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Working With A Telemarketing Service
  WORKING WITH A TELEMARKETING SERVICE By Paul A. Robinson ...r-supplied lead. Why not see what telemarketing can do for you? Paul Robins...

Agency Bill Vs. Direct Bill: Avoid Confusion
When I started in the agency side of the business in 1975, direct bill was strictly a Personal Lines billing method, used predominantly in Personal Auto. Today, direct bill has found its way into the Commercial arena. The claim involves a $200,000 lawsuit against both the agent and the carrier for improper cancellation of a Fidelity Bond. The agent had placed a Commercial package policy for a homeowners association. The premium was direct billed, except for the bond, which was agency billed. When the client completed the application, the premium they paid to the carrier included the premium for the bond. The carrier then refunded the bond portion to the client on the basis that it was to be agency billed. Meanwhile, the agent, looking for payment of the bond, was following up with notices for the owed bond premium. When the client didn't respond, the agent requested that the carrier cancel the bond for non-payment of premium. The homeowners association then reported an embezzlement of some $200,000 by a prior organization president. When they submitted a claim under the bond, the carrier denied coverage due to the cancellation. Questions of agency liability focused on the conversations and information communicated by the agency to the client, especially where there was a difference in the method of premium billing. The case was resolved when the carrier accepted coverage on the basis that the loss occurred before the cancellation. How might the agency have avoided the claim? This situation had the built-in problem of two methods of premium payment: Direct and agency billed. The client disputed the subsequent cancellation and claim denial. Documentation of the discussion between the client and agent would have assisted in the agency's defense. The matter turned out favorably due to the efforts of defense counsel and the carrier's acceptance of coverage for the underlying claim. Could a situation like this arise in your agency? It could probably happen in just about every agency with options for direct bill or agency bill. Proper communication and documentation, not just to clients but also among your staff, are essential to avoiding problems. When you send a policy to a customer, make it quite clear to them who they're supposed to pay for each coverage. Attach a note to the policy. If you change the billing method, be certain to bring this to the customer's attention. If you deliver the policy personally, put a note on it to avoid confusion. Because your staff will be advising customers on billing methods, be certain to have a means of identifying the billing methods on each of the policies. Don't just put a note on the file jacket. If the billing method changes, someone might forget to change the notation.

...ain I'm protected?' The subject of bonds can seem complex, but at (Your Agency... Each business has different types of bonds available. We can help you determi...

