ACCOUNT ROUNDING BY CSRs
by Ralph Manfredi
In this article, Ralph Manfredi focuses on a proven system for turning service into sales — and profits. Learn how to turn every service contact by your CSRs into a cross-selling opportunity.
Looking for an ongoing opportunity to grow commission income, enhance profit sharing, and boost your retention rate — with a minimal investment of time and at no additional cost? Create a service-based cross-selling program for your CSRs.
Profitable leads come into agencies with every service encounter. It shouldn’t be news that chances for additional sales to existing clients abound, especially to those who have just experienced good service. New knowledge often seems to relate to something that we already know. So before developing a new cross-selling strategy, let’s revisit a couple of proven concepts: The 80/20 Rule, and the One-Minute Manager.
The 80/20 Rule says that the most significant items in a group constitute a small portion of the total number of items in that group. Sometimes this is referred to as the “vital few” or the “trivial many.” Translated to the insurance business, a relatively small number of clients (20%) produce the great majority of the agency’s income (80%).
The One-Minute Manager concept is a practical management technique involving brief encounters with agency personnel geared toward producing a positive result.
Here’s how you can use these two concepts to develop a CSR account-rounding program:
Following the One-Minute Manager model, a manager or some key agency person visits with a CSR for 60 seconds to identify clients who received quality service that day and might be prospects for additional sales. In this brief encounter, the manager asks a series of basic questions to determine whether any of these clients fit the profile of the upper 20% in the 80/20 rule and records the responses on a chart. These consultations with agency staff will also help mellow the work environment. Questions should include:
- Does the current commission for the account meet the agency's minimum requirement?
- Regardless of whether the required level of commission has been achieved, is there potential for it to increase?
- Does the insured appear to be interested in doing business with the agency?
- Is the underwriting data favorable?
- Is the account's premium payment record favorable?
- Is the insured connected to other clients; i.e., were they referred, have they referred others, or do they have the potential to do so?
If the response is favorable, consider the client as a prospect for further account development, using such criteria as:
- A favorable agency relationship with the client.
- An identifiable insurance need (i.e., Homeowners, Umbrella, Mortgage Insurance).
- A talking point for the CSR or producer to initiate a discussion with the client (for example, a discount for combining Personal Auto and Homeowners coverage or a good driving record).
The purpose is to uncover the upscale market fitting into the top 20%: Clients such as highly skilled professionals, and successful business people with commensurate income.
When the manager is satisfied that the insured fits into the top 20%, the CSR will complete an Account Development Chart, which lists:
- Lines of insurance to be proposed
- Type of contact to be made (phone or mail)
- Number and frequency of contacts
- Pre-selected mailers
IMPLEMENTING THE PROGRAM
To turn your CSR cross-selling program into reality, follow these guidelines:
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Have a plan for every potential client cross-sale in the office, even if it includes underwriting treatment or transfer to another insurance company.
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Strike while the iron is hot. The agency’s contact with the insured should occur no more than five days after rendering. Any more delay could be counterproductive.
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Monitor the program for consistency on a weekly basis.
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Ask your CSRs for input to modify the program.
Ralph Manfredi can be reached at Manfredi Insurance Agency, Inc., P.O. Box 550, North Tonawanda, NY 14120, (716) 693-2850, or fax (716) 693-5687.