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Trade Secrets: What Are They ...
It’s important to identify what can be considered a “trade secret” and why trade secrets are the most valuable assets of an agency - and thus worthy of having their confidentiality protected. The insurance industry speaks in terms of “books of business” or “expirations” or “customer lists.” Federal and state courts have ruled that “expirations” are property and, as a body of information contained in the files of each individual insurance agency’s accounts, these “trade secrets” represent valuable assets. Thus, the trade secrets (i.e. the book of business, customer lists, etc.) embody the agency’s true value. Just how does an insurance agency, or any other service firm, protect the time and resources spent in developing the knowledge of individual accounts that, if revealed, would benefit a competitor? The answer begins with executing a properly drafted employment agreement with each of the agency’s employees and producers. The employment agreement, or producer agreement, should address the issue of confidentiality of information in order to prevent a former employee from misappropriating confidential information and using it in an unauthorized manner to the agency’s detriment. Those agreements must be equitable for both parties and must balance the agency’s desire to protect its trade secrets and confidential information with the departing employee’s wishes to stay in the business of their common calling and to use their innate skills in pursuing their insurance career with another employer. An agency’s employment agreements and producer agreements should also include well-crafted non-competition or non-piracy provisions that meet the test of the jurisdiction(s) in which the agency operates. Although this article does not address the specific requirements and limitations of such restrictive covenants. They’re closely related to the protection of trade secrets and confidential information. What constitutes the confidential or trade secret information that requires protection, and how does it play a part in giving the employer a competitive advantage? Some information about any insurance account is available in the public domain, such as the firm’s Web site, advertisements, and other sources of information. This type of information is generally not confidential information, nor worthy of protection as trade secrets. What are Trade Secrets? A trade secret may consist of any formula, pattern, device, or compilation of information that is used in one’s business and that provides an opportunity to obtain an advantage over competitors who don’t know or use it. A trade secret is a process or device for continuous use in the operation of the business. It might be a formula for a chemical com-pound, a manufacturing process, or a list of customers. When money and time are invested in the development of information and procedures that are not generally known, trade secret protection issues exist. Further, when an effort is made to keep information from competitors, trade secret protection is warranted. Trade secrets are not limited to secret formulas. In fact, “absolute secrecy” is not a prerequisite; only “substantial secrecy” is required. The definition of trade secrets is quite broad, and may include any of the following: Customer or client lists, billing information, customer and client preference information, and contact lists Pricing information and marketing plans Computer programs and data compilations Training and service manuals Vendor information The exact language used to define a “trade secret” varies by state. However, three factors are common to such defini-tions. A trade secret is some type of information that: Is not generally known to the public Confers some sort of economic benefit on its holder Is the subject of reasonable efforts to maintain its secrecy Some of the factors courts consider when determining whether information is a trade secret are: The extent to which the information is known outside the agency The extent to which it’s known by employees and others involved in the agency The extent of measures taken by the agency to guard the secrecy of the information The value of the information to the agency (or its competitors) The amount of effort and/or money expended by the agency in developing the information The ease or difficulty with which the information could be properly acquired or duplicated by others How Do You Protect Your Trade Secrets? An agency must carefully plan and implement an organized program that identifies its trade secrets and then take steps to protect against their misappropriation. Documenting this program, will put the agency in a position to demonstrate to a court of law the measures taken to protect its trade secrets. At a minimum, a trade secrets protection program involves the establishment of internal security procedures, which should include: A written policy of confidentiality included in employee procedures manuals and employment practices guide-lines, emphasizing that all internal communications should be handled in strictest confidence. The agency’s confidentiality standards included in employee training and educational programs. A process where customer lists, client information and other trade secrets are distributed only on a need-to-know basis, and marked “confidential” where possible. Execution of well-drafted Confidentiality/Non-Disclosure agreements with all employees, producers, and independent contractors. Security codes or barriers in the company’s data processing computer systems and other management records that are revised on a regular basis to prevent infiltration. A process for storing confidential information in a secure manner and shredding documents when no longer needed. In our view, the best way to determine confidential information is to examine an insurance account and identify the information that the agency has spent time and money developing, which is not readily available to a competitor, and that gives the agency an advantage. Here’s an offering of questions to help determine what the agency knows about an account that could qualify as “confidential information”, and thus be worthy of trade secret protection: What is the ownership of the insured company, and who among the owners controls the insurance program? Who is in control of the insured company today, and who will control it in the future? What is the financial condition of the insured company Who are the insured’s major clients and/or vendors? Does the insured company require specific coverage modifications to meet the contracts normally executed with its customers? What is the claims history of the insured company? Has the insured company had any lawsuits filed against it, and what is the nature and current status of those lawsuits? What loss control measures has the insured initiated? Does the insured manufacture products, or modify or assemble the products of others? What products or services of the insured cause major exposures? What is the history of the insured’s workers’ compensation and/or general liability experience modifiers? Does the insured carry specialized Products Liability and/or Professional Liability coverage? Does the insured need contingent Business Interruption coverage? Stay Vigilant! Although the confidential information and trade secrets you need to protect might be as simple as customer lists and client information, it’s essential that you take effective steps to protect this information from misappropriation. Consult with an attorney who is well versed in matters of confidentiality, non-disclosure, and employment practices to assist you in devising and implementing an information protection program. Should you encounter a breach, or threatened breach, act expeditiously to retain competent counsel to take immediate action to protect your competitive advantage. A trade secret, once lost, is gone forever.