Partnering With Carriers
Trust between you and your carriers must be a two-way street. Agencies have given carriers as many reasons to distrust their commitments as carriers have given agents. Time and again, both groups have changed attitudes, leaving loyalty and commitment in the dust. Perhaps the reason is that our definitions of loyalty and commitment are flawed. Although loyalty is a trait that human beings (and many animals) display for each other, it requires the existence of a personal, not business, bond. A parent will often remain loyal to a child or to another adult even if the other has done despicable things. However, if an employee commits fraud or a felonious crime, the corporation employing them has no personal bond that will maintain its loyalty to that person. Loyalty often continues for extended periods until and unless something happens to the bond between the two people. Business relationships, in themselves, don’t create loyalty. Your employees can deal with underwriters without creating a bond with them. You can work with company managers without ever bonding with them. Business relationships can go on for years without the issue of loyalty arising, until something goes wrong. Then one of the parties bemoans the lack of loyalty from the other party. But in reality, we can’t complain about severing a relationship that never existed. It’s like buying groceries from a supermarket: You can shop there for years, but if the store raises prices you’ll take your business elsewhere. Likewise, if the store finds it can make more money by moving out of your neighborhood, it will do so. However, some retailers do develop personal relationships with their customers. They’ll stay in a neighborhood, working with customers to make enough money to remain in business. Similarly, when loyalty exists, customers will absorb price increases to keep dealing with the business. How is loyalty built in business relationships between agencies and carriers? Friendship and mutual respect form the basis of loyal relationships. If the parties don’t trust each other, mutual respect is impossible. Business friendships, unlike social friendships, are built on trust and a high degree of concern about helping the other party achieve their goals. So both agencies and carriers need to build a feeling of mutual trust that each partner wants to help the other achieve their goals. Once this trust is proven, both sides will find their relationship runs more smoothly. Commitments are tangible objectives in which each partner agrees to support the other. An agent can “commit” to a level of growth to a carrier. A carrier can “commit” to speed and to a percentage of submissions that will be accepted. Commitment cannot be one sided (as are most agency/carrier “commitments”). If it’s unilateral, it’s a commandment, not a commitment. Commitment, unlike loyalty, is not unconditional. Conditions can arise that change the commitment of one person or entity to another. So let’s assume that the agency/carrier partnership is based on a mutual commitment, as long as the conditions of the relationship are unchanged. When conditions do change, one partner should notify the other and alter the commitment. Although a commitment without personal loyalty is possible, it’s necessarily weaker than a relationship strengthened by a feeling of loyalty between concurrent levels in each entity. The term “concurrent levels” is extremely important. Many agents have found themselves restricted or terminated even though they have excellent relationships with their underwriters or marketing representatives. These relationships are essential to the flow of business, but the agent must establish a relationship with the person in the company who has authority to determine the company’s commitment to the agent. Although every one below this person might be loyal, they can’t affect any change in the commitment to the agency. The national or international dimension of decision-making means that no company commitment can be guaranteed. However, barring major changes in carrier behavior, a commitment between agency and company negotiated in good faith and backed by the loyalty built on personal relationships between the agency staff and the carrier staff should withstand most volatility in the marketplace. Agency/carrier partnerships provide the most efficient and effective way for both parties to achieve their goals and objectives. If such partnerships continue to elude our industry, we should be prepared for the decline of Independent Agency System carriers as they seek better ways to manage their growth. I urge every agency to include its companies in the planning process, and to establish both personal relationships and commitments with its principal carriers.

Commonality Breeds Relationships
“We're more alike than we think.” Relationships, whether face-to-face or cyber-distanced, are difficult at best. In this document, Jack Burke shares his thoughts on why “just getting along together” can be tougher than it first appears. A friend who works at a local hospital shared this story about a new employee. From day one, it was obvious that neither of them liked the other. As a result of this initial dislike, each began to seek a basis for their feelings. Each picked incessantly at the other's smallest peculiarities. In essence, they first judged each other guilty without cause and then proceeded to build their individual cases. For absolutely no reason, each was expending a tremendous amount of mental energy on this relationship battlefield. One day, through an unusual set of circumstances, they had to work together closely. During the normal chitchat of the day, they both realized that they were each on their first marriage, although their respective husbands had been married before. This “commonality” turned toward telling stories about dealing with their husbands' ex-spouses. By the end of the day, they both decided that their husbands had shown remarkably bad judgment in their first marriages, but were extremely lucky in their second marriages. There's no fairy-tale ending here. Neither of these women really likes the other. However, after sharing some confidences and realizing some common aspects to their lives, they're able to get along and work well together. This story illustrates a basic fact: The more we get to know each other, the easier it is to maintain a relationship. Notice that I said “we” and “each other.” It's a two way street. Many businesses concentrate on gathering information about their customers — believing that the more they know about them, the better they'll do. That's only half-true. The other side of the equation is the need to let your customers get to know you — which, in turn, means that you need to get to know your employees. The more opportunities to discern commonality, the greater the potential bond. This isn't as easy as it might appear. We tend, through public relations, advertising, etc., to portray our businesses as perfect. If that's the only image our client receives, we might be in trouble on a couple of fronts. First, how many of us really enjoy spending time with a “perfect” friend? Second, perfection can raise unbelievably high levels of expectation. About 20 years ago, at a time when I believed that image was everything, my friend Doug and I were returning from dinner when he said, “Jack, I can't hang around with you anymore. Your life is perfect and that makes me feel inferior.” I was stunned. Yet, in hindsight, I now understand what he was saying. I never shared any of my difficulties or problems — just the good news. I was a bit of a braggart and I always made sure the outside looked good. Most of us don't bond from our successes; we bond from our human frailties. When you bond with your customers, they're aware and accepting of your shortcomings as they arise. Their expectations are more reasonable because they know that you aren't perfect. You can make mistakes — just like they do. In summary, every business should consider these three nuggets of wisdom: Let your customers get to know you, as you get to know them. Be honest and forthright in communications; acknowledge your shortcomings. Remember that customers bond with people, not companies.

