social networking sites. Independent agents and brokers need to consider taking those practices one step further. If not, consumers may decide to bypass the agent altogether.

Social media gives agents a platform to tell the insurance story, not in grand pronouncements but in small, bite-size pieces that can make a real connection to the young married couple, veteran, motorcyclist, or the local small business owner. The insurance story is not just about exposures, premiums, and coverage but also the everyday pressures of life and work—it’s how agents can empathize with or mitigate those pressures online with a friendly comment, funny story, or a suggestion of other resources. Some agents fear online complaints when they should see them as opportunities to engage and find ways to address them positively.

Every connection developed via social media represents a solid prospect, not just a faceless cold call. The connections can show up at an agent’s digital storefront because they share a common interest with the agent—be it love of community, jazz, or old cars.

Social media can be a vital platform to tell your story and improve public perception of the insurance industry. Insurance is about much more than exposures, premiums, and coverage—it’s about how you, as an agent, can empathize with your clients and face the risks of everyday life head-on with them.

Engage with clients and prospects by meeting them where they are.

10 ACORD | The Value of Standards in Insurance

For example, LinkedIn maintains hundreds of discussion groups that cover topics ranging from parenting to poets to photographers. Entire books have been written by agents who find interest groups with which they share a special passion or expertise and then join in the discussion. They are careful not to sell overtly but to participate as a “fellow traveler.” When the opportunity to demonstrate insurance expertise presents itself, the “fellow traveler” enjoys a powerful credibility.

One of the most common questions agents ask about social media is “what sites should I use?”. The simple answer is to participate on those sites where the agency’s clients and prospects gather instead of forcing them to find the agency. Every site has distinct characteristics and uses. Most agents start with Facebook and LinkedIn, followed by Twitter, YouTube, Instagram, and Pinterest. New sites and platforms also appear regularly, and while some fade or disappear just as quickly, it makes good sense to stay up-to-date on what sites appeal to the agency’s target audiences.

SMART CONTENT CREATION IS THE KEY

Creating the right content is also essential to social media success. Content that builds a following must match an agent’s unique personality and give consumers the ability to see clear differences between one agent and another. Consumers are no longer just infatuated with social media. Instead, they want original, relevant, and authentic messaging, not generic “paint-by-numbers” content.

Communicate and engage with clients and prospects on the sites and platforms where they are already active.

Social media content should be relevant and authentic. Agents should also try to create content that is original and covers a variety of topics—including those not related to insurance.

11 ACORD | The Value of Standards in Insurance

Creating great content does take some effort. There is nothing wrong with providing a consistent stream of insurance advice and periodic premium-saving tips to save time. However, there are two big caveats. First, if you use canned advice from an outside source, understand that such content does little to separate an agent from competitors. Second, insurance advice is like broccoli—it’s good for consumers, but no one wants it three meals a day, seven days a week. As a rule of thumb, it’s a good idea that for every post on an insurance-related topic, you post two or more non-insurance items, including local events, humor, tips, and human interest. Studies show that answering customer service questions on social media is a powerful boost to participation. While specific policy questions about specific clients are off-limits, general answers about a particular coverage, exposure, or market work well.

MONITOR AND MEASURE

Measuring the effectiveness of digital marketing efforts is increasingly taking on more significance as investments in this space continue to grow. While financial services firms currently spend less than 10% of their marketing budget on social media, these channels are expected to account for more than 20% within the next five years. (Source: The CMO Survey – Results by Firm and Industry Characteristics, August 2016) The resulting increase in capability investments will require firms to monitor and measure the effectiveness of their digital marketing efforts, including the impact of social media. Unfortunately, many firms lack sufficient data to measure these impacts. Among financial services firms, 58% are unable to show the impact social media is having on their business and less than 20% are able to measure this impact quantitatively. (Source: The CMO Survey – Results by Firm and Industry Characteristics, August 2016)

Fortunately, there are a number of sources of information insurance industry stakeholders, including agents, can access to measure the effectiveness of their digital channels. For websites, Google Analytics is a simple solution that can be used to understand what information

As social media is used more and accounts for more of an agent’s marketing budget, measuring the impact of these digital marketing efforts becomes even more critical.

12 ACORD | The Value of Standards in Insurance

is accessed and when. For example: How long does a visitor spend on the site and what do they look at? How does a visitor’s behavior change on the site? After the first 10 seconds, what clicks, scrolls, and mouse movements take place and over what period of time?

