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Professional Services Marketing; A Strategy For Providing Client Satisfaction
An Overview Most professional services are highly personal in the nature of the service provided, be it legal, accounting, medical, etc. The consumer of professional services typically will refer to the provider of the service as 'my lawyer,' 'my accountant,' or 'my doctor,' reflecting the highly personal nature of the work. Indeed, the very need for complete confidentiality and confidence denotes the extreme personal nature of most professional services. To complicate matters, much of the process in professional services is shrouded in mystery for the typical consumer. There are very foreign terms. 'Legalese' is derided in popular press and media as a sort of arcane foreign language meant to keep the commoner from understanding basic concepts of law. The average consumer gets frustrated by the complication of rather simple matters that undergo legal processes. Arcane accounting processes are difficult and misunderstood by the general public. How many times have you had to wait in a doctor's office seemingly forever, only to have the actual examination last only five minutes? The purpose of this article is to explore services marketing concepts in current terms and apply them in a novel approach to the rendition of professional services. While much of this article makes use of the legal industry as an example, the application of the concepts flows equally with little modification to other professions. Marketing in the Professional Service Industry Professionals are simply not taught how to market in the schooling. There is no training in the area of services marketing, and worse yet, no course work offered that even remotely prepares the professional for the most basic aspect of marketing, client interaction. Ask any recent law school graduate whether marketing has anything to do with lawyering, and you'll likely be met with a blank stare. Indeed, I sought continuing education credits from the State Bar of California for course work completed in marketing towards an MBA and was denied recognition of the work for Continuing Education credit, even on appeal. The reason: These lawyers simply didn't see any relationship of marketing to the practice of law, for the client or the attorney! This is simply an example that the role of marketing in the legal services industry remains a mystery to even the most seasoned of professionals. Yet who could deny the client dissatisfaction that builds from simple failure to return telephone calls in a timely manner (or at all). If we are to go back to the classic literature in the field of services marketing, we see a common theme: The role of marketing in the services industries is to create customer value. For example, how does one create value to a customer in the legal services field? Most of the work of an attorney seems to be spent either destroying someone or their property, or preventing an abuse of some intangible right or asset. Evert Gummeson suggests that the search begins with market research. 'Value is simply quality, however the customer defines it, offered at the right price.' The goal is to find out how the consumer defines quality and what price the consumer is willing to pay for it. A key issue is whether the customer notices differences in quality between competing suppliers. If the consumer does not notice any difference, then the consumer either does not care about the level of quality or is not educated as to the available options. I would suggest that without constant client education and attention to client issues (i.e., listening to the client), there will be a lack of communication to a detrimental effect-disharmonious relations between the professional and the client, and probably a soured disposition toward the entire profession. Indeed, communication is such a large part of professional services that, at least in the legal field, it can be said that communication is the lowest common denominator of the profession; it is, in the most basic sense, what the lawyer is hired to do. Failure to communicate is a failure to execute the most basic function of the job, which is in itself a failure in quality. Quality Goal: Zero Defections Studies reflect that it's four times more expensive to obtain new business than to retain existing relationships. Furthermore, the loss of existing business destroys the compounding effect of existing client relations, i.e., personal referrals. Because professional services are by nature personal, this failure can destroy a professional business (and notice the use of the word 'business'-'profession' is the practice of a specialized skill involving a fiduciary relationship, while 'business' denotes a profit-oriented enterprise). While the service provider typically focuses on providing a level of service that it deems to be high-quality, this focus is misdirected. The issue is not whether the provider is giving superior service, but whether the consumer perceives him- or herself to be receiving it. Some literature suggests that the focus really should be on obtaining and retaining high-quality clients. The purpose behind the search for these clients is that a high-quality client will perceive and appreciate superior service. Clients that are not superior simply won't. To retain high-quality clients, particular attention should be paid to the individual needs of the client. But how does the professional actually go about discovering and assessing the client's needs? An examination of current marketing technologies and some of the newer techniques (which most professionals have a particular advantage in using over other industries) will provide insight in this area. Communications Gap Four potential shortfalls may lead to a gap between what clients expect or perceive and what they actually receive: not knowing what clients expect in the first place specifying service-quality standards that do not reflect what management believes to be the clients' expectations service performance that does not match specifications not living up to the levels of service performance promoted by marketing communications In each of these situations, the overall theme of the failures is a lack of accurate communication. Not knowing what the client expects is the most basic of communication failure-the expectation might not be as great as the lawyer perceives, or the expectation may be unrealistically high. A service standard that does not reflect the client's expectations may actually be over-servicing a client. The actual service required by the client may be at a level lower than that being provided, and the client's reasons might not be well known to the professional (for example, lower cost, less paperwork, etc.). Just as dangerous is to promise the client a certain level of service that cannot be delivered-for instance, providing periodic status reports when a crushing case load does not permit the time to do so. Finally, advertising or communicating a level of service that you cannot meet is a terrible blow to the professional's credibility, and the exponential effect on negative referral can destroy a practice. The service point failures may be caused by a client who is unable to express him- or herself accurately for a variety of reasons, but the professional also has a responsibility to develop the communications system with the client more fully. Understanding Fail Points 'Organizations that are known for excellent service are good at listening to both their customers and their customer-contact employees.' One of the biggest dangers in client contact in professional services is the personal offense taken by the professional or staff at a time when the frustrated client is simply trying to communicate the need for clearer dialogue and understanding. The technical and complex nature of most professional work causes the professional to focus on situational results rather than the client needs for particular service