Just Who Is Talking To Your Insureds?

When was the last time you met with any of your renewing customers?  Aside from having to because of a claim, when was the last time you sat down to discuss changes or even sent a letter to any customer you wrote over six months ago?  I would bet it has been well over six months.  The sad truth is that the industry average is only once every few years.

Just who is talking to your customers?  For starters, they know Flo very well.  They know her so well they dress up as her for Halloween. They're also very familiar with and see a little green Gecco on a daily basis.  Ever heard of Dennis Haysbert?  He's most famously known for his deep voice and role in the movie "Major League" but now he represents AllState.  He gets pretty chummy with them too.   He even tells them he’s going to give them money back!!

Picture of my Mom as Flo for Halloween
 

 Ironically those of us in independent insurance agencies tout how great our personal relationships are and how our personal touch keeps our retention strong.  Would you want to put your money where your mouth is?  Unfortunately you probably already do and don't realize that in actuality your customer relationships aren't that solid.  For example, how many existing insured's came through your door today that you had to ask their names?  

The fact is, direct writers have done a great job taking fictional characters and giving them personality.  Their words comfort us, make us laugh, and sometimes give us false hope.  They tell your customers they can name their own price for insurance! Have you ever done that?  I bet (and hope) not.  It’s your job to explain to them just why it’s impossible to do that.

 It's true that a majority of the customers that leave your agency to "go direct" will probably return with a bad taste in their mouth after dealing with a claims issue or missed payment.  Most like having a local agent to rely on and someone they can they can visit with in person.  However, if you acted a little more pro-actively you wouldn't lose them to promises of saving 15% in 15 minutes.  If you only spent 15 minutes with them in the first place, they might not be so tempted to leave.

Make A New Year's Revolution

We are now eight days into the New Year 2014.  Have you stopped smoking yet?  Have you cleared the clothes and dust off the treadmill?  If my assumption is correct, I'm going to guess that's a big fat NO!  It's true that you still have some time left to get started, but with each passing day motivation to start becomes harder to find and excuses for the status quo become easier to make.  However, don't feel too bad about breaking your resolutions, there's actually some science behind it.

Why do resolutions fail?  One answer to that question is the "all or nothing rule." Simply put, we think in terms of black and white which means we either keep the rule or we break it. We do so well keeping up with the resolution while we're enjoying the successes but completely let go at the first sign of failure. According to Rajesh Bagchi, Ph.D., assistant professor of marketing at Virginia Tech, "people tend to take a break-- a well earned breather--after achieving a sub-goal." Unfortunately it's rare that we resume our efforts after the break.

 The second reason we break our resolutions is because as individuals we lack vision. I'm not talking about eye sight. I'm talking about "the act or power of anticipating that which will, or may, come to be." When our progress stalls our end goal becomes harder to anticipate and disappointment clouds our image to our path of success.

So this year I don't want you to make the same old New Year's resolution, destined to fail.  This year you're going to have a New Year's Revolution, quite simply a "sudden, complete or marked change."  This is the year to make a difference. Don't just start a diet; instead change your lifestyle. Don't just say you're going save money; call your bank tomorrow and start the 52 week challenge. Easier said than done? Exactly! That's why you can't just say it, this year you're going to make a personal vision statement.  What's the difference you ask?

Having a vision statement takes your focus off of the sub-goals and places it on the end goal. If you made a resolution to earn your CPCU designation, you may or may not get around to actually taking the first test. However, you might be more inspired to carry out this monumental task once you know and understand the root of the motivation or desire to accomplish the goal, such as career confidence, the ability to advance at work, or just the prestige.

State Auto Senior Sales Consultant Brian Ahearn, one of only 27 Cialdini Method Certified Trainers, states:

 "I often tell people one of the most impacting books I've read is Steven Covey's The 7 Habits of Highly Effective People. The reason I say that is because I took Covey's suggestion and wrote a personal mission statement. For more than 20 years now I've reviewed parts of my mission statement daily as a way to remind myself of who I am, who I'm trying to become, and what's most important in my life. As I look back on life it's apparent my mission statement has impacted my thinking, choices and behavior in very positive ways." 

Remember, your vision statement is the picture of yourself that you see in the future. It's who you're working to become. This picture is only bound by what constraints you place on it. For example, here is an excerpt of my own personal vision statement:         

            "I am a salesman. At all times I will know my product, my company and my customer. I will continually learn from those with more experience and share my knowledge with those I can teach. Ethically and humbly I will strive to offer my services at the highest standard of excellence." 

Take my lead, challenge yourself to create your own vision statement. Write it on a note card, sign it in ink, and keep it handy so you can look at it every Monday morning. When you create and buy-in to a vision statement for yourself, you will begin to develop the framework to reach your goals. 


For more information on creating and keeping a vision statement visit http://www.mindtools.com/pages/article/newLDR_90.htm. 

Is Your Website User Friendly?

Have you ever purchased a product that came with one of those clever little registration cards?  Like a blender or a washing machine?  Generally the sales person tells you at the point of sale that there's a warranty included and all you have to do is visit a website answer a few questions and give a little data about yourself. How can it go wrong?

It's so convenient, just type in the address and let technology do the rest.  However, once you get over to the company's website you find it's not the modern marvel of technology that you had imagined. In fact it's just the opposite. Understanding what you are supposed to do or even how to answer their vague questions proves to be more trouble than it's worth.  After toiling for twenty minutes and pulling out your hair the perceived value of your purchase/warranty is falling and will continue to plummet until you struggle through or just give up in aggravation.

Yet the worst is when you don't even get a chance to start. You get to the website only to find that the "company's servers are experiencing technical difficulty" and you need to "try again later".

If you have a website you better make sure that it is user friendly.  Don't let it give the wrong impression about you or your agency.  For example, is your site only functional during "business hours?" Can prospects get a quote? Can they at least complete a Desires Needs Analysis (DNA)? 

Websites are for 24 hour a day people. It needs to provide functionality 24 hours a day. Users don't just need a way to find out your phone number or who you have as staff. They can use your Facebook page for that.

If you direct them to your website they better leave feeling like they've accomplished something.  If you don't have quoting ability then they should at least be able to complete a DNA and be followed up on within 24 hours.   Along with that, fill the site with educational information like importance of higher limits or an umbrella policy.
 

Finally, utilize videos of your staff and current customers.  Instead of someone reading about how flood insurance isn't included in a standard home policy have one of your staff do a video.  You could also post that on YouTube to guide prospects to your site.   It should also be noted that everything should look as professional as possible, don't half-do it.

 

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.