Integrating the Internet and Contact Center
1 Jul, 2008
By: Linda Driscoll-DobelAn exclusive interview with Jon T. Hamilton and Contact Professional
Contact Professional (CP): We recently caught up with Jon T. Hamilton. Jon is president of JHA Telemanagement, Inc. and a consulting associate of the JCG Consulting Group. Jon’s experience includes over 35 years in the insurance teleservices industry. Prior to forming JHA, Jon’s career included the design and management of telemarketing programs and operations for many leading companies. Jon is past National President of the American Teleservices Association and past Chairman of the DMA’s Telephone Marketing Council. He was the 2001 recipient of the DMA’s Teleservices Excellence Award.
CP: Are consumers actually buying life insurance over the Internet?
JH: The answer is a qualified yes. The qualification is in how we define the term buying. For any intelligent marketer, the only thing that counts is a policy being issued and paid. It is true consumers are not buying life insurance totally through the Internet in sustainable volumes. But there are working models.
CP: So, what’s working?
JH: In a nutshell, there are three models that seem to be generating insurance sales. Let’s talk about the two that involve the lead generation process. The Internet is a place people go to research products. One of these is life insurance and the most important thing consumers are looking for is the cost. They are directed to a Web site that is then used to capture some basic information. In this way a new lead has been generated.
What then happens to the information is that it can be used to produce a quote of even several quotes. Since few people jump right in at this point and purchase the plan, this information then becomes a lead and in this first model, this lead is sold to insurance companies and/or agents. The human interaction then begins.
Usually, within anywhere from a day to several weeks, the lead gets a follow-up call to get an application and close the sale. This process can run the gamut from successful to really annoying. In the case where the lead is sold to multiple agents, the annoyance factor can be intense. Some people get repeated calls from agents who all bought the same lead. This model can be very successful for the best agents, as well as the lead company that makes money selling the leads.
There is a more effective, version of the Internet methodology. The branded model, pioneered by The Credo group, involves directing the consumer to a “mini-site” that is branded to a particular company. The lead generator can be either e-mailed to a list or search engine marketing. The e-mailed approach can be to an in-house list or a compiled one. While this can be targeted, the problem is that spam filters often keep these from reaching the consumer and/or the consumer never opens it simply because they were not expecting it.
The search engine method is more of a shotgun approach, but those customers who do find the insurer through a search are usually more motivated to get a quote. This is similar to having them raise their hand and say; “I’m interested in a quote.” When done properly, they are, in fact, asked if they would like a quote and more information over the telephone.
At this point in this marketing model, the call center comes into play. The approach that made The Credo Group success involves the qualified and permissioned lead being sent in real-time to a call center that is staffed with highly trained and licensed Insurance agents who make a callback immediately or at least within a few minutes. The advantage here is that the prospect is put in touch with a “Tele-Agent” while still home, possibly still on the Web site. Contact rates are higher as are closing rates.
The advantages of this method should be obvious. It is outbound telemarketing as it should always have been. The customer has indicated he/she wants more information and moreover wants to speak with the Tele-Agent. The center agents do not have to be pushy and the center has no liability under the Telemarketing Sales Rule. The model uses this powerful sales engine while respecting the wishes of the customers.
The conclusion is simply that telemarketing is still an effective channel in the insurance business and need not be annoying to consumers when proper response techniques are used and the consumer is engaged at every step.
