CYBER-SAVVY MARKETING.

SEVEN STEPS TO SELLING ASSOCIATION INSURANCE AND FINANCIAL SERVICES ONLINE.

The same urge that's driving eager consumers to buy CDs, sedans, and even stocks on the Internet is also making the World Wide Web a popular shopping stop for association insurance and financial services. High-tech marketing offers rich advantages to both your association and your member-customers. Consider, for example, what tools you can use to explain and sell insurance:

* A tailored section of your Web site, administered by either you or your vendor, can fit seamlessly with your main site and offer one-stop shopping around the clock.

* The site can display well-organized, easily accessible product information, including details about policies, eligibility, and rates.

* A searchable resource bank of relevant reading material may include links to articles from professional magazines and background on related court cases.

* An e-mail link can allow members to send queries and receive replies in as little as 24 hours.

* Insurance applications can be filled out and submitted online.

These features may sound great, but don't be fooled into thinking that traditional marketing methods are passe. It's much too soon to throw your direct mail plans and exhibit booth out the window. To make these dazzling possibilities--and your sales goals--a reality, you need solid insights into what truly works best with your own marker.

As you begin thinking about how to start, or improve, your high-tech marketing program, consider this advice from association executives who've been there.

1. Follow your members' lead. It doesn't matter how excited you are about online marketing if your members don't share your enthusiasm. How many of your members actually have Internet access at their desks--and are inclined to use it? What proportion are 20- and 30-somethings, as opposed to 50- and 60-year-olds? Exactly how much do they use your Web site as it exists now? Answers to such questions are vital to guiding your short- and long-term marketing decisions.

At the American Speech-Language-Hearing Association, Rockville, Maryland, the staff uses more than gut instinct to figure our that the Web is the future of marketing. Research shows that visits to ASHA's Web site rose from 80,000 user sessions in August 1999 to more than 100,000 in November 1999. "Usage is growing phenomenally," says Chuck Cochran, chief staff officer for operations. "We're headed in the next year toward doing a lot more on the Web, with the hope of increased revenue, of course."

So it's only natural to include insurance marketing in those plans. Some 30 percent of ASHA'S 100,000 members now buy ASHA's professional liability insurance, tailored to audiologists and speech-language pathologists.

Despite this optimism, Cochran is well aware of related member demographics and habits. Surveys indicate that while 87 percent of ASHA members have Internet access either at home or at work, they often prefer to actually speak to staff when they want something. "They find it more reassuring to have personal contact," he says. So when the staff is thinking about new ventures online, Cochran follows the adage that "you have to make sure you get out ahead of your members, but not too far ahead."

2. Remember the importance of balance. Few associations, if any, have eliminated traditional marketing methods in favor of the Internet alone. "We haven't stopped any of our traditional marketing," says Barbara Flowerday, CAE, chief operating officer of the California Association of Marriage and Family Therapists, San Diego. CAMFT focuses much of its marketing effort on medical, disability, and malpractice insurance key benefits for its 25,000 members.

Like ASHA, CAMFT has a good Web site but still promotes its insurance by mail, via ads in its magazine, at exhibit booths during the annual meeting, and in brochures that go out with new-member packets. Despite the Internet's growing popularity, a broad-brush approach makes more sense.

"The traditional ways of marketing are still really important," says Ron Arthur, chapter services and risk manager of the 30,000-member Chartered Property Casualty Underwriters Society (CPCU), Malvern, Pennsylvania. "Some people are not yet computer savvy."

3. Make sure your vendor knows that high-tech marketing is a high priority for your association. When CPCU rebid its insurance administrator contract in 1999, the staff placed the most emphasis on four criteria: quality of service, speed of turnaround, breadth of coverage, and--last but not least--technological capabilities. "We were really looking for a vendor with an integrated marketing plan that included both good traditional methods and those available on the Web," says Arthur. The society's staff even made a point of meeting with members of the various vendors' technological staffs to ask about their background, how much experience they had developing Web sites, and, "most important, examples of what they've actually done," says Mark Gaydos, vice president for member and chapter services at CPCU.

The winning vendor clinched the deal in part by developing a free test Web site that the society could examine and then have tailored to its needs. The staff wanted to be sure, for example, that visitors who clicked on CPCU's insurance hyperlink could also click right back to the CPCU home page. The staff was also very choosy about the ease of use of the new site, design compatibility with CPCU's existing site, and the diversity of the people pictured in the new sire's graphics.

