Very few people will recognize the name Hikari, unless they're in the beauty salon industry. Hikari is a scissors manufacturer and distributor. Not just any type of scissors, but very expensive scissors used by hair stylists. A small, five-inch pair of scissors might sell for $400, and more expensive models approach $1,000. Considering that the average hair stylist grosses about $30,000 to 35,000, this is a market in which the buyers spend 1% to 2% of their gross earnings for two pieces of metal connected with a screw and washer. You might think that it's a pretty tough market, but the U.S. distributor sells about a thousand pairs per month with a total employee of five.
The intriguing thing is that Hikari has never purchased any advertising! They have built their business with seminars and other informational tools that (1) help stylists to perform their jobs better and (2) help their distributors to be more professional within the salon industry (which benefits all the manufacturers they may represent).
In both cases, the middle-man distributors and the actual hair stylists, Hikari utilizes audiocassette programming and live seminars to carry their message. So although insurance and scissors may be miles apart in product, they're remarkably close when it comes to innovative marketing.
Let's first look at the programs for the end user: the hair stylist. Continual research has identified several problems affecting this group. One had to do with the scissors: the distributors weren't taking time to cover all the bases when delivering them to the buyer. Another problem was a high rate of carpal tunnel syndrome among stylists due to repetitive motion. A third problem area concerned new laws regulating the disinfecting of salon tools to eliminate HIV contamination. Other areas were also addressed, but those are currently the top three concerns.
Firmly believing that people buy from people who help them, Hikari devotes a lot of attention to helping the hair stylists. Let's look at the solutions to the problems just mentioned:
- Delivery. Rather than relying on the sales rep to deliver the scissors properly, Hikari developed a 'delivery tape.' This 15-minute audiocassette thanks customers for their purchase, explains the proper care and maintenance of the scissors, details the warranty procedure in case of a problem, and concludes with an 800 number for any questions. The cassette packaging also includes a warranty registration card that, when filled out and returned, offers a free leather holster for the scissors.
- Carpal tunnel syndrome. Addressing this issue required visual media, and the cost of a video was prohibitive. Assimilating all the available research, including some commissioned by Hikari itself, the company developed a 30-minute, seminar-style presentation on proper cutting techniques to avoid carpal tunnel syndrome. Corporate personnel who travel in the field were trained to present this seminar, which invites questions and answers. As they travel, they arrange for local distributors to set up multi-salon seminars to view the presentation. They also offer it as an adjunct to any convention or show they attend.
- Disinfectant. The solution to this problem combined introducing a new product for the disinfectant of tools with an educational audiotape covering health issues and proper disinfectant techniques. To this, Hikari added an award program: Distributors fill out checklists about the cleanliness and disinfectant process in their various salons, and salons that made the grade are presented an impressive award for display in their salons.
How does all this apply to the insurance industry? Let's look again by category.
- Delivery. When was the last time you reviewed your agency or brokerage procedure for the policy delivery? Are there any rough edges that need to be smoothed? Is the client educated about the coverage itself, as well as in the benefits you provide and to which they are entitled? Do you review all the other coverages you can write? Have they been introduced to their service representative? Most important, does every client receive this same information-including those whose policies may be delivered by mail? Would a 'delivery tape' smooth out some of the rough edges and insure that all clients receive all the information they should?
- Seminars. Granted, a lot of agencies present seminars, but are they addressing the right topics? For instance, Workers' Comp is a hot topic, and many agencies have put together seminars to cover it-and have been disappointed in the turnout. True, the topic is hot, but the agency has also entered the competitive field of seminar-giving. Everyone and her brother have been putting on seminars, and one would do well before looking at the competition before plunging in. Moreover, I heartily recommend avoiding seminar topics that smack of sales commercials.
Ask your clients what their current concerns are. It might help to have a topic checklist for them to prioritize for you. Think of subjects such as repetitive stress syndrome, independent contractor regulations, hiring undocumented workers, automated communications, safety in the workplace, etc. Each of these topics can be tied into insurance coverages or operational procedures that can be of financial benefit to your agency-but they don't appear to be flagrant commercials at first blush. Other ideas might be to tie catastrophe preparedness (a timely topic) to business interruption insurance, or protecting leased equipment with property coverages (a lot of companies are being 'double dipped' by equipment-leasing payments that also include insurance coverage on the equipment).
When doing a seminar, test it out on some of your current clients first. If it works, invite prospects to join with clients for subsequent seminars. Don't forget to invite the local media; you might get some excellent press coverage!
- Awards. When was the last time, if ever, that you presented a client with an award for being an outstanding client? Several years ago, one of our suppliers sent a typical holiday gift to us, but there was a difference: On opening the package, we found a plaque engraved with the words, 'Sound Marketing, Inc., Outstanding Customer. A customer is the most important visitor on our premises. He is not dependent on us, we are dependent on him. He is not an outsider in our business, he is a part of it. We are not doing him a favor by serving him; he is doing us a favor by giving us the opportunity to do so.'
Needless to say, the plaque went up on our wall, and we are still doing business with that supplier. In fact, since their service matches the philosophy of the plaque, 'it is almost an impossibility to consider changing vendors. As an IMMS Member, you have a wealth of information that expands far beyond insurance to correspond to many of the issues faced daily by your clients. Spend a little time researching the library and you'll come up with a lot of material that can help you develop your client relationships and secure their business for the future. Just remember, it's up to you to carry the message-before your clients need to ask!