The measurement of social media activity should not require more than a few minutes every week. The key is knowing what and how to measure that value. Monitoring social media activity should take place on three levels:

• Following the conversations about your agency—the praise, complaints, and general comments and concerns on the agency website, social media sites, and in everyday contact with clients and prospects.• Following the social media conversations about your competitors and carriers—what they’re talking about and how are they responding to followers and friends.• Following the conversations about general insurance issues—what consumers like and don’t like about agents and carriers and what insurance concepts and practices they do not understand.

Monitor social media on three levels: conversations about your agency, conversations about your competitors, and conversations about general insurance issues.

13 ACORD | The Value of Standards in Insurance

There are dozens of possible metrics that can provide clues as to how social media activity compares to competitors and what can be done to make it more productive. These include knowing what topics generate the highest traffic and what time of day produces the most posts. There are many free or low-cost tools to measure program effectiveness, including Google Alerts (free), SocialMention (free), and Hootsuite (low-cost).

While there are a wide variety of available metrics, there currently are no standards on how those metrics are calculated. One such metric is the engagement rate, which can be used to gauge the quality of the content agents post on social media sites. The engagement rate measures actions of visitors such as likes, comments, shares, and re-tweets. The more visitors that act on your content, or engage, the higher the engagement rate. Unfortunately, there are a number of different ways in which the engagement rate can be calculated, most of which are dependent on the platform which is being measured. As a result, it is very difficult to measure the effectiveness of a digital campaign which will more than likely involve multiple platforms.

To address these issues, several organizations such as The Conclave on Social Media Measurement Standards have been launched in recent years with the goal of defining and promoting both standards and best practices for social media measurement. Many of these organizations consist of firms across multiple industries including manufacturing, hospitality, transportation, and consumer products. However, the need for industry-specific measurements and benchmarks is critical. Just as metrics such as the engagement rate may vary between industries, they will most likely vary within industry segments, such as auto and home versus life insurance. Insurance industry consortiums such as ACORD, are uniquely positioned to take a leadership role in the development of standard definitions, best practices, and industry benchmarks. These efforts will provide industry stakeholders including both carriers and intermediaries with the ability to accurately monitor and measure the effectiveness and impact of their investments across digital channels.

While there are currently no standards on how social media metrics are calculated, several organizations are working to define and promote standards for social media measurement.

Organizations like The Conclaveon Social Media Measurement Standards and insurance industry consortiums, such as ACORD, will play a critical role in the future of standards and best practices for social media measurement.

There are a number of free or low-cost tools to measure social media effectiveness.

14 ACORD | The Value of Standards in Insurance

GOING MOBILE

The smartphone has become the communications device-of-choice for the majority of Americans, including those over the age of 65. Consumers increasingly gravitate to those agents with whom they can connect via smartphone to file claims, pay bills, and access policy details. Consumers’ reliance on smartphones is not hard to understand—they’re portable, save time, are easy-to-use, and put the world within reach with one or two clicks. Buying insurance is not as easy as buying a loaf of bread. However, it’s imperative that agents consider providing full access to their services via the smartphone. Consumers and businesses of every size want to do business with carriers and agents who make it as easy as possible to do so. Many insurers have already offered mobile services and more have plans to do so. Independent agents, by contrast, have not fully embraced “going digital”. As mentioned earlier, only an estimated 21% of agents maintain a mobile application. (Source: Insurance Digital Revolution, Insurance Digital Transformation Survey, August 2016)

Some agents question the need for a mobile application, citing the cost and the likelihood it would be accessed only once or twice in a year. That viewpoint fails to address society’s growing reliance on the smartphone, the convenience an application delivers and, frankly, that consumers expect it. Consider these circumstances after an auto accident on a highway after an agency’s office has closed for the day: Without a mobile application, the policyholder must call the agent and leave a message or call the insurance company, only to get an automated voice system. Because cellular network quality is

While many insurers have fully embraced “going digital”, independent agents have not.

The benefits of mobile applications and consumers’ growing reliance on the smartphone may outweigh the costs of providing an application.

Agents should consider offering access to their services on a mobile application.

15 ACORD | The Value of Standards in Insurance

spotty—and worse in rural areas, the voice recognition software may not work. Both parties involved in the accident are unable to contact the insurance companies successfully, forcing a delay and added frustration.

By contrast, a mobile application would facilitate a report, after which a representative already briefed with the accident details would contact the policyholder to discuss next steps.

Bottom-line: if agents decide to offer mobile services, they should consider strongly adding an agency-branded mobile application. Several vendors are already offering applications for agents; however, quality varies. It may be tempting to use carrier-developed applications, but a better option may be bundling all carrier connections through a single application the agency controls. Key features should include the ability for the client to create an inventory of personal belongings, file claims, pay premiums, and access policy details. If an agency decides to create a mobile application, it should alert the agent when it’s used by a client or prospect to facilitate follow-up.