To find a vendor whose marketing methods meet your expectations, "Do your homework," advises Gaydos. "Research what members need and how they want to access it. Don't think you're going to do one-stop shopping. Compare requests for proposals, and don't rush." The CPCU Society spent a full year sending RFPs, interviewing prospects, considering their ability to meet expectations, and making its final selection.

4. Make sure your online offerings are complete and well organized. When selling insurance or financial products, remember that you're competing with for-profit companies-and make sure your marketing efforts look every bit as professional as theirs. CAMFT provides a good example of an attractive, content-rich sire. Its malpractice insurance site, located under the member benefits section and called the Risk Management Resource Center, includes

* abundant reading material on professional standards and practice, including liability-claim prevention tips and "10 Most Common Mistakes";

* a frequently asked question section that explains technical terms and various options;

* easy-to-grasp rates and conditions;

* an e-mail link for questions; and

* a guide to applying by toll-free number, fax, mail, or online. (Customers must mail a hard copy because the insurance company requires a signature.)

The Resource Center flows seamlessly from the rest of CAMFT's sire. Members can learn what they want, when they want, while the association cuts down on the staff time required to answer repeat questions.

5. Look into the legalities. There's another way in which high-tech marketing is no different from traditional methods: You need to work closely with your association's lawyer, as well as your vendor, to make sure that everything you want to do is legal as well as feasible.

For example, as CAMFT knows, some types of insurance will continue to require the applicant's actual or wet signature, making it impossible to submit an application solely by electronic means. Check with a specialist to find out how much you can and can't do before you get too far with your Web site.

In addition, your marketing method may affect your association's standing with royalties and unrelated business income tax. Certain disclaimers may be required, too. It's smart to check all these matters in the early stages.

6. Evaluate your effectiveness. It only makes sense to measure your results both formally and informally.

As with any type of marketing, keep track of shifts in how your members respond to your Web sales efforts so that you can tell where to concentrate your future efforts. CPCU plans to do just that this fall, once its new insurance administrator has been in place about a year, by conducting a customer survey. The staff wants to find out both how members are accessing insurance-related services and how they rate the quality of service they're receiving.

But even when you aren't conducting major surveys, pay attention to what's going on elsewhere. What are other associations offering, and how? What are your competitors doing? What additional services can your administrator provide? Knowing the answers to these questions will help keep you up-to-date.

7. Think ahead. In the future, chances are good that you'll need an Internet marketing component for practically everything your association sells. For example, CPCU is weighing everything from prescription and eye-care insurance coverage to financial services such as mutual funds.

ASHA is considering offering its members a retirement plan and perhaps an arrangement with an Internet service provider. The staffs at both associations say they would definitely use their Web sites to market these diverse products.

And while you're thinking about different products, consider alternatives in marketing venues. Some associations are already providing virtual trade shows, which of course can include a cyber-booth for your financial products.

Letting members learn about and sign up for products online is a natural extension, for example, of letting them sign up for a conference via computer. "You have to put a lot of time and money into planning your Internet services or your association will lose those members who want to get what they want with just a click," says Flowerday of CAMFT.

"You definitely have to go with technology," agrees Arthur of CPCU. "It is the wave of the future."

HOW DO YOUR

QUICK TIPS FOR ASSESSING YOUR ASSOCIATION'S PLAN--AND MAKING SURE YOUR EMPLOYEES USE IT WELL.

RETIREMENT BENEFITS RATE?

With the market for talented staff the tightest it's been in 30 years, now is the ideal time to reassess what should be one of your most attractive employee benefits: your association's retirement plan. As you consider whether your plan does its part to recruit and retain the best and the brightest, find our the answer to this key question: Are you giving your employees a competitive 401(k) or 403(b) plan?

The best way to ensure a valuable retirement plan, says Penny L. Prue, vice president for administration and human resources, American Healthcare Association (AHCA), Washington, D.C., "is to find out what others are doing, particularly those with whom you compete for top talent. Then make sure you offer what meets the needs of the staff as well as the specific business strategies of your association." AHCA uses an outside financial consulting service to identify the kinds of investment options that are right for its employees. "They know the market," says Prue, "and what options are available. They've helped us determine which of those options best meet the diverse needs of our particular workforce."

The retirement plans sponsored by AHCA go well beyond the minimum requirements outlined in the framework of Internal Revenue Service (IRS) rules governing retirement plans. Prue says AHCA offers two retirement plans to employees eligible to participate: a traditional pension plan and a 401(k) plan that matches employee contributions dollar-for-dollar up to 3 percent of salary and offers 12 investment options.

