More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
STREET WISE Alliance of Insurance Agents of NC “What You Don’t Know Can’t Help You!” … Eddie K. Emmett, Editor / Publisher
14 Baby Steps to Insurance Agency Greatness by John F. Carroll In This Edition 14 BABY STEPS TO INSURANCE AGENCY GREATNESS ..................... 1 USING FACEBOOK'S ADS TO GENERATE LEADS ........................ 16 AN EXCELLENT STRATEGY: HIRE INCOMPETENT PRODUCERS .......... 18 THE POWER OF INSURANCE PERIODICALS ................................ 24
Baby Steps. If you’ve seen “What About Bob?” you know what I’m talking about. It might be just a movie, but I still think Dr. Leo Marvin was on to something. Baby steps are important for anyone trying to make a change, including insurance agents like you. I’ve seen a lot of agents attempt major improvements in their agency only to fall flat. You and your staff are creatures of habit and when new habits require too much change from current ones – it won’t last. I give out a LOT of ideas to help agents be more successful, but I know a many agents fall short when they implement new procedures that are too ambitious from the get-go so I wanted give you some “baby steps” for some of the most common improvements I know agents want to make. Here are 14 “pie-in-the-sky” aspirations I hear from agents along with a recommended first step to get the ball rolling.
AIANC’s STREET WISE
Page 1
1) I Want To Do Annual Policy Reviews On Every Single Customer Every agent I know thinks annual policy reviews are great for their customers and business. I agree – It helps retention and cross-sales, boosts satisfaction, and helps you execute your role as a financial advisor. And I’m sure you’d love it if you could line up 5 in-person policy reviews every weekday. But if you’re not currently doing ANY policy reviews in your agency, you need to start small. Baby Step: Perform one policy review per week over the phone. Yes, that’s right… start by just doing one a week and don’t even push for an in-person meeting. If you get it done on Monday then take a break until next week. Tips to make it easy: Make your conversations easy by writing down a list of 6- 9 questions to ask. Offer it as a “discount checkup” instead of a protection review because it sounds less “salesy” to the client. Continued on page 2 March 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
And then tell your staff what’s going to happen for every single new referral your agency gets. This will force them to take referrals into greater consideration and they’ll be your accountability partner.
Baby Steps Continued from page 1 Call new customers on their 1 year anniversary so you can say, “it’s time for your annual policy review” and they won’t know this is a new thing for your agency.
Once you’ve done that, check out this article for more ideas to turn up the notch on your referral marketing.
3) I Want Customer Satisfaction To Be an 11 out of 10.
After a month, decide if it makes sense to bump up your frequency and/or change the process.
I know you’d love it if every one of your clients was happier than a pig in slop. Every client renewing policies over and over again, touting the virtues of your agency to everyone in town.
2) I Want Every Customer To Be a Walking Salesman For My Agency You’d love to have a booming referral marketing program that inspires thousands of your customers to hand out your cards everywhere they go.
Unfortunately a lot of agencies I know are somewhere between Comcast and Walmart on the customer satisfaction spectrum.
Everybody would love that. But you have to start somewhere.
Baby Step: Reduce the negative impact of your biggest customer service complaint this week.
Baby Step: Decide exactly what people will get when they refer your agency and exactly how you’ll get it to them. And then explain it all to your staff
I don’t care what you do or how you do it, but figure out some sort of process, workaround, talk path, or some other idea that reduces the negative effect of whatever your biggest customer service complaint is.
Let’s start by making it really easy. Here are a few ideas of what referring clients could get:
Even if the reduction is tiny. For example:
A phone call saying thanks
Customers don’t like to wait on hold? Get better hold music.
A gift card to a local store
Rates going up? Make a list of potential discounts / alternatives to ask every upset client about.
A handwritten thank you letter Some agency-branded giveaway like a water bottle or a t-shirt
Customers always lose their ID cards? Get some nice ID card holders and make it part of your process to educate each new client about the importance of storing their ID card in the glove box.
