The Oregon Agent, Summer 2013 by Blue Water Publishers, LLC

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SUMMER 2013 IIABO Office 5550 SW Macadam Suite 305 Portland, OR 97239 Phone: 503-274-4000 Fax: 503-274-0062 Toll Free: 866-774-4226

IIABO Staff Directory Executive Vice President Jim Perucca jimp@insureoregon.org

Vice President Marketing & Communications Barb Demings barbd@insureoregon.org Assistant Vice President Education & Finance Tyra Dressel tyra@insureoregon.org Director Agency Products & Services Abby Kahl abbyk@insureoregon.org IIABO Lobbyist Roger Beyer roger@rwbeyer.com

INSIDE THIS ISSUE: 6

Letter from the President

IIABO 2012-2013 Leadership

10 Big “I” Day On the Hill Photo Recap 13 Outside Looking In 15 IIABO 85th Annual Convention, August 25-27, 2013 16 Convention Schedule of Events 17 Convention Registration

For more information on advertising, contact Jim Aitkins Blue Water Publishers 22727 - 161st Avenue SE Monroe, WA 98272 360-805-6474 fax: 360-805-6475 jima@bluewaterpublishers.com The Oregon Agent is the official magazine of the Independent Insurance Agents and Brokers of Oregon and is published four times yearly. IIABO does not necessarily endorse any of the companies advertising in this publication or the views of its writers.

19 Marketing to the Connected Generation 23 Why Google+ Should Be a Part of Your Agency’s Online Strategy 26 Puttin’ On the Ritz: Building a Customer Service Culture 29 Combat Cybercrime and Protect Your Agency

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The Oregon Agent • Summer 2013

22 7

FROM THE PRESIDENT

t has been a great honor to serve as your IIABO president for the last two years! The Independent Insurance Agents and Brokers of America partners with our local Oregon association and together provide an incredible voice for independent agents, both in Salem and Washington D.C. My term of office will end during the IIABO annual convention, “Cheeseburgers in Paradise”, August 25-27, 2013 at the Sunriver Resort----and, what a convention it will be. Besides the fun atmosphere surrounding our Jimmy Buffet theme, the content and value for attendees will create an event you don’t want to miss. Tom Doran, a principal at Reagan Consulting (the people who bring us the Best Practices program) will be conducting two workshops on August 26. In the first workshop he will share the Best Practices of leading insurance sales organizations. Whether a small agency or large, a sales “culture” can be created to enhance revenue and value. In his second workshop Tom will examine what Reagan has learned about the four basic requirements for successful insurance agency perpetuation. This is information that will bring real value to you as a producer and agency owner. The convention wraps up August 27 with the annual

Champagne breakfast and workshop. This year it is all about the Oregon Health Insurance Exchange (Cover Oregon). Jim Walton, Director Group/Individual Sales, Regence will discuss the Exchange and answer your questions. Set aside your thoughts about government managed health care and see if Cover Oregon just might bring selling opportunities to your agency. By the date of our convention, open enrollment for Cover Oregon will be only weeks away. Jim’s presentation will help you to decide if there are ways you can capitalize on the hundreds of thousands of people who will be enrolled. To make this an even better get away, Countryfied will again entertain at our Caribbean themed dinner on opening night and Jason Hewlett will be back with a whole new show banquet night. What else; golf, law & ethics, a sold out exhibit hall, prizes galore and---all family friendly. Check out the centerfold of this magazine for program details and registration. Hope to see you there.

thens i G y r a G Gary Githens, IIABO President Beecher Carlson 541-749-4954

Your association staff: Executive VP Marketing & Communications Education & Finance Products & Services Toll Free Numbers: 6

The Oregon Agent • Summer 2013

Jim Perucca Barb Demings Tyra Dressel Abby Kahl

1-866-77-IIABO or 1-866-774-4226

503-274-0583 503-274-4000 ext. 26 503-274-4000 ext. 31 503-274-4000 ext. 23

jimp@insureoregon.org barbd@insureoregon.org tyra@insureoregon.org abbyk@insureoregon.org

2012 - 2013 IIABO LEADERSHIP

Gary Githens President Beecher Carlson Bend

Steve Wilson Vice President/Education Chair Ashland Insurance, Inc. Ashland

Keith Blackerby Board Member Bisnett Insurance, Inc. Lake Oswego

Ed Davis Board Member/Legislative Chair MaPS Insurance Services, LLC Salem

Steve Fitzwalter Board Member Rogers, Fitzwalter & Powell Portland

Trish Fulwiler Board Member J.D. Fulwiler & Co. Portland

Jim Ginger Board Member KPD Insurance, Inc. Springfield

Adam Harris Board Member LaPorte & Associates, Inc. Portland

Bradd Hill Board Member Chet Hill Insurance Portland

Greg Horner Board Member USI Northwest Portland

Debbie Krambeal Board Member CAL/OR Insurance Specialists, Inc. Harbor

Ryan Miller Finance Chair Miller Insurance Tualatin

Matthew Pidcock Board Member Valley Insurance LaGrande

Brett Slater Board Member Slater & Assoc. Insurance, Inc. Tualatin

John Timm Board Member Timmco Insurance, Inc. Portland

Brian Wilbur National Director Pacific Insurance Partners Forest Grove

The Oregon Agent â&#x20AC;˘ Summer 2013

P E R S O N A L

I N S U R A N C E

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Big “I” Day on the Hill Photo Recap April 18, 2013 Washington D.C.

