A View From The Press Box

That was the theme at this morning's opening general session here in Las Vegas at the ACORD LOMA Insurance Systems Forum. The keynote speaker was Barry Libert, chairman of Mzinga, a consulting firm based in Burlington, Mass., which, according to its Web site, "provides on-demand solutions that leverage the power of workplace and customer communities for growth and innovation." (Click here for more information about his firm.)

I frankly rolled my eyes a bit when I heard the topic of the speech was "Going From Me To We." I figured I was in for some new-age nonsense about how we all need to join hands and sing Kumbaya. Even the name of the firm--Mzinga, which means “beehive” in Swahili--seemed a bit over the top.

Instead, I was treated to a very intriguing philosophy about how creating interactive communities--both within your organization (with employees) and outside of it (with customers)--can help boost sales and improve customer loyalty at a time when it's getting harder and harder to differentiate yourselves on product alone.

Sitting next to me at the session was someone from an insurance company (who I got to know because Mr. Libert insisted everyone turn and introduce themselves to their neighbors to get the community building process underway) that just got a change in title--from assistant vice president for priority accounts in the group benefits department, to customer experience manager.

This individual is a living example of what more insurers should be doing--focusing on customer experience, and constantly working to improve client service. One way to do that is to establish more two-way communication with all stakeholders so insurers can pinpoint what they're doing wrong and do better next time. It's a great way to get new product ideas as well.

Mr. Libert cited the success, for example, of social idea sites such as www.mystarbucksidea.com, which drew over 100,000 members in its first month providing valuable feedback and helping the coffeehouse innovate.

Mr. Libert's main point is that customers would rather do business with companies that listen to them--especially their criticism. "Establishing such communities allows you to mitigate risk," he said. Since insurers are in the business of risk mitigation, this should be right up their alley--except that they are usually thin-skinned when it comes to accepting criticism.

In establishing social media sites, the goal should not be to try to control the conversation, but to encourage, facilitate, monitor and, most importantly, respond to the complaints filed and ideas floated in such community forums. Even if the feedback is critical, it's better to be part of the conversation rather than the butt of it, right?

Before long, you're not going to have a choice about this, what with the tidal wave of MySpace and Facebook users pouring into the marketplace--both as consumers and workers. They demand instant communication, and like to talk among themselves online on just about everything they do in their lives. Their experience in the world of Insurance won't be an exception.

The topic was quite an appropriate one for an ACORD meeting, since the organization is, after all, the United Nations of insurance, bringing together the industry's disparate elements--carriers, agents, risk managers and tech vendors--to create and implement the standards that will make all of their lives easier and more profitable. Rick Gilman, vice president of communications, aptly describes ACORD as the "community of insurance communities."

Like the U.N., the members don't have to all like one another--in fact, many are fierce competitors, determined to put one another out of business. But that doesn't stop them from working together for the common good.

ACORD is exploring additional community-building options, and is inviting everyone to brainstorm with them. Click here to find out more about that effort.

I've tried to build a community myself with this blog. I am happy to serve as a sounding board (some would say a lightening rod) to allow readers to debate all the hot topics and challenges facing the industry, from federal regulation to global warming, from credit scoring to health insurance reform. Judging from the volume of passionate postings I receive, the blog has been a success.

Are you ready to take the plunge at your organization? Why not set up an idea site, a bulletin board, a blog or some other online option to tap into the collective wisdom of your key stakeholders? What have you got to lose? You might even come up with some new product ideas and a herd of new prospects.

There is TV commercial running in the New York area for a satellite TV service that captures this situation perfectly. The board of a cable company, confronted with the problem of mounting complaints from their customers, concludes that the best solution is to get rid of their customers and get all new ones--specifically, those who won't complain so much. There! Problem solved, right?

If it was only that simple.

P.S. I am not fan of Starbucks, as my friends and colleagues will confirm after hearing all my complaints over the years. Here are some suggestions I would post on the Starbucks idea site to improve their product and service:

--Make less-bitter-tasting coffee.

--Lower the price.

--Allow their baristas to add the milk and sugar for you, rather than filling the coffee cup to the top and letting you fend for yourself.

--Stop calling them baristas! It's so pretentious!

--Do not force your customers to learn a second language to order a cup of coffee.

--Don't trap Web surfers at your site! I removed the hyperlink to the Starbucks idea address mentioned earlier on this blog after I realized it is one of those obnoxious sites that won't let you click back to where you came from once you've entered their realm! They assimulate you like the Borg of Star Trek infamy!!!

--Stop pestering me about opening up yet another outlet in my living room. You are oversaturated as it is. I recently saw a Starbucks at a crummy truck and bus stop on the turnpike in New Jersey. I know you want to take over the coffee world, but one franchise per block should be more than enough!

I feel better already getting all that off my chest! See how useful social networking can be?