For the past decade, many associations, like for-profit employers, have been moving away from traditional pensions, referred to as defined-benefit plans because the employer guarantees a set benefit based on a retiring employee's years of service and pay level. Employers are shifting instead to 401(k) or, for many nonprofit organizations, 403(b), plans. These are called defined-contribution plans because each worker's future benefit depends on how much he or she and the employer contribute. The newer plans are also self-directed. The employee decides how to invest his or her funds, picking from a menu of investment options provided by the association.

HOW DOES YOUR PLAN RATE?

AHCA offers its two plans because today's best job candidates are keenly aware of the value of a good savings plan to their long-term financial success.

But what makes a good retirement plan? A recent article on the Web site 401Kafe (www.40lkafe.com) rakes a thorough look, based on several industry surveys, at the most common features of today's 401(k) plans. Most of the surveys focused on for-profit employers but in many cases, they are the ones that represent your association's competition for top executives and staffers. 401Kafe reports some statistics regarding common 401(k) plan features,

* Employer match: 87 percent of employers match their workers' savings (to a predetermined percentage level within the range allowed by the IRS), typically providing 50 cents for each $1 of worker contribution.

* Vesting: In 20 percent of plans, workers own their employers' matching contributions immediately. Another 31 percent vest employer contributions after five years. Most of the remaining plans vest between one and five years.

* Investment choices: 38 percent of plans give employees from seven to nine investment choices-mutual funds, insurance contracts, or brokerage accounts. But 23 percent of plans offer 10-15 options, and 6 percent exceed 15 choices. The strong trend is to offer more options.

* Investment flexibility: 68 percent of plans let employees redirect their investments on a daily basis. Another 26 percent allow weekly, monthly, or quarterly adjustments. Such frequent changes require better plan communication: 86 percent of plans provide telephone access to account information.

* Fund availability: 82 percent of 401(k) plans allow employees to borrow against their retirement balances, and 88 percent allow hardship withdrawals. Such provisions are a mixed blessing. Employees are more willing to participate in 401(k) plans if they know they can get access to the money during emergencies. But loans and withdrawals undercut the basic purpose of such plans--retirement savings. (For sources and full details, see www.401kafe.com/commenrary/feature/feature_112399.html.)

ASAE's Association Executive Compensation and Benefits Study, 11th Edition, 1999, underscores the fact that most associations are fast following the lead of for-profit organizations in providing beefed-up retirement benefits to employees. Ninety-nine percent of the associations surveyed in the study offer IRS-qualified retirement plans, with 94 percent providing defined-contribution plans. (For more information on the study, call ASAE Research and Information Central, 202- 626-2847.)

To learn more about what your peer associations provide, you might conduct your own study of what similar associations (in type, staff size, membership, etc.) are offering and share the results with them. The answers could be reassuring--or just the motivator you need to make improvements.

DO YOUR EMPLOYEES KNOW WHAT THEY HAVE?

Starting this year, the American Bus Association, Washington, D.C., is amending its existing retirement plans. "We offer our 25 employees both a traditional pension plan and a 401(k) plan," says Kenneth Ryan, ABA's financial officer. The association matches employees' contributions dollar for dollar, in the 401(k) plan. Under the previous pension plan, investment decisions were made by the pension plan's trustees, who made investment choices from a group of four funds recommended by ABA's financial consultants. In the amended plan, the staff will be able to direct their own investments, choosing from 21 investment options. "Employees will also be able to check their balances in both plans at the secure Web site of the investment fund provider," says Ryan.

One of the biggest challenges in the switch: ensuring that employees can make the best use of their new choices. Employee ignorance or misunderstanding of their retirement options can be one of the biggest deterrents to full participation. To head off that problem, ABA's financial services provider will conduct one-on-one training on investment options as well as regular review sessions keyed to quarterly statements. "We want every employee to have the opportunity for education," says Ryan.

The fact is, even the best plan won't be effective for your employees if they don't know much about it or aren't using it well. As associations tune up their retirement plans to attract and keep top talent, good communication is vital, whether it comes via traditional in-person meetings, videotape or videoconferencing, Internet access, or up-to-the-minute interactive modeling software. "As employees become more aware of what will be needed to maintain their standard of living in retirement, their interest is increasing in terms of securing as much information and advice as they can. No matter how large or small the plan changes or enhancements, tell your staff about them immediately, and tell them often," says AHCA's Prue. "Don't let your programs just sir on the shelf."