Jim Perucca/IIABO helping Rep Greg Walden, manage his 2nd district along with Gary Githens/Beecher Carlson

Gary Githens, President IIABO

(l. to r.) Brian Wilbur/Pacific Insurance Partners; Rep Peter DeFazio; and John Timm/Timmco Insurance 10

The Oregon Agent • Summer 2013

(l. to r.) Jim Perucca/IIABO, Rep Kurt Schrader; and Gary Githens/Beecher Carlson

(l. to r.) Brian Wilbur/Pacific Insurance Partners; Rep Suzanne Bonamici; and John Timm/Timmco Insurance

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Summer 2013 • The Oregon Agent

Outside Looking In

By Chris Burand

found myself arguing an extremely silly point with an agency owner at a conference. Everyone but the agent saw the silliness of his argument. I explained the point every way imaginable, to no avail. I could see from the looks on others’ faces, they were tiring of him not getting the point either. If he had been one of the audience members watching someone else argue, he probably would have seen the errors in his thinking, too. But, sometimes you just have to be outside looking in to see a point. As a consultant, I very often find myself facing this type of situation. The four points below are the most common positions held by agency owners that create immovable and serious roadblocks to their agencies’ success. If any of these sound familiar to you, take a step outside of the situation and look back in. You might see your position in a different light. 1. We must write small accounts because you never know which one will turn into a large account. This commonly expressed position presumes an inability to identify clients with great potential versus those with no potential. This means agencies believing in this philosophy should write absolutely as many small accounts as possible. An average agency abiding by this philosophy has at least

1,000 small accounts and maybe one, over 10 years has grown big. But let’s say there are two accounts that grow big. So out of 10,000 renewals, two get big. Can the agency write enough large accounts to cover the 1,000+ small accounts that soak up huge amounts of time, effort and expense? If so, this may be a great strategy. If not, it is time to rethink the agency’s strategy. 2. We do not use coverage checklists because we might leave something off. The belief here is that if you don’t have a list, you can’t leave coverages off. This presumes nothing is left off when a checklist is not used. So if an insured does not get the correct coverage because the producer does not use a list and the absence of a list means the coverage wasn’t necessary to offer, then by default, the customer could not have needed the coverage and therefore, the uncovered claim is just a figment of their imagination. Right? If you believe this, then keep on going without using coverage checklists. Another perspective is that if the agent does not use a coverage checklist, there is no need to recommend coverages a customer needs. In other words, if I don’t know the customer needs a coverage, I don’t have a responsibility to offer the coverage. For a peddler of insurance, this makes perfect sense because peddlers only take orders. Why pay commissions to peddlers? Summer 2013 • The Oregon Agent

Web sites are quite capable of taking orders and issuing policies.

question this way is because they do not want their problems taken into consideration in the valuation. I do not believe any reader likes the logical result of these incredibly common beliefs and practices. I’m not going to argue these ideas are wrong. If you share these beliefs, take a step outside and look back in. Think through the complete concept and if you still believe in it, then go for it 100 percent!

3. We do not need to hold our producers accountable. The reasons given for not holding producers accountable are numerous and include that accountability might make them angry. What is the price of an angry producer? In some cases, say $500,000 commission producers, not making them angry might be a good strategy. But is the price reasonable for not making $100,000 producers angry? An incompetent producer may leave the agency or become a good producer through accountability. Either way, the agency may find itself way ahead by enforcing accountability. Other common reasons given are that they are nice guys and that they have never been held accountable so it is unfair to do so now. That is fair enough. But to be really fair, if the producers are not held accountable, why hold anyone accountable? Why hold the customer service representatives (CSRs) accountable? Why hold new producers accountable? Another reason given is that by holding them accountable, the ultimate outcome is that they would be fired and the emotional trauma of firing a producer is too much. That makes sense. Of course, if you are not going to fire a producer, how can you fire a CSR? Is their trauma any less? Then there are the producers that should hold themselves accountable negating the need for management to do so. How well is that working in your agency?

Chris Burand is president of Burand & Associates, LLC, an insurance agency consulting firm. Readers may contact Chris at (719) 485-3868 or by e-mail at chris@burand-associates. com. None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.

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4. All agencies have the same value as a multiple of sales or EBITDA. I am often asked, “How much are agencies worth today?” This presumes that all agencies are alike, all agencies are commodities and nothing is special about any agency. Is this correct? Is there nothing special about your agency? Let’s assume some common multiple applied to all agencies. If one agency is losing 10 percent of its commissions annually and another agency is growing by 10 percent, then they should have the same multiple. The same goes for the agency that has a 25 percent profit margin versus the agency that has a -5 percent profit margin. Even the agency that has $1,000,000 of extra cash on its balance sheet versus the agency that has spent $500,000 of trust monies will have the same value. The question presupposes such material differences do not exist. It’s like someone is asking, “What’s the value of a 2005 Ford F-150?” They expect I can look up the blue book, ask how many miles the agency has on it, the condition of the body, and whether it has any extra features. Quite often, the agency owners who ask this question have problematic agencies and the reason they ask the

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The Independent Insurance Agents & Brokers of Oregon 85th Annual Convention

August 25 - 27, 2013 Sunriver Resort Sunriver, Oregon

IIABO 5550 SW Macadam Ave, Ste 305 Portland, Oregon 97239 503.274.4000 Toll Free 866.774.4226 Fax 503.274.0062 ww www.iiabo.org Summer 2013 â&#x20AC;˘ The Oregon Agent

