AGENTS AND CLIENTS: CLOSING THE GAP
by Emily Huling
Agents and clients have different priorities. A recent Independent Insurance Agents of America study revealed that 59% of Personal Lines customers want to access policy information online, but only 6% of agents thought this was a priority. While 87% of consumers want 24-hour customer service, only 33% of agents cited this as an important benefit. It's a shock to learn that such a large disparity in perception exists.
But let's face it, even with the best intentions, we can't deliver on these consumer desires. They'll have to be put on the back burner until we can overcome the technological challenges. Let's make them a long-term goal, and see if we can't deliver something of value to our clients in the meantime.
What can agents do now to help their customers? Let's take a look at two often overlooked areas that can add value to business relationships.
GENERATIONAL DIFFERENCES
Never before has there been a buying public so diverse - in race, gender, ethnicity, and age group. Generational differences can frustrate and challenge everyone - young, old, and those in between. Ignoring such differences can cost a company lost revenues and clients.
Have any of the following statements ever been uttered in your organization about your customers?
'They would never buy any more insurance. They're on a fixed income.'
'He wanted to know if we had a Web site so he could calculate his own premium. If we had that, how would he know what to buy?'
'My customer is too old to understand that coverage.'
'Boy, that generation has no loyalty!'
No doubt about it, conflicts arise because of generational differences in upbringing, values, communication styles, and thinking. We'll examine the four generations that buy insurance and suggest a few tips on how your business can adapt to their various needs:
The Matures. This pre-World War II generation (52 million people) was born between 1922 and 1943. This event deeply influenced their lives. Their core values include respect for authority, conservative spending, adherence to rules, relationships built on trust, and 'doing the right thing.' They sacrificed for their country and their families.
Don't be misled by the Matures' frugal spending habits. Many have money, and they'll choose to spend it to protect their assets for their families. You may need to do a little more explaining about how insurance coverage will benefit them, but your patience will pay off. Earn their trust, help them understand, and they'll do the right thing.
The Baby Boomers. This group (73 million people) was born between 1943 and 1960 during a time of great opportunity and progress. Always seeking the greener grass even if they're standing on it, Boomers make choices to gain knowledge, find fulfillment, and achieve recognition for their accomplishments.
A product of the Vietnam era, CBS' '60 Minutes,' and Watergate, Boomers are always asking, 'What else do we need to know?' Whereas the Matures primarily rely on trust in a business partnership, Boomers want to be their own detectives to make sure the choices they make are the right ones. In the insurance relationship, give the Boomers information to make their own decisions. Send pertinent information to support your position, and then follow up. Boomers work hard for their success, and they'll require that of you.
Generation Xers. This generation came into their own in the shadow of the Boomers and continually struggle for their own identity. Born between 1960 and 1980 (70 million people), this group embodies self-reliance, technology savvy, global thinking, diversity, and pragmatism.
Initially, this generation was incorrectly labeled 'slacker.' While they certainly are nontraditional about much of life, they're hard workers and seek a balanced life. And it's no surprise why. Nothing was ever certain in their formative years. They saw their parents divorce, become workaholics, and suffer downsizing. It's not hard to see why many Xers say, 'What's the point?' Unless they quickly see the point, they become bored and move on. To effectively do business with Xers, communication needs to be brief, to the point, and as hands-off as possible.
The Nexters. The digital generation, born between 1980 and 2000, has almost 70 million people at last count. This group displays civic duty, good manners, optimism, street smarts, and confidence.
Only the oldest of the Nexters are members of the insurance-buying public. But you should find those people polite, willing to learn, and eager to make the right choice. Earn their business now, and as they grow older, you'll benefit.
EARN THE BUSINESS
The second area agents can immediately address is earning their clients' business. Here's a true story, related to me by the regional manager of an insurance company, that clearly illustrates this point:
The regional manager was making visits to his agents across the state. The night before his first meeting, he had dinner with a personal friend who coincidentally was insured by this company's agent, although the business wasn't placed with the regional manager's company.
During dinner the manager asked his friend whether XYZ Agency was still taking good care of him. 'Funny you should ask,' said the friend. 'I just moved my business. You know, I never heard from the agency, just got invoices to pay. So when a nice, hungry agent kept calling on me, I decided to make the change.'
The next morning during their meeting, the agent asked the regional manager if he'd had dinner with his friend, as he always did. The manager said yes, and the agent said, 'You know, your friend moved his account. And he never even called.'
Duh! As basic as it seems, agents shouldn't need to be reminded to demonstrate appreciation to clients as well as provide professional, consultative risk management advice.
To be sure your agency is doing what's needed to earn its business, conduct a customer service self-audit. Is your business consistently doing the following?
- Welcoming all new clients - not just sending a policy and an invoice.
- Writing personal notes when appropriate.
- Keeping track of personal and business life events such as buying a home, having a child, or selling a business - and following up.
- Maintaining an ongoing feedback system to acknowledge suggestions, compliments, and complaints.
- Offering ongoing employee training to improve customer service skills, such as e-mail etiquette or problem solving.
I'm not saying we shouldn't work diligently so we can provide 24/7 service and online access to Personal Lines policyholders' accounts. But don't overlook how much you can do now to improve your day-to-day client relationships. These changes will make a positive difference in the lives of your clients, your employees, and your bottom line.
This article originally appeared in The National Underwriter and is reproduced by permission. Emily Huling, CIC, CMC, is president of Selling Strategies, Inc., which helps the insurance industry increase sales, improve customer service, and improve the bottom line. She can be reached at P.O. Box 200, Terrell, NC 28682, (888) 309-8802, fax (888) 398-7355, e-mail [email protected], or Web site www.sellingstrategies.com.