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Keeping Ahead Vs. Keeping Up
Through the years, businesspeople have spoken the language of proactive marketing while implementing strategies that are best defined as reactive. We speak of the necessity of dealing with change as a constant, yet we fear the reality of change. In other words, we think in terms of 'keeping ahead,' but our end results are often just 'keeping up.' Into this dichotomy, Craig Huey, president of Creative Direct Marketing Group, Inc., adds a new phrase: 'counter-intuitive.' According to Huey, 'most advertising and marketing is counter-intuitive. What you think will work, probably won't.' So how do we make change consistent and continuous? How do we maintain a proactive marketing stance? And how do we develop marketing if what we think will work, won't? Or, to keep it simple, how do we keep ahead, rather than just keep up? DIRECT MARKETING MEANS MULTI-MEDIA Let's start by clearing up a major misconception. Direct marketing is not direct mail, as many of us would believe. Direct marketing truly is a multi-media event, running the gamut of every known method of communication. And, whatever the method, the goal of direct marketing is to achieve a desired response. Think of it in terms of travel. The goal is the destination, and the media utilized is the vehicle. Each destination can be reached by a vast array of transportation vehicles or a combination thereof. For instance, on a recent trip from Los Angeles to San Francisco , I drove to the airport, walked to the terminal, flew to another airport, and took a motorized walkway to a bus stop for a ride to a train station. Then, I took a train to the city, a cab to the building, and an elevator to the office. Yet on other trips, I've been known to bypass all of that and just drive from point to point. Similarly, direct marketing can use a combination of media or a single method. Don't lock into a single-method mind-set. Allow yourself the freedom to be innovative and creative in direct marketing. Let's take a look at new variations on the tried and true, as well as the just plain new. WORKING THE MAIL Direct mail can be as simple as a letter of introduction or as intricate as a newsletter. It can be pure image-enhancement or it can solicit a response. It can include a return postcard or it can promote response with an 800 number. It can include a gimmick, a gift, an audiotape, or videotape, or it may not. Although all of these variations have proven viable, the first goal of direct mail is to get it opened. Commonly accepted rules are that imprinted envelopes are better than address stickers. Personalization is better than 'occupant.' Stamps are better than metered mail. Some experts even focus on the color of the envelope and the ink. Reader's Digest and others recommend that enticements be printed on the envelope to encourage the opening. Huey suggests that a combination of the relatively new 'infomercials' and direct mail can be extremely effective. For most agencies and brokers, the cost of producing an infomercial is prohibitive at first glance. However, many local cable companies will work with you in producing a low-budget infomercial or in providing public-access time. Either way, aligning a direct-mail package with television exposure can increase effectiveness dramatically by including this simple phrase on the envelope and the enclosed material: 'as seen on TV!' On a lower-cost basis, this concept can even cross over to local radio programming and the phrase: 'as heard on radio!' 'Tele-mail' not only gets the attention of your prospect, but also helps build credibility, which further increases the response ratio. TELEMARKETING: OUT OR IN? The only constant is change! Telemarketing offers one of the best examples. Just 10 years ago, telemarketing sales centers were being extolled as the greatest prospecting tool since doorbells. Slowly the concept began to take hold as more agencies reported successes. Beset by a daily onslaught of prospecting calls, businesspersons grew afraid to pick up their phones and citizens began turning on their answering machines during dinner hour in self-defense. Now many companies are disbanding their telemarketing departments in the belief that such marketing has become ineffective. Rather than discarding a proven marketing tool, perhaps it's time to experiment with some changes. Telemarketing experts refer to 'outbound marketing' vs. 