...this with, the CSR issues multiple bonds to equal the limit, only to find out ...

Solidifying The Bond With Your Customer
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!

...ivation: Cement life-long customer bonds 4. Reactivation: Bring lost customer...ULTIVATION: CEMENT LIFE-LONG CUSTOMER BONDS There was a time when “product was...

The Creativity Factor
Every so often, there’s a breath of fresh air in a marketing or customer service technique. Every so often, someone somewhere does something unique that provides them with a marketing edge in their community. Every so often, we see a unique and memorable piece of marketing. Jack Burke tells you how 'Every so often' became a reality in Clarksville, Tennessee during the winter of 1993. 'The merit of originality is not novelty; it’s sincerity.' Thomas Carlyle While acknowledging the importance of corporate character or culture, creativity is the very essence of marketing and communication. The creative spark is the cornerstone of business. Creative means 'characterized by originality; imaginative.' However most marketing and advertising today would be better placed under the category of mundane: 'typical of, or concerned with, the ordinary.' Today’s marketing 'creativity' seems to have evolved into new twists on old techniques. The creative brains toil at new, or better, ways to restate an old message. A catchier print ad, a better letter, a more memorable commercial — the script might change, but it’s the same play. Even with such new media as Internet advertising, originality and imagination seem to be sequestered in a closet. Enhancing the holiday spirit was the goal of the Clarksville Area Chamber of Commerce’s Christmas Decoration Contest, which included businesses, as well as homes. James W. Dunn of Clarksville’s Dunn Insurance, Inc. had vetoed entering a float in the Christmas Parade due to the immensity of the task. However, he agreed that entering the commercial category of the decoration contest would be less demanding. Little did he anticipate that decision would result in getting Dunn Insurance’s name on the front page of the local paper twice, plus a full front page write up ? not to mention extra publicity from a contest within the contest and a new concept for the annual Christmas card. In fact, from the grocery store to private parties, Dunn couldn’t go anywhere without people talking about his agency’s entry. James gives most of the credit to his son, Jimmy Jr., who suggested a giant snowman in place of a more traditional outdoor Christmas tree. Centered on the agency’s front sign, chicken wire, poly insulation and other odd materials were bonded with glue onto the post. Soon the arms of a giant, 15 foot tall snowman reached upward to hold both sides of the agency sign ? seemingly waving to passersby. To add a dramatic touch, more than 2,000 white Christmas lights were attached to the interior chicken wire, providing a warm, glowing effect. And, of course, the sign was altered to read 'Seasons Greetings' below the Dunn Insurance Agency name. Jimmy’s design incorporated two faces on the snowman, one facing each direction of traffic. Dunn chuckles as he relates the fact that they even got calls during the construction phase. It seems that they ran short of the poly insulation that covered the chicken wire, leaving the lower section of the snowman 'exposed' until more insulation could be collected. The phones soon began to ring about the Clarksville 'flasher.' The community acknowledged Jimmy’s creativity by awarding the agency first place in the commercial category, resulting in significant publicity. Now that’s a nice story, definitely creative, and the publicity was good. However, it’s not the end of the story - although it could’ve been. Rather than stopping with a first place win, Dunn built on the existing publicity with his own contest, “Name The Snowman.” The lure of a $50 savings bond generated more than 400 entries. The winning name, 'Bondable Snowman', came from a 12-year-old girl who lived more than 40 miles away. And of course, both the contest and the winner generated additional publicity for the agency. But, we’re still not at the end of this story. Dunn then gathered his entire staff for a group photo around the snowman and turned the photo into the agency’s Christmas card. Now that’s what I call full-circle creativity in marketing. Not only was it original, but the Dunn Agency continued to build on the concept. The question most of us need to ask is, 'Would we’ve stopped at winning the contest?' Unfortunately, I think all too many of us would have. Marketing should gain favorable attention for your company or product. Yet, how often to we: (1) brainstorm for new ideas, (2) take advantage of