Tracking Compliments And Complaints
Customer satisfaction is subjective on the part of consumers. It is how they feel about you and the product or service you provide. The difference between satisfaction and dissatisfaction is what the customer expected versus what he or she actually experienced. Tracking these two emotions will identify negative patterns that need repair and positive patterns that need repeating. The complaint log is the perfect tool for documenting customers' dissatisfaction levels. Focusing on customer complaints serves to pinpoint weaknesses within an organization. Equally important is keeping a log of all customer compliments so you can see what you're doing right. Evidence shows that people work best when they feel good about themselves and what they do. If all you hear all day is what's wrong, and never what's right, it will be considerably harder for you to do a good job. Hearing positive feedback, as provided by a compliment log, offers the following benefits to CSRs: Enhanced self-esteem Confidence in decision-making ability Improved job satisfaction Evidence of level of performance Self-motivation to serve The compliment log should be set up to record positive reactions from customers. (A sample compliment log appears at right.) The compliments will show areas in which you're hitting the mark. Additionally, the log presents management with the opportunity to recognize and praise individuals and teams for outstanding customer service. Benefits to management (in case you need to sell them on the idea) include: Promotion of strong team spirit Creation of a performance-appraisal tool Reinforcement of positive behavior If posted every week and recognized in staff meetings, the compliment log can become a job perk, in addition to being an effective satisfaction measurement device. Get the Main Ideas Track satisfaction and dissatisfaction to identify habits that need repeating or repairing Use a complaint log to document customer dissatisfaction Create a compliment log to discover what is being done well Use the compliment log as a vehicle for positive feedback, as well as a satisfaction measurement device

... For auto insurance, telematics devices measure actual driving patterns. Is ...

Put Your Marketing To The Test And See How You’Re Doing
PUT YOUR MARKETING TO THE TEST AND SEE HOW YOU’RE DOING by John Graham All marketers are liars. Because we’re all marketers of one thing or another, we’re all liars. To give proper credit, Seth Godin, the provocative business pundit, started it with his book, All Marketers are Liars. As the syllogism makes perfectly clear, he was 100% on the mark. This isn’t an indictment of P&G, BofA, Chrysler, Goldman Sachs, McDonalds, or any other organization, big or small. There are probably more liars on LinkedIn, Facebook, and any of the other social media, where tens of millions of self-marketers have a feast day making claims that wouldn’t stand up before a sixth grade class. As a recent USA Today noted, some 70% of self-marketers admit to doing some “fabricating” with their countless unsupportable claims, as they do their best to “sell” their product. This, of course, doesn’t take into account the desperately doctored job applications, resumes and college applications, but it does include at least a few U.S Presidents and a rather long list of Members of Congress. Even though Godin was on to something significant, he changed the title (but not another word) of the latest edition of his book. It’s now, All Marketers Tell Stories. We’re all marketers and we tell some whoppers that make us feel better about ourselves, give us an advantage, or enhance our image. At the same time, the Internet gives us opportunities ad nauseam to “tell stories.” However, this is neither a defect nor the downfall of truth telling. Happily, millions of people are constantly setting the records straight, which is why Wikipedia and tens of thousands of reviews work so well. Fraud detectors are always at work! The only ones who are deceived by making unsupported claims are those who make them. Today, the Marlboro man would be sent packing and Virginia Slims have lost their femininity. All of which is to say that no one marketing a product or service should deceive themselves into believing that what they’re doing is the exception to the rule. Marketing today must past the truth test. In fact, much of what we market is better, often far better. For some reason, many marketers think success depends on lying. A good example is the fast food industry, which seemed to think that consumers would ignore 1,200-calorie burgers forever. So, here’s a four-question marketing test that provides a simple way to see if your marketing passes muster. 