IIABO 85th Annual Convention & Trade Show Sunriver Resort, Sunriver, OR August 25 – August 27, 2013

“Cheeseburgers in Paradise”

Saturday, August 24 1:00 – 4:00pm 5:30 – 6:30pm 6:30 – 9:00pm

Board Meeting Great Hall / Fireside Room Board Reception Great Hall / Heritage Deck I & II Board & Past Presidents Dinner (by invitation only) Great Hall / Heritage I & II

Sunday, August 25 1:00pm 4:00pm 6:00pm

Golf Tournament Meadows Golf Course, Sunriver Resort, Shotgun Scramble Registration Open Great Hall Margaritaville – Enjoy the tastes and sounds of the Caribbean Great Hall Buffet Dinner, Golf Awards & Entertainment

Monday, August 26 7:00 – 8:45am 9:00am – 12:00noon 12noon – 1:30pm

Registration Open / Breakfast with Exhibitors / Raffle Homestead “Keys for Successful Agency Perpetuation” & “How to Create a Dynamic Sales Culture” – Tom Doran, Reagan Consulting Great Hall / Heritage I & II Lunch with Exhibitors / Raffle Homestead

1:45 – 4:45pm Ethics – John Poe Great Hall / Heritage II 5:00 – 6:30pm Cocktail Reception with Exhibitors / Raffle Homestead 6:15pm Raffle Drawings 6:45pm Banquet Great Hall Exhibitor Drawings, Grand Prize Drawing, Installation of Officers

Tuesday, August 27 7:30 – 9:00am Champagne Breakfast with Jim Walton, Regence BlueCross BlueShield of Oregon on the Oregon Health Care Exchange, “Cover Oregon” Great Hall / Heritage I & II 9:15am – 12:15pm Law – John Poe Great Hall / Heritage I & II 16

Adjourned! Have a safe trip home!

The Oregon Agent • Summer 2013

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By Ryan Hanley, The Murray Group

Marketing to the Connected Generation

How independent insurance agencies build relationships, deliver value and generate new business revenue through content, email and social media marketing

Ryan Hanley has achieved great success using social media and other digital tools. He focuses on consistently delivering meaningful content that demonstrates the value his agency provides to clients and his community, as a mentor and guide in the insurance buying process and after the sale is made. He urges agents to get over their fear of using social media, because it is not difficult to learn and use, and because it represents a huge opportunity for agencies to employ to level the playing field with the direct writers.

ur world has changed. The independent agent and broker faces unprecedented competition. Our competitors are at our borders – gaining market share in auto insurance – by spraypainting the walls of our fair town with their message of insurance commoditization and online sales without the benefit of an insurance advisor. They sell on price, on ease of business and on speed of business, using marketing tactics and slogans that often do not give consumers the full picture of the risks they face and the coverage options they could be buying to fully protect themselves. Unfortunately these methods work. Independent insurance agents will often admit that they are less than adequate marketers. Many lack an understanding of marketing and even question its value. Certainly, we hate spending money on marketing. Therein lies the rub. If we, as an industry, have any intention of fighting back against those who would undermine our message of value, it is imperative to change the way we market our business. Connected consumers – belonging to multiple generations – are rapidly becoming prime prospects for us. Sales and marketing techniques once thought to be the crux of growing an independent agency, have become stale. Not only has the new consumer culture diminished the return on our bread and butter tools such as cold calling, but we’re in the battle of our lives against direct writers who are often content to sell a “state minimum” auto policy. Summer 2013 • The Oregon Agent

Independent agent as guide and mentor The truth is that direct writers have traditionally been the better marketers. Yet, we now have access to social and digital tools that will enable us to change that. The widespread acceptance of “social media” tools has placed the responsibility upon us to amplify our customer centric message of value. Success will manifest, once we begin to embrace the undeniable truth that our value is not as gatekeepers of insurance knowledge and expertise, but rather as guides and mentors for our clients through the insurance buying process and then after the sale is made. This isn’t my first call-to-action. Two years ago I wrote this article: If You Work in Insurance, This is the Only Article You Need Read About the Future of Social Media. The premise was simple: as an industry we need to look at the value we add to the lives of insurance consumers as the primary driver of every decision we make regarding both traditional and social media marketing. And though I am still an advocate for traditional marketing in certain instances, it is social media that provides the greatest promise and opportunity in today’s economy. I know that’s a big ask, but the strategy is working for my agency. Here’s a truth about social media marketing that most “Gurus” aren’t going to tell you... Tactics are easy. It’s the consistently creating value part that’s hard. Give me two days and I can teach you every vital tactic in marketing your business online. Two days and you’ll be a rockstar of digital marketing, a master of social media. You’ll know every trick, tactic and best practice as if you were born with the knowledge. But if you can’t conceptualize the value you add to the insurance consumers you serve – and effectively convey it to them – you’re certain to fail. Tell a Story that demonstrates your value For example, you can know everything there is to know about Facebook marketing, but posting the same tired message about the account credit associated with coupling home and auto insurance will never yield a return on investment. Instead, try telling a story about a family you helped apply that discount and how the extra money they saved that year on their insurance paid for their child to go to summer camp. Effective digital marketing takes time I know how difficult this is. I’ve been marketing my insurance agency online for three years now. The entire first year I fell victim to the trap of trying to “sell” with every article. Subsequently, I failed a lot. I failed many more times than I was successful. It wasn’t till the third year when I let go of my lust for Return on Investment, and focused on delivering content 20