levels. Staff members, typically the first point of client contact, are particularly vulnerable to attacks of frustration. Several time-tested marketing techniques may be utilized to gain a more full understanding of the client and the client's expectations. Traditional forms of gathering marketing data include complaint analysis, post-transaction surveys, ongoing surveys, employee surveys, focus group interviews, 'mystery shopping,' and competitive market surveys. Most of these techniques are not well suited to professional services. But complaints are universal and have particular application to personal services. For the purpose of this article, the focus will be on complaints: why complaints are an important marketing tool, techniques in using complaints to further client relations and to turn a hostile situation into one of positive return. Complaints Complaints provide an opportunity not only to study the fail points but to move the customer higher in the satisfaction scale. If the service provider can get beyond the emotional issue of an unhappy client, the learning process can begin. With respect to products, the frequency range of complaints runs from 20% to 50% of the time, with the average being one-third. There's no indication that the service industry has a complaint ratio any different from that of manufacturers. This represents an alarmingly high ratio of dissatisfied clients. Consequently, attention needs to be paid to developing and maintaining an active process of soliciting client responses and dealing proactively with complaints: 'Learn what the customer expects in quality and performance, and monitor customer response continually.' A key element of complainers is that 'More than half share their experiences with friends and relatives, and evidence indicates that negative word of mouth can have a major influence on the buying behavior of others.' Studies reflect that 55% to 60% of complaints are resolved to the consumer's satisfaction. Beyond personal and cultural factors that determine or contribute to the complaint behavior of the consumer are the additional factors of (1) the significance of the event, (2) the knowledge and experience of the consumer, (3) the difficulty of seeking redress, and (4) the perceived probability that complaining will lead to retribution or some other, positive outcome. The rendition of legal service, for example, is particularly susceptible to each of these factors. Legal events have particular significance to the consumer regardless of the routine nature of the event to the provider. Typically the knowledge and experience of the consumer is limited. Clients will typically have difficulty seeking redress-how many law firms have a consumer service department for receiving and remedying complaints? And quite often, complaints often lead to some price reduction in the service or some other form of comparable remediation. Of course, there's always the threat of a malpractice suit or State Bar complaint. But complaints can be useful as market research data, and research suggests that a well-managed complaint-handling process can actually lead to increased sales. Analysis (and resolution) of complaints takes on two time dimensions, with some independent consequences. Real-Time Complaints Real time complaints are those that are displayed at the time that the client or consumer is engaged in the actual service delivery process. In the legal industry, this typically occurs over a duration of time: during the pendancy of a single case, or over the course of numerous matters of representation. Real-time complaints present two significant advantages over complaints received 'after the fact': a greater ability to recover the customer, and a greater ability to actually learn what the fail point was. The ability to recover the customer at the point-of-service failure is a significant advantage. The real-time complaint process has an inherent ability to bring a hostile situation to a favorable outcome. 'There is significant, convincing evidence to support the principle that making a sincere effort to rectify problems will noticeably increase consumer assurance that the firm really cares. Not surprisingly, satisfaction and intent to repurchase are strengthened in the process.' Bottom line: It shows the client that you truly care. The ability to learn about the fail point is greater with real-time complaints because memory is fresher and there's less opportunity for other factors to influence the consumer's behavior. After-The-Fact Complaints After-the-fact complaints are more limited in their market research potential. The passage of time may allow the interference of intervening factors, which might not be communicated or recognized. There is also a more limited ability to recover the client in after-the-fact complaint situations because the consumer has an opportunity to brood over the complaints and ferment greater dissatisfaction. After-the-fact complaints also have a unique quality rooted in human behavior: Seemingly minor irritants may take on much greater importance and significance as the duration of the complaint process lengthens. Still, after-the-fact complaints have market research value. They are just harder to obtain or use toward a positive outcome with the particular complaining client. Complaints as a Profit Center The Technical Assistance Research Program Institute (TARP) report argues that complaint handling should be seen as a profit center, not a cost center, and created a formula to help companies relate the value of retaining a profitable customer to the overall cost of funding an effective complaint-handling unit. The study showed positive returns on investment in the complaint-handling and remediation process. Flow Charts Christopher Lovelock suggests charting the service process to identify potential fail points, including both the 'front-stage' and 'back-stage' processes. 'Front-stage' processes are those that the client or customer can readily see and come in contact with-receptionist activities, receipt of correspondence and documents, face-to-face contact with the professional and staff, etc. 'Back-stage' processes are those that the client doesn't see but nevertheless affect the quality of service that the client will receive: telephone conversations with others related to the client's cause, preparation of documents, court appearances (in law) where the client is not present, and so forth. Lovelock touts the preparation of flowcharts to examine the service process. Flowcharts help identify links in the chain of service and identify where weaknesses may exist, or points where failure may occur. A flow chart would be created for each type of service operation. For instance, one would be created for the receipt and forwarding of a client telephone call to the attorney. Or a separate chart may examine the process of setting appointments, or the preparation of a patient for examination. (Flow-charting in this manner also has an unintended benefit: helping the service provider examine and eliminate inefficient processes.) A specific kind of flow chart, 'control charts,' display performance over time against specific quality criteria. A 'control chart' is typically a fishbone chart or diagram that shows the cause and effect of factors that might be related to a specific problem. This type of charting helps the service provider narrow the possibilities of service point failure causation to expedite remediation strategies. Client Involvement Flow-charting helps the service provider see where the client or customer is involved in the service-provision process. These are not only 'front-stage' points of possible failure but also points at which client participation needs to be optimized to facilitate client satisfaction and productive results. When customers (or clients) are deeply involved in the service production process, managers should be examining how customers' inputs can be made more productive. There are three strategies to increasing the