INTERNET—WellPoint-EarthLink Deal to Aid Brokers, Customers

Thousand Oaks-based WellPoint Health Networks Inc. has struck a unique partnership with EarthLink to give its estimated 40,000 insurance agents and brokers access to a bundle of Internet services at a discounted price. This new bundle is offered through the AgentOnline program of WellPoint, the parent company of both Blue Cross of California and Unicare. The services include Internet access via Pasadena-based EarthLink, a dial-up e-mail account; Web hosting; a personal StartPage; anti-spam tool; subscription to bLink, a printed magazine; and 24-hour technical support. Along with those services, AgentOnline allows agents and brokers to link to the company’s main Web site to offer customers plan information and rates and services available, says Lisa Mee-Stepheson of WellPoint “Sometimes people don’t have time to talk to their agent face to face or on the phone,” she said. “This way they can find out about all the services Blue Cross offers.” In addition to the news and editorial content, WellPoint agents can choose from some 70 personalized online services including personal finance, online investing, bill payment and a stock tracker. Emerging strategy Kurt Rahn, director of corporate communications for EarthLink, said the StartPage is a portal that members of the Internet service provider see when they first log on. “It’s 90-percent customizable, and we try to offer members different content providers,” he said. “They can choose from news, ESPN, CNN, ABC or something else.” This EarthLink partnership with WellPoint is part of a now-frequent marketing strategy designed to meet a particular challenge while providing services to a large group of users, says Chris Schlueter-Langdon, assistant professor of information systems at USC’s Marshall School of Business. “There are a number of problems in the ISP business.” he says. “Margins are very thin, and you have the major threat of free ISPs. How do you compete with a competitor that is essentially giving away the product for free?” One answer, says the USC professor, is to differentiate yourself and cut costs. “One way to cut cost is on the back end, the network, and the other is to try to reduce customer-acquisition costs. To do this you’ve got to be innovative,” adds Schlueter-Langdon. “Another way is sell to a large organization which then rolls the program out internally.” Broadband deepens market As broadband enters the picture, Schlueter-Langdon sees ISPs looking for even more ways to couple increased margins with additional customer service. According to Rahn, the StarterSite is the entry-level Web site. The WellPoint bundle also includes registration of the domain name, 24-hour telephone support as well as Web site hosting and construction. There are two options for creating the Web site. Click and Build is an online site builder for those who don’t know much about the how-to’s of creating a site or just want to concentrate on their core insurance business activities.