1. Why would customers want to buy what you’re selling? This is a serious question, although many marketers might consider it totally irrelevant. Does what you’re marketing solve perceived problems for customers or trumped up ones? Can they count on it to deliver on your promises? “How does it help me?” is a significant question. Take the issue of national brands vs. store brands at the supermarket and other places. In the past, consumers opted for the “leading national brands,” until the recession hit. Suddenly, store brands were getting far more shelf space, as consumers gave serious attention to the cost question. 2. Are you telling the truth? It might seem strange to align marketing with truth, because they appear to be such strange bedfellows. As easy as it is to be cynical, consider this. On the day that Steve Jobs announced the Apple iPad, before more than a handful of people had one in their hands, he boldly stated that it was “a truly magical and revolutionary product.” He then went on to say, “What this device does is extraordinary. It’s the best browsing experience you’ve ever had. It’s unbelievably great ... way better than a laptop. Way better than a Smartphone”. Wow! So many over-the-top claims in so few words! However, they were not hyperbole in the case of Steve Jobs and the iPad. Anyone else who tried it would have failed. Jobs wasn’t laughed off the stage for one reason: he had a proven track record of delivering on his promises and telling the truth. Instead of boos, he garnered applause The truth works. Unfortunately, most marketers haven’t learned this lesson. 3. Is your marketing message compelling enough to move prospects to action? To put it another way, robust offers work, while wimpish ones don’t. A case study in the marketing publication BtoB, describes an AT&T campaign directed to a group of 75 top executives of leading hotels. Based on the J.D. Power and Associates finding that WiFi is the most valued amenity travelers want to know about before they check in. AT&T wanted to make sure the executives knew about the availability of WiFi. Ironically, AT&T decided on a direct mail campaign, designed to get meetings with AT&T sales reps. Recognizing that high level executives are well insulated from invasive attempts, they took a “you’ve got to see this” approach. The first mailing was an attention-getting package with an actual Wi-Fi locator device inside, and this message: “Locating Wi-Fi at [name of hotel chain].” Sales reps made follow-up calls to verify that the package had arrived and to ask for a meeting. The second mailing went to those who didn’t respond to the first. This was “a custom dimensional piece consisting of a cardboard mockup of a Notebook-like computer,” reported BtoB. Rather than a screen, it sported a video-in-print technology that played a two-minute video personalized for each hotel chain. Next-day delivery upped the ante even more by requiring the signature of the recipient. Again, the sales team followed up, using several ways to contact the prospects. It was a powerful combined effort between marketing and sales. Those who made a commitment to meet with the sales reps received a special thank- you, a real Notebook computer. Rather than the traditional 2% response rate for direct mail, AT&T reached 9%, based on face-to-face sales meetings. 4. How do our products or services stand up to those of the competition? The objective of marketing is not to outdo the competition, even though that’s quite common; rather, the goal is to out-think competitors. The tendency is to pile on the bells and whistles, even though, as we all know, no one has a clue how to use them and wouldn’t use them even if they knew how. How many people have mastered the common cable TV clicker? How many can use 10% of the capability of a basic digital camera? They call them “smart phones” because they’re clearly smarter than their/ users. Whether less is more is debatable; however, many times “less best” meets the customer’s needs. After using a particular computer program for analyzing Workers Compensation data, Kevin Ring, the Lead Workers’ Comp Analyst at the Institute of WorkComp Professionals (Asheville, NC), wondered why so many of the Institute’s advisors weren’t using the software. For what they needed, it was too powerful and seemed somewhat daunting. Ring then developed a new program, designed to give salespeople exactly what they wanted that’s easy to use, quicker and costs less. This offers a perfect example of how out- thinking the competition is a powerful marketing strategy. Conclusion Test your marketing with these four questions. If it passes, congratulations. However, if your marketing leaves something to be desired, now’s a good time to get to work. In the end, we’re all marketers and, thus, all liars. At the same time, some of our stories have a clear ring of truth.

...or installing certain home safety devices trims the price further. Pros ...

What Is Target Marketing?