creative opportunities, or (3) maximize the opportunities when they exist? Here are a few examples of what I consider creative marketing: A Ford dealership in New Jersey builds its image around selected community charities. It started with an annual reverse raffle co-produced with five local charities involving community youth, shelters for abused women, and the local hospital. Although the raffle continues, the dealership has gone on to produce two major concerts a year to generate additional revenue for charity. Co-sponsors include a local bank and a supermarket chain. During the promotion and ticket sale phase, every bank customer sees signs with the dealership’s name and every grocery shopper has a bag imprinted with the dealership name. This is one dealership in one community that has definitely overcome the negative perceived image of 'car salesmen.' As director of car sales for Hertz Corporation, we developed a program for leasing used rentals to augment sales efforts. Not only was this long before leasing became a fashionable alternative to purchase, but we were talking used cars, not new. Traditional newspaper and radio advertising wouldn’t work ? there was just too much to explain and it needed a one-to-one approach. We developed a quick training program to teach our salespeople about leasing. But, rather than relying on the initiative of individual sales personnel to talk about it, we needed a way to get the potential customer to ask them for more information. We solved this problem with a simple button, which we ordered in the thousands and distributed to all of our employees. All the bright yellow button said was, 'Ask Me.' Ask they did, and the total cost was minimal. Business cards and agency brochures provide another example of 'nice, but mundane.' A number of businesses have gotten creative by producing short audio or video programs that tell their story. These marketing productions get the prospect’s attention and allow you to really introduce yourself, your company, product or service. Although video can get expensive, audiotapes or CDs are fairly reasonable and can be packaged in any number of ways ? depending on your budget and your image. This type of creativity offers an additional benefit. Many business cards, brochures, and letters end up in your prospect’s wastebasket. Audio and video cassettes have a perceived value in the mind of the holder and are seldom tossed. I’ve received calls as much as a year after an audio mailing. The caller generally says, 'it’s been sitting on my desk for a year and I just got around to listening to it.' Sponsoring a local golf tournament provides another great way to market your agency or brokerage. This has done wonders for many major corporations on a national level — so why not duplicate their efforts on a local level? Bring in other businesses to help co-sponsor. Maybe a local car dealer can display a vehicle and buy hole-in-one insurance to cover a car giveaway. Local realtors and banks are also excellent co-sponsors who can help with the prizes. Not only is the publicity great, but you get a chance to network. Closer to the office, what about your telephone system? Does a client on hold hear nothing or are you using a local radio station for music-on-hold? If you answered 'radio station,' beware that: (1) your clients and prospects might be listening to a competitor’s commercial, and (2) ASCAP and BMI can levy stiff fines if you haven’t purchased a licensing agreement to 're-broadcast' the music over your phone system. Don’t laugh. Many small, medium, and large businesses have already been caught and fined. The creative answer to this dilemma is a message-on-hold service. For relatively little expense, you can have a professional message tape produced that talks to your clients about your services while they’re waiting. Do you fax information to clients and prospects? Do you use a cover page? You’ve probably answered 'yes' to both questions. Now comes the big one, 'Does your cover page list all the services and products you provide?' If not, you’re missing a creative opportunity to market your message. There are hundreds of ways to market your company creatively — most of them far less expensive than traditional advertising. Develop an opportunistic eye within your community. Conduct a brainstorming session with employees a couple of times a year on new and unique methods of marketing. Maintain strong relations with your Chamber of Commerce and other groups that cater to your particular markets. But above all, get everybody involved. Many of the opportunities that you encounter will come from the least likely source; so it pays to have everyone keeping a watchful eye. Finally, when you do identify an opportunity, maximize it!