Ask 16-year olds for tips on growing your agency

Too often agency sales, marketing, and management concerns are solved solely by reviewing what other agents have done. This limited vision causes principals to miss out on lessons derived from non-insurance sources. Firms outside of the property/casualty industry deal with many of the same issues that insurance offices face today. Some of the more publicly-known serve as positive examples, while others, display textbook missteps. Speaking of books, here is a practical and still timely lesson from an edition published 11 years ago.

The Microsoft Way
In Randall E. Stross’ 1996 book, “The Microsoft Way: The Real Story of How the Company Outsmarts Its Competition” [Addison-Wesley / Basic Books] the author opines how Microsoft’s very capable leadership was “caught unprepared by the Internet phenomenon.” He partially credits it to the “youth factor,” an important consideration that remains relevant. The trend today is towards generational marketing. Is it just another fad that will ooze in and out of the insurance scene or is it for real? Aside from the obvious fact that young people are the future, there’s a more compelling reason to hear what teens and early 20-somethings think. Important marketing and service information can be divined from these individuals.

Stross puts forth that in the 1990s Microsoft Corp. let Netscape Communications get the jump on them with their Netscape Navigator Web browser. Age was a key reason for this, he asserts. While Microsoft Chairman Bill Gates hired young executives in their 30s, they were just old enough to miss out on the importance of a major new trend: the World Wide Web. This, along with other factors, contributed to making the software giant late in realizing the full commercial impact of the Web. Meanwhile, the co-founder of Netscape was only 23 in 1994 when his company began. He and his college friends were Internet regulars. As such, they capitalized on it, while the not-young-enough had to play catch up.

Youthful communications
Stross lauds Microsoft executives for giving major responsibilities to managers in their 30s, but also implies that Gates needed the consultative input of 20-somethings. People in their 20s, he suggests, have different views and interests when it comes to technology that those just a few years older might overlook. Sixteen-to-25-year-olds know what’s hot. In terms of insurance marketing, they know what their friends think about auto policies, how they prefer to learn about coverage and pricing options, obtain quotes, apply, buy, pay, and receive post-sale services. They also are attuned to the trendiest online connections, including such popular Web 2.0 communities as MySpace.com, YouTube.com, and SecondLife.com. Corporate America has noticed these sites, as should every insurance professional. So, register for a free account and explore.

Experiment and learn
In addition to the newest Web gathering spots, there are cell phone-driven technologies. These include phone-based billing inquiries, payments, mobile surfing, and text messaging. Plus, there’s the newest tech tool of all, Apple’s iPhone. All appeal to youthful buyers. New commercial applications are now being developed for Steve Job’s newest device. These apps can only benefit agencies and insurers alike. But to understand them, insurance people, not just IT staffers, must step out from behind their firewalls and use them. The inclination of agencies and carriers to lock out everything except for certain Web sites and e-mails, and not support the iPhone, may contribute to competitive issues down the road. According to Stross’ book, Microsoft hurt itself strategically by isolating its employees, early on, for understandable security reasons, from accessing the full breadth of the Internet. They had some independent Web access PCs, but not enough, he notes. You can overcome this concern by setting up several stand-alone VISTA-equipped notebooks that are not hooked up to your main computer network. Use them to join and explore the latest Web sites. Simultaneously invest in the newest communication tools, such as the iPhone, and use them on a daily basis to keep abreast of trends and to discern if and how they can help you to grow.

Find youthful advisors
Generation Y children (born 1977-1994) mainly use cell phones and the Internet to communicate, expect an instant response to many inquiries, and often prefer online experiences to human interaction. So routinely meet with tech aware youths to explore the future direction of commerce and to find pointers for your agency. Set up a casual advisory board or focus group with high school and college students. Don’t simply rely on your kids or grandchildren for input. Pay the young scholars for attending in order to obtain serious information. Then use their views to help develop future marketing and service strategies.

To keep up with the latest trends and preferred methods of consumer interaction rotate your “advisors” on an annual or bi-annual basis. The observations that you gather apply to both personal and commercial lines, as Gen Y’ers will grow up to own and manage businesses. Bonus: As some of these individuals gain familiarity with your agency, they may ultimately become candidates for future employment. As for Stross’ book, it’s still in print and well worth reading.

Alan Shulman CPCU, is the publisher of Agency Ideas, a subscription-only sales and marketing newsletter. He is also the author of the 1001 Agency Ideas book series and other popular P/C sales resources. He may be reached at 800-724-1435 or by e-mail at: shulman@agencyideas.com. His Web site is www.agencyideas.com.