'inbound marketing.' Most insurance agencies, up until now, have concentrated solely on outbound calling to generate leads and x-dates. Let's look at the other side of the telemarketing coin: inbound. Here a sales center can continue to be a valuable tool in processing responses generated from other forms of direct marketing, such as television, radio, newspapers, magazines, billboards, mail, etc. Typical marketing appeals designed for inbound callers might be: 'Just call (800) 234-5678 for a free gift . . . or survey . . . or more information.' A trained sales center can quickly turn those responses into leads. How about outbound servicing of inbound responses? Let's say that your agency sends 10,000 mailers with a postcard response. If you get a 3% reply, how much time will pass before producers actually contact all 300 prospects? Probably too long, according to Huey, who pointed out, 'Responding quickly to inquiries can prove the difference between making a sale and losing it to a competitor. Telemarketing has been found extremely effective in qualifying sales leads in a competitive industry.' As an example, Huey cites Micro Component Technology, Inc., (MCT), a Minnesota-based manufacturer of integrated-circuit handling and testing equipment. As sales inquiries topped 100 a week, the sales staff couldn't keep up with the demand for product information. As a result, valuable prospects were overlooked. The answer proved to be telemarketing. A list of key questions was prepared by management to allow the telemarketers to easily qualify the prospects on a graded system of A through D. A's were ready to buy now, B's within the year, C's sometime in the future, and D's wanted information only. The A, B, and C leads were sent to the proper sales managers for prioritized contact, while literature was sent to the D list. Proper levels of management were copied on the leads for managerial follow-up, and data on the leads was data-based for future mailings. In the first year alone, more than 4% of the leads contacted and qualified by telemarketing resulted in sales. So, creative use of telemarketing can thus be effective in qualifying and prioritizing leads, thus increasing the effectiveness of the producer's time. FAX FOR PROFIT We've all come to rely heavily on the time-saving convenience of the fax. But how many of us are using it for direct marketing? And how many of us realize the potential savings of direct marketing by fax? Computer programs now allow your computer to do the faxing-no one needs to stand and feed paper into the machine. That means less labor. Plus, such computer programs allow you to run the fax through the night. That means lower phone-line charges. Furthermore, in most cases, a fax is delivered to the recipient immediately, rather than being lost in a stack of daily mail. Incidentally, my own business, Compliance Publishing Division, began using a combination of faxing and telemarketing this past year with a surprising degree of success. The project was to market a compliance manual for the Americans with Disabilities Act (ADA). After identifying our target market and purchasing a list with fax numbers, we sent 50 faxes a night between midnight and 5 a.m. The following day, our telemarketers would call to solicit orders for the manual. Some interesting facts were that less than 1% of the contacts said they had not seen the fax. (On prior mail campaigns, up to 40% of the contacts said they hadn't seen the package.) Earlier telemarketing attempts without first sending a fax were considered dismal failures because too much information had to be given over the phone. (By using the fax, the prospect already had much of the necessary information.) Conversely, using the fax without telemarketing follow-up also provided minimal results. Individually, telemarketing or faxing alone resulted in less than 1% sales, but in combination we averaged more than 3% in sales. Some caution is indicated as federal, state, and local governments are regulating the use of fax advertising to stem the tide of junk fax. So, as Huey recommends, be sure that there is value to your message. Don't just make it a sales pitch; include information that your prospect might need and appreciate. Marketing by fax can designate response by fax, phone (for immediacy), or mail. However, remember the lesson of MCT: Quick response and lead-qualifying mean more sales. CREATIVITY AND CHANGE KEEP YOU AHEAD Direct marketing can be the most cost-efficient method of developing leads and closing sales, if you are willing to change and be open to creative ideas. That type of philosophy will definitely place you in the proactive classification of keeping ahead. Your competitors will be left to try to keep up-with you!

