This series excerpt was prepared by GeoLogix SolutionsaEUR(TM) Jim Hearn and originally ran as the featured Marketing article in the September 2010 issue of Rough Notes magazine. GeoLogix Solutions was recently merged into MarketStance (www.marketstance.com) where Jim functions as the Chief Marketing Officer.

Step Three aEUR" Smart Growth:
Smart Growth. WhataEUR(TM)s that? ItaEUR(TM)s taking the understanding of your production opportunity and your best client-/ best prospect profiles and using them to target growing market segments. And, since what gets measured gets done, itaEUR(TM)s creating a series of benchmark measurements.

I have sat in front of both distributors and carriers alike when discussing lead programs and had to work hard to get them to include growth measurement as a part of their selection criteria.
Why is growth so important? Simple aEUR" a stagnant or shrinking geographical production opportunity, even within targeted classes, frequently results in hard-to-close business and clients that have difficulty paying their premiums. Conversely, if you focus on classes that meet the marketing appetite and underwriting criteria plus are growing, youaEUR(TM)re likely to avoid the pitfalls noted above. Moreover, growing policyholders generally mean growing premiumsaEUR|and when premiums grow, so does agency compensation!

As an example, I once had a client that wrote in several CAT-prone coastal states. Rather than reduce their production within those states, our firm assisted them in identifying growing classes that did not have a property-heavy exposure. As a result, they were able to target a group of classes experiencing a significant amount of growth which increased their premium in a group of states where other insurers were reducing their writings. As a result, they not only grew their book they also improved their reputation with their distributors.

Once youaEUR(TM)ve targeted growing markets with your market intelligence, itaEUR(TM)s time to set up a lead ordering and performance measurement process. ItaEUR(TM)s critical to pre-define some action steps along with some success measures and then run periodic analysis to see if your performance is on target or a need exists to make adjustments. Every sales management class I ever sat through had a common theme:
That which is inspected is respected!

GeoLogix Solutions developed a slide cast for the members of AgentsofAmerica.org that graphically explains how portions of this three-step process can be used by agents. Click here to see the strategy outlined in more detail or copy and then insert this URL into a new browser window if it does not automatically open: http://www.slideshare.net/secret/eMtUnzr96e2Ojf.

Good luck developing your market intelligence program and implementing your Smart Growth plan.
Suggested action item for Step 3

aEURc Use aEURoebest clientaEUR? profiles to develop potential lifetime value and profitability by target market segment. Use these profiles to target your prospect focus.
aEURc Using your accumulated market intelligence coupled with your plan from your market(s), place an order for some high-performing leads. Look for holistic information that includes more than just basic contact information so that the leads can assist your cross-selling efforts. With the right leads, a producer can be prepared to discuss commercial insurance needs, personal insurance needs and perhaps even group benefits or life insurance key-man policies enabling that producer to become a trusted advisor.
aEURc If possible, deliver aEURoewarm leadsaEUR? to your producers:
aEURc Integrate delivery of warm leads through a robust contact management system to deliver a prioritized list of aEURoebest prospectsaEUR?, which are within 90 days of their ex-date. Include any information that enables efficient and effective relationship building with prospect.
aEURc Review and adjust the roles and responsibilities within your organization to improve efficiency. Transitioning non-relationship building, (e.g., cold calling, data entry) to more cost-efficient resources so that your high-performing -- and highly paid -- producers are focused on what they do best.
aEURc Understanding that it sometimes takes two-to-three renewal cycles to land a piece of business, focus on developing high-quality, value-added relationships with prospects and policyholders.
Here are some suggested Success Measure ideas; most can be used by individual producers and / or their agencies:
aEURc Identify existing market share within a known geographic area then set a goal to maintain or increase market share in target areas while maintaining or improving profitability
aEURc Identify, and then target, new insurance solutions to meet the existing or changing needs of your target market. In some cases, this means switching from SIC-based class identification to NAICs-based identification to better reflect the fact that service businesses are a dominant driver in certain geographic areas
aEURc Baseline current aEURoeout-of-appetiteaEUR? business and then target the strategic non-renewal of existing policies, and to exclude non-desired businesses from the prospect sales process.
aEURc Installment #1 advised to create an integrated database; we advise using this integrated database to track and eliminate aEURoeunreceptive prospectsaEUR? from the sales process
aEURc Measure and document efficiencies in the sales process for more effective resource deployment.
aEURc Track calls made, appointments, submissions, quotes and written policies
aEURc Measure:
aEURc How many calls are required to generate an appointment
aEURc How many appointments are required to generate a submission
aEURc How many submissions are required to generate a quote
aEURc How many quotes are required to generate a written policy
aEURc Measure the above by producer / by market
aEURc Measure cycle time from prospect identification to sale by producer / by market
aEURc Using all the above, measure expense ratios by producer / by market which will also identify opportunities to increase efficiencies and effectiveness of sales initiatives.

Jim Hearn, formerly GeoLogix SolutionsaEUR(TM) CEO, and who recently merged GeoLogix with MarketStance and now hold the Chief Marketing Officer title for MarketStance, has worked in the information and insurance industries since 1981 holding regional and national executive leadership positions. Since 1990, Jim has been focused on the insurance industry and has managed contractual relationships with all of the major brokers, many of the Top 100 agencies, numerous agency aggregators and over 400 carriers and reinsurers. Jim and the rest of the GeoLogix Solutions team have 70+ combined years in the information and insurance industries. JimaEUR(TM)s disciplines included sales, marketing, technology and eCommerce with industry leading firms. Before launching GeoLogix Solutions, companies for whom Jim has worked include D&B, Continental Insurance, AMS Services, Citigroup, MarketStance, Advisen and Moore Stephens Business Solutions.