To be successful in business, carrier marketing managers must thoroughly understand what business they are in, why they are in it, and how to build it.
WHAT'S THE BUSINESS?
Marketing managers are in the business of helping agents and brokers sell the financial protection their companies offer. Some agencies operate under the guise that they are just selling insurance policies. It is up to marketing managers to elevate the status of the insurance industry in the minds of agents. Insurance is a profession, not just a job or service. For agents to adopt this philosophy, they must have a thorough understanding of fundamental principles: the provision of financial security and protection.
This view can be compared to Maslow's Hierarchy of human needs. Maslow theorized that after each human need is met, a new one can be satisfied. He used a pyramid to illustrate the concept. Air and water are the foundation of the pyramid; after a human attains these necessities, the needs at the next level of the pyramid, such as food and shelter, can be pursued.
Protection and security are slotted into one of the mid-levels of the pyramid. Why? Because once a human has achieved food, shelter, and other advanced necessities, these things must be protected and secured. Therefore, protection and security are among basic human needs.
WHY THEY ARE IN THE BUSINESS
Insurance protects basic human needs, and it provides a comfortable living for those who sell it. Agents help fellow human beings while helping themselves.
HOW TO BUILD IT
There are four stages to building business. They are:
1. Sell more present coverage to present customers.
2. Sell new coverage to present customers.
3. Sell present coverage to new customers.
4. Sell new coverage to new customers.
As a marketing manager dealing with heavy competition from all directions, there is only one option: Find ways to implement logical account-development procedures.
PRIMARY JOBS VS. SECONDARY JOBS
The concept of primary versus secondary is best illustrated with an example:
William Perry (The Refrigerator), of Chicago Bears fame. Perry's primary task was defense, but in 1986, during the Bears-Packers game, The Refrigerator carried the ball for a touchdown. Scoring touchdowns was not Perry's primary function; carrying the ball was secondary and was used only as a surprise tactic. Perry did not move into an offensive position, nor did he become a regular football carrier.
This can be related to agencies' support personnel; those employees who assist producers, for instance. While their primary function is defense (preventing problems from happening), their secondary function is offense (making good things happen for the business).
The responsibility for account development is similarly addressed. Support staff must be able to cross-sell (carry the ball), but it isn't necessarily their primary job. The producer is still primarily responsible for total account development. Offense or defense, sales or service-whatever jargon is used, somebody's got to carry out the game plan.
The role of a marketing manager is to coach agencies, to make sure that everyone is playing in the correct position and playing correctly. Take the time to sit down with agency owners and managers to understand the role of each employee and determine if they are performing the correct job correctly. By examining each person's function, the strengths and weaknesses of the agency will be identified and an appropriate game plan can be devised. While studying each person's function, keep the four stages of building business in mind. (This will help determine if the correct person is doing the correct job correctly.)
Employees should work according to the guidelines of the business-building stages. A thorough understanding of primary and secondary functions lends itself to account-rounding techniques in the mechanical work-flow process.
Questioning, probing, and digging should not be underestimated by employees. They need to question in order to understand the customer and the account-rounding possibilities that exist. They must ask, 'What does the customer really want and why do they want it?' The following procedure summarizes service:
CLAIMS-generated by the customer and/or third party
ACCOUNTING-generated by the company's relationship with the customer
NEW BUSINESS-usually generated by the producer
CANCELLATIONS-generated by the company and/or the customer (occasionally the agent may request)
AUDITS-generated by the customer's activities and your analysis
RENEWALS-generated by your company and the agency's relationship with the customer
ENDORSEMENTS-generated by you (after audit) customer, and/or agency
Explain step-by-step the benefits of questioning. For example, when support staff handles claims, suggest follow up with third parties as well as the agency's insureds after the claim has been closed. This is an opportunity to sell more coverage.In the accounting department, indicate that the blank space on the billing notices may be used to advise customers of additional benefits and coverages the agency has to offer. This may not result in an instant sale, but it reinforces the product.
Any time a premium payment is received in full, an agency should send a thank-you note.
Remind producers that survey forms and checklists create additional awareness to opportunities and open discussions about new business.
Cancellations should not be considered the end. Advocate a letter policy that thanks customers for their past support and asks their permission to contact them again on a specific date to discuss rejuvenating the relationship. The cancelled policy date and additional, pertinent information should be entered into the agency's prospecting system.
Whenever an audit generates additional premium of more than a couple hundred dollars, arrangements should be made for regularly scheduled visits with the account to keep the policy updated and accurate. The renewal process always unveils extremely interesting information about the account's activities and assets.
Last, endorsements obviously require questioning. Spur employees to ask, 'Why is the client requesting this change now? What else is going on with the account that could generate additional exposure and subsequently account-development opportunities?'
By encouraging staff to question, the marketing manager is identifying the opportunities for account development. Remind agency personnel that questioning why a customer is buying insurance and why they are buying it from their agency will help cross-selling efforts, too. Help agencies build a positive, mechanical work-flow procedure for each of the services identified to ensure the completion of asking the right questions at the right time.
Four easy steps to help agencies accomplish total account development are:
1. Listen to customers' needs and wants by using survey forms, checklists, new business and proposal packages, renewal reviews, and staying the question, 'What do customers want and why do they want it?'
2. Educate customers and tell them you're in the business of providing financial protection, not necessarily in the business of selling policies.
3. Consult (give and take) with customers about their current protection plans, what they like and don't like about them, and how the agency can enhance the existing coverage.
4. Sell by asking for the opportunity to do business through each contact with the agency.
If marketing managers truly believe they are in the business of financial protection, they must help agencies do the same. Marketing managers must teach agencies to be proud of their independence and use it to their advantage. Marketing managers must be great personnel managers and teach agencies to redeploy their assets if necessary. They must be excellent coaches for the agency players, and suggest systems and procedures for simplicity and task accomplishment. Helping agencies understand what business they're in, why they're in it, and how to go about building it will send the entire team into the end-zone to score.