Insurance buyers are drowning in information, but starved for knowledge. Yet, with the advent of relatively new technology and Web-based tools, many insur­ance agents are compounding the problem by piling on more and more informa­tion. When these tools are deployed ineffectively, the result is an overw­helmed, confused or disinterested buyer. Overwhelmed and confused buyers tend to stay in their current business relationship and do not engage with agents. However, if agents can learn to effectively leverage the power of these technological marvels, they can differentiate themselves from their competitors, accelerate the sales process, and help their clients achieve measurable results.

Few would dispute the inherent power of such Web-based tools as WorkCompEdge™, Zywave™, and HRThatWorks™, just to name a few. However, according to reports from numerous agents, the promises of such tools have yet to be realized. The problem does not reside in the tools, but in the way they are deployed.

First of all, we must recognize the profound distinction between information and knowledge. Information is anything that can be digitized, printed, put on a Web site, and is easily replicated or used by others. Knowledge is your capability to assist a client or prospect address complex situations and transform them. Information is ubiquitous; knowledge is rare. Anyone can purchase access to Web-based tools, but few can maximize their power.

A number of years ago many insurance agents embraced what is known as a “value-added” sales approach. Agents would say to their prospective and current clients: “If we are close on price, we are going to give you all this stuff for free.” Then, the agent would go through a laundry list describing the features and benefits of their Web-based tools and resources. Usually, the insurance buyers yawned and their eyes glazed over.

Why is there a gap between the purpose and promise of technology and the perceived and realized value to the client? Why do so many agents report that their clients don’t use these powerful tools? Blaming the client or suggesting that they “just don’t get it” misses the point. The responsibility to close this gap and to unleash the power of Web 2.0 technology falls to the agent.

Agents cannot address this issue without examining their sales processes. At the outset, put the tools on the shelf—not forever, but just until the agent guides the buyer through a process of identifying risks and threats. The challenge for the agent is not to explain the solutions these tools can provide, but to help the buyers “self discover” their business risks.

Once the buyer has identified risks to the business that are not being addressed and agrees to take action, the agent can present tools that speak to the buyer’s risks. Presenting solutions to a problem that the buyer has not identified confuses the buyer. A confused buyer does not recognize the value of your offering and worse, yet, does not give you the business.

Insurance buyers are not aware of many risks they face every day. They are comfortable with the status quo because the risks may not have surfaced as costly problems. Or, they see the effects of the problems but do not know where to begin to tackle them.

You will not hear buyers say, “I have a clear handle on my issues, and I just need someone to come along with the tools to solve them.” Again, it is worth repeating: buyers need help self-discovering their problems; they do not need to hear about solutions to problems they do not even know exist.

Let’s assume you discover through a dialog with the buyer that the business is experiencing a high frequency of injuries with new hires. This problem has been occurring for so long that the buyer has come to accept it as “the cost of doing business.” As you are reading this example, you are probably already thinking of all the steps that can be taken to reduce new hire injuries. And yes, Web-based tools can facilitate those steps in an effective and cost efficient way. If the buyer agrees to taking on that problem, then you are positioned to present your solution and tools.

Presenting tools related to hiring practices and new-hire orientation would not likely connect with the buyer if the problem had not been clearly identified. Agents cannot assume that the buyer can translate a description of your tools into how they address their problems. It is the responsibility of the agent to turn information into knowledge and ultimately better outcomes and results.

Simply purchasing access to Web-based tools on behalf of clients does not differentiate the agent. Your competitor can buy them as well. It’s the agent’s process and leadership that differentiates, not the tools. The tools play an important supporting role, but used ineffectively, they create a low barrier for your competitor to clear. How easy is it for your competi­tor to say, “We have that, too.”?

Technology tools are designed and built by smart people who have a vision of the power and leverage these products can bring to the agent and client relationship. However, Web 2.0 tools cannot overcome a flawed sales process. Used ineffectively, they are wasteful both in their subscriber fees, but even more so in lost business opportunities.

Used within an effective sales and implementation process, these tools can empower you to deliver value to clients in ways not imagined just a few years ago. Agents who want to differentiate from competitors forever can build a process that leverages these tools in a way that cannot be copied. Anyone can buy the tools and describe their features and benefits, but few can utilize them to differentiate, accelerate the sales process and assist clients in getting better outcomes.

Knowledge, not information, is our primary source of value. One of our big jobs is to help filter out all of the information that bombards our clients. They want to be led into a partner relationship where our collaboration with them will create value over a long period of time. The value we create will greatly exceed the cost that they pay to engage with us. If you get out of the information business and develop a knowledge business, then you will create a monopoly in your marketplace.

Frank Pennachio is co-founder of The WorkComp Advisory Group, a sales training and consulting organization that works with agencies to leverage technical knowledge and sales strategy into successful new business development. He has nearly 20 years of experience in agency ownership/management, sales training and workers compensation. Contact him at frank@mywcadvisor.com.