The Oregon Agent • Summer 2013

with immense value to insurance consumers, that we started to generate legitimate revenue. This effort strengthened our brand message and identity. Our community now understood who we were and what we valued. Now the clients who call us for a quote are often already “sold” when we pick up the phone. In a recent article published by the Harvard Business Review, Marketing is Dead, author Bill Lee makes the case that interruption marketing and advertising as we know it are dead. Interruption marketing (most traditional forms of marketing) is based on the belief that if we separate enough people, enough times from what they are doing and interject our latest discount, a few people will realize they need our product at that moment and purchase. For a long time, interruption marketing worked well. Interruption marketing worked so well and was so celebrated that AMC was able to create the hit TV show Mad Men based on the mass marketing era. But our world has changed from the days of Mad Men. Don Draper’s tactics would fail if he targeted today’s Connected Generation. Marketing to the connected generation Today, there is a new generation, different from any generation before, and membership to this generation has nothing to do with age. There are only two generations that matter to your business in today’s digital world: the Connected Generation and the Unconnected Generation. The Connected Generation is defined as consumers who communicate, build relationships and ultimately make buying decisions based on Web 2.0 technology. The Unconnected Generation is everyone else. As independent agents, we’re masters at building relationships and marketing to the Unconnected Generation. We ask for referrals, we attend local chamber events, we cold call, we drop in on businesses, we harass our family, we sponsor charity events, we buy radio spots and we buy ads in the newspaper. These are all classic and effective methods of marketing to the Unconnected Generation. Unfortunately, these methods don’t work (or at minimum are less productive) on the Connected Generation. The Connected Generation is less likely to allow friends to give their name as a referral, is completely adverse to a cold call, doesn’t listen to the radio and doesn’t read the newspaper. How do we market our business to the Connected Generation? Until recently, most of us have simply pretended the Connected Generation didn’t exist. By choosing not to market our businesses to the Connected Generation, we significantly reduce the size of our potential client pool. We even make excuses that somehow these individuals are predisposed to GEICO or Esurance.

Get engaged with social & digital tools I’d like to advance this proposition instead. Let’s all take a deep breath, overcome our fear of transparency, vulnerability and technology, and then begin to spread our message of value through the social and digitals tools of today’s Connected Generation. Think of it this way: social media is just our current medium for communication. Sixty years ago, we communicated through the United States Postal Service. Forty years ago, it was the telephone. Twenty years ago, it was the fax machine. Ten years ago, we embraced email, and today we use social media. The message of value that attracts clients to us as people, to our agency and to the product we sell, has never changed. Social media, blogging, email marketing and the various other digital methods of communicating are not as scary as they may seem. If you can send an email, you can publish a blog or post to Facebook. Far too often these tools are made out to be more difficult than they truly are. Simply put, if you’re smart enough to understand the exclusions in a homeowners policy, you’re more than capable of creating a value-driven online presence that generates revenue for your agency. Build your community by communicating value Every piece of content we create, whether it’s for our blog, social media or email marketing should be created with the intention of building community and ultimately generating revenue. When done correctly, the results are undeniable, as indicated by my YouTube campaign results. If you consistently create content with the purpose of adding immense value to the personal and professional lives of the community members you serve, revenue generation is the result. So the question really is, “How do we add immense value?” There was a day when the value we provided to our clients was the expertise we accumulated through experience, mentorship, training and networking with colleagues. Insurance is a complex, yet delicate product, easily confused and contaminated with misconceptions. It has been our job for over a century, as independent agents, to stand as the gatekeepers of that expertise. If our clients had a question, concern or problem, they needed us to find the solution. Unfortunately, that value proposition no longer exists. We are no longer the gatekeepers of our expertise... The Internet has reversed the flow of value and consumers can now find a lot of information on the Internet. To survive, we must adapt. Summer 2013 • The Oregon Agent

Independent agents more important than ever Don’t misconstrue what I’m saying to mean that independent agents are no longer necessary. In fact, independent agents are more necessary than ever in our history. Insurance consumers who choose to travel these roads alone, without the guidance of an independent agent, fall victim to the predators silently waiting to sell cheap policies with inadequate coverage. The critical value we provide insurance consumers is NOT our product knowledge but rather our experience and guidance throughout the buying process and after the sale. Consumers of the Connected Generation want to know everything there is to know about a product or service before they purchase. By embracing digital and social media marketing, our agencies will become both the information source and the guide for these connected consumers. This is working for our agency today and we are consistently generating new business revenue from online leads. Personally, I’m sick of consumers being led through the insurance buying process by funny commercials and cartoon characters. But we have left a void for these marketers to fill. To quote Michael J. Fox in The American President: •

“People want leadership, Mr. President, and in the absence of genuine leadership, they’ll listen to anyone who steps up to the microphone.”