productivity of customer inputs to the service production process: changing the timing of customer demand (that is, shifting demand away from peak times), involving customers more in the production process, and asking customers to use third parties (specialist intermediaries). The timing of customer demand can be easily related via the peaks-and-valleys nature of legal work. Phone calls are a prime example. To the lawyer it seems as if everyone has problems all at the same time, and of course, everyone needs to have an answer yesterday. Voice mail has the ability of smoothing out the peaks and valleys by permitting the service provider to gather telephone messages and then return calls at the time of day the service provider directs. There's no reason why the client or customer cannot be advised in the voice mail greeting that his or her call will be returned during a certain period of time, so that they can be prepared for it. Alternatively, the client may advise of a different time when the lawyer could call if it's not possible to receive a call at the appointed time. This system permits the lawyer to control the timing of demand, and makes the lawyer look responsive to the client's service needs. Voice mail permits the flexibility necessary to change the return call time on a daily basis so that the service provider may enjoy a flexible schedule. Involving the consumer more in the service production simply entails having the client do more for him or herself to accomplish the goals for which the professional was hired in the first place. For example, the preparation of a civil complaint need not be entirely done by the lawyer-much of a civil complaint contains stock language that for one reason or another has become traditional or 'necessary' and if left out could have disastrous results. There's no valid reason why a document with the necessary form language cannot be provided to the client so that the client can put the nature of the dispute in his or her own words. Of course, the lawyer will need to intercede with proper formatting. But the point is that if the client is involved in the process, he or she will obtain a much greater appreciation for the lawyer's work that goes into the preparing the document. Involving the consumer may consequently also cut the labor and cost of the service provider, though just as easily increase the cost. But generally, client involvement at this level gives the consumer a better understanding of the process and greater satisfaction in the outcome. Asking the client to use the services of specialist intermediaries also increases the productivity of customer inputs to the service production process. This involves delegating one or more of the support functions to third parties. In the legal services industry, many lawyers feel threatened by paralegal services, which are able to provide many of the same services that a lawyer provides at a much lower expense. I advocate the use of paralegal services (and not a firm paralegal/employee) for delegation of non-lawyer duties such as preparing answers to interrogatories, preparing form documents, and general assistance. The consumer will appreciate his or her economic interests being first (rather than the lawyer's), and this will free up the lawyer from performing low-margin work. The Current State Of Technology Traditional marketing research usually consists of written surveys, telephone surveys, focus groups, and variations of these themes. These market research techniques have various shortcomings that are difficult or impossible to overcome: lack of candor, inability to monitor, inability to ask follow-up questions, low return, the potential for irritating people and thus alienating them, an inability to ask follow-up questions, and stale memories. Such research may end up being nothing more than a tracking study. Yet the professional is in a unique position relative to other industries because of the fiduciary and confidential relationship established when hired. The idea is to take advantage of these unique relationship qualities to implement the newer marketing technology of storytelling (which Jungian psychologists have been using for years). The purpose of story telling is to get inside of the nonverbal communication. 'Just think, for example, of the last time you made eye contact with an attractive stranger. A whole range of feelings washed over you, and at that moment it would be hard to argue with the hoary notion that at least 80% of all human communication is nonverbal.' The methodology of story telling in a marketing context involves drawing metaphors out of people to elicit their true feelings. Gerald Zaltman, Harvard Business School professor, has set up a working laboratory of metaphors. He asks consumers to spend a few weeks thinking about how they would visually represent their experiences with a company and then asks them to cut pictures from magazines that convey their feelings. Later, some subjects come to the lab and tell stories about the images and the connections between them. A case study worth repeating: Du Pont Corp. turned to Zaltman because they thought that the standard line they were getting in their market research from women, that they wore pantyhose because they felt they had to and that they hated it, was inaccurate. Zaltman conducted storytelling market research, and the results were surprising: ''As we kept probing into the emotions behind the choice of these photos, the women finally began admitting that hose made them feel sensual, sexy, and more attractive to men,' says [Glenda] Green [a marketing research manager at Du Pont]. 'There's no way anyone would admit that in a focus group.'' Quicken and QuickBooks financial management software was originally the product of market research on non-customers. Intuit Corp. targeted non-customers to examine how they worked-leading to the invention of Quicken and QuickBooks. Intuit later instituted a 'Follow Me Home' program: Marketers and engineers peer over customer shoulders to see how they fare in their attempts to get the software installed and use the software. This program was eventually expanded where microcassette recorders were left at the homes of customers so that anytime customers got irritated they could simply press RECORD and file their complaints. The benefits of storytelling from a marketing standpoint are a more accurate recording of the consumer's true feelings and a less expensive marketing research program. 'Gerald Zaltman claims that he stops hearing much that's new after 15 or 20 people have passed through this metaphor lab.' The implications in professional services are enormous. The professional is in a daily position to elicit stories from the client, and in fact that is what the professional does a great deal of the time. The stories that the professional garners, though, are usually about the reason for consultation rather than the state of the professional services the client is receiving. The professional can use the service process, with client involvement, to solicit on a regular basis client feelings toward the service process. Some stories may be general in nature and some may be focused more on the anger inherent in the clients' problems, but all of them relate a story to how clients perceive the process as either helping or hurting them, and these stories have direct consequence to the perception they have toward the services being rendered. For example, during the preparation of a complaint, the client may be asked how he or she felt writing the story down in a legal context. Was it demeaning? Was there anger? Did it help displace some negative feelings? This sort of investigation has broad application across the service provision process. Conclusion The retention of business needs to be a priority of the professional services provider. Retention of clients not only is cheaper than finding new ones, but has an exponential effect on subsequent referrals. At the same time, the practitioner needs to recognize that...