Happy Employees Increase Efficiency
Some employees are actually happy in their jobs these days, and for good reason. The wave is starting to swell as more and more agencies are truly taking care of their employees. From a half-day off per week to allowing them to pick up their kids from school to telecommuting, agencies are thinking about how their employees feel and taking care of their personal needs. Surprise! Employees really are happy. After all, what other agencies or companies these days would even think of such things? Enlightened agencies are identifying their employees’ needs and satisfying them. Needless to say, revenue is increasing, morale is up, employees are sticking around, and overall efficiency is increasing. TAKE A HALF-DAY OFF Yes, some agencies are giving employees a half-day off with pay. Agencies pay their employees for a full 40-hour week and give them the half-day off of their choice. Employees can schedule doctor appointments, be at home while a special service is performed, or run errands during that time. Remember those instances when an employee had to run home to open the door for the rug cleaners or take one of their children to the doctor? Think about how much more efficiently the agency could run with a consistently full staff most of the time. It could eliminate disruptions throughout the day and result in a higher quality of work. After all, employees know they have their half-day off to take care of personal needs that might otherwise be on their minds. Morale goes up, and work remains up-to-date. PICK THE KIDS UP AT SCHOOL 'Sally has a temperature, and the school nurse called me to pick her up.' 'I don’t want Sally riding the bus today. I really need to pick her up at school.' How often have you heard these kinds of concerns from parents? One agency allows an employee to do this every day. Apparently, the employee wanted to make sure that the child wasn’t riding the bus every day. They wanted to be there when the child left the school grounds. Believe me, the employee is very grateful to have this opportunity. After all, what other company would allow this benefit? Again, morale and efficiency increase. TELECOMMUTE WHILE THE BABY’S SLEEPING Enrolling young children in preschool is now very common. Parents drop off their children at school in the morning and pick them up in the afternoon. One employee wanted to do just that. They wanted to pick their child up and make sure they were home with the child in the afternoon. That’s what one agency did for its employee. The agency furnished a computer for the employee’s home and forwarded the employee’s telephone calls there. Is the employee grateful? You bet, more than anyone could ever know! The employee is very happy, and the agency is working more efficiently. HELP EACH OTHER TO PREPARE FOR VACATION TIME Vacation time! When aren’t we excited to go on vacation? But as we all know, that means an up-to-date desk. One employee thought of having a co-worker cover phone calls for two days so that they could get their desk caught up before heading out on vacation. Of course, it meant there would be a payback time. But the vacation started on time, and the employee was excited to be out the door on Friday. Again, another very happy employee, and another very happy agency. Efficiency is up. Morale is up. Employees are sticking around. These are only a few things I’ve heard about in my work. I’m sure there are plenty more. Agencies are riding the wave and listening to their employees to make them happy. From that half-day off to schedule a doctor appointment to CSRs covering for one another to take vacation time, more and more companies are realizing how important it is to keep their employees happy. Revenue is up. Morale is up. Efficiency is up, and turnover is reduced!

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Work Flow Procedures Manual-Commercial Claims Procedure
COMMERCIAL INSURANCE CLAIMS PROCEDURE The most important service that we provide a customer is Claims Service. Most agencies put a very low priority on items such as claims reporting and follow up. This not only leads to lost customers, but also Errors and Omission losses. Claims is also a source of additional protection that can be provided by the agency for their customers. For example, the time a person is most likely to think about Life Insurance is right after they have come face to face with their own mortality. This could occur after a collision loss, a burglary or a fire. The CSR/Claims Representative must be alerted to pass this information to the agency's life representative. There are other types of claims (covered and uncovered) that provide the attentive CSR/Claims Representative the opportunity to provide additional protection for the customer, but only by discussing these items in an agency meeting, can the procedures and techniques be effective. The keys to a successful Claims procedure are: KEEP THE CUSTOMER INFORMED Set a follow up procedure so that you can keep your customer up to date. (Don't let your customer's irate phone calls be the trigger to your follow up) Use draft authority whenever possible Don't say anything that will give the customer unrealistic expectations 1. CSR/Claims Representative receives notification from customer of loss. 2. CSR/Claims Representative creates appropriate ACORD claims form from customer's data base and then enters additional claims data. (Should be done whether or not coverage exists) 3. CSR/Claims Representative reviews customer's electronic file to ascertain if coverage exists. 