3 Reasons Why Agents Need Mobile Apps

By Alex Bratton, CEO, Lextech

With adoption of mobile devices growing at a torrid pace, it was only a matter of time until mobile apps started to work their way into insurance agencies. Instead of just being “nice to have,” mobile apps today are important tools to help agencies meet their most pressing challenges, including the need to drive sales, solidify customer loyalty and address their aging workforce. 

Mobility is here to stay. For the first time this year, sales of smartphones are expected to surpass sales of traditional cell phones. More than 800 million smartphones are expected to be sold worldwide in 2013, according to Canalys. In addition, research firm IDC predicts that more than 170 million tablets will be sold this year, surpassing laptop sales. It's no wonder that experts predict that nearly 70 billion apps will be downloaded to these devices this year. 

Insurance agencies considering a mobile app strategy should look at their most pressing challenges first:

1. Agents need to win against savvy competitors.

Competition in the insurance industry is fierce and a recent industry study shows that direct response carriers are growing the most in volume and market share. To compete, agencies need technology tools that are better than traditional web-based tools. 

Mobile apps can help by assisting an agent who sits down with a customer. An app can simplify complicated financial concepts and allow customers to interact with different financial scenarios. Based on information the sales rep collects from the prospect, a mobile app can suggest the right products and solutions. Pictures and graphs running alongside the scenarios can make this part of the process more visually appealing and understandable for the customer. Once the customer is ready to commit, the information already used can then automatically flow into an order entry app. 

Apps that tap into the agency's workflow also can help boost sales. For example, an asset inventory app or an app that intelligently captures details about how a house is constructed can streamline property and casualty quotes. These apps can prompt agents to ask certain questions, reducing the need for additional phone calls and expediting the sales process. 

Finally, mobile apps can give sales managers a dashboard at their fingertips detailing monthly sales goals and quotas, and providing insight into individual agent performance. This will allow managers to pinpoint how they can best assist agents with additional training, information or help.

2. Customer loyalty is paramount.

Although the need to boost sales often is the primary driver for a mobile app strategy, insurance is a people-centric business, and mobile apps can help an agent connect better with customers. 

Putting a mobile app into the hands of customers allows them to take control of their insurance needs and creates loyalty by providing useful tools. This may include an app that allows customers to take a home inventory, report a claim, access a digital proof of insurance, change coverage or pay their bill. The time that customers spend interfacing with these apps is time they spend interfacing with your agency. 

The idea is to allow customers to interact with you how they want. Increasingly, that means using an app. 

3. Reverse the signs of aging.

We've all seen commercials for miracle products that claim to help reverse the signs of aging. Insurance is an industry that could use this help. According to a study by St. John's University School of Risk Management, half of the insurance industry talent pool will turn over within the next 15 years. 

This creates several challenges for agencies, including the recruiting and training of a younger workforce. Mobile apps can help by tapping into the way millennials work. This generation of employees expects to have technology tools to help them perform their jobs. If the insurance industry is serious about recruiting younger workers, mobile apps must be a part of this message. 

At the same time, the exodus of retiring agents leaves the very real possibility of a mass brain drain in the industry. It's nearly impossible to impart decades of experience in a short time frame and expect younger workers to be up to speed. However, mobile apps can help by capturing and sharing processes and experiences, and by facilitating information sharing by connecting agents via text chat, video chat or phone calls. 

Finally, training a field sales force always is a challenge. Mobile apps can be used to quickly ramp up agents, educate them on new products and services, and standardize processes. For example, mobile apps designed with short training videos or games can be used to help agents quickly digest information.

This also standardizes the way an agency does business, which creates a consistent customer experience, and ensures that customer relationships remain with the agency even if a producer leaves.