Pulling New Clients To The Professional Services Firm
PULLING NEW CLIENTS TO THE PROFESSIONAL SERVICES FIRM by John Graham It's taken long enough, but the professional services field has discovered marketing or, perhaps more nearly accurately, the value of marketing. So if you're waiting for word-of-mouth to attract new clients, you have a long wait ahead of you. Take a look around at who's marketing what. Business consultants are marketing mavens. In fact, some of the largest advertisers in the Wall Street Journal are consulting firms. The number of business books authored by consultants keeps climbing. For example, a popular book on the value of chief executive officers is a thinly-veiled promotional piece for a major financial-services firm. A book-length quarterly journal published by a big management consulting company presents an intriguing and attractive mix of fact and opinion to position the company as the expert. Several of Boston's largest law firms have gone to casual dress codes. Rather than hide this not-so-subtle change, the firms made sure they got national news coverage to recruit eager young lawyers and attract laid-back technology clients. Some more aggressive personal injury lawyers are abandoning their high-priced high-rise offices for shopping malls to be more approachable and accessible to prospective clients. The walls of restraint are tumbling down. To be sure, stodgy tombstone ads still announce the appointment of partners in law and accounting firms. The debates over 'the ethics of marketing' are mostly irrelevant and marginalized, though. Some professionals of all types - accountants, lawyers, financial planners, dentists, doctors - believe they're a little above everyone else in business. Some believe the quality of their work is the only marketing that matters. Actually, marketing is perfect for professional services. That sponsored book has one goal: to make believers out of readers, some of whom will recommend hiring the financial-services firm it touts. The title of the book names the targeted reader - the CEO, the decision-maker who says, 'Let's get this company in here.' By definition, that's good marketing: creating customers who want to do business with their company and no one else. Effective marketing harnesses the customer creation process. Successful professional services marketing can be summarized this way: Be perceived as the solution to the problem when the customer has a need. The principles of marketing professional services are all the same for the international firm and the small local company alike. Here are the objectives: Marketing lets a professional services firm pre-establish a relationship with a client. For example, referrals are rarely based on detailed inquiries into a particular firm's competence. Usually the selection of a lawyer, doctor, or accountant is a low-involvement decision. Someone says, 'I know a great CPA firm,' and that's recommendation enough. Whether the firm has the necessary expertise fails to become an issue. How many times do people engage a law firm to handle a particular problem without even asking if it has expertise in that field? This process is inefficient and often brings in less-than-optimum clients. The basic marketing task is to pre-establish a relationship with a prospect to become their professional of choice. Without recognizing it, the prospect has made a buying decision, often long before they have a specific need. Marketing builds the perception that a professional services firm is the leader in its field. Marketing can be extremely powerful in this area. Clients gravitate to successful professionals. For example, a dentist specializing in implants has impeccable credentials but is less than successful. Another dentist who lacks the experience and credentials of the first one has an extensive implant practice. Why the difference? The second dentist, who has made a commitment to marketing their services, is perceived as the leader in the field. In professional services, it's essential to be recognized as the expert, the cutting-edge leader. Marketing pulls clients into the professional firm's orbit. The goal is to be perceived as the professional of choice by client and prospect both. Clients like to act as if they have a close relationship with a professional services provider, regardless of whether they actually do: They refer to 'my' doctor, lawyer, accountant, insurance broker, and so forth. Marketing helps cement the client relationship. This is essential because professional relationships are more vulnerable now than they were in the past. Accounting firms can't depend on keeping the same client companies for decades, and other professionals have the same problem. To retain your clients' business, you must keep making them feel that engaging your services was the right decision. The quality of your work is important, of course. But competence alone doesn't build relationships. Client relationships must be reinforced continually, or the client will eventually make a change. Marketing lets you communicate the reasons that selecting your firm was wise. These techniques can help a professional services firm best utilize a marketing strategy: Marketing helps create the right identity.Many professional services firms cling to a dull, stodgy identity. Massachusetts attorney Thomas Montminy, whose firm specializes in collections, wanted to communicate a positive, businesslike image. The firm's logo features a contemporary 'M' that becomes an upward line on a graph - a subtle suggestion that collections are up. The logo's bright, attractive colors make it stand out among the less contemporary designs of the firm's competitors. The objective is to create a brand identity, one that evokes specific feelings. The objective of Montminy's law firm was to position itself as innovative, effective, and aggressive to distinguish it from others in the field. Marketing lets you present the firm as a specialist. There will always be generalists, but more clients seem most comfortable with specialists. Professional services firms often neglect to take advantage of their experience in working with certain client groups or industries. Yet marketing this expertise properly offers the opportunity to build solid boutique business. The national accounting/consulting firms present themselves as specialists in a broad range of fields to attract clients. Smaller firms can use this strategy, too. An accounting firm with four or five clients in a particular industry can build on that base. For example, it can create a brochure and separate letterhead for this segment of its business. Build a marketing database. The marketing database is perhaps the most crucial component of a professional services marketing program. The database helps the organization maintain its focus on the clients it wants and its activities to build relationships with prospects and maintain them with current clients. The database should include present and past clients, prospects, and media and industry contacts. Build your prospect database by identifying those who best fit your client profile. For example, a law firm with expertise in environmental law should list companies, agencies, and organizations that can benefit from its services. Engage your prospects and clients. More than anything else, effective marketing is discovering ways to engage customers and prospects. This requires an in-depth understanding of what these groups want and expect. For example, a marketing services firm wrote an article called 'Fourteen Ways to Waste Your Marketing Dollars' about its experiences with prospective clients over the years. Dozens of executives responded with calls, letters, and e-mail messages. Most of them began, 'We've done them all!' This is engagement - connecting with the prospective customer. You can best engage your prospects and customers with a multifaceted marketing program that presents your firm in a variety of venues at the same time. The impact of the whole program will be greater than the sum of the individual tactics. A multifaceted program might include the following: A firm newsletter. The content should help and inform the reader. Put the names of professionals in your organization on individual articles to help the reader associate knowledge and expertise with specific people. A quarterly publication is generally adequate. However, a one-page email newsletter lets you present late-breaking information and offer additional information, such as a report or study. By-lined articles. One professional services firm gets most of its new business leads by writing by-lined articles for trade and business periodicals. Professional services people work with ideas and information, so they're in a unique position to share their thinking with others. This is what makes by-lined articles such an effective marketing tool. Ads and promotions masquerading as articles are a waste of time - editors are charged with giving their readers valid, helpful information. When a by-lined article is published, its value is enhanced. It has earned third-party endorsement, and it can be reprinted and used in a direct mail program to cultivate prospects. Advertising. Professional services firms should advertise. Don't try to sell yourself - it's more effective to advertise to build brand awareness. There are two basic guidelines for good professional services advertising: a. Write every ad from the prospect's viewpoint. Unless the ad connects with the readers' specific needs, it's a waste of money. b. Include an offer in every ad, such as the free marketing pamphlet 'Twelve Questions to Ask Before Signing a Merger or Acquisition Agreement.' You'll develop leads with this interactive approach. An informative Web site. A Web site is one of the most effective ways to engage prospects and customers. But a Web site isn't much benefit if it isn't dynamic and doesn't get updated often. One firm received an e-mail asking why the usual rotation of articles on its Web site had stopped. The person who wrote the message said they looked forward to the articles and was disappointed not to find them. Of course, the firm began a proper rotation schedule. An effective Web site carries helpful information, tells visitors about a company, and encourages interchange and requests for information. The most pressing marketing issue when it comes to Web sites is promotion. A major source of advertising revenue for The Wall Street Journal, for example, is from companies spending millions of dollars attempting to attract customers to their Web sites. Any cost of a Web site must include an adequate promotional budget. These are just a few of the effective marketing techniques that professional service firms can use successfully. As part of a consistent, unified marketing effort, they attract prospects to you. Today marketing isn't a luxury for professional services - nor is it an option. It's a necessary element for building a stronger professional practice. More importantly, an effective marketing program frees professionals to do what they do best - give clients top-quality service instead of squandering time looking for new business. ...

