aEURoeThe most important single ingredient in the formula of success is knowing how to get
along with people.aEUR? (Theodore Roosevelt)
WeaEUR(TM)re in an interesting industry. People generally relate to their insurance and their agents in
a manner similar to the way they relate to their garage door openers and coffee makers. Let
me explainaEUR|
When things work well for us, when the garage door opener and the coffee maker work the way
we expect them to, we generally donaEUR(TM)t think much about them. We take them for granted and
may not even recall who the manufacturer is. ItaEUR(TM)s only when they donaEUR(TM)t work that we pay
attention. Then our attention gets focused on the product and the perhaps the people that
made the product.
This trait of human behavior is especially important to make note of when it comes to the
business of insurance. ItaEUR(TM)s pretty evident that when a policyholder has a claim, your agents
have the opportunity to really shine aEUR" to stand out from the crowd aEUR" to deliver more service
than expected. The challenge comes when everything is working well! Just like the coffee
maker, when things go well (as expected) theyaEUR(TM)re hardly ever thought of. The insurance is just
there. Its aEURoeworksaEUR? the way they expect it to, and therefore the agent and the insurance are
taken for granted. ThereaEUR(TM)s often very little connection or relationship with the agent. Some
policyholders will just view them as the salesperson that was there to sell them insurance.
The bottom line is that when your agent doesnaEUR(TM)t have an ongoing connection with their
policyholders, he or she is subject to being picked off by someone with a little lower rate or by
someone who happens to come along at the right time and is able to build rapport with them.
Agents who retain clients in the face of rate increases, poor fund performance and increasing
competition understand that they need to connect with their policyholders in ways that address
some of the eight universal needs that people have. These universal needs are:
1. Sense of Accomplishment - People want to feel that they've accomplished something
through their efforts.
2. Sense of Belonging - People want to be part of a winning team. Make certain that you
communicate just how much your team is winning.
3. Direction - Communicate your purpose and provide your clients and prospects with the
direction to achieve it.
4. Sense of Empowerment - Expect the best of people and they will rise to your
expectations.
5. Recognition - Everyone, to one degree or another, loves recognition for a job well
done.
6. Respect - Treat people the way you want to be treated. Understand that although we
all have different hopes and dreams, we all have them.
7. Sense of Significance - Make sure you help your policyholders understand the
significance of their efforts towards reaching their goals and achieving their purpose.
8. Sense of Purpose - I believe that everyone craves a purpose. We want to be
passionate about something (anything!). Be clear on your purpose and develop the
purpose of others.
Well, now that weaEUR(TM)ve covered these eight needs that people have to one degree or another,
how do we apply them in our business? We need to provide these needs in an ongoing manner.
The key is for agents to continue to aEURoetap their policyholders on the shoulderaEUR? aEUR" to continue to
let them know theyaEUR(TM)re still there and are thinking about them. ItaEUR(TM)s a matter of doing
something extra when things are going well. Typically, a good policyholder retention system is
made up of a combination of passive and active programs.
Active programs are effective but are time-consuming. The benefit of an active program is
that it is very personal and demonstrates that someone took the time to do something
specifically for their policyholder. The active programs in a retention system should address
one or more of the eight needs. If an agent develops active programs that suit his or her style
and addresses some of the above needs, their efforts will provide great returns.
Passive programs are efficient, which is good, but everyone recognizes that theyaEUR(TM)re automated.
The benefit of using passive programs, however, is that they work while you sleep (or play) and
they create top-of-mind awareness. TheyaEUR(TM)re a means to keep an agent and the agency in front
of a policyholder. Again, if you can address one or more of the eight universal needs that
people have, you can maximize the effectiveness of your passive programs.
IaEUR(TM)ve compiled a list of both passive and active programs you might consider as a means of
helping your agents stay in front of their policyholders.
Not every idea will suit everyone and
you may think of other ideas to add to this list:
A?aEURs. Conduct in-person annual reviews
A?aEURs. Stop by a policyholderaEUR(TM)s office when youaEUR(TM)re in the area for no reason other than to
touch base.
A?aEURs. Send birthday cards
A?aEURs. Send anniversary cards
A?aEURs. Send holiday cards
A?aEURs. Personally call a policyholder just to thank them for their business
A?aEURs. Have your CSR call a policyholder just to thank them for their business
A?aEURs. Personally call a policyholder just to say hello
A?aEURs. Send a small gift [$5 - $10] (supermarket-purchased movie tickets are my favorite) for
no reason other than to thank them
A?aEURs. Regularly hold open houses for groups of policyholders
A?aEURs. Send a monthly or quarterly newsletter by mail or e-mail
Implementing a policyholder retention system can be time consuming and may require some
investment, but keep this in mind: the cost of keeping an existing client is far less than the
cost of finding and acquiring a new one.
Policyholders will be far more likely to stay with your agents for a far longer period of time
when an agent has made a lasting impression on them. TheyaEUR(TM)ll also be far more likely to refer
someone to them as a client when theyaEUR(TM)ve made a lasting impression on them as someone who
cares about people as people. The difference is in the details. ItaEUR(TM)s what sets apart those who
really excel from those who just do well. Help your agents to do the extra work to retain
clients. Not only will they keep more business, but theyaEUR(TM)ll write more lines of business and get
more referrals from their current book of policyholders.
Michael Beck, President of Exceptional Leadership, Inc., a leadership development
and executive coaching firm dedicated to creating exceptional leadership for higher profits and
greater job satisfaction. Michael can be reached at 877-977-8956 or mbeck@XLeaders.com,
and you can learn more about the company and these ideas at www.XLeaders.com
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