Digital tools offer the opportunity to level the playing field Direct writers are the only ones with a voice online. It’s time that we as a group step up to the microphone. Never has there been a time in history when it was so quick, easy and inexpensive to deliver our message to insurance consumers. Social media is a gift. It levels the playing field. With amplifiers like blogs, social media, email marketing and customer relationship management tools such as Infusionsoft, we can take back the airways. Focus on your content So what am I asking you to do? Create content with reckless abandon. Create content that tells your story over and over again, till every single client knows exactly who you are, why you’re in business and the value you provide. Simon Sinek, the author of Start With Why, said in his now famous TED Talk, The Golden Circle: “People don’t 22

The Oregon Agent • Summer 2013

buy what you do, they buy why you do it.” It’s the “Why” of what we do that spreads our message. Our task now is refocusing our effort from“What” (we sell insurance) to “Why” (we believe in a world where accidents shouldn’t ruin lives), because “Why” makes the phone ring. We are no longer the gatekeepers of our expertise. We didn’t choose for this transformation to happen, but it’s happened nonetheless. Now it’s time for all of us, the entire independent agency industry – from the one-person shop to the mega-regional, to the carriers and the vendors we partner with, to the associations and organizations that support us – to tell our story of “Why.” Using the communication mediums of today, we can deliver our value-driven marketing message to the Connected Generation and ensure the success of a distribution system we all love so dearly. Ryan Hanley is the Director of Marketing for The Murray Group Insurance Services, Inc. and his mission is to help every insurance professional and organization who so desires to create a value-driven, revenue generating online presence. If you want to learn more or discuss how you can work with Ryan, visit his blog. You can also listen to Ryan’s marketing podcast. Ryan produced this article for ACT and it reflects his views and should not be construed as an official statement of ACT.

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Why Google+ should be part of your agency’s online strategy Participation in Google+ can help an agency considerably in maximizing its local search optimization. Google+ local business pages have replaced Google Places and if a consumer’s search suggests local intent, Google includes Google+ local business pages in the search results. The author provides some great tips as to how an agency can get started with Google+ and use the tool to its full advantage. The article also contains a number of links to very helpful additional information that will help agencies increase their visibility online.

By Matthew Marko, Progressive Insurance

f you’ve been following Google’s social experiment from afar, you may have lost Google+ in the shadow of social media’s 800 pound gorilla, Facebook. But before you dismiss the search giant as an also-ran in social, take note of Facebook’s own pet project, Graph Search (www.facebook.com/about/graphsearch). Facebook’s foray into search despite Google’s clear dominance (two out of every three searches online are conducted using Google1) reveals the cracks forming in the wall separating search and social. Both companies are preparing for when the wall comes tumbling down, and now’s the time to position your agency to capitalize. If Progressive’s marketing data hold true, many more agents are opting for a place on Facebook over Google+. Here’s why you should diversify by building a strong presence on both.

Google+ is much more than social Google+ does have social strengths, such as the ability to easily segment and target communications to customers using Circles and host Hangouts with customers on insurance topics. However, for now the primary insurance agency benefit of Google+ is local search optimization. Americans conduct 3.6 billion local searches on Google each month, and Google+, acting as an online business directory, is the most effective way to capture those prospects.2 It’s also the best way to do so without having to compete with big brands’ multi-million dollar online advertising budgets. A key reason to engage with Google+ is to acquire new customers in a way that no other social media site or online directory can currently offer.

Summer 2013 • The Oregon Agent

Project CAP can help you with claiming your business listings online and optimizing your local presence. While you’re at it, it’s an excellent idea to also claim local search listings at sites like Yahoo, Bing, and Yelp.

From Places to Plusses Google reports that one in three searches have local intent, and 83 percent of consumers search online for local businesses.2 If a search query suggests local intent, Google includes the Google+ local pages in the search results, typically near the top. Formerly called “Google Places,” Google+ local business pages now include social elements as well, making an agency’s participation in Google+ (and customer interaction on the platform) a growing factor in showing up in local searches. Here are five steps to start taking advantage of Google+ for local search: 1) Claim and verify it If you haven’t done so already, claim and verify your Google+ listing. This is something you can easily do on your own. Be sure not to create a duplicate Google+ listing for your agency if one already exists. It’s against Google’s rules. To check if your business already has a Google+ listing, simply go to www.google.com/maps and enter your business address and phone number into the search bar. If a listing shows up reflecting your business name, then your agency already has a Google+ local business page. Ensure it is under your control through the ownerverification process. If someone in your agency does not have the log-in information to manage your Google+ listing, click on “Manage this Page” on your business’ Google+ page to begin the verification process. Owner verification is a critical step in building trust with Google and guaranteeing that you control your business information on Google+. Progressive research indicates that as of November 2012, more than half of independent insurance agencies had failed to complete this critical first step, significantly diminishing their ability to rank highly in local search results. If you’re not the do-it-yourself type, programs like Progressive’s ListAgent or local search packages from 24

The Oregon Agent • Summer 2013

2) Build trust in it Review your Google+ listing for accuracy and be sure that you’re using the identical name for your agency and its contact information across all directories, on the internet and on your agency website. Search engines like Google look for consistency in your agency’s name, address, and phone number (NAP) online, and your visibility in search results improves if you have consistent listings. Exact NAP match is important. For example, you don’t want your agency website to say “ABC Insurance Agency” while your Google+ listing says “ABC Ins Agency.” GetListed.org and Yext.com offer free, simple tools to assess the consistency of your agency’s name, address, and phone online. You also can improve your local search ranking over time by creating references to your agency NAP on additional local directories. There are hundreds of local directory sites where you can submit your NAP information for free, with the only cost being the time it takes you to manually claim them. Alternatively, Progressive’s ListAgent program can do this for your agency for under $100 a year. 3) Connect it Google changed its local ranking algorithm in 2012 to favor Google+ business listings that link to well-optimized websites, making your agency website’s search optimization an important factor in both organic and local search results. While website optimization can be time-consuming and expensive, here are a few simple changes to help your website’s local search optimization: • Include your agency’s name, address and phone number in text (not as an image) in the header or footer of every page on the site. • Include your city or town name in your title tags, meta descriptions, and header (H) tags. • If you have multiple agency locations, create a separate “location” page on your website for each location, and a separate Google+ local business page for each location. Submit each location’s page to its respective Google+ local business page. • Start using Authorship Markup on your agency web site and blog posts. If you don’t have a website, consider using a carrier directory page in place of a website in your Google+ listing. For example, the ProgressiveAgent.com agent directory offers Progressive agents free locally-optimized agency pages that work well for this purpose.