A staff photo signed by everyone in the agency. (that’s a joke, although it would probably be pretty cool) AIANC’s STREET WISE
Page 2
Continued on page 4 March 2015
Looking For Growth or Acquisition Capital? We offer Insurance Agents loans from
• Purchase a new book of business
$25,000 to $5,000,000, allowing you to
• Open an additional location
leverage your commission and renewal
• Start a marketing campaign
income to help you grow your agency!
• Hire a top producer
Super G Fund ing, LLC 23 Corporate Plaza Drive #100 Newport Bea ch, CA 9266 0
Your Insurance Agency Loans fr om $25,000 t o $5 ,000,000 B or r ow Against Your C om
0000000
missions!
00 00000
00000 00
000
Apply Today! 250,000
Super G Funding
Complete Our Easy Loan Application in Less Than 10 Minutes!
LOANS FUND IN AS FEW AS 7 DAYS! www.SuperGFunding.com/Insurance | Call Us Today! 800.631.2423
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
It’s really hard to measure improvements in retention and that makes it frustrating if you don’t see results. So pay attention to the retention of just that segment and you should see measurable improvement.
Baby Steps Continued from page 2 I’m sure your biggest complaints are different, but you get the point – don’t try to eliminate the problem because you will fail, just make it suck a little bit less.
And read this article when you’re ready for more retention ideas to implement.
5) I Want to Build a Team of Master Salespeople
If you make a small improvement to your customer service issues like this every week in a year you’ll have a lot of improvement. Read this article for more ideas.
You want your agency staff to be Navy SEALS of insurance sales?
4) I want 100% Retention
Well… it ain’t going to happen overnight.
We all know the deal with the insurance business. If you can’t keep your current clients you won’t grow.
Baby Step: Role play sales conversations with each staff member for 20 minutes each week.
I talk with a lot of agents who will say stuff like, “What can I do to improve retention? I can’t stop everybody from shopping around and I won’t always have the best rate. I’m better off focusing elsewhere”
Even just practicing sales once a week will remind your staff that it’s an art and a science that can be refined and improved if you take the right approach.
Sound familiar?
Make it easy for them.
It’s true that you can’t stop everybody from shopping around, but you absolutely can control your renewal rate just like you control everything else.
The real value isn’t even in the lessons learned as much as it’s showing your staff member that sales ability is something you can improve if you work on it.
Baby Step: Identify the segment of customers most likely to leave and do something nice for them right before renewal
And here are some more tips about practicing sales with your staff.
6) I Want To Hire Full-Time Salespeople
Who is leaving your agency the most?
You’d like to have an agency where everyone specializes and your salespeople aren’t burdened by the mental toll and time it takes to service policies.
First year customers? Unmarried people?
Sounds great, but how can you do it without the budget for a new full-time salesperson?
Clients facing the biggest rate hikes? Figure out which type of customer is most likely to leave (look at your stats, not your intuition) and send them a card, an email, or pick up the phone and give them a call right before that renewal.
AIANC’s STREET WISE
Baby Step: Turn your producers into full-time salespeople for two hour windows each day. Basically, give all your producers a window of time each day during which they are to FOCUS ON NOTHING BUT SALES. Page 4
Continued on page 6 March 2015
Premium Insurance Agency Website
Web Marketing Service
$35/month, $99 setup fee
$495 setup, $100/month
• Service descriptions • Online payment links • Contact info, contact form and location map • Up to 15 pages • Agency blog • Insurance information videos • Custom QR Codes • Links to social media and review sites to build your online reputation • Online quote forms • Agency staff photos and individual contact info • Optimized for mobile devices
• Create agency business listings for visibility with more than 10 of the biggest listing and social media sites: Facebook Business Page Twitter for Business Account Google Places Listing Bing Listing Yahoo Listing Yelp! Business Listing CitySearch Listing …and more! • Independent Agency blog for inclusion in your agency website Professional content added regularly Make your site interesting to customers, potential customers, and search engines • Inclusion as preferred agent in our online directory listing of local agents • Basic monthly analysis of online presence • Setup and monitoring of Google Ad Word campaigns based on a budget you specify
Elite Insurance Agency Website
Web Consultant Service
$60/month, $99 setup fee
$1995 setup, $250/month
• Includes all the features of the Premium Insurance Agency Website, PLUS: • Up to 30 pages of content • Custom design services for a unique look • Custom submission forms for your preferred lines • Online chat • Insurance Glossary • Multi-location interactive maps • Regular changes by our staff upon request • Optimized for mobile devices
AgencyThrive - Insurance Agency Internet Marketing & Social Media
Includes all the features of the Web Marketing Service, PLUS SO MUCH MORE: Elite Website included with Instant Auto Quote (where available) Weekly updates of Social media sites Includes Google Adwords campaign (no additional click charges) Monthly email blast to your customers upon request Monitoring of online reviews to protect your reputation Detailed monthly analysis of online presence Preferred placement on our directory listing site of local agents Monthly action plan to increase traffic and sales
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
Baby Steps
8) I Want To Be a Social Media Marketing Wiz
Continued from page 4
It sure would be nice to have 1,000 Facebook fans who consistently comment on your posts and share them with friends.
