Insurance Profit Systems' ZipDrip venture
helps agencies reach out electronically
By Phil Zinkewicz
Michael Jans (left), is president of Insurance Profit Systems (IPS), a company that provides agents and agencies with the marketing tools they need to increase revenues. Michael's son, Lucas Jans, is IPS' chief technical officer and "technology wizard" who developed ZipDrip, IPS' latest venture.
Scientists say that most human beings are working at about 10% of their total brainpower. We may be able to understand everything from the atom to the universe. We may be able to conquer the skies and roam outer space. Nevertheless, according to scientists, we have barely tapped our collective brain potential.
Today's rapidly evolving technology is the result of that 10% of man's brainpower. But, even in the world of technology, most of us are using only a small portion of what is available to us. Computer wizards and hackers aside, most of us--at least those of us in the older generation--use computers and all their accoutrements only minimally.
Take e-mail, for example. We send and receive messages. We send and view attachments. We cut and paste. Basically, that's about it. But some people are coming to realize that e-mail can have many commercial values as well.
Michael Jans, president of the Vancouver, Washington-based Insurance Profit Systems (IPS), and his son, Luke, came to that realization about three or four years ago. IPS, which itself started up just seven years ago, provides agents and agency principals with the marketing tools they need to increase revenues, according to Jans. As head of the company, Jans conducts boot-camp training sessions, speaks at seminars, and writes newsletters and other informational materials--all designed to instruct producers on how to grow their agencies. Jans' and his son's latest venture is called ZipDrip, and its purpose is to teach agents how to use e-mail as a marketing tool--not a hard-sell marketing tool and certainly not spam. Rather, Jans' and Luke's approach (Luke is the technology wizard who developed ZipDrip) is to enable agents to communicate with their clients in groups--not individually--in a subtler way. Moreover, agents can conduct this communication all across the country--while they sleep.
If that sounds a bit unrealistic, then read on. "Luke came to work with me at a very young age," says Jans. "He was playing in the Internet pond when the water was only starting to trickle in. By the time he was 15, he was designing Web sites and was receiving a good deal of recognition for them. One day, I asked him if it was possible for me to communicate with my clients via e-mail in groups, not one at a time. Luke said it was no problem. I asked him if it was possible to personalize the message. Again, he said it wasn't a problem. I asked him if we could pre-schedule the communications so that they would be delivered automatically. He said yes. When Luke had finished setting up all I had asked, I decided that this was an approach we had to make available to our clients. That's how ZipDrip was born."
More of ZipDrip later, but first understand Jans' views on e-mail as a marketing tool and what agents should consider when taking such an approach. Jans says that many agents don't realize how important e-mail can be to their businesses. Commercial e-mail is expected to increase 40-fold by 2005, he says, with marketers spending about $7.3 billion a year to send it. "One reason that e-mail marketing is expected to boom is that thousands of consumers are signing up daily," says Jans. "We're not talking just about young people and 'techies' anymore. Consumers are getting comfortable with e-mail, and that means they'll pay attention to the right kind of e-mail message. That also means it will get crowded, so now is the time for agents to implement an e-mail strategy."
The IPS president says that many agents are "under-whelmed" with the amount of activity that their Web sites generate, compared to the effort that goes into them. "Making money with a Web site requires a good deal of time and effort. E-mail marketing, on the other hand, offers immediate results, requires much less effort and may be the single most powerful traffic generator for an agent's Web site."
To begin an e-mail marketing strategy, Jans says that agents should examine all points of customer contact and then add an "e-mail capture" component to each one. Then, by mail and phone, agents should contact their existing customers and request their e-mail addresses.
Michael Jans urges agents and agencies to consider the possibilities of e-mail marketing--not just for sales, but for maintaining client relationships. He created ZipDrip to help agents and agencies do just that.
"Consumers are getting comfortable with e-mail, and that means they'll pay attention to the right kind of e-mail message."
--Michael Jans, President, Insurance Profit Systems
Jans says that it is essential that agents observe the rules of e-mail etiquette. "Your best list is your customer list," says Jans. "Your second best list is your own 'inbound prospect list,' people who have expressed an interest in you. You may also consider testing an endorsed list such as an association that has given you permission to send a value-added message to their members. And, this is important: Approach any rented or purchased list with extreme caution. Don't 'spam' because it could result in the loss of your Internet service," warns Jans.
Moreover, Jans emphasizes that the message should be one of a "care and feeding" variety. This is no environment for the hard sell, he says. "This is the place to add to the 'relationship bank account' by providing short, but important value-added messages. Be the risk manager. Take care of your clients."
Luke suggests a "safety reminder service" strategy. "Design 12 seasonally appropriate safety, protection or insurance-related messages and set up a monthly 'drip' of valuable reminders to your audience." (Author's note: Hence the name ZipDrip. The "zip" relates to speed of delivery. And the "drip" refers to periodically providing valuable information.) "Invite your audience to contact your office for more information," says Luke.
"You may want to segment your list in natural groups, such as niche markets or commercial vs. personal lines customers," continues Jans. "Of course, for the most 'punch,' a programmer could dynamically personalize every message. More money, but lots more impact."
Jans also offers the following advice to agents: Use the "subject line" as a compelling headline; use conversational tone, as if you are writing to a friend; use bullet points to call attention to important matters; insert some legitimate urgency; give them a compelling reason to contact your office; sign off with your name and add a "PS."
If all of this sounds complex, Jans insists it is not. Agents who do not feel capable of setting up their own e-mail marketing systems can use the services of ZipDrip for a fee of $57 per month. "Once the service is up and running, it is easy to operate and ZipDrip will continually update the information."
Luke says that the whole point of ZipDrip is to give agents the opportunity to show their clients that they really care. "It looks as though you've sent the client a personal message, even though it has been prescheduled and you may be asleep in your bed while the message was being sent. It is a constant reminder. We had one agent who told us he received a call from a client who said he had meant to call the agency, but forgot. The personalized letter reminded the client," says Luke.
Rough Notes spoke with two of ZipDrip's customers to elicit their views on e-mail marketing. Craig C. Hummel of the Oakland, Iowa-based Hummel Insurance Services, says: "It definitely sets us apart from any other agency in the area. It is incredibly effective, not only as a marketing tool, but it also helps cement our client relationships. We provide valuable safety information and, so, we become consumer advocates. It's easy to operate. Most of the messages are in the system, so we just personalize them a bit. E-marketing in this way has helped us in cross-selling and in writing new business. That is especially important in today's tight market."
Gina Ekstam, of Molyneaux Insurance in Davenport, Iowa, explains: "When we got ready to implement our first group, I set aside a complete morning to get it done, and I was committed to following through. Within one hour, it was done. It's one of the most powerful marketing and nurturing tools we have, and it takes the least amount of my time and effort."
Jans sums it up this way: "Proactive marketers can't afford to miss this opportunity, but the window is closing rapidly. Agents should get help if they need to, but they should make a commitment to follow through." *
For more information:
Insurance Profit Systems
Web site: www.zipdrip.com