Is The Hand Writing On The Wall?

This weeks post reminds me of one of my favorite Bible stories.  It comes out of the book of Daniel in chapter five.  It involves the old saying the "handwriting on the wall."

For those not familiar with the passage, King Belshazzar was a prideful and self-exalted King who knowingly went against the wishes of God.  During one of his lavish parties that he often threw a hand appeared out of no where and begin to write an inscription on the wall.  To make a long story short, Daniel one of the King's servants interpreted the writing to say that the days of the king's reign were numbered.  He had been weighed in the balances and been found wanting.  His kingdom would be divided.  

I find this story relevant because there seems to be a lot of writing out there that we, as independent agents, have been warned and that our days are numbered.

For example, I read an article today titled "Is Personal Lines Auto Worth Fighting For?"  It was written in response to another article that surfaced recently about a study done by the investment bank Nomura proclaiming the demise of the independent insurance agency (the handwriting on the wall). I highly recommend that you read both articles and have included links to each.  I only ask that you start with the Nomura study to read all of their data as to why our way of life is doomed.

I don't want to rehash each of the articles but I do want to point out that both elude to personal auto being a commodity. Which is very unfortunate, and only somewhat true.  For two reasons:

1. For years we have sold it as a commodity never explaining the differences in coverages or upselling subtle nuances but rather cutting as much as legally possible and reducing it to its lowest obtainable price.  We've been treating all personal auto insurance as non-standard auto insurance.
2. The Nomura study goes even further to state that "as company underwriting models evolve and become more intelligent, the need for front line underwriting or talented and trained agents diminishes."  So just like fast food you can pull up to a drive thru and pick and choose what coverage you need off of a menu.  That doesn't work for most people.

When you go on vacation are you willing to spend a few more dollars at a hotel with far superior service?  You could just pick the cheapest room available, besides a bed is just a bed isn't it? 

On your anniversary would your rather have Ruth's Chris Steakhouse or Taco Bell? 

When you have a devastating and unforeseen accident would you rather have a person on the end of the phone several states away explaining you only bought the state minimum requirements or would you rather have a trained and capable agent sitting beside you who spent the time to explain all of your exposures to you and sold you the coverage you truly needed coupled with an umbrella policy?

Here's my gist.   Selling insurance the way that we know it now might be a thing of the past.  I definitely won't totally discount what the Nomura study had to say.  So instead of calling ourselves insurance agents, and selling a commodity, maybe it's time that we market ourselves as Risk Managers.

I mean if the majority of your day involves taking change requests over the phone and cutting coverages or shopping companies everytime someone complains about price then I have to agree with the Nomura study.  The hand writing is definitely on the wall for you and your days are numbered.   Your services will soon be obsolete.

However, if you want to be a Next Generation Agent you must be willing to commit the time to:

1. Read and learn something new every day 
2. Obtain your CPCU, CIC or many other industry designations 
3. Recognize the importance of knowing ISO form language

When you do this you can become a true Risk Manager, someone there will always be a need for.  Not just someone who sells insurance.  

Social Media Won't Last

“There is no reason anyone would want a computer in their home.” — Ken Olsen, president, chairman and founder of Digital Equipment Corp., 1977

"In 1938 Chester Carlson invented xerography. Virtually every major corporation, including IBM and Xerox, didn’t think much of his idea and rejected it. They felt that since carbon paper was cheap and readily available, no one would buy an expensive copying machine."
 

Still working without a social media presence?   Still pouring thousands of dollars into a yellow page ad?  Just admit it, you've decided social marketing isn't for you and you're content to leaving low cost access to exponentially thousands of preferred insured's to your competitors.  Besides, your current marketing plan has worked for years.  Or has it? 

Have you ever measured the return on investment for your yellow page ad?  Do you track how many successful submissions (not quotes) that you get from it?  Listen, I'm not saying that a yellow page ad is useless (yes I am) because it does provide one great service, it helps  those looking for insurance with an alphabetized list of  available agents that they can call until they find the lowest price.

However, with agency Facebook and twitter accounts, you could potentially reach customers who might not even know they're looking.   Through passive advertising you create your page, share it with your friends, who share it with their friends and so on and so on.  Just how many friends? Facebook has 1.4 billion users followed by twitter with over 500 million.

Here are some more interesting stats:

Total number of Facebook users worldwide	1.4 Billion
Total percentage of 18-24 year olds who already use social media	98%
Total percentage of people on Earth who use Facebook	11%
Total amount of minutes people spend on Facebook every month	700 billion
Average amount of time a person uses Facebook per month	15 hours 33 minutes
Total amount of people who access Facebook with phone	250 million
Total amount of websites that have integrated with Facebook	2.5 million
Total pieces of content shared on Facebook each month	70 billion

Don't be afraid. It really isn't hard.  Do it tomorrow and then take 10 minutes every day to post something useful or share someone else's useful post.  But keep in mind your page isn't just your business card.   It's important to post valuable and free information. Every time you do that's another chance for someone to link to your page and find out about your agency.

