I'm a hot air balloon that could go to space

With the air, like I don't care baby by the way

[Chorus:]

Because I'm happy

Clap along if you feel like a room without a roof

Because I'm happy….”

Let me start by apologizing for embedding this tune in your consciousness for the remainder of today, but Pharrell Williams' iconic song, Happy, could have been written as the theme song for this month's column.

The idea came from a report I received from Agency Revolution entitled, “Insurance Marketing Brief the Ultimate Shortcut to Growth.” In it, Michael Jans, CEO, refers to the “five ways that consumers interact with the industry” as determined by JD Power as:

1. No perceived interaction with the industry
2. No agent
3. Agent only
4. Agency who uses traditional technology
5. Agency who use emerging technology.

He then points to several findings that say that agencies that interact with customers using emerging technologies tend to have happier clients than everyone else. It turns out that happy clients make a big difference especially in the agency pocketbook.

The study shows that “happy” clients with a higher Customer Satisfaction Index (CSI) score of 852 have a 95.5% retention rate compared with customers with a lower CSI of 750, which are retained at a rate of 82%. That 13.5% difference can result in “an extra $130,000 for every million dollars in your book of business.” And extending this number out a number of years, and you're talking a huge benefit to you if you get your clients singing Pharrell's song.

Retention isn't the only benefit; the happier your customers are, generally the more policies they have with you and price becomes less of an issue. What do the direct writers compete on? Price. Take that off the table and the field is a bit more level.

So how do you make your customers happy? Well, despite the findings by JD Power, throwing “emerging technology” at them isn't going to cut it. First, if it were that simple, you'd be changing your approach weekly, because that's how often new technology emerges. Second, leveraging new technologies doesn't mean dumping traditional methods completely.

Knowing which tools to use depends on what you want to do with them and whom you want to reach. Although we often equate emerging technologies with younger users, I'm a baby boomer and love new technology, so you can't make assumptions. On the flip side, I know several young people, including my son, who narrow their interactivity to texting and YouTube.

So the right pathway to making your customers happy is, first, knowing there's not just one way. The second step has to do with identifying tools that are open and flexible enough to enable you to manage your marketing efforts from a single point. That step will also go a long way toward making you happy.

I'm a big believer in providing options. If you can implement tools that automate a process yet don't take off the table the greater high-touch service some customers need or expect, then you've got the best of both worlds.

So websites that have simple request quote or self-service certificates make the interaction easy and fast, which is a critical factor for most people. But to complete this picture, the site should also have 24-hour online chat or call center to answer any question. Now you've got your bases covered.

Similarly, if you've chosen to create a mobile app for your agency, don't think it is meant to replace your website. They are very different tools, serve different purposes, and resonate with different stakeholders. Although studies show that smart phones are at the tipping point and represent the clear trend for which consumers have opted, they aren't yet 100% of the market. In fact, according to a study by the Pew Research Internet Project, as of January 2014, of American adults:

• 90% have a cell phone
• 58% have a smartphone
• 32% own an e-reader
• 42% own a tablet computer.

What these number don't show is the growth of smartphone sales and daily use. So if an emerging market for you is young, middle- to high-income families, smartphone marketing is where you want to be, according to this study: 83% of the 18 to 29 age group have smartphones; 71% are college educated; and 81% are earning $75,000 or more.

If you don't see that as a viable or important market for you, then you need to take another look.

Merely throwing technology won't make anyone happy if the message and service the technology is meant to support isn't appropriate for your stakeholder. Rather, it will emphasize the error of your way more grossly. Balance between the tools you utilize and balance between the technology and the messages you're depending on it to deliver.

Author's sidebar:

Topics I've covered in previous columns often change, and I feel it necessary to weigh in on the new developments. One of these is net neutrality. I've covered this a couple of times and recently the Federal Communications Commission (FCC) has flipped on its earlier decision, which in my mind is a major mistake.

Net neutrality is a term that's been applied to the concept that the Internet should be equal and open for everyone. All people and businesses should have unfettered access to the Internet without a “fast super-highway” available only to big companies that can afford them, relegating the slower lanes to those less fortunate smaller company websites.

Although this was the FCC's belief for awhile, but now the FCC says that Internet service providers like Verizon and Comcast can negotiate with content providers to offer special higher speeds for delivering their programming. Although the FCC believes it could be managed fairly by requiring these deals to be open and above board, it still doesn't address the differentiator of the haves and have-nots.

For a long time, the Internet has been thought of as the great equalizer. By spreading access to every person and household in America, education will improve and access to information and services will elevate the quality of life for everyone. However, if some get better access than others because they can afford it, then what's the point?

I hope clearer heads will prevail and treat the Internet like a utility. Imagine living in one part of town where the fire hydrants gush with water when needed because they can afford the higher costs, and your friend living in another part where it's a trickle because they can't. Is that fair?