Make sure everyone knows each other’s “sales time” and respects it by not interrupting with service questions or other distractions.
That’s not going to happen overnight.
It’s not effective to keep switching back between service and sales all day long. The more your producers can wear the two different hats at two different times the more effective they’ll be.
Baby Step: Follow 20 different local businesses and like, comment on, and share their posts. Before you start posting your own stuff on social media, follow some other local businesses and see what they’re saying. Develop some good Karma by “liking” their posts and pay attention to what works.
7) I Want to Be a Networking God You want to be the dude who walks into the Chamber of Commerce and people line up to shake your hand and introduce you to their connections.
Before long you’ll have a better idea of the kind of stuff people REALLY want to see on Facebook. And trust me; it’s NOT whatever your marketing person told you.
But instead, you haven’t gone to a networking event in 3 months and nobody at the local chamber knows your name.
9) I Want The Most Popular Insurance Blog on The Internet
Yes? Baby Step: Commit to one networking event per week. Even if you’re only there for 20 minutes.
You want an active agency blog with hundreds of regular readers making comments and sharing your articles with their friends and coming back for more.
When it comes to growing connections and trust with people, it’s all about frequency. Most of the business people who regularly attend networking events won’t really want to get to know you until they see you a lot and know you’re in it for the long haul.
That’s really not going to happen. Baby Step: Publish a blog post about another local business and then email the link to them. Wait… Aren’t I supposed to blog about insurance?
And forcing yourself out of the office once a week is a great start if you’ve been slacking off.
Not if you want anyone to read it. Continued on page 8
AIANC’s STREET WISE
Page 6
March 2015
Giving agents and organizations new products and benefits. Increase sales. All online. Easy to use.
OFFERING HIGH QUALITY NICHE PRODUCTS Home Warranties Appliance Protection Plans Auto Service Contracts Power Sports Service Contracts Pet Health Insurance Boat Insurance Discount Medical Plans Individual Identity Theft Business Identity Theft GoAgents is proud to be working together with the highest valued companies in the industry to bring you niche products, enabling you to cross sell and increase revenue with new and existing clients.
Questions? Call us at: (Toll Free)1-855-854-7387 or Learn More online at www.goagents.com
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
You can try to take control of your time, but inevitably there will always be fires to put out and it’s easy to lose focus.
Baby Steps Continued from page 6
Baby Step: Spend the first 20 minutes of your day doing something proactive with no interruptions.
The bottom line is this: if nobody reads your blog, you’re not going to keep writing it. Start by writing something you KNOW will be read by at least a few people because it’s about them and let them promote it to their fans.
Forget about the emails, the phone calls, the obligations, and everything else that pulls you away from working on your business to working in it for 20 minutes. Tell your staff they need to wait.
10) I Want My Agency To Be The Awesomest Place Ever
You might find life goes on and you can stretch it even longer… to 25 minutes!
It’d be awesome if your agency had the fun-filled atmosphere of a carnival. Customers would love coming to pay their bills and your employees would be ecstatic to drive to work every morning.
12) I Want to Hold Inspiring Sales Meetings Every Week I think every agency should have a sales meeting once a week. A formal time to talk about product changes, sales techniques, new approaches, ideas, inspiration etc.