Producer Success Lesson 12: Professional Image
Nothing happens until somebody sells something. To make sales happen, IMMS.com Key Sales Consultant Randy Schwantz has created a comprehensive series of 43 Producer Success Lessons. Used singly or in combination, these powerful tools can help your producers build their skills - and grow their sales. A huge man saw a sign in the window of a bar reading 'Bouncer Needed.' He walked in and asked, 'You hirin' bouncers? I'm the best - as professional as they come.' The bartender said, 'What makes you so professional?' The man replied, 'I can spot trouble from a mile away - watch this.' He walked over to a loud, obnoxious drunk at the end of the bar, lifted him, and threw him out the back door. He came back to the bar with a satisfied smile on his face. 'So, you can see,' he said, 'I know how to do this stuff. What else do I need to do?' 'Talk to the owner,' the bartender answered. 'Great, where can I find the owner?' 'He's coming in the back door right about now.' Have you ever been so caught up in presenting what you thought was the correct image that you made a silly mistake like this? Many people who regard themselves as professionals have a view of professional behavior that doesn't fit their style - so they either behave in a way that to them is unprofessional but comfortable, or they meet their own standard of professional behavior but they're uncomfortable. Neither scenario contributes to top performance. What is a Professional? One description of a professional is someone with extensive specialized knowledge and high standards of client confidentiality, such as a lawyer, doctor, or banker. They often surround themselves with layers of 'professional image' intended to impress others. What do you really want from such professionals? Not their fancy office or their degrees from Harvard - you want their specialized knowledge to be used to solve your problems. So what a professional is really someone with the extensive specialized knowledge and communication skills to help solve clients' problems. People Buy from People They Trust Notice that this definition doesn't mention expensive offices and Harvard degrees on the wall. I also didn't include trappings such as three-piece suits, Rolex watches, and snooty attitudes. These bits of veneer are fine, and you may want to use them to your advantage. But people put on the veneer to impress clients, and what clients care about is expert knowledge. Did you ever go to a doctor with whom you immediately felt comfortable? It was probably because the doctor was friendly, asked you questions, and listened. Now think about a doctor you didn't like. Was it because they were stuffy and 'professional?' Instead of imitating someone you've seen and heard about, try being yourself. Are you unprofessional in some way? Go back to the definition. Would being sincere and open build trust? Of course it would. In fact, taking someone else as a role model will almost certainly inhibit you, causing a breakdown in your ability to communicate and actually reducing trust in the relationship you're trying to build. The true professional is not someone with a pinstriped suit and highfalutin talk. True professionals are those who know their business, know their clients, and deliver what they promise when they promise. True professionals can be trusted because they are trustworthy, not because they act 'professional.' The Criteria for Professionalism We've established that trust is the key ingredient in a professional relationship. What can you do regularly to ensure that that bond of trust will remain in place? Here are some ways: Know the insurance business Know your clients (MVPs, Commercial producers, Risk Managers, executives) Solve problems Deliver results Knowing your business means knowing all aspects of it. You should be able to discuss almost any product or program. You should know all your markets, how to fill out forms, and what coverages are available. Stay on top of what your competitors are doing. Read constantly. According to one efficiency expert, reading about your area of interest for one hour every day will give you these results: In one year, you'll be recognized in your company as an expert. In two years, you'll be well-known throughout your industry as an expert. In three years, you'll be a nationally recognized expert in your field. If you really love the insurance business, reading about it is entertainment, not a chore! You're in a much better position to help your clients when you're the expert. Knowing your client means really understanding what makes them tick. Ask questions, and really listen to the answers. Spend time getting to know their insurance needs so you can make the best recommendations possible. The more time you spend listening to their problems, the better able to offer solutions you'll be. That's really all we have to build value in the insurance business - effective use of time. One of the most effective uses of your time is getting to know your clients' real needs and desires as they relate to your business. Solving problems is different from selling products. Some sales training courses euphemistically refer to hard-core selling as problem solving, but that just ain't so. When you're manipulating and pressuring clients, you're not solving their problems - you're creating more for them. Don't be fooled into believing your clients and prospects don't know what they need. They know. Getting them to tell you is the challenge. The only way to uncover that real problem and then offer the ideal solution is to question, question, question. Only when you really understand the client's pain can you offer the right medicine. Speaking of medicine, there's no reason your solution has to be an extremely technical, hard-to-understand prescription. Stay away from jargon and technospeak when presenting your solution. Clients don't care about that - they care about results. Delivering results means being on time, on budget, and on top of it. You must do what you say you'll do every time. Failure in this area even once can ruin a relationship. This goes for little things, such as returning phone calls, as well as bigger things, such as presenting proposals on time. Everything you do either moves the client closer to their goal or hinders their progress. Do you insist on results - every time? Take This Personally The true professional is able to move from a business relationship to a more personal relationship without a hitch. That's because there isn't supposed to be a wall between the two types of relationships. Business is personal. So feel free to be yourself, and devote the energy you were putting into your 'professional image' to listening to your clients and getting the results they want. Exercises List courses that will increase your insurance knowledge. Plan to attend them in the next few months. Mentally play back your last five interviews. For each one, focus on three areas: rapport building, questioning, and listening. Rate yourself from 1 (low) to 4 (high) in each area. During the interviews, did you ever feel so intimidated that you relied on your technical knowledge rather than your communication skills? Commit to improving in each area. ...

