Thursday, January 29, 2009

Internet Ignorance

Michael Jans had an interesting posting recently showing a spreadsheet which generates a hard dollar number for the cost of Internet ignorance to insurance agencies. I think you can apply the same thinking to your business regardless of the industry.

The post - The Price of Ignorance - highlights the cumulative effect in dollars lost over a several year period.

This is the most thought provoking statement Mr. Jans makes...

"My premise is that the internet represents a HUGE opportunity for agents…but INTERNET IGNORANCE will be the slow, quiet death of many thousands of agencies. (Don’t believe me? Ask your local Travel Agent. What’s that? Don’t have a local travel agent? That’s my point.) So, I added an INTERNET IGNORANCE cell. Let’s say the influence of the Internet creeps in slowly to your agency, nibbling at the corners and fraying the edges – and slowly eats away 3% of your client base."

To be honest,and based on actual statistics I have been keeping on a daily basis for the past 5 years, I think his 3% erosion of your client base is low. That has been about the number over the past couple of years. Now I believe you need to at least double that number.

The good news is there are things you can be doing today to turn this around. You are in control. Take action.

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