Don't miss out on a chance to start social marketing now because you're intimidated.  There's literally thousands of resources to guide you to become a master of social media.  If you want to study a little further, Click here for some ideas on how to get started.

Build Better Relationships

One of my all time favorite lines from a TV show comes out of an episode of Seinfeld. One of the main characters, George, constantly has relationship problems. Actually, all of the characters on the show have issues, but in this one instance George's girlfriend is breaking up with him. Needless to say he was expecting it, but she tries to give him the "it's not you, it's me" routine. Most would accept that and move on but George just can't leave well enough alone and begins to argue that if it's anyone, it's him.

As a salesperson, relationships will come and go. There will be some you nurture and watch blossom and then there will be some that no amount of miracle grow will help. But if you find yourself on the bad end of a breakup (career wise) more often than not, maybe you should take a good look at yourself. Maybe it's you!

Successful salespeople excel at building relationships.  Like in most relationships you will prosper if you're a giver rather than a taker. In this case giving refers to value. 

Are you having trouble sealing the deal with a prospect? What value have you given? Not promised. It's easy to advise the customer of what you can do once they sign, but you increase your chances at being more believable if you give some of your value for free. 

For example, as an insurance agent you have a chance to educate insured's. I've had many customers tell me that I've told them things that no other agent has. When you take the time in your pre-sale process to educate you build trust and rapport. Both are two of the key qualities needed for a successful relationship.

Another area of value that you can give for free may come in the form of networking.  You might not be able to help the customer at this time but you might know someone who can.  Why not explain to the client that you don't have the expertise or the market that will benefit them most, however you have a colleague or an associate that can help them? 

If you've been having a tough time transitioning your prospects to buyers, just remember, be a giver first!  By doing small things like helping a client network, or gain some education, you will invoke the principles of Liking and Reciprocity.  Both of these Principles of Influence will increase your bottom line and increase your ability to build stronger and longer lasting relationships with your customers.   

Silver Lining to "The Cloud"

Whether you're a new scratch agency or a veteran office with multiple carriers, one issue both face is the cost of infrastructure. Have you ever priced an agency management system? They're not cheap. Not to mention the maintenance fees and training needed.

Let me take a moment to say that I'm not anti-management system, on the contrary. They're indispensable. But, considering the fees associated I am saying that there might be an easier more affordable way for agencies that are struggling with upfront investment revenue.

I'm talking about cloud computing. Ok, stop; take a breath and relax. This isn't going to be too hard for you to understand.  It's actually quite simple.

Imagine a folder that you can put on the desktop of all the computers in your office, as well as all of your mobile phones.  Everything you put in this folder can be accessed at any of those workstations, regardless of which one originally stored it.  

So for example, if agent A creates a file or contact note for prospect Smith, it can be accessed by all other agents in the office on their device as long as it was stored in the folder connected to "the cloud." Effectively it sets up a cheap and easy network between all of your computers, tablets and smart phones.

So where is this "cloud?"  As I mentioned above there is a cost benefit associated with cloud computing in regards to infrastructure.  The short non-technical way of putting it is that instead of having to buy large computer servers or memory banks and storing them in-house, there are companies out there that will do this for you.  In essence, your files are stored securely on their servers and able to be accessed from anywhere you have internet. 

One other benefit of storing information this way is that if your computer crashes you won't lose or have to replace valuable files.  Simply log on through another work station or mobile phone and you will be able to continue business as if nothing had happened.

Even if you already have access to an agency management system I recommend taking a serious look at the benefits of cloud networking all of your devices.  If nothing else it would be a great way to take pictures of a risk and store them for any other agents or CSR's to pull up back at the office.

For further explanation by a true computer professional follow this link:

Introduction To Cloud Computing

Also check out Dropbox.com or do a Google search for other websites that provide cloud storage.

"Tips Appreciated"



You might think twice before hanging this in the office...



There are many laws that dictate what you are, and what you are not, allowed to do as an insurance agent. One of those laws involves giving and receiving kick backs or gifts. If you've forgotten the fact since you passed your licensing test, they're not allowed.

However you are allowed to receive referrals. In a way, a referral is your gratuity. A referral is your client's way of saying you did a great job and they enjoyed your service. When you receive great service in other industries, you reward that person with a tip.  When you get a referral as an agent, you're getting a tip.

Getting referrals is easy. Just exceed all of your client's expectations of service, or in other words do for your customers everything you want your agent to do for you. Trust me, they will tell others about you.

