To write with a broken pencil is pointless. 

The roundest knight at King Arthur’s round table was Sir Circumference. 

When fish are in schools they sometimes take debate. 

Police were called to a daycare where a three-year-old was resisting a rest. 

The dead batteries were given out free of charge. 

When the smog lifts in Los Angeles, U C L A.

I want to grow my agency this year _____ 

I just want us to hold our own  _____  

Which one did you check? 

If you checked “grow my agency,” do you a good prospect list?  Do you have an on-going marketing support program that will keep your prospecting pipeline full? Does your growth plan include activities to round out and upgrade existing accounts?  Is your agency fired up and prepared to follow up and close sales? 

If you checked “hold our own”, what about lost accounts?”  How many clients have left your agency in the last 2 or 3 years?  Can you identify them by name?  Do you have a way to find out why you lost them?  How about ways to woo them back?  

All customers are not created equal 

Every paying policyholder deserves the best service you can give them. 

But that doesn’t mean that every policyholder deserves to have you as his or her agent. Or that every policyholder is equally beneficial for the agency. 

Every agency has: some customers who are not pleasant to do business with; some who are always on the phone with unwarranted complaints; some who constantly put agency staff members “threw the hoops”, and require an excessive amount of hand-holding time. 

There is a name for those types of policyholders.  They are called Y customers:  “Why are we doing business with them?”  It makes good business sense to develop ways to encourage Y customers to insure with a direct writer!   

This is an important strategy.  It is a matter of fairness.  The Y’s  are unfairly taking up valuable time that your staff can use to care for your best customers, your A and B customers, and for new customers who join the agency. 

There’s another benefit.  I’m betting you will see a spike in office morale, especially among your CSRs.  

Your CSRs are the key 

Many of our clients have identified their policyholders as A, B, C  and Y customers. What are the criteria for each category?  

There is no set of rules. Each agency sets its own criteria for each category. Types of criterion are: full account activity, longevity with the agency, value of the account, potential growth of account income, ease of doing business, referral activity, testimonial givers, payment record…and more. 

Generally speaking, our agency clients view C’s as customers who are price-driven, and likely to have a short retention span. But that’s not the only criterion. 

What about identifying other C's and the Y’s (Why are we doing business with them!)?  Ask your CSRs.  If you ask them to name customers who they have difficulty servicing, they will give you specific names!   

Chances are, your CSRs have identified the least profitable C’s and the unprofitable Y’s---customers you may want to encourage to leave. 

J.C. Penney traffic report 

Independent agents can take a leaf out of J.C. Penney’s “Know Before You Go Program” (as reported on in the Andrea Syverson’s GRAND MATTERS column, Target Marketing). 

She quotes J.C. Penney Direct president John Irvin: “Our shoppers are more frequently using the Internet before ever shopping in a store. We’ve done extensive research that shows that nearly 70 percent of customers are online for a purpose other than shopping, including viewing merchandise, comparing prices, finding sales promotions and exploring fashion and shopping tips.” 

Here’s how the “Know Before You Go” works 

Syverson’s report points out that, J.C. Penney gives customers “detailed and updated information” that they can use BEFORE they get in the car and visit a store.  Go to www.jcpenney.com and shop for a pair of shoes.  You can virtually “try them on” before you decide to actually try them on at your local Penney’s.  You click on the style that appeals to you, and then select the color and size.  Under “check on the availability at stores near you,” plug in your Zip code and up pops a box telling you where you can find the exact item in a store nearest you. 

Sure, insurance is a different from a retail apparel store.  BUT, when you stop to think about it, there are more similarities than differences.  

. You are a local retailer of products.

. You are able to showcase your products (in brochures, online).

. You could publish a catalog (online, in print). 

. Your customers want empathy and service.

. Your customers want time-saving convenience.

. Your customers want helpful information.

. Your customers want your professional advice. 

And, more and more insurance buyers, especially younger buyers, are getting their information from the Internet.  They ARE searching insurance agent sites BEFORE they make a decision to contact you---or a competitor. 

Now, pull up your Web site  

Do you have “detailed and updated information” that customers can use BEFORE they call you or drop by your agency office?  

Can the customer “try on” the product they are interested in?  How might you provide ways for them to do so?  How can you make the experience highly visual and interesting? 

Can the customer find your office location easily with directions to get there? Can the customer virtually “visit” your office and staff members? 

Build it, promote it--more will come! 

The more interactive and visually appealing your online office is, the higher the number of prospects and customers who will come and window-shop  BEFORE they give you a call or come by your land agency.  

Resource:  Andrea Syverson’s column: www.targetmarketingmag.co