ASSESSING THE COSTS

The cost of developing and executing an effective digital marketing program starts with a plan based on a clear strategy and measurable objectives. The plan should be tailored to the agency’s communities, markets, and available resources—manpower and a budget for marketing tools—and dovetail with any other marketing efforts already in place. A digital marketing plan should not automatically replace other efforts that have been proven effective for the

If you choose to offer an application, it may be beneficial to develop a branded application that bundles all carrier connections.

Assessing the costs of a digital marketing programs begins with having a plan tailored to your agency’s needs.

16 ACORD | The Value of Standards in Insurance

agency such as a newsletter and direct-mail. Some costs, however, associated with a digital marketing program such as the use of an in-house marketing specialist and ads on social media may be offset, at least in part, by the need to spend less on other efforts. For example, agents have discovered that social media can reach niche-markets at a lower-cost in contrast to more expensive traditional mass-media techniques. HubSpot, an inbound internet marketing company, suggests that social media is one of the lowest cost lead generation tools available. According to Quick Sprout, social media’s “lead to close” ratio is double that of outbound marketing.

Effective social media activity is about engagement—the establishment of on-going conversations with communities of clients and prospects. These conversations should lead to stronger, longer-lasting relationships and greater brand loyalty, which may produce more leads and better customer retention. A strong social media program, especially when coupled with other marketing outreach such as an email marketing effort, can drive more traffic to the agency website.

Thoughtful participation provides greater liability protection through the process of monitoring social media sites, timely response, reasonable and enforced rules for employees, and best practices. Violations of law or liability in areas such as contracts, intellectual property, privacy, and market conduct and insurance trade practices can be minimized. Courts and regulators are also more likely to look favorably on those agencies which have taken steps to adopt policies and guidelines on their use of social media.

An effective social media program can help create better relationships with clients and prospects while also providing greater protection against liability through monitoring, responding, and enforcing rules for employees.

17 ACORD | The Value of Standards in Insurance

WINNING WITH DIGITAL—BEST PRACTICES

In digital marketing, one strategy does not fit all—what works for one may fail miserably for another. Every agency operates with different risk appetites and cultures and employs people with a diverse set of skills and interests. However, following some of these time-tested guidelines will help build the foundation of your agency’s digital strategy.

• Develop a marketing plan that emphasizes what is truly unique about the agency and what separates it from competitors—your “true differentiators”. Decide what markets you want to target and how much time you’re willing to invest.

• Optimize the agency website so it can be read on a smartphone. Review content and layout for readability and easy navigation—aiming for no more than two clicks.

• Understand how your agency’s website is currently being used. A first-time visitor will develop a first impression in only 10 seconds and decide whether or not to explore the site further. If a prospect did not know you, what would make them look at your website first and not a competitor?

• Think of how the website will be used, not read. Your website is more than an informational brochure with a listing of services and a pledge to provide the “best service”. If your website is more than two years old, consider updating your existing site or building a new one.

• Consider creating a mobile application branded to the agency. The application should bundle all carrier connections, offer key services—inventory creation, premium payments, claim filings, and access policy to details, and notify the agent when it’s used to facilitate follow-up.

• Give everyone in the office the opportunity to make contributions to your social media program—more employee engagement generates additional good content and more enthusiasm, cooperation, and results.

18 ACORD | The Value of Standards in Insurance

• Develop social media guidelines for the agency and every employee. Spell out how the agency will use social media and any rules employees must follow.

• Plan your posts—don’t scramble at the last minute. Develop a routine that fits your schedule and you will stick to. Make posts conversational, not scripted.

• Use canned content sparingly. Bland, generic content makes for a bland, generic image.

• Post consistently and frequently. Be visual—use photos, videos, infographics and plenty of color.

• Pick the social media sites that your prospects and clients use.

• Monitor and measure, measure, measure. Measure the activity on your website, and do the same on your social media activity—not just likes, comments, and shares. Use free or low-cost tools such as Google Analytics, Google Alerts, SocialMention, and Hootsuite. Review your program regularly, and be patient.

• Make changes and be flexible and consistent.

19 ACORD | The Value of Standards in Insurance

REFERENCES

Insurance Digital Revolution, Insurance Digital Transformation Survey, August 2016

CB Insights, “Insurance Tech Startups Raise $1.7B Across 173 Deals in 2016”, January 4, 2017

Independent Agents & Brokers of America, 2016 Agency Universe Study

The CMO Survey – Results by Firm and Industry Characteristics, August 2016

ACORD | The Value of Standards in Insurance

www.acord.org

membershipservices@acord.org

1.845.620.1700

1 Blue Hill Plaza, 15th Floor, Pearl River, NY 10965