Or you could just ask! When you get your bill at the restaurant they put a nice little convenient line right under your total for you to write in the tip. Why not add a page to your document with a few extra lines and ask for a few names of friends or family that would appreciate the same service and savings that you just provided them?

There are several easy tips that you can incorporate into your sales technique that will have your clients volunteering names and numbers of friends. For one of these tips just email me at nextgenagent@gmail.com and I will share one with you.

Close Only Counts In Horseshoes

Getting closest to the peg in horseshoes will win you the game, but just getting close to reaching your customers in advertising will waste a lot of your money. 

I speak with a great deal of agents who go through “slow times”; when the phone just isn’t ringing.  Sure they find tasks to fill their day with servicing, but new business production takes a plunge.  Believe me, nothing makes you feel worse as an agent than to work your tail off but at the end of the week your score card is blank.

In a recent conversation one of my agents told me that he was “waiting on the phone to ring.”  If I wanted to be mean I could have told him that the definition of waiting is “to remain inactive or in a state of repose until something expected happens.” 

Promoting your agency and yourself takes action.  If you sit and wait on the phone to ring, you might as well lock your doors, hang the closed sign, and go golfing for the day.  In fact, I would recommend that.  You would actually have a better chance at making a sale. 

What do you do during the slow times?  Do you wait or do you make things happen? 

For example, I was watching television the other day when a commercial for a local trial attorney came on and his jingle was “call Star Star Law” (**LAW).  It was sung lyrically and repeated about 15 times during the ad at which point I was ready to turn it.  I grabbed the remote thinking why would you waste your time making that?! Right after turning the channel, my little two year old niece was playing in the floor, not paying me any attention, singing “call Star Star Law.”  I cannot tell you the phone number to any other lawyers in town but I know his by heart.

I know one agent who took the money he would have spent on a Yellow Page ad and bought one of those traveling food vending trailers.  He strategically placed his agency logo on it and he donates it for free to civic groups to use to have bake sells out of.  Not only is he providing a community service and a good deed, he’s getting “miles” of promotion out of it for his agency.

You don’t have to have a marketing degree or access to expensive ad departments like the show Mad Men.  My grandfather used to say you “gotta fish where the fish are.”  Sometimes all you need to do is get out from behind your desk and go meet people.  They’re out there!  They’re at Starbucks getting coffee or the local diner eating lunch.  They’re at fairs and community events.  But the one place you won’t find them is in your office.

Tomorrow, if you’re setting in your office and no one calls before 11:00 am for a piece of new business, grab a stack of your business cards and hit the pavement.  Don’t return until you’ve talked to at least three new people. 

Has Your Agency Caught A Case of "Mono"?

On the couch, thermometer in my mouth, cold sprite by my side, and hot chicken noodle soup to soothe my aching throat.  Sick for a few weeks, way longer than I should have been, a visit to my family physician was in store.  Symptoms were:  sore throat, low grade fever, and the worst part crippling lethargy.  Diagnosis:  Mononucleosis.  (Aka, the kissing disease but in reality contracted from sharing a water bottle while playing softball)

The worst part was the apathy.  I didn't want to do anything!  At least any more than I had to.  Go to work; come home.  Eat dinner; go to bed.   No hanging out with buddies, no hot dates with my wife, and no more sports.  Just lots of bed and lots of reality TV.    

Which makes me think what if there were an Insurance Agency rescue show?

(Read this next bit in deep "promo guy" voice) This week on Agency 911 the Next Generation Agent team visits ABC Insurance Associates in Columbus OH, where owner John Smith is having trouble with producer passivity. It seems his team has their lines crossed when it comes to cross selling! (Ok, you can stop the creepy voice now)

Could I have just as easily substituted your agency's name?  Has your staff become indifferent, doing only the bare minimum?  If you did an agency book profile what percentage of it would be mono-line? Think about your last ten pieces of new business, how many were packages?  How many may lead to packages?  If you didn't say at least seven you may need a visit from Agency 911. 

All kidding aside, your preferred customers likely own other assets.  Writing their auto policy was just your foot in the door.  When completing your DNA checklist (read my previous post!) you better be asking things like "Do you own a home? And if so who is it currently insured with?"; "Do you own a boat or any recreational vehicles like ATV's?"; "Any rental property or seasonal dwellings?" 

These questions are designed to help you cross sell, the easiest way to build agency revenue.  But it also paints a more accurate picture of their insurance needs and more importantly it builds personal rapport and trust, all leading to greater volume, increased retention, and referrals. 

In conclusion, Next Generation Agents are immune to mono-line sickness!  Their mantra is "A package a day keeps the doctor away."