In 1976, 12 insurance executives spent a day trying to pinpoint the reasons for their success. Their large insurance agency had doubled in size over the last three years. The company's employees had worked hard to achieve a high rate of referrals and were aggressive in their roles as producers. But what factors led to their astonishing success? How did they attract a client? And most of all, what made each client buy and renew year after year?
After a day of intense analysis, the dozen executives decided that several key factors were responsible for their success. Two decades later, these interdependent 'ingredients' remain the foundation for how business gets done and new clients are won.
Ingredient One
Competitive pricing attracts clients. While producers can regularly be 10% to 15% higher and still retain a renewal account, they must provide pricing equal or superior to the competition to attract new clients. As little as 5% to 10% below the competition's pricing will win over a client.
Ingredient Two
The importance of superior technical insurance skills cannot be overemphasized. The producer must have technical superiority over competitors. Client proposals should be concise works of art, detailing not only existing coverages, but also any recommendations that will insure clients more fully or control their exposures through risk management. Upon reading their proposals, clients should be impressed with the producer's competence and understanding of their needs.
Ingredient Three
Competitive pricing and superior technical skills will attract a client. An honest and dedicated staff will sell a client. Clients want a producer who can manage their insurance programs. Once prospects are convinced that the agency employs capable people who will look out for their best interests, their conversion to clients is almost guaranteed. Clients must be treated to the same level of enthusiasm and service that they were given during the campaign for their business. Existing clients are, after all, the backbone of any company.
Ingredient Four
One of the best ways to attract new clients is to focus on a niche or specialty program. A well-constructed specialty program should be administered and sold by experts in the specific industry. Possessing an understanding of a particular field gives producers an edge when targeting specific industry groups.
When armed with competitive prices, superior products, and special knowledge, the producer is in an excellent position to attract clients.
My Perspective
These four ingredients have been the keys to my success and that of the 11 other executives who convened in that room so long ago. Integrate these ingredients into your business plan and your way of doing business, but also share the information with your employees. Doing so will help attract clients wanting to work with competitive, service-oriented specialists who are honest and knowledgeable. By dedicating your business to these key ingredients well into the future, your business will turn prospects into renewing clients year after year.