4) Populate it Populate your Google+ profile with content. Thoughtfully consider your business description, including key search terms that describe what your agency does. Make use of all business listing categories available and include photos and videos. Providing this content not only helps your agency rank higher in local searches, but it also makes your listing stand out to consumers and increases the likelihood that they’ll do business with you. Click here for more tips on optimizing your local listings. 5) Legitimize it On your agency website and within your established agency referral processes, ask for reviews on Google+ as well as other sites like Yelp and Citysearch. Not only are reviews important to your prospects – 70 percent of consumers say that they trust online reviews as much as personal recommendations, according to BrightLocal. Reviews are also known to be an important local search ranking factor. Progressive research indicates that the average independent insurance agency has less than one online review, so creating a slow-but-steady review generation process can really make your agency stand out. The battle between Facebook and Google remains fierce, and both are making big moves to enhance their value to consumers and businesses. Questions may remain over social ROI, but there’s no question local search is critical as more and more people start their insurance shopping online. Adding Google to your online strategy brings a few social benefits, but the local search impact makes it a clear plus. Matthew Marko is a Marketing Process Manager for Progressive Insurance. Matt wrote this article for ACT and he can be reached at matthew_marko@progressive.com. He works to provide local marketing strategies and tools to help independent agencies grow their business, and has developed online marketing programs and webinars for Progressive agents on ForAgentsOnly.com. He is one of 40 local search experts invited to contribute to the authoritative annual Local Search Ranking Factors study. Matt also recently did an Insurance Journal podcast on this subject which can be found at this link. This article reflects the views of the author and should not be construed as an official statement by ACT. References: 1 http://techcrunch.com/2012/10/11/comscore-googles-search-enginemarket-share-increased-in-september-yahoo-down-another-0-6-percentagepoints/ 2 http://blumenthals.com/blog/2012/11/13/ed-parsons-1-in-3-searches-atgoogle-are-local/

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Summer 2013 • The Oregon Agent

Puttin’ on the Ritz...

Building a Customer Service Culture

f you’ve ever stayed at a Ritz-Carlton hotel, I’m betting that the experience was outstanding. How can they do it so much better than most hotel chains? Yes, you do By Bill Wilson pay a premium for their services, but largely The Ritz does it by creating a corporate culture almost solely devoted to serving the customer.... First, let me say that I don’t make a habit out of staying at Ritz-Carlton hotels. But I have had occasion perhaps a dozen or more times to stay at a Ritz while attending a conference. I’ll have to say that, not only did I never experience a problem, but without exception, each stay was an exercise in indulgence. I’ve also experienced several outstanding displays of excellence in customer service. On one occasion, I was preparing for a workshop and realized that I had forgotten my overhead markers. Stepping into the hallway outside the meeting room, I asked a housekeeper who was dusting ashtrays (really) if she knew how I could get in touch with the A/V people. In many other hotels, I’ve been lucky to get a shrug or Freddie Prinze-ish, “That’s not my job, man.” Not at the Ritz. The lady insisted on tracking down the markers herself (my program was scheduled to begin in minutes) and, remarkably (no pun intended), she returned with a new, unopened pack of markers within five minutes. She had been taught that SHE “owns” any request by a hotel guest. On another occasion, I was convinced there was a shortcut to a meeting room on the second floor (where my sleeping room was located), without having to go down and through the lobby, then back up some stairs to the second floor again. I stopped and asked a guy who was painting some trimwork if he knew how to get to 26

The Oregon Agent • Summer 2013

the room. It would have been easy for him to say he didn’t know, but this guy laid down his brushes and escorted me through a maze of corridors to the meeting room. What this gentleman did is the rule, not the exception, at a Ritz-Carlton hotel. If you’ve ever stayed at a Ritz-Carlton hotel, I’m betting that your experience was outstanding too. (In an independent survey, 99% of Ritz-Carlton guests said they were satisfied with their experience, with more than 80% “extremely satisfied.”) How can they do it so much better than most hotel chains? Yes, you do pay a premium for their services, so we can attribute some of this to a larger budget. But, for the most part, the Ritz does it by creating a corporate culture almost solely devoted to serving the customer. If you spend the night at a Ritz, chances are the person making your bed received more training than you did getting licensed! EVERY Ritz-Carlton employee receives a minimum of 120 hours of customer service training...that’s THREE WEEKS or more of training devoted to one discipline. Most first-year employees receive 250-300 hours of total training. How many of your CSR’s have received 120-300 hours of any kind of training? This type of commitment to service and training pays off by allowing the Ritz to charge significantly higher than average rates for rooms and facilities while developing a clientele that is fiercely loyal. Many people WILL pay more for greater quality and service...the kind of people most businesses would want as long-term customers. The Ritz-Carlton, at the time this article was originally drafted, is the only hotel chain to receive the coveted Malcolm Baldrige National Quality Award and the only two-time winner (1992 and 1999) in the service category. In a study by Cornell