COMPANIES                          Investment Planning   Foundation &
                                                       Insurance Trusts
Affinity Partners
AGIA Insurance Services
Aon Association Services
Aon Risk Management Services
ASAE Services, Inc.                         *                 *
Association Health Programs                                   *
Bank of America                             *                 *
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,
Inc.
Chevy Chase Bank                            *
Clifton Gunderson, LLC
Crestar, a SunTrust Bank                    *
CUNA Strategic Services, Inc.
Deloitte & Touche
The Fidelity and Deposit Companies
COMPANIES                          Endowments Retirement Plans
Affinity Partners
AGIA Insurance Services
Aon Association Services
Aon Risk Management Services
ASAE Services, Inc.                                  *
Association Health Programs                          *
Bank of America                        *
Benefits Connection Group, Inc.                      *
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,                     *
Inc.
Chevy Chase Bank                                     *
Clifton Gunderson, LLC
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche                                    *
The Fidelity and Deposit Companies
COMPANIES                          Deferred Compensation Financial/Banking
                                         Packages            Services
Affinity Partners
AGIA Insurance Services
Aon Association Services
Aon Risk Management Services
ASAE Services, Inc.                          *
Association Health Programs
Bank of America                                                  *
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,
Inc.
Chevy Chase Bank                                                 *
Clifton Gunderson, LLC
Crestar, a SunTrust Bank                                         *
CUNA Strategic Services, Inc.                                    *
Deloitte & Touche                            *
The Fidelity and Deposit Companies
COMPANIES                          Mortgage Services    Credit Card
                                                     Merchant Services
Affinity Partners
AGIA Insurance Services
Aon Association Services
Aon Risk Management Services
ASAE Services, Inc.                                          *
Association Health Programs
Bank of America                            *                 *
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,
Inc.
Chevy Chase Bank                           *                 *
Clifton Gunderson, LLC
Crestar, a SunTrust Bank                   *                 *
CUNA Strategic Services, Inc.
Deloitte & Touche
The Fidelity and Deposit Companies
COMPANIES                             Credit Card    Group Health Plans
                                   Affinity Programs
Affinity Partners
AGIA Insurance Services                                      *
Aon Association Services
Aon Risk Management Services
ASAE Services, Inc.                        *
Association Health Programs                                  *
Bank of America
Benefits Connection Group, Inc.                              *
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,                             *
Inc.
Chevy Chase Bank
Clifton Gunderson, LLC
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche                                            *
The Fidelity and Deposit Companies
COMPANIES                         Disability Insurance Life Insurance
Affinity Partners
AGIA Insurance Services                     *                *
Aon Association Services
Aon Risk Management Services
ASAE Services, Inc.                         *                *
Association Health Programs                 *                *
Bank of America
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,            *                *
Inc.
Chevy Chase Bank
Clifton Gunderson, LLC
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche                           *                *
The Fidelity and Deposit Companies
COMPANIES                          Insurance Broker Third Party Underwriter
Affinity Partners
AGIA Insurance Services                   *                    *
Aon Association Services                  *
Aon Risk Management Services              *
ASAE Services, Inc.
Association Health Programs               *
Bank of America
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,          *
Inc.
Chevy Chase Bank
Clifton Gunderson, LLC
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche
The Fidelity and Deposit Companies
COMPANIES                          Insurance Underwriter Property Coverage
Affinity Partners                                                *
AGIA Insurance Services                      *
Aon Association Services                                         *
Aon Risk Management Services                                     *
ASAE Services, Inc.                          *                   *
Association Health Programs
Bank of America
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,                                 *
Inc.
Chevy Chase Bank                             *                   *
Clifton Gunderson, LLC
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche                                                *
The Fidelity and Deposit Companies           *                   *
COMPANIES                          Casualty Insurance    Professional
                                                      Liability Insurance
Affinity Partners                          *
AGIA Insurance Services                                        *
Aon Association Services                   *                   *
Aon Risk Management Services               *                   *
ASAE Services, Inc.                        *                   *
Association Health Programs