WHAT IS TARGET MARKETING?   by Thomas M. Maher   The beat goes on. Yes, target marketing is still up there near the top of the corporate charts. But, according to an industry activist, many marketers are dancing to the wrong tune.   'Some companies say they tried target marketing and it didn't work. Others say they do it but on a closer look finds they are restricting themselves to just doing target selling,' says Jack R. Snader, president of the Systema Corp., Chicago.   Mr. Snader, an observer of industry trends and issues for 15 years, heads a sales consulting organization that seeks to improve the productivity and performance of field sales organizations. Among his clients: Lincoln National, Connecticut Mutual Life, Bankers Life, and Union Central Life.   His organization's latest drive to get the true meaning of target marketing to what he sees as a largely misinformed public is via a newsletter, Agency Marketing.   'We hope to add thought-provoking dialogue on the subject of marketing for agency managers and home offices of life insurance companies. If we can give a fresh perspective to the marketplace with our brief articles once every two months, the newsletter will prove worthwhile.'   'Let's call our newsletter a reinforcement device. Most professionals in the industry are aware and interested in applying state-of-the-art marketing principles to increase bottom-line results. Unfortunately, upon analysis, we often find that companies allow their agents to 'wing it' in their approaches to clients and prospects,' he told us.   Fortunately, he continues, life insurance companies realize that they must become more marketing-oriented. But he sees confusion regarding what a marketing-oriented objective should be and how it should be enacted. Many companies, he notes, historically have delegated selling and marketing responsibilities away.   'Quite simply,' he says, 'the marketing issue to be resolved is to determine, in looking at a market, what it is that these people want. Consumers are now sophisticated and extremely diligent in examining the value of their investments and/or protection.'   Again, he sees a lot of target selling going on, but not enough target marketing. Another common dilemma is: who's doing the marketing-and who indeed, should be doing the marketing? What are the roles and duties of the home office, the agency manager, the agents?   Mr. Snader, in his travels hither and yon, encourages all within earshot to change from a selling to a marketing mindset, and to set mechanisms to get cited questions answered. He acknowledges that this may sound like Marketing 101, but adds:   'Look at industry retention rates for agents and the high cost of housing and the often lengthy periods of non-productivity for new or career-change agents. You can see that greater diligence and determination need to be applied now if companies are to survive or thrive.'   The life insurance industry, he notes, is not known for its ability to respond rapidly to new conditions. However, he believes enlightened companies are destined to spot profitable opportunities while overcoming the challenge of new competitive forces (brokers, bankers, and full-service financial companies) in the marketplace.   How can a company go on the offense? First, scratch thoughts about quick-fix panaceas. Then, he suggests, keep remembering that no outside provider knows the neighborhood (clients and prospects) better than the insurance industry does. He further suggests that this knowledge base can be transformed into a dynamic marketing program, one which competes successfully against new and traditional competitors. Listen:   Strategic Tool   'A strategic tool can be applied to penetrate new markets, boost retention rates of good agents, and increase their loyalty. Directly, insurance companies can tap into a vast reservoir of revenue-producing opportunities by opening up target marketing channels before outsiders get up to speed.   'Many companies recognize that they are not doing enough to support career-building agents by helping them to stimulate and access focused markets. Excellent agents devote careers to counseling prospects and clients. Surely they are at least as concerned about their own professional goals.   'Agents are becoming more easily distracted by new marketing noises these days. They are bombarded with opportunities to sell many kinds of products. So it is increasingly difficult to get agents to give the company the same percentage of business they have delivered in the past.'   Accordingly, target marketing is a virtually untested avenue to employ to enhance agent loyalties, he says. Once in place, it becomes a visible way to signal agents that a company is strengthening the steps on its career ladder. With company support, Mr. Snader says that motivated agents can vigorously climb the rungs to greater growth, satisfaction and increased income potential.   With all this said, Mr. Snader confesses that target marketing is not a cure-all and shouldn't be on the top of every insurance company's priority list. But for many companies, he insists, target marketing moves well beyond the use of traditional routes in soliciting business. He explains:   'That is, qualifying suspects, doing needs analyses, talking about product features and benefits, overcoming plan objections, closing sales, collecting payment, delivering the policy-these are all sales functions.   'A target marketing company does pay attention to these matters. The difference is that it formulates new business opportunities into segments, moving beyond the 'business as usual' routines. The key in target marketing is to segment prioritize targets into an identifiable and systematic construct.'   A target marketing company, he continues, doesn't just serve its marketplace with hope that '84 bottom-line profits will increase. Rather, it sensitizes and stimulates the needs and wants of particular groups, ones which the company thinks is worth the time and energy to go after better than anyone else can.   The prime element of target marketing, then, is the selection of the market segment, and assessing and pinpointing markets that have good growth potential. Notes Mr. Snader: 'Gathering data to select target marketing requires more effort than just thumbing through the yellow pages to see who is listed under certain industries or occupations. Such superficial methods are likely to fail and may discourage a company to the degree that it turns to an equally ill-founded scheme.'   