and McGill Universities, the Ritz was selected “Overall Best Practices Champion” from a field of 3,528 nominees. Let’s take a look at some of the foundational principles of the Ritz: The Ritz-Carlton Motto: “We Are Ladies and Gentlemen Serving Ladies and Gentlemen.” The Ritz-Carlton Three Steps of Service: 1. A warm and sincere greeting. Use the guest’s name, if and when possible. 2. Anticipation and compliance with guest needs. 3. Fond farewell. Give them a warm good-bye and use their names, if and when possible. The Ritz-Carlton Credo: The Ritz-Carlton Hotel is a place where the genuine care and comfort of our guests is our highest mission. We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed yet refined ambience. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests. The Ritz-Carlton Basics: 1. The Credo will be known, owned and energized by all employees. 2. Our motto is: “We are Ladies and Gentlemen serving Ladies and Gentlemen.” Practice teamwork and “lateral service” to create a positive work environment. 3. The three steps of service shall be practiced by all employees. 4. All employees will successfully complete Training Certification to ensure they understand how to perform to The Ritz-Carlton standards in their position. 5. Each employee will understand their work area and Hotel goals as established in each strategic plan.

Tough, high-hazard property, casualty, transportation and professional and management liability risks require detailed expertise and specific industry experience. At RT Specialty, our brokers draw on the most comprehensive resources worldwide to provide better, faster, smarter insurance solutions. We do whatever it takes to find the solution that meets your clients’ complex coverage needs. When it comes to tough risks, experience the difference a tough broker can make. Tough risks demand tough brokers. For more information, contact: Ed Bukovinsky | 206.708.2074 ed.bukovinsky@rtspecialty.com 1200 Fifth Avenue, Suite 1910 | Seattle, WA 98101 www.rtspecialty.com

6. All employees will know the needs of their internal and external customers (guests and employees) so that we may deliver the products and services they expect. Use guest preference pads to record specific needs. 7. Each employee will continuously identify defects throughout the Hotel. 8. Any employee who receives a customer complaint “owns” the complaint.

R-T Specialty, LLC (RT) is a subsidiary of Ryan Specialty Group, LLC, specializing in wholesale brokerage, MGA/MGU underwriting facilities and other services to agents, brokers and carriers. In California: R-T Specialty Insurance Services, LLC License #0G97516 © 2013 Ryan Specialty Group, LLC

9. Instant guest pacification will be ensured by all. React Summer 2013 • The Oregon Agent

quickly to correct the problem immediately. Follow-up with a telephone call within twenty minutes to verify the problem has been resolved to the customer’s satisfaction. Do every thing you possibly can to never lose a guest. 10. Guest incident action forms are used to record and communicate every incident of guest dissatisfaction. Every employee is empowered to resolve the problem and to prevent a repeat occurrence.

17. Uniforms are to be immaculate. Wear proper and safe footwear (clean and polished), and your correct name tag. Take pride and care in your personal appearance (adhering to all grooming standards).

11. Uncompromising levels of cleanliness are the responsibility of every employee.

18. Ensure all employees know their roles during emergency situations and are aware of fire and life safety response processes.

12. “Smile - We are on stage.” Always maintain positive eye contact. Use the proper vocabulary with our guests (Use words like - “Good morning,” “Certainly,” “I’ll be happy to” and “My pleasure”). 13. Be an ambassador of your Hotel in and outside of the work place. Always talk positively. No negative comments. 14. Escort guests rather than pointing out directions to another area of the Hotel. 15. Be knowledgeable of Hotel information (hours of operation, etc.) to answer guest inquiries. Always recommend the Hotel’s retail and food and beverage outlets prior to outside facilities.

16. Use proper telephone etiquette. Answer within three rings and with a “smile.” When necessary, ask the caller, “May I place you on hold.” Do not screen calls. Eliminate all transfers when possible.

The Oregon Agent • Summer 2013

19. Notify your supervisor immediately of hazards, injuries, equipment or assistance that you need. Practice energy conservation and proper maintenance and repair of Hotel property and equipment. 20. Protecting the assets of a Ritz-Carlton Hotel is the responsibility of every employee. For more information, check out these resources: • Ritz-Carlton 1999 Baldrige Award Winner • Ritz-Carlton 1992 Baldrige Award Winner • Ritz-Carlton Leadership Center Copyright 1996-2013 by William C. Wilson, Jr. Used with permission. Portions copyright 19__-20__ by Ritz Carlton. All rights reserved.