Bank of America
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,           *                   *
Inc.
Chevy Chase Bank                           *                   *
Clifton Gunderson, LLC
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche                          *                   *
The Fidelity and Deposit Companies         *
COMPANIES                          Workers' Compensation Travel Insurance
                                         Insurance
Affinity Partners
AGIA Insurance Services                                         *
Aon Association Services                     *
Aon Risk Management Services                 *
ASAE Services, Inc.                          *
Association Health Programs                                     *
Bank of America
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,             *
Inc.
Chevy Chase Bank
Clifton Gunderson, LLC
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche                            *
The Fidelity and Deposit Companies
COMPANIES                                Convention
                                   Cancellation Insurance
Affinity Partners
AGIA Insurance Services
Aon Association Services                     *
Aon Risk Management Services
ASAE Services, Inc.                          *
Association Health Programs
Bank of America
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,
Inc.
Chevy Chase Bank
Clifton Gunderson, LLC
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche
The Fidelity and Deposit Companies
COMPANIES                          Accounting/CFO Services Auditing
Affinity Partners
AGIA Insurance Services
Aon Association Services
Aon Risk Management Services
ASAE Services, Inc.
Association Health Programs
Bank of America
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &                        *
Accountants
Calco Insurance Broker & Agents,
Inc.
Chevy Chase Bank
Clifton Gunderson, LLC                        *               *
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche
The Fidelity and Deposit Companies
COMPANIES                          Debt Collection Payroll Services
Affinity Partners
AGIA Insurance Services
Aon Association Services
Aon Risk Management Services
ASAE Services, Inc.
Association Health Programs
Bank of America                                           *
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,
Inc.
Chevy Chase Bank
Clifton Gunderson, LLC
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche
The Fidelity and Deposit Companies
COMPANIES                          Tax Planning &
                                    Preparation
Affinity Partners
AGIA Insurance Services
Aon Association Services
Aon Risk Management Services
ASAE Services, Inc.
Association Health Programs
Bank of America
Benefits Connection Group, Inc.
(BCG)
Bond Beebe, Advisors &
Accountants
Calco Insurance Broker & Agents,
Inc.
Chevy Chase Bank
Clifton Gunderson, LLC                   *
Crestar, a SunTrust Bank
CUNA Strategic Services, Inc.
Deloitte & Touche
The Fidelity and Deposit Companies
GE Risk Soltifions                                         * * * * *   *
Independent Insurance Agents of    * *   *   *     * * *   * * * * * * *
American [*]
Jardine Group Services Corp.       * *   *       * * * * * * * * * *
Johnson Lambert & Co.                *                                   * *
JZA, Inc.                                * *     * * * * *   * * * * * *
Keller Bruner & Company, LLP       *     * *                             * *
Long Group & Charteted                                                   * *
Longon Associates, P.C., CPAs      * * * * * * *         *               * *
and Consultants
Legg Moson's ASAE Association      * * * *   *
Investment Program
MidWest Employers Consualty Co.                            *       *
MIMS international, Ltd.                               * *   * * * * * *
Minnesata Life Insurance Co.                         *
National Association of Insurance  * * * * * *   * * * *     * *   * * *
and Financial Advisors (NAIFA) [*]
Near North's National Professional *           * * * * * *   * * * * * *
Group
The Novick Group                     *           * * * *   * * * * * * *   *
Patterson/Smith Associates               * *     * * * * * * * * * * * *
GE Risk Soltifions
Independent Insurance Agents of
American [*]
Jardine Group Services Corp.
Johnson Lambert & Co.                  *
JZA, Inc.
Keller Bruner & Company, LLP         * *
Long Group & Charteted                 *
Longon Associates, P.C., CPAs      * * *
and Consultants
Legg Moson's ASAE Association
Investment Program
MidWest Employers Consualty Co.
MIMS international, Ltd.
Minnesata Life Insurance Co.
National Association of Insurance
and Financial Advisors (NAIFA) [*]
Near North's National Professional
Group
The Novick Group
Patterson/Smith Associates
Poymentech                                        *
Progressive Management                                      * *
Associates, LLC
Ribis, Jones & Moresco, P.A.
Seabury & Smith                         *   *         * * * * *   * * * * * *
Superior LIC Insurance Agency, Inc.                         *
Tate & Tyron CPAs & Consultants/      * * * * *       * * *   *
Tate Financial, LLP
Wachovia Bank                               *   *   * *
Walterry Insurance Bankers                                      * * * * *   *
Western Capital Financial             * * * * *
WMV Financial Svcs, LLC, on offiliate * *   * *       * * *
of Workins, Meegan, Drury & Co, LLC
Poymentech
Progressive Management
Associates, LLC
Ribis, Jones & Moresco, P.A.          *     *
Seabury & Smith
Superior LIC Insurance Agency, Inc.
Tate & Tyron CPAs & Consultants/      * *   * *
Tate Financial, LLP
Wachovia Bank
Walterry Insurance Bankers
Western Capital Financial
WMV Financial Svcs, LLC, on offiliate
of Workins, Meegan, Drury & Co, LLC

(*.) Services provided by members