Developing new business is an integral part of every insurance agent’s regimen. There are endless ways to go about looking for new business. Jack Fries explains why successful agents must know how to focus their efforts to engage in the most efficient methods possible.
Most businesses derive 80% of their revenues from the top 20% of the customers (The Pareto Principle). The key is to expand on the relationships already formed with customers and tap into the relationships that have been made with their insurance companies to generate new business. Successful producers know that having already established working relationships with these people and given both parties the same target market, they’re in a position to tap their brains for new ideas:
- Do they have a need for any additional coverages or services?
- Are they aware of any other businesses that need similar products and services?
- Would they be able to refer any individuals or businesses that would help penetrate new target markets?
- What sort of additional products and services would be of interest to them and their business?
One-person agencies and megabrokerages alike must approach developing new business as a team effort. Anyone that can help them engage in new business becomes part the team: Customers, insurance companies, partners, friends, and everyone else that can introduce new ways to market the agency.
Successful agents reward individuals and other businesses that help them to penetrate new target markets and bring in additional customers. They create arrangements that benefit both themselves and the individual or business that they’re working with. They probe the minds of existing customers to learn about any new types of coverages and services they might need.
Through this investigation they might find advocates that share their passion or even receive feedback for new ideas that result in their next wave of insurance products and services.
Every industry is constantly in a state of change. Successful agents find ways to innovate, build, and advance their business to ensure a foothold in the marketplace. Every industry will always have new products, services, and technological advances that alter the way business is conducted. By understanding the elemental factors that affect these changes, successful agents will be able to capitalize on new business developments as the marketplace changes. The innovative agent will consider these questions:
- What sort of new products and services would allow expansion into different target markets?
- What factors will shape the landscape of the industry next year, in two years, and in five years?
- Which parts of the business will stand to gain the most from these developments?
Agents who are ready for these changes stand to gain the most. Being able to project their knowledge of the industry into the future and understanding the effects of new marketplace developments will enable them to uncover valuable new business opportunities.
New business drives companies in every industry and is a major factor in the future of every business. Those agents who are continuously looking for and executing new business development endeavors will be the ones who capture market share and position themselves in the marketplace to go even further.