... the following: 1. Would you recommend this company? 2. What about this company do you like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews IMMS Library Immerse yourself in our stacks. Take some time and browse through our library. We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Premium Auditors: Professionalism In Practice 4/30/2013 10:35:25 PM by CompleteMarkets Editor , Rhonda Hamel This content has not been rated yet. PREMIUM AUDITORS: PROFESSIONALISM IN PRACTICE by Rhonda Hamel As a provider of educational services to insurance agents, I've learned many things about how other insurance professionals perceive premium auditors: as rude, abrupt, uneducated, and pushy. Unfortunately, it's rare for agents to say how professional, knowledgeable, people oriented, and helpful the insurance auditors they encountered have been. How can premium auditors change this perception? Lets' start with appearance. Auditors should dress appropriately for the market we serve. That might mean dressy business' to work downtown and much more casual to work in small towns or suburbs. We don't want to intimidate the policyholder. Beyond ...

Join Forces With A Life Professional
Harlan Warthen provides a simple, field proven, cost-effective program that you can use to produce a consistent flow of highly qualified Life and financial services leads, as well as a significant number of cross-line sales. The concept of a P/C agency working with a Life professional isn’t new. However, up to this point, these relationships have seldom produced a steady and consistent flow of leads because no one ever decided who would do what and when. With all of the best intentions, the partnership becomes hit-and-miss at best, and never produces a consistent flow of leads. THE INSURANCE INDUSTRY: THINGS CHANGE The insurance industry has undergone a dramatic change. Clients today are completely different from those we dealt with just a few years ago; they’re well informed and can access an unprecedented level of insurance resources through the Internet. The ways in which insurance products are solicited and purchased have also seen dramatic change. Phone solicitation is almost non-existent, thanks to “No Call Lists.” Each year the number of insurance products purchased over the Internet increases. Although buyers of insurance products and services are still there, the sales strategies that we once used are no longer effective. Industry studies indicate that 15% of all households will purchase some form of Life and financial service within the next 12 months. If you use the Rule of 72, 100% of all insurance purchasing households will purchase Life or a financial service product in the next seven years from someone. It’s no longer a question of “if” — but “when”! Another study by the IIABA found that 70% of households polled were not aware of all of the products and services that their primary P/C agent offered. The study also pointed out that if the client knew what was offered they would have considered purchasing them from the agent. You have to ask yourself what’s gone wrong — and the answer is plenty! It doesn’t make any difference whether you’re a P/C agent or a Life agent or; it’s harder to do business for a lot of reasons. Clients are buying insurance and financial services from somebody. P/C agencies have these clients, but lack a process to solicit them effectively — while Life professionals need qualified clients. In this situation, joining forces makes sense for everybody concerned. THE ROLE OF A PROFESSIONAL ADVISOR Our industry continues to become more complex and requires a level of knowledge that might be impossible to attain. If your client asks for advice on Life insurance or financial services, you face a dilemma. Can you realistically assume the role of an advisor? Personally, I don’t think you can. The level of additional knowledge, training, and licensing required to make a recommendation in an area outside of your expertise can be staggering. To fulfill the role of an advisor, you must be able to recommend a professional advisor, either within your agency or from an outside source. When polled, clients say they would prefer to do business with a single insurance professional for advice and answers. Clients don’t necessarily need their primary agent to be able to provide the service or product, but they want to be referred to someone who can. Unfortunately, insurance has become so specialized that neither P/C agent nor the Life agent can provide accurate advice for the other discipline. We can no longer be all things to all people; and even if we could, the level of knowledge and licensing requirements make it virtually impossible. The P/C agents and the Life/financial services professional need each other. To provide clients with access to a full array of insurance products and services, you need to create a strategic alliance with a Life professional based on trust and professionalism. TYPES OF ALLIANCES These alliances come in two forms: An External Alliance between your agency and a Life General Agency or an Independent Life Agency. An Internal Alliance between your agency and a Life Specialist. Each of these types will work, as long as there’s agreement between the parties up front. In essence, the agreement determines who has responsibility for individual tasks and when those tasks will be performed. The choice is which type of alliance would be the most beneficial to you and the interests of your clients. Here’s an example of each type: EXTERNAL ALLIANCE A Life General Agency or an Independent Life Agency alliance with a P/C agency is essentially the same; both would be considered external alliances. The major difference is the size of the organization. The Life General Agency has a tendency to be the larger of the two. In most cases, they would have access to significantly more resources, several layers of management supervision, and many more agents. Independent Life Agencies operate the same as Life General Agencies, but usually on a smaller scale; they don’t necessarily have one primary Life insurance company, but broker policies to a number of companies. INTERNAL ALLIANCE An internal alliance involves your agency hiring an experienced in-house Life specialist who has access to Life and financial service products through your agency’s existing Life company appointments. This specialist should have an above average level of Life and financial services experience and hold at least their Series 6 and 63 licenses, as well as an advanced designation (CLU, ChFC, etc.) A MATTER OF TRUST Building a strong alliance between your agency and a Life specialist must be based on trust. You need to trust the specialist not to jeopardize your existing clients by “hard sell” tactics; the specialist must trust you to provide qualified leads. This mutual trust requires both parties to understand the benefits that each will enjoy. MAKING THE ALLIANCE WORK As was mentioned earlier, there’s nothing new about Life specialist arrangements with a P/C agency. Everything starts out great, with each party sending business to the other. If forming such partnerships makes so much sense, why have most of them failed? First, no one puts together a plan or process for developing referred leads on a regular and consistent basis. Second, no one determines who’s accountable for what and when. Finally, and most important, the P/C agency doesn’t perceive that the Life specialist brings any added value to the relationship. Make no mistake: Making your alliance with a Life specialist work will require time and patience. Although the relationship might be difficult at times, both parties will enjoy a dramatic long-term payback. HOW THE ALLIANCE WORKS This strategy is built around a “Client Coverage Survey” that will identify what products and services the client is interested in. Your agency doesn’t have to implement a new marketing plan because the survey is completed at the end of every client service request. The Client Coverage Survey will produce leads in a volume that you’ll have a hard time believing: Although results will vary, this sales strategy can produce three or more applications per week. BUILDING A WORKABLE AGREEMENT To build a successful, mutually beneficial alliance, you’ll need to Do your homework to select the right partner Analyze the client base Create a written Alliance Agreement that will deal with: Compensation The accountabilities and responsibilities of each participant Housing the Life specialist Covering additional operating expenses Other factors to consider include your agency’s: (1) premium volume; (2) Number of policyholders/ households; (3) percentage of Personal Lines and Commercial Lines business; (4) renewal ratios; and (5) resources. MAKING A COMMITMENT Last, but far from least, all participants must commit to making the alliance work. As so often in life, your commitment will determine whether you’ll succeed or fail. I guarantee that you’ll succeed if you commit to implementing the process as it was designed. If you want to change it down the road, be my guest — but keep in mind that my system works the way it was written. Consider doing it my way first before you decide to reinvent the wheel. EXPECTATIONS Make no mistake: an alliance with an in-house Life specialist will work to everyone’s advantage. The potential results from a well-structured alliance are enormous A Life specialist can expect to produce consistently 75 to 150 new Life applications per year. In addition to new Life revenue, your agency can expect 10% to 30% in additional cross-line sales, as well as improved retention — all with a minimum amount of effort. Establishing a strategic alliance between your agency and a Life specialist is a WIN/WIN situation for all concerned. ...

