When writing an article for IMMS subscribers, I often feel like I'm preaching to the choir. That's because, I believe that these agents and brokers represent the top 10% in the independent agency business.
Recently I convinced a good friend and client (not an insurance agent, he's in the garment industry) that he needed some sort of incentive to increase sales from the 5,200 retail outlets that purchase his clothing. He's too small to try to impact the retail customer, so we concentrated on the wholesale buyers. After tossing around numerous ideas, we settled on a goal for each outlet that exceeded their prior year sales. Anyone hitting the goal would qualify for a free round trip ticket and hotel accommodations in
Las Vegas
for the industry's annual fashion show/convention.
Ironically, his phones began ringing from his disgruntled sales reps who were adamantly opposed to giving away the trips. They were afraid that their customers would see other manufacturers' wares at the show.
He quickly called to tell me about what was happening and asked if he should change the incentive program. I asked him if he was afraid of the competition, and he said no. I asked him if exposure to the competition would hurt either his operation or that of his clients. 'No”, he replied, 'in fact some of the competitive merchandise would probably help them to be even more successful by offering a greater selection to their customers.'
Needless to say, the incentives stood as planned.
This is one form of what I think of as Mentoring Marketing. Anytime you market your business in such a way that you simultaneously enhance the expertise of your client, you are both mentoring and marketing. What better way to solidify a relationship, to develop that all-important nexus between your company and your clients?
Yet, like my friend's sales representatives, too many companies want to grow their clients like mushrooms-keep them in the dark and nurture them with dung. Fungi may grow well under those conditions, but your customers won't.
Every time you provide value-added information to your customers through a newsletter, a phone call to pass on an idea, holding an informational seminar, or inviting them to a trade show, you both mentor and market. You strengthen your relationship by helping to be the best they can.
Applying this principle to the insurance industry, let's say there is an expert or a topic that you know would benefit your clients-but the cost is greater than you can afford yourself. Would you consider inviting several other agencies to co-sponsor the seminar, inviting their clients as well as yours? Or does that thought send shivers up your spine?
When reading about the reaction of my friend's sales reps, did you assess their position as foolish? Yet did the preceding paragraph scare you? Same deal! Fear of competitive contact with your clients.
The really ironic thing is-your clients and your competitors are already in contact, just as you are with their customers. Everyone is looking to take business away. Yet, the vast majority of your customers, hopefully, stay with you-despite the advances of the competition. The primary reason for this retention is your relationship. So I maintain that anything you do to make them better helps strengthen the relationship, thus improving your retention factor.
The most successful people I know do not fear their competition. They see it as a precious commodity that helps keep them on their toes and keep the overall market healthy. The auto industry is a perfect example. They all sell vehicles that will get you from point A to point B, and back. Take away some very minor changes and all the competitive lines from General Motors are pretty close, as are Ford and Chrysler. Yet, the past ten years have proven that if they band together in a common area such as a mall, they all do better. The competition and variety bring an abundance of customers that individually the various dealerships could never attract on their own.
Likewise, the auto manufacturers have successfully promoted advertising associations among the dealers within specific geographic areas. Now, not only are they all selling the identical vehicles, purchased at identical pricing, but they are advertising as a group. More coverage, greater reach, better ads-they all benefit, despite the fact that they are ruthless competitors on any single 'deal'.
Think back to your mentors. Think how you treasure the gifts of knowledge, guidance and advice that they bestowed upon you. Now think in terms of your vendors. Have some of them been extremely forthcoming with knowledge, advice and guidance-even if it meant contact with the competition? Are they not the vendors to whom you have the greatest affinity? Well, it's a two-way street.
In another area, fear of the competition often rears its ugly head when the owner of a business is asked to share among their peers. Maybe it's an interview with George Nordhaus, maybe it's a panel for the local insurance association, maybe it's a request to write an article. It's not unusual to hear someone say, 'I'd love to, but I don't want the competition to know what I'm doing.' I've always considered it the ultimate denial when a business owner doesn't believe that the competition knows what's going on.
The bottom line: whether you're mentoring in your marketing, mentoring an understudy, or serving a mentoring role within your industry among your peers, you are the real winner. I don't want to wax biblical, but there is a truism that has held fast over the centuries: That which you give away shall be returned tenfold.
On a final note, during a recent congratulatory call about the release of my book Creating Customer Connections, the caller-a very successful agency owner-said that he too would like to share his experiences by writing a book. Unfortunately he felt that writing a book was an overwhelming process and he questioned whether he could complete such a project. 'Do you have any suggestions?' he queried. 'Sure,' I replied, 'whenever you have an idea that you would like to pass on, just sit down and write it up as an article. After a period of time, you'll find that you have written a number of such articles which can form the basis for the book. You've eaten the elephant one bite at a time.'
Share your experiences with others, be they customers or peers, and you will find yourself creating tremendously strong bonds that can weather any storm.