Sales: The Next Frontier for Agency Technology
By Jeff Yates, ACT Executive Director

The critical role of the independent agent is to generate the sale from which all else flows in the insurance process. A lot of attention has been dedicated to automating agency accounting and processing functions, as well as to make agent-carrier transactions more efficient. These initiatives continue to be extremely important to our industry, but it is also very timely to focus on applying technology to enhance agency sales.

Given the way agency technology has evolved to this point, it is understandable that agency processing and servicing staff have been the primary users of the technology in agency offices. It is time, however, for agency principals and producers to take another look at how they can use technology to perform their particular roles more effectively—whether they be market identification, risk evaluation, prospecting, sales, or sales management.

There is an exciting array of new sales and marketing tools becoming available to independent agents as a result of the technology revolution. Some of these tools are being incorporated into agency management systems. Others are available as web services accessed over the Internet. Still others consist of third party software specifically designed for independent agents. All of this software is becoming even more useful to agency principals and producers as wireless devices become more functional and prevalent, allowing agents to take these automated tools with them into the field.

The exciting “agency of the future” described in ACT’s Vision of the Future for Agency Technology including Essential Next Steps for Independent Agents (pp.9-10; located on ACT website) is already starting to take shape.

About a year ago, ACT established a Sales and Marketing Work Group to assist agencies in making the transition to sales organizations empowered by technology. ACT has just published the group’s Phase One Report, The Transition to an Agency Sales Organization—Culture and Process First; Then Technology. This report, located on the ACT website, assists agents in creating a sales culture and in implementing the related sales processes. The group strongly believes that these are the types of agencies that will take advantage of sales oriented technologies and use them on a sustained basis. In the coming year, the work group will develop its Phase Two report which will delineate specific technologies that have been particularly effective for agents in enhancing some aspect of their marketing, sales, and sales management processes. The group welcomes your input as to specific technologies that have made a significant contribution to your agency’s effectiveness in these areas. Having set the stage, let’s look at some of the areas where technology is starting to make a difference in agency sales. A key attribute of a sales organization is to have a pipeline in the office that produces a consistent flow of prospects and customers on a continuing basis.

Web Services are emerging that provide agents with a flow of prospects in the classes and with the risk profile that carriers are seeking (e.g., American Solutions Group). The Internet is a vast resource to research the characteristics of an industry or of a particular prospect. Agents also draw prospects by designing websites tailored to the specific needs of a particular industry in which they are specializing (e.g., Afni Insurance Services).

Automated campaign managers are available to help agents create an ongoing flow of new business by guiding them step by step to send the letters and make the contacts necessary to take “suspects” through the entire sales process and convert them to customers (e.g., SaleSource). Software also has been developed that facilitates the ability of agencies to mount employer-based marketing programs that offer employees auto and home insurance through several different carriers (e.g., Agency Revenue Tools).

Risk management software is available on the Internet which assists agents in fully understanding the exposures presented by particular risks and the coverages needed, thereby assisting the agent in making a comprehensive proposal and presentation, and in cross-selling additional coverages upon renewal (e.g., nuServe, AMS PS4 Plus).

Many of these technology tools have been developed by independent agencies which have experienced a need and then have responded to it. As a result, the tools fit very well in the independent agency environment.

Technology also promises to provide great benefit in the sales management process, an area of weakness for many independent agencies traditionally. Many sales oriented agencies have found great success in employing a business development coordinator whose job is to make sure that the agency continues to generate an ongoing stream of viable prospects. One of the roles of the coordinator is to make sure the producers are making the necessary contacts, that these contacts are being entered into the agency system, and that the system is generating the appropriate prompts to the producer as well as the management reports tracking results for each producer (e.g., agency management systems, SaleSource).

Wireless devices are starting to become much more practical for agency principals and producers to use to enhance the sales process. They are already very useful for e- mail. We expect this field to evolve rapidly over the next two years, giving agents improved hardware and increased functionality in the field. These improvements will drive an explosion in the use of technology by agency principals and producers.

Independent agents face a very bright future. They have been taking back market share in recent years, and consumers love the business model that independent agents can uniquely offer—independent advice, customer advocacy, and the choice of multiple companies. In order to take full advantage of these opportunities, however, independent agents need to make the transition to sales organizations and take advantage of emerging technology to maximize those sales capabilities. Remember—nothing happens until there is a sale.

Jeff Yates is executive director of the Agents Council for Technology (ACT), which is affiliated with the Independent Insurance Agents & Brokers of America, Inc. ACT’s website is at www.independentagent.com , and Jeff Yates can be reached at jeff.yates@iiaba.net. This article represents the views of the author and should not be construed as an official statement of ACT.