Professional Designations For CSR's
Education is often termed a 'ticket to success'-and with good reason! More and more career-conscious agents and their office-support personnel are attending professional development programs. Since 1987, nearly 18,000 people have enrolled in these three major industry education programs: Certified Insurance Service Representative (CISR) Certified Professional Service Representative (CPSR) Accredited Customer Service Representative (ACSR) People who participate in such programs gain practical knowledge that gives them an edge on the job and improves their professional image. The programs are offered through a series of one-day courses in major cities across the country. The training varies in format, testing, and prerequisites, but all require continued education once the designation is earned. The specifics of each program are outlined below, along with a phone number to call for more information. CISR This program consists of five one-day courses covering personal residential property, Personal Auto exposures, Commercial Property coverage, Commercial Casualty insurance, and agency operations. Participants must pass all five exams to earn the designation. The program has been offered by the Society of Certified Insurance Service Representatives since 1987. Call (512) 346-7358. CPSR Coordinated by National Association of Professional Insurance Agents (PIA), the program features nine one-day modules in three areas: Personal Lines, Commercial Lines, and agency-operation skills. Participants select from three learning tracks, tailoring the training to their job responsibilities. To be awarded the CPSR designation, individuals must have at least two years' agency/industry experience and pass the exams in at least six of the modules. The program is offered through PIA state and regional associations. Call: (703) 836-9340. ACSR This program includes nine day-long modules, with the option of Personal Lines certification (five courses), Commercial Lines certification (six courses), or certification in both areas (all courses). Developed by Independent Insurance Agents of America (IIAA), the program covers technical, account-selling, and professional skills. Candidates are tested by the state association upon completion of the courses for the desired certification. Call: (703) 683-4422. If you haven't pursued any of these professional development opportunities, consider what they can do for you and your professional image. Talk to your superiors about the possibility of attending. CSR FORUM's can contribute to your knowledge base, too! In fact, participants in THE CSR program may soon have the opportunity to earn continuing education credits. Stay tuned for more details....

... No Thanks Loading.. x No Thanks Loading.. x No Thanks Loading.. The Harrison Group 1 2 3 4 5 Rating history (0 Reviews - 0 of 5.0) Shows who have rated the content, and the rating score. Write your review here. (Required) Please consider the following: 1. Would you recommend this company? 2. What about this company do you like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews Member Content Member Content - Content Package Categories Popular Recent All Back From Mom-and-Pop' to Professional Shop: Breaking Through 8/24/2018 12:00:00 AM by CompleteMarkets Editor , Al Diamond This content has not been rated yet. It used to be the $1 million ceiling. That was the level of revenue at which an individual performing agent with a few helpers had to become a business with different people handling different clients and responsibilities. Everyone still worked for the agent, but the agent no longer made every decision. However, running an agency as a business doesn't automatically result in growth and a high quality of professional service. By the time the agency reaches $2 million, it runs into another "invisible ceiling." The $2 million revenue mark around which many agents hover for several years is one in which a change in management must occur ...

... x No Thanks Loading.. x No Thanks Loading.. Rodgers & Associates Insurance, Inc. 1 2 3 4 5 Rating history (0 Reviews - 0 of 5.0) Shows who have rated the content, and the rating score. Write your review here. (Required) Please consider the following: 1. Would you recommend this company? 2. What about this company do you like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews Member Content Member Content - Content Package Categories Popular Recent All Back From Mom-and-Pop' to Professional Shop: Breaking Through 8/24/2018 12:00:00 AM by CompleteMarkets Editor , Al Diamond This content has not been rated yet. It used to be the $1 million ceiling. That was the level of revenue at which an individual performing agent with a few helpers had to become a business with different people handling different clients and responsibilities. Everyone still worked for the agent, but the agent no longer made every decision. However, running an agency as a business doesn't automatically result in growth and a high quality of professional service. By the time the agency reaches $2 million, it runs into another "invisible ceiling." The $2 million revenue mark around which many agents hover for several years is one in which a change in management must occur ...

... No Thanks Loading.. x No Thanks Loading.. x No Thanks Loading.. ASE Insurance Services 1 2 3 4 5 Rating history (0 Reviews - 0 of 5.0) Shows who have rated the content, and the rating score. Write your review here. (Required) Please consider the following: 1. Would you recommend this company? 2. What about this company do you like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews Member Content Member Content - Content Package Categories Popular Recent All Back From Mom-and-Pop' to Professional Shop: Breaking Through 8/24/2018 12:00:00 AM by CompleteMarkets Editor , Al Diamond This content has not been rated yet. It used to be the $1 million ceiling. That was the level of revenue at which an individual performing agent with a few helpers had to become a business with different people handling different clients and responsibilities. Everyone still worked for the agent, but the agent no longer made every decision. However, running an agency as a business doesn't automatically result in growth and a high quality of professional service. By the time the agency reaches $2 million, it runs into another "invisible ceiling." The $2 million revenue mark around which many agents hover for several years is one in which a change in management must occur ...