Unfortunately, you can’t snap your fingers and turn a morgue into a dance party. Baby Step: Pick one thing from this article and do it today.
But if you haven’t brought your team together for something like that since the Christmas party last year it’s hard to jump into a weekly sales meeting.
And then next week pick another one.
11) I Want to Be Organized With Every Minute of My Day
Baby Step: Once a month bring everyone together and ask everyone to share a sales tip.
Tired of putting out one fire after another? Wouldn’t it feel great to have a day at the agency where you could plan what you wanted to do and follow through? AIANC’s STREET WISE
Continued on page 10
Page 8
March 2015
…starts by building your bottom line with Nation Safe Drivers! Over the past 50 years, NSD has built its success by helping to build our client’s success and has grown into one of the largest suppliers of autorelated supplemental insurance products. We have earned an unmatched reputation by helping agents increase their profits, while providing excellent customer service, fast claims processing, and administrative support. We proudly serve millions of customers worldwide through our agency partners and are ready to serve you. With many products to choose from, the combination of benefits and services you can offer your customers is virtually endless. Here are just a few of the products that NSD offers: Towing & Roadside Assistance Travel Plans with Hospital Indemnity Accidental Death & Dismemberment Accident Medical Protection
• • • •
Rental Reimbursement ID Theft and Legal Discount Travel And More!
Don’t wait any longer, contact Nation Safe Drivers today and get on the…
Road More Profitable!
CELEBRATING OVER 50 YEARS OF EXPERIENCE & INDUSTRY LEADERSHIP! 800-338-2680
http://www.nsdmc.com
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com Ask your producers to hang it on their desk and put a pile of them on the front desk for clients to see.
Baby Steps
Continued from page 8 Call it the “Monthly Tips Meeting” or something stupid like that so it has an air of formality. You’ll be surprised how much conversation will occur just from doing this and it’ll remind your staff members that they’re here to sell and they can always get better at it. Make sure you bring your own tip and be the first one to share it to set the right example. Read this if you need ideas
13) I Want to Cross-Sell Every Single Client Most agents agree that it’s easier to sell more insurance to someone who already buys from you than to a stranger. And every agent I know wants to cross-sell every client in the agency.
Ask your producers to show it to every client they meet with in person and especially new customers. And check out this article for more ideas on crossselling.
14) I Want to Rank #1 on Google for Every Insurance Term Yes it’s true that ranking high on Google is a pretty valuable thing for your business. If you ranked #1 you’d probably have all the leads you’d need. But it’s not that easy. Not even close. And it’s not even a matter of just hiring the right company (unless you hire me) because if you don’t understand how Google works you’ll spend thousands of dollars on the wrong stuff. Baby Step: Learn The Factors Google Uses to Rank Insurance Agencies.
Unfortunately, it’s a lot easier said than done!
Continued on page 12
Baby Step: Create an “Everything We Sell” sheet with a list of all the products you sell.
AIANC’s STREET WISE
Page 10
March 2015
Security, Accuracy & Reliability Focus on what you do best! Selling insurance. Let us focus on what we do best! Ensuring your financial peace of mind.
Give Rosemary A Lambert, CPA, PA a call. Whether you need daily financial guidance, or yearly tax planning services, our professional staff will work with you to customize a plan that aligns with the goals of your agency. Our firm understands the need for absolute confidentiality. We will ensure the security of your financial systems and provide you with accurate and reliable data. With more than 20 years in the business, Rosemary A Lambert has extensive experience in accounting for the insurance industry.
