Simple definition 

At MullaneyCookson Marketing, we distinguish between marketing and sales this way: 

Sales generate today’s business income. 

Marketing generates tomorrow’s business income. 

Feedback is the breakfast of champions. 

---From Herberg, Adams & Associates capability brochure.  Frank J. Herberg, CPCU, AAM is an agency development coach who partners with MullaneyCookson Marketing.  You can reach Frank at 508-272-9255.

Sales and service people and DNA 

Do sales and service people have different DNA?   

Have you ever heard a CSR say “I don’t sell, I service.”  “I will never sell.”  “I wasn’t hired to sell.” Have you ever heard a producer say “I sell, I don’t service.”  “Servicing an account is not my job.”

I am betting your answer to both situations is Yes.  But it doesn’t have to be that way for CSRs or for producers.  It is largely a matter of the semantics.  What is your CSRs’ definition of selling?  What is your producers’ definition of servicing?   If selling is defined as “providing a customer with an opportunity to make an informed decision that will be of benefit,” then CSRs do that every work day.  If servicing is defined as “making sure that a satisfied customer stays satisfied,” then producers do that at every annual review or when they call to tell a customer about a new coverage. 

Do whatever works best for your agency, but make sure the organization is an integrated selling organization that provides great service!  

Repeat, repeat, repeat and integrate 

Promote your agency using a variety of media.  It is a multi-channel world out there. Do you have a hot home-account discount program?  Feature it in at least three of these media:  print ads, television, on your Web site, in direct mailings, and in your agency newsletter.  Place a poster featuring the discount program in your reception area.  Place an easelback display on your countertop with a “take-one” piece of literature about the program.  Post small signs at each associate’s desk that says “Ask me about our Home-Auto account program!”  Ask customers to refer friends and relatives who could benefit from the savings. Leave no stone unturned. 

Multi-channel marketing.  It is the way to go if you want to aggressively build your business. 

Simple way to frame a direct mail budget profile 

First, determine how much you are willing to invest in communications designed to increase awareness of your agency and services, and ultimately lead to a new customer account.  $5?  $4?  $3?  $2?  Let’s say you choose $3. 

Second, determine how many prospects you can afford to reach.  500 @ $1500 total? 1000 @ $3000 total?  You choose 500. 

Third, determine how many times you want to reach each target prospect this year. Let’s say four times during 2009. 

Now divide your per prospect investment by four---$3 divided by 4 = $.75.  So each mailing, including postage, must average seventy-five cents. 

What type of mailing can you buy for $.75 per unit?   If you handle mailings inside, postage will cost 42 cents leaving 33 cents for the mailer itself.  If you use a mail house, you can save about 15 cents on postage and handling leaving 48 cents for production of the mail package. 

TIP:  Mail the SAME mailing to the SAME prospects four times.  You will be able to print 2000 mail pieces at a considerable saving over 500 of four different mailers.  Best of all, the repetition will help boost your response rate.      

It is a multi contact world today 

How often we hear this refrain:  We did a mailing and it did not work.  Not going to do that again.  

One mailing to your prospect list does not a marketing campaign make. You need to use a business development process that features several mail contacts to the SAME prospects.  Insurance prospects become hot prospects for a change when renewal time rolls around.   

You need to cast your line 45 or 60 days before their auto or home or business policy expires in order to catch them.  But how do you know when their expiration dates are?   

We recommend that you make contacts (call them touches, if you prefer) with personal lines customers on your prospect list at least six times during a 12-18 month window.   

We recommend that you use a low cost per unit mailer, a mail house that can get you the best postal rate and handle your mailing schedule with a minimum of involvement by your staff. 

We recommend that you keep mailing a manageable prospect list over and over.  For a year.  For two years.  For three years.  For as long as it takes to exhaust all the sales potential in that list.  Manageable translates to affordable and within your agency’s ability to follow up leads.  But no matter if the list has 500 names or 5000, keep mailing! 

Persistency wins out every time over constantly changing lists and tactics.