COMBAT CYBERCRIME AND PROTECT YOUR AGENCY WITH SIMPLE SECURITY STEPS What is Cybercrime? Like traditional crime, cybercrime covers a broad scope of criminal activity and can occur anytime and anyplace. What makes it different is that the crime is committed using a computer and the Internet. You may recognize some of its most common forms such as identity theft, computer viruses and phishing, and at a corporate level, computer hacking of customer databases. Most people are aware of these and protect themselves and their PCs with anti-spyware and anti-virus software such as Norton or McAfee programs. As an agency owner, you should be alert to the fact that cybercrime is becoming more and more sophisticated and not only targets consumers and large corporations, but small to medium sized businesses as well. Single programs against these intrusions are not enough. An alarming cybercrime now affecting small to medium sized businesses is “corporate account take over.” This involves cyber criminals penetrating the computer network of a business and spreading malicious software, such as a “keylogger” which records the words typed, Web browsing history, passwords and other private information. This in turn allows them access to programs using your log-in credentials. If they steal your password and breach your online banking system, the cyber criminal can begin an online session to initiate funds transfers, by ACH or wire transfer, to their accomplices. The accomplices withdraw the money almost immediately. Take the first steps to prevent fraud at your agency – become aware of the latest cybercrimes and how they can access a business’s computer network. An agency should also employ the most up-to-date online security practices on a proactive basis. Agencies can also take the opportunity to present these online security practices to their clients, as many are also

instituting internet-based online programs at their businesses. Online Security Practices While no tools or automated software is 100% effective, the best solutions to protect your agency are to be well informed and use common sense. Using a multiple vendor, multi-layer approach to system design can significantly reduce your chances of being a victim of cybercrime. To assess the risks associated with a cyber intrusion of your agency’s online systems and critical client data, ask yourself the following questions: 1. Does your agency have a hardware based firewall at the network level? 2. Does the network firewall include anti-virus, antispyware and anti-spam services along with content filtering and intrusion prevention, detection and realtime reporting? 3. At the individual PC level, does each computer have centrally updated and monitored anti-virus, antispyware and anti-spam software loaded? 4. Are your computers set up to automatically update your operating system and applications for the latest available security and critical updates? 5. Do you consider your browser security setting to determine how much or how little information the browser can accept from, or transmit to, a website? 6. Does your agency have a security policy in place that includes such policies as disaster recovery, use/storage of passwords, use of social media on work computers, etc.? Summer 2013 • The Oregon Agent

7. Does your agency back-up critical files in case of an issue that disables your systems? 8. Has your agency identified an individual to review security policies and practices on an ongoing basis?

damage or do other unwanted actions on a computer system. Common examples of malware include spyware, keyloggers, and viruses. •

Spyware is a type of malware installed on your computer without your knowledge. It collects small to large pieces of personal information including Internet surfing habits. It can redirect web browser activity and change computer settings. Spyware is typically hidden from the user, and can be difficult to detect once installed without proper antispyware tools.

•

Keyloggers, as with spyware, are installed on your computer without your knowledge. It is the action of tracking (or logging) the keys struck on a keyboard, typically in a hidden manner so that the person using the keyboard is unaware that their actions are being monitored. Keystroke logging can record the words typed, Web browsing history, passwords and other private information. This is extremely dangerous in all aspects of computer usage.

•

Viruses are an ever changing and constant threat to all systems. Based on their digital makeup they can deliver malicious content to your data and systems in an effort to either collect data, destroy data, or turn your systems into a machine that spreads the virus or other malware.

•

“Phishing” is the act of obtaining personal information or spreading malware using emails, calls, text messages or pop-up messages from what appear to be friends or legitimate banks, retailers, government agencies or other organizations.

9. Are you aware of the laws governing the protection of personal information in your state? 10. Do you have cybercrime insurance to protect your data and liability exposure in the event of an intrusion? 11. Does your agency have a training program to educate employees on best practices to avoid becoming a victim? 12. Does your online banking system provide multiple layers of security tools to prevent intrusions into the system such as token-based authentication? Agency principals should consider the types of transactions they conduct within online banking and check with their banking institution for available security enhancements. These are just some of the basic steps an agency can implement to assess and protect itself from cybercrime. Your agency should have a network security assessment and review conducted by a certified information technology firm that specializes in network security. This evaluation will help you to identify the “next steps” in securing your network and data from unauthorized access and distribution. If Your Agency Becomes a Victim If you discover, or even suspect, your agency has fallen victim to corporate identity theft, you should proceed as follows: •

Immediately cease all online activity and contact your IT administrator.

•

Remove the affected computer from the network and any other computer stations involved.

•

Contact your financial institution to disable online access to the accounts and close affected accounts. You can then open new accounts and reset passwords.

Consult your counsel and your state’s data breach notification law and regulations to ascertain the process you need to follow. •

Notify other business partners that may have been affected, such as your insurance carriers.

•

File a report with the police department.

Common Online Fraud Definitions • Malware refers to software programs designed to 30

The Oregon Agent • Summer 2013

All of the security tips presented here are simply guidelines to aid agencies in not becoming a target for cybercriminals. However, none can be guaranteed 100% effective. Editor’s Note: Please also refer to ACT’s “Security & Privacy” page for a prototype agency information security plan and recorded webinar which will help agencies fashion their written security plan and implement their security program. Go to www. iiaba.net/act and click on “Security & Privacy” in the gray shaded area on the left side of the page. Danielle Johnson is the VP, Director of Information Technology at InsurBanc, which IIABA and the W.R. Berkley Corporation established to assist independent agencies, businesses and consumers with their specific banking needs. Danielle prepared this article for ACT and she can be reached at technology@ insurbanc.com. This article reflects the views of the author and should not be construed as an official statement by ACT.

Years

Summer 2013 â&#x20AC;˘ The Oregon Agent

We’ve been creating insurance solutions and providing superior services for businesses in the Northwest since 1923. We know how important it is for our agents to have the right resources to support the needs of their clients, which is why we pride ourselves on strong agent relationships and local expertise. Your success is our success – we are proud to support the Independent Insurance Agents & Brokers of Oregon and Washington.