704704-855855-1509 WWW.ROSEMARYALAMBERTCPA.COM Closeout Services Include: ∗ ∗ ∗ ∗ ∗ ∗
Daily database management reports Company draft verifications File uploads Finance company integration Reconcile bank account(s) weekly Premium difference reconciliation
Other Financial Services Include: Full-service payroll functions ∗ Bill pay services ∗ Financial statement compilation ∗ Corporate, partnership & personal tax returns ∗ Business consultation ∗
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com The more important takeaway is the simple concept of making positive and lasting change by taking the small manageable first steps. Aspirations are great because they provide direction, but if you don’t take that first step and have patience, you’ll never get anywhere. If you found an idea or two in this article, please click the Like button and/or share it with another agent you know who is having trouble making big changes in their agency. Hope this helps, John
John F. Carroll is the founder and CEO of InsuranceSplash. For years, John has consulted insurance agencies with internet marketing and sales strategy and he is dedicated to making insurance marketing easy and effective for all insurance agents. If you're an agent, connect with John on LinkedIn, he wants to connect with you!
Baby Steps
http://www.insurancesplash.com/blog/baby-steps
Continued from page 10 There’s a lot of misinformation about SEO and if you don’t have a good foundation of understanding you’re not going to have success. There is one source for local SEO information that is far more comprehensive and trusted than anything else I’ve seen out there.
www.AllianceInsuranceAgentsNC.com
Read this list of the most important ranking factors according to industry experts and try to understand everything it’s talking about before you seek information elsewhere or hire an SEO company.
Conclusion I hope you found a few baby steps in this article to take action on, but that’s not really why I wrote it.
AIANC’s STREET WISE
Page 12
March 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
The Difference Between Doing and Managing By Al Diamond of Agency Consulting, Inc.
Most agents are “doers.” They sell insurance and interact with clients to keep them satisfied. Far fewer agents are “managers” who understand the ramifications of their actions and track their successes and failures to learn from the past, avoid pitfalls that block progress and repeat the steps that prove valuable in the achievement of their goals.
Most of us would say that these statistics are meaningful and important. But few of us actually know those statistics on a day-by-day basis. We think that because we think we can access that data, it is sufficient. But if you were to get into your car and drive – without direction and a plan, simply knowing that your destination was 1,000 miles away, what would happen? You could certainly say that you were motivated to reach your goal and you would spend the time and effort to accelerate the vehicle for the time needed to make the trip.
How much do you know about your agency and about your book of business?
But unless you actually stopped and referred to a map to determine where you had gone; unless you understood the need to re-fuel and refresh every so often, you would quickly become lost and run out of gas and energy before achieving your goal.
Is it important to know specifically how much business your agency writes and how much is retained in each of the divisions of the agency (typically personal lines and commercial lines)?
A better plan is to pre-plan your route including pit stops for fuel and food. That way, you could monitor your results as you drove and make adjustments, as needed, to reach your goal refreshed and on time. Continued on page 14
AIANC’s STREET WISE
Page 13
March 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com How would you know where you are going in your road trip if you didn’t even have a goal? Would you consider going on a driving vacation with no target planned? How would you know if you have reached your goal if you don’t even have one? Using this analogy, have you identified the New Business and Retention (commissions and customers) GOALS of the agency for the year? Suggesting that it is impossible to tell how many new clients you will write or how many will leave you and that your goal is to write “as much new commission and as many new customers as you can” is a ‘cop out.’ We know that you would never consider stopping writing new business simply because you reach your target. That certainly doesn’t imply that you shouldn’t HAVE a target, does it? A target, whether the goal of your vacation ‘road trip’ or the goal for new business and retention in your agency, defines your expectation and the position that would define “success” for you. In your vacation, the target is your destination. In your agency, the target is the level of combined New Business generation and Retention that would allow you the compensation and profit needed to support your personal needs and your business needs.
The Difference Between Doing & Managing Continued from page 13 Similarly, “managing” your agency differs from simply selling insurance whenever possible and processing customer requests and transactions. The critical issues in your agency are how much (commission dollars) and how many (customers and policies) are being written as new business as your trip (your year) progresses, how much commission and how many customers are being retained or lost during the process, and whether the results will allow you to reach your GOAL (the destination for the agency for the year). AIANC’s STREET WISE
One troubling situation we encounter with agents all over the country is their reluctance to Plan and monitor the plan because they work as hard as they can and they don’t want to find out that they are not achieving their goals for as long as possible. Not achieving goals depresses the agency owners. But they inherently know that they are not ‘making the numbers.’ The owners choose to blindly ‘accelerate’ and continue the trip rather than analyzing