Agents on Second Life . . . what’s wrong with this picture?

Posted on June 10, 2008
Filed Under Social Media | 2 Comments

Did you see the news that Aviva is setting up what it calls a free, invitation only “private island” on Second Life, the social networking site (read: virtual world)? Targeting current and prospective agents, the site will reportedly provide free virtual gifts, training, and a private “wellness toolbar”.

OK, I must admit, I don’t know much about Second Life . . . only what I read in the papers. I’ve never visited it, and none of my friends or colleagues have spent time on it. So take my opinion with a clump of salt.

But here’s what my gut says: Very few agents will spend time on a site like this. Maybe they’ll check it out as a novelty. But I don’t see them making it a virtual hangout. Now, I’m not saying Aviva shouldn’t experiment with Second Life. They should . . . and I hope they make it work.

But here’s what I really want to know: What is a “private wellness toolbar?” If it’s as much fun as it sounds, maybe agents will be begging for invites.

Does your web site have a case of product-itis?

Posted on June 10, 2008
Filed Under Retirement, Web Sites | Leave a Comment

Insurance company web sites seem to have a chronic case of product-itis. By this I mean, they talk a lot about their various products, but often fail to integrate useful information about the financial-planning issues that create the need for those products.

The MassMutual Financial Group web site is a perfect example of this. The six main navigation choices are “retire,” “insure,” “invest,” “learn,” “service,” and “login.” If you click on “retire, you see a screen with five other retirement-oriented choices: “retirement services,” “annuities,” “income management,” “contribution protection,” and “trust services.”

All of these choices take you to pages where you can learn more about related products. For example, if you click on “annuities,” you come to a page that lists the main types of annuities, offers a high-level description of each type, then provides pull down menus to access product brochures, unit values, and prospectuses.

On this page, there are links to consumer-education content that address retirement issues. But the link descriptions aren’t real clear or prominent. So . . .here’s the deal. If I were a consumer with a lot of questions about how to save for retirement and I saw the main “retire” link, I would probably expect guidance about how to get started with my retirement planning. Instead, I’d be looking at a highly technical page about annuity contracts. If that were me, I’d be a little let down.

Now in the site’s “learn” section, I would find retirement planning info. But’s it’s at arm’s length from the “retire” page that initially captured my interest.

I understand insurance companies desire to sell products. But I think as communicators we need to ask ourselves this question, “Do consumers come to web sites to learn about annuity contracts in all their jargony glory? Or are they trying to figure out how to plan their retirements? If the latter is true—and I suspect it is—then maybe we should give them what they need.

Let’s motivate consumers to address retirement healthcare.

Posted on June 5, 2008
Filed Under Healthcare, Marketing Collateral, Retirement | Leave a Comment

Developing annuity, long-term care, or health savings account collateral? Then here are some numbers for engaging your prospects. According to new research out yesterday from the Employee Benefit Research Institute, a married couple with median drug expenses would need current savings of $194,000 to have a 50% shot at covering all of their health-care expenses during retirement. To have 90% odds, they’d need $305,000. Those with very high drug expenses (90th percentile) would need $635,000 to have a 90% chance at having enough money.

Now, the above projections assume the couple have Medicare, but supplement it with Medigap (Plan 5) and Medicare Part D outpatient drug coverage. EBRI also ran the numbers for people who supplement Medicare with an employer-subsidized retiree health plan and for those who have an unsubsidized employer plan.

But once we have the prospect’s attention, will these numbers motivate them to act? I hope so, because health care expenses are the soft underbelly of boomer retirement. As communicators, we owe it to advisors and consumers to generate a sense of urgency about this looming risk. If we don’t, who will?

Should communicators promote ethical selling?

Posted on June 4, 2008
Filed Under Distributors, Ethics | Leave a Comment

Once upon a time, ethical conduct wasn’t an issue in the financial services business. Sure, some producers got caught cooking policy illustrations and others got snared calling an insurance product an investment. But by and large, the vast majority of producers were ethical, and consumers assumed their financial advisors had integrity.

Has life ever changed! It’s not that more producers are getting caught with their fingers in the cookie jar. It’s that Enron, Arthur Andersen, and other unethical companies left a troubling legacy: lack of public confidence in business. And lack of confidence is not a good thing for an industry such as ours that relies on public trust.

The recent Dateline NBC exposé of shoddy advisor sales practices, though seriously flawed, further eroded our industry’s reputation. Let’s get real. Why is adequate disclosure of product provisions even an issue in this day and age? It should be a standard business practice, period. And why do some advisors persist in claiming bogus credentials or taking credit for articles and books they haven’t written? It doesn’t take a Ph.D. in moral philosophy to know these things are wrong.

There’s an opportunity here for communicators to make a difference. How? By showcasing your company’s commitment to ethics, while helping producers do business with integrity.

How do you make the case for ethics? The key is to promote appropriate sales practices as a business asset that can unleash growth. Ethical conduct isn’t just a warm and fuzzy concept. It’s an integral part of an advisor’s value proposition that makes it easier to attract and retain clients.

For example, according to the National Ethics Bureau*, a San Diego, California-based membership organization of background-checked financial professionals, selling ethically is simply good business. It helps producers and financial advisors to:

How much more money do ethical advisors make? That figure is hard to find or quantify. However, one advisor who prominently features the logo of the National Ethics Bureau on his marketing materials says his response rate is 36% higher when he features the logo than when he doesn’t. Apparently, membership in that organization conveys a commitment to ethics that prospects highly value.

So, as financial services firms move beyond the era of Enron and Dateline toward a new era of ethics, how can you help transform your producers and company? Here are three ways:

As communicators for your companies, you become the “face” of the company for all audiences—associates, policyowners, producers, stockholders (if applicable), regulators, and the communities you serve. Thus, you have the opportunity—indeed the obligation—to lead in helping all stakeholders know the high moral principles around which your company does business.

*Full disclosure: National Ethics Bureau is an Avanza client.

What is this thing?

Posted on May 19, 2008
Filed Under This Blog | Leave a Comment

Welcome to Engaging Insights, a blog for financial services communicators. My goal is to comment on  marketing strategies and content for attracting financial services consumers and distributors. If you’re looking for ideas to engage your customers more effectively, you’ll find them here.

Why blog about financial services communications of all things? For two reasons.

First, I’ve spent most of my career in the financial services industry, doing marketing communications and training for insurance companies, trade associations, and consulting firms. So that’s what I know and get jazzed about.

Second, I believe financial services communicators have a tough job. Your products—annuities, defined-contribution retirement plans, life insurance, long-term care policies, etc.—are intangible, which makes them hard to promote. Products offered by competing companies are often similar, which makes them tough to differentiate. And the industry is highly regulated, which can make getting stuff approved the stuff of nightmares.

To overcome these challenges, Engaging Insights will publish:

So if you’re a financial services communicator looking to better connect with external audiences, Engaging Insights is for you. And if you’ve completed a successful project recently, engage with us. We’d love to hear from you!

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