AGENCY OWNERSHIP CHANGES CALL FOR EXTRA CUSTOMER TLC
by Emily Huling
During times of transition, customers have special needs. Emily Huling warns that without proper new customer handling procedures in place, an agency that's been sold or merged into another can plunge the policyholder into a state of frustration and confusion. The result: Lost business and a soiled reputation.
If you think customers don't need extra care when changes occur with their agent and insurance program, think again. In the past month, a neighbor and family member relayed their personal stories to me about the service (or rather lack of it) that they've received from new independent agent affiliations. Both circumstances involve agencies that were sold.
STORY #1
When Jan and Bob moved their family to Charlotte, they did what many people do to find good professional advisors. They asked neighbors, coworkers, and friends for referrals. Following the recommendation of a friend, they found an agent and were satisfied with that choice for 12 years. Their multi-line Personal insurance package includes Auto, Home, Umbrella, and Boat policies. Jan told me that she felt their business was valued and service was good.
One day, Jan and Bob received a letter from their agent advising that he was selling his agency to another local agent and that the new agent would be in touch. No problem, they thought. Months went by without even a letter of introduction from the new agent. Then the renewal policies came in with a letter from the new agent, saying that their account had been moved to a different company, and that they should call if they had any questions. “Questions?” said Jan. “I was fuming. Who is this agent? She doesn't even know us and she's making decisions like this for us!”
Jan and Bob quickly worked to move their business. They knew an agent from their church whom they liked and trusted. After a meeting and account review with this agent, Jan and Bob moved their account. Bob told me that they haven't heard from their prior agent even after they cancelled their policies.
STORY #2
My Aunt Judy had been doing business with the same agency and CSR for 30 years. She knew Marie well and they shared life happenings with each other when business brought them together. Aunt Judy's Personal Lines business has been through carrier purchases, automobile claims, jewelry losses, and premium increases. Her trust and loyalty never wavered.
She knew it was inevitable that Marie would retire or the agency would be sold. Both happened.
Like Jan and Bob, Aunt Judy received notice of the agency's sale. In this case, it was sold to a large regional broker. She was given the name of the new service agent who would be handling her account. Although there was no personal contact yet, at least she had a name. So far, so good. But when she called this CSR with a quick question, she was transferred to the CSR's voice mail (without her consent). She chose to opt out, knowing that any CSR could answer her question. Two CSR voice mail opt-outs later, she was back to the receptionist saying, “Can't you find someone to answer my question?” The receptionist did. The CSR who answered the phone was pleasant and did answer her question, but said, “You're not my customer, but I'll try and help you anyway.” Ouch.
Here's what agencies need to do during times of major transition so they don't lose accounts and alienate customers:
Create a game plan to contact each new customer personally as soon as possible. In addition to an advisement letter, have the newly assigned CSR call the customer. Even leaving an introductory message on an answering machine is better than no personal contact at all.
Update account information. Purchased businesses have been renewed automatically for years. Not only does this create a huge Errors and Omissions exposure, but the new agent is also missing new business opportunities.
Never move an account to another carrier without talking with the insured. It might be the correct decision — or the only decision — but the insured has a right to know how their business is being handled and why.
Establish and adhere to appropriate language for agency associates to use with new customers. Sincerely welcome all new customers when you speak with them. Never say, “You're not my account.” Agency business is everyone's business.
Build the relationship. Take time to get personal information and put it in the notes section of the file so that any CSR can personalize a conversation.
Be accessible. Customers in transition reserve judgment on the service they receive until they have an experience that forms an opinion. One of the benefits of automation is that any CSR can access an account from their desk. Unless a customer needs to speak with a specific CSR, the receptionist should offer the caller the ability to speak with whoever is available and not put the caller in voice mail. Then, follow rules 4 and 5 (this applies to all customers, not just newly acquired ones).
If you lose an account, do damage control. Find out why lost them and what you could have done differently to retain the business. If it's business that you don't want to lose, set up a suspense date to resolicit it. Not doing anything after losing a valued piece of business is just bad business.
Many agencies are in a state of transition today through mergers and acquisitions. Get the most from your investment by creating a strategy to service, retain, and grow this customer base. People want to trust their insurance agent. We need to give them a reason to do so.
Emily Huling, CIC, CMC, helps the insurance industry achieve excellence in customer service, sales, and leadership. Her new book, Selling from the Inside — Creating a Front Line that Adds to Your Bottom Line, is now available. You can contact Huling at Selling Strategies, Inc., P.O. Box 200, Terrell, NC 28682, (888) 309-8802 (toll free), fax (888) 309-7355, e-mail [email protected], or Web site www.sellingstrategies.com.