Target marketers, he contends are able to capture solid market niches because they don't allow guesswork to be their guide. They don't roll out strategies based on idle speculations that a seemingly related group constitutes a cohesive universe.   Distinctive characteristics   Nor, he says, do they apply half-baked theories and then rush tactics to judgment as less cautious zealots do. Rather, they avoid inherent structural defects by identifying a genuine market segment before an agent reaches out for his first handshake. According to Mr. Snader, a valid market segment has distinctive characteristics:   Members share similar problems and opportunities, regardless of diversities in company size or business profile.   Every segment member can be identified as probably having the need, resources, and authority to buy the insurer's or a competitor's product or service.   Segment members are aware they share common bonds and interests with each other and continually reinforce such ties. Interrelationships are marked face-to-face meetings for business or professional reasons. Many belong to the same organizations and read publications that cater to their unique informational needs. They are likely to convene at the same social events and foster a number of special trust relationships with other insiders.   So the words to the wise are, according to Mr. Snader: 'Know the segment' before you track it! It must be of sufficient size within a local market to be worth probing and penetrating. A controllable size for an agent's market segment could encompass a minimum of 400 and a maximum of 600 prospective buying centers. A 400-600 range is on par with an agent's ability to serve this niche over a one-year selling period.   'In auditing a segment's viability, probe the market to such a degree that the company or the agents are able to determine precisely who 'the movers and shakers' are. This cadre of leading power centers generally encompasses a small percentage of the most influential forces in their field.'   Once the market is identifiable and a company has built its database, he continues, it's time to apply the methods to stimulate that market. Then, a company is set to access it. Possibly the most effective way to gain access is by referral from centers of influence who have trust relationships with an individual prospect.   There are other ways to access segments but, in sum, 'the access rule is to employ specific ways to build credibility with buying influencers within the target market.'   At this point, the sales approach comes into being. Too often, says Mr. Snader, an agent selects a segment, skips market stimulation and access methods, and opts to go immediately into a sales approach-either by cold calls or using other antiquated selling styles in hit-or-miss fashion to secure appointments.   A target marketing focus, he explains, is much more deliberate. 'It is modified to uncover the needs and wants of constituents narrowed into a single segment. In target marketing, conventional indirect marketing strategies can be planned to create and fulfill desires. For example, direct mail and advertising can be customized to fit the prime psychological 'hot buttons' shared by members of a common group.   'Generic, horizontal promotional tactics are totally off target. Each measure must be geared to link up with the needs of an identified, vertical group of prospects.'   Next Mr. Snader listed some indirect marketing initiatives with a promise to adapt them to an objective to put vertical marketing segments into play. Here they are:   Attending trade shows supported by target segment, presenting speeches to select organizations, gaining valid third-party endorsements, producing mailings and brochures that describe problems and solutions, and capturing center-of-influence referrals.   Also, participating in seminars, creating pre-approach letters, becoming known and accepted at social events and open houses, and preparing newsletters with thought-provoking data. To Mr. Snader:   'When an agent applies any of these promotional methods, he slants strategies based on the common bonds of his market segment. The goal is to systemize marketing methods to match the psyches and values of the target groups.   'Say the target universe includes companies that sell software services and act as distributors for microcomputers manufacturers. Each one knows a large percentage of similar providers. They talk with each other about trends and issues they've had in the same trade magazines. They frequently gather at local or national meetings.   'Once a company notes such common bonds, an agent can seek to lock in this segment, and network his contracts throughout it. Few traditional competitors or outside providers would have the ability to quickly add this group to its target list, as 'first in agents could do.'   By scoping traditional marketing mix measures into organized, segmented approaches, Systema Corp.'s president stresses that a company is less likely to be viewed by prospects as a 'me too' provider. Its agents, he says, can distinguish themselves as experts about prospect needs. Their homework (data intelligence) and knowledge of prospect self-identities could set them apart from weak researchers and cold callers, he adds.   'As the career-building agent finds success in skillfully matching prospect needs with company products, look for his loyalty and commitment to be bolstered. He'll be building awareness and interest in the selected marketplace-hopefully increasing his sales volume within a short promotional time cycle.' (It's wise, he adds, for companies and individual agents to pre-set segment goals to achieve within a specific number of months or at least during a fiscal year.)   'Companies and agencies,' he notes, 'know they are frequently getting decreased shares of their agents' total premium incomes, though they provide office space and other expensive backup support.   'As companies ask themselves how they can have better control over housing costs and retain top-quality producers, target marketing may just be the instrument to bring more business back to the primary company.'