Don't be left dangling on the hook of price and commodity.
Stewardship is one of the most important techniques that agents and brokers practice. It ties together all of your tools and client service focus with its Value Proposition. This client focus, combined with your firm’s Value Proposition, answers a number of questions that are critical to successful long-term client retention.
Although many agents and brokers accept the fact that Stewardship Reports are critical, very few do a good job of presenting them. In most cases, these so-called Stewardship Reports are nothing more than a claims or service review. They don’t answer the client’s most important questions, such as:
- “What impact have you had on my costs in the past?”
- “Why should I continue to do business with your firm?”
- “How do I know that you’re doing a good job?”
- And that most dreaded question, “I’m thinking of inviting in several other agents and brokers this year. Why shouldn’t I do this?”
Without a well-prepared Stewardship Report, you’re left dangling on the hook of price and commodity. The only parachute you have is that overused phrase from the 70s, “We give good service.” But how can a client judge this without quantifying it?
Another well-worn phrase is, “We provide value-added services.” I remember the first time that I used this one in front of a client during the mid-80s. I was leading a team of people and had called on a large account. During our discussion, I focused on the fact that our firm was a “value-added organization.” At that point, I watched everyone’s eyes become dreamy and wistful. The term “value added” was like a narcotic.
While driving away from the client’s office, one of the team members exclaimed excitedly, “Attaboy, Rob! That 'value-added’ deal was great. What does it mean?” Do you know what? I couldn’t tell him! The term “value added” just meant “more services” — with no quantifiable benefit to the client! No wonder that successful agents and brokers see this overused term as meaningless. These so-called “value-added” services are just features, not client benefits.
Today, we know the meaning of this term. But, value is not added — client costs are reduced! Stewardship Reports are the vehicle that successful agents and brokers use to steer their clients to their Value Proposition. It provides them with a unique perspective that less knowledgeable competitors can’t duplicate.
It’s the successful presentation of Stewardship Reports that allows agents and broker to “stand tall.” They don’t fear renewal dates because they know that they’ve provided their clients with quantifiable value and have already demonstrated it. The Report frees them to spend their efforts on new business, client projects, and professional development — instead of protecting their back against their own clients!