4. If CSR/Claims Representative can verify that coverage exists, and is within the agency's authority, CSR/Claims Representative issues claims draft and records in draft log (Go to step 11) 5. If CSR/Claims Representative can not verify that coverage exists, or the claim is not within the agency's authority, CSR/Claims Representative forwards claims ACORD form to the company. 6. CSR/Claims Representative enters appropriate data into electronic claims log or note pad. 7. CSR/Claims Representative sends one of the following letters to customer: Type of Loss: Other Party: Date of Loss: Dear : Thank you for your report of loss. We are giving it our immediate attention. In order to expedite the settlement of your loss, please send us a list of the items lost or damaged, their approximate age, the cost to replace them, and the amount you paid originally, if known. Since claims service is our most important service to you, please let us know if you have any questions or are not completely satisfied with the handling of your claim. Sincerely, Dear : Thank you for your report of loss. It is being given our prompt attention. Please note the following: The loss you called in to our office today has been referred to your insurance company. Enclosed is a copy of the report. Please make any necessary changes; sign, date, and return to our office in the enclosed self-addressed envelope. Since claims service is our most important responsibility to you, please let us know if you have any questions or if your loss is not being handled to your complete satisfaction. Sincerely, Claims Supervisor Enclosure Type of Loss: Other Party: Date of Loss: Dear : Thank you for your report of loss. It is being given our prompt attention. At your request, we are retaining this loss for our records only. Claims service is our most important responsibility to you. Please let us know if you have any questions or if your loss is not being handled to your complete satisfaction. Sincerely, Type of Loss: Other Party: Date of Loss: Dear : Thank you for your report of loss. It is being given our immediate attention. Please send our office any correspondence you receive from the other party or their representatives. Also, be sure to refer the other party to our office. Since claims service is our most important service to you, please let us know if you have any questions or are not completely satisfied with the handling of your claim. Sincerely, Type of Loss: Other Party: Date of Loss: Dear : Thank you for your report of loss. It is being given our immediate attention. The driver of every motor vehicle involved in an accident that results in damage to property in excess of or in bodily injury or death must file a report of injury or damage with the Department of Motor Vehicles within 15 days after the accident. Enclosed is an SR-1 Form. Fully complete, sign, and return the form to our office. A self-addressed envelope is enclosed for your convenience. Since claims service is our most important service to you, please let us know if you have any questions or are not completely satisfied with the handling of your claim. Sincerely, Dear : I am sorry you have experienced a loss. Since claims service is our most important responsibility to you, please keep us informed if your loss is not handled to your complete satisfaction. If you have not heard from an adjustor in a few days, please advise our office so that we may follow up on your behalf. My Customer Service Hours are 9:00 a.m. to 12:00 p.m. and 1:00 p.m. to 5:00 p.m. Monday through Friday. Your Lienholder may require an inspection of any damaged property. We suggest you call them immediately to expedite the settlement of your claim. In the event your property is mortgaged to a bank, mortgage company, etc., any settlement may be payable to you and your Lienholder. You both must endorse the check before it can be cashed. Should you have any questions or problems, please contact me personally. Sincerely, 8. CSR/Claims Representative sets up a suspense to follow up if the claim is not handled in a specific period of time. (If the agency's automation system has an electronic claims log showing open and closed losses, it should be reviewed weekly to follow up on open losses) 9. If claim check or denial has not been received in a predetermined period of time, send follow up letter. 10. When claims check is received from the company send the check to customer along with Cover Letter (CLAIMFRM.PL). 11. CSR/Claims Representative updates customer's electronic claims file. 12. CSR/Claims Representative deletes any unnecessary follow up dates. 13. If customer returns claims letter, file in Insurance Company file to review with Company Representative on a regular basis. (Also if there are criticisms of agency's handling of claims, refer to agency principal)

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