Divorce And Agency Value: Separating Goodwill
DIVORCE AND AGENCY VALUE: SEPARATING GOODWILL by Roy Phillips In my agency valuation work with agents and their spouses in divorce cases over the past 15 years, the issue of professional goodwill has often arisen. When a couple divorces, they seek to divide their community interest between them. All assets and liabilities must be assessed to enable the court to make an equitable division of property. If one of the spouses is an insurance agent, his or her book of business thus becomes subject to valuation, and such intangible property often depends a great deal on professional goodwill. In my opinion, there are two types of goodwill in every insurance agency. The first is intrinsic goodwill. Simply stated, this is the continuation of the client base even after the owner has departed because of death, disability, or retirement. It takes into account the ability of the agency to retain clients through very little effort of the owner. Elements of this goodwill include the service of tenured staff, insurance companies (including their products and prices), location, history of the agency in the community, and other factors. These elements are not based factors that are separate from the clients' dependence on the agents' expertise, reputation, contacts, and special relationships. A doctor's clinic serves as a good analogy. If a sole-practitioner physician dies, becomes disabled, or retires, intrinsic and professional goodwill both come to an end. If another physician acquires the practice, the clinic might retain some patients from the previous doctor. These patients retain the new doctor because of past good experiences, friendly nurse and staff, location, and the clinic's long history in the community. This is intrinsic goodwill. The new doctor, if experienced, may bring professional goodwill of his or her own. That is, the new doctor may keep some patients and attract new ones with skill and personal qualities. In divorce cases involving a professional person, Texas courts have tended not to grant the spouse an interest in professional goodwill. In one case, the court held that the goodwill of a professional person may be as much an asset to be sold as that of a merchant. The professional person is seen to have individual goodwill that can't be detached from his or her person, and thus can't become a part of the community property. Take the landmark case Rathmell v. Rathmell, for instance. In 1975, agent John Rathmell, and his non-agent spouse divorced. After a settlement, which divided the agency's value between the parties, the spouse appealed, alleging that disclosure of the agency's value had been improper. Attorneys filed a Bill of Review asking the Court of Appeals to correct the inequity. Although a number of issues were involved, the Court of Appeals made an important decision concerning the division of professional goodwill. It determined that the sale and service of insurance accounts, which primarily exist in an intangible form, was based on the professional goodwill of the individual agent. What's more, the agent had the opportunity to compete for the business without the prohibitive contractual considerations that might exist in an employment contract. The court essentially decided that the trial court had erred in not assessing this type of goodwill and attributing such value to the agent. The Court found that the appellant, the insurance agent John Rathmell, had developed professional goodwill even though he was not a lawyer or a doctor. It went on to state that the value of the Rathmell companies should have excluded the value attributable to the time, toil, and talent Rathmell expended after the divorce and/or his willingness not to compete with the agency. (It's important to note that Rathmell served without an employment contract, and was not obligated to refrain from competing for the corporation's business. In addition, there was no buy-sell agreement that established the valuation method to be employed in transfer of the firm.) In this case and others, the court established a doctrine of non-divisibility of professional goodwill. It's obvious that this issue has many facets. For instance, sometimes both spouses work in the agency, and have achieved a loyal following through their individual and collective goodwill. Another landmark case in Texas arose from the divorce proceedings of a physician (Nail v. Nail). The court held that the 'accrued goodwill of his medical practice did not constitute property subject of the division upon divorce as part of the estate of the husband and wife.' The opinion continued, 'Professional goodwill has the following attributes: It attaches to the person of the professional man or woman as a result of confidence in his or her skill or ability. It does not possess value as an asset separate and apart from the professional's person or from his individual ability to practice his profession. It would extinguish in the event of the professional's death, retirement, or disability.' Frequently, I'm the only consultant making the appraisal. This is common, as it is in mediation action directed by the court. This can save significant amounts of time, money, and (maybe most important) grief. It's also important to add that both parties often disagree on their own vested interest in this issue of professional goodwill. As a result, there has been a movement to change the law. A spouse contended to the Court of Appeals that the Nail v. Nail case law was wrongfully decided. The Court of Appeals basically responded, 'Appeal it to the Texas Supreme Court, and let them grant a writ of error and change the law.' The Supremes refused to do so. In December 1993, the Texas Supreme Court denied a writ of error in Guzman v. Guzman, and let the issue of non-divisibility stand. They concluded, 'Two Texas Courts of Appeals have recognized that a professional person practicing with others under a corporate structure or as a partnership may have accrued personal professional goodwill, and that there might exist at the same time goodwill attributable to the business or partnership-but goodwill that exists separate and apart from a professional's personal skills, abilities, and reputation is divisible under divorce.' Where does this leave a consultant attempting to determine an agency's value? The court has made it clear that if the aforementioned conditions exist, the personal professional goodwill must be allocated a value. If not, the findings of value are offensive to Texas law. Let's use an example. An agency is a corporate entity, and the agent is the firm's sole shareholder. The contending spouse has been active in the firm to a minor extent in primarily clerical work, but not to the extent of having created personal professional relationships with insureds or markets. The agent and spouse begin the divorce process, which requires evaluation of the business to determine the community interest to be divided. The value components to be considered in determining the agent's professional goodwill might include: the number of major accounts produced by the professional the revenue of such accounts in relation to the agency's gross commission revenues the tenure of such accounts in the agency the accounts' tenure with the carrier insuring them the loss history of such accounts the accounts' payment history the personal relationships that the agent enjoys with the decision-makers in the insured firms Questions affecting professional goodwill might include: Did the agent originate the agency? How much personal supervision does the agent provide on major accounts? Does the agent have significant relationships with the major carriers providing products and services to the agency? Does the agent have important contacts with community members (participation in clubs, networks, and social or civic organizations), which provide exposure that leads to business relationships for the agency? Does the agent have a covenant not to compete in the event that he or she leaves the firm? These are not the only considerations to be investigated by the evaluation consultant, but in my opinion, they're the benchmarks from which to determine that elusive value: personal professional goodwill. Roy L. Phillips, CIC, CPIA, can be reached at Dan R. King & Associates, 4888 Loop Central Drive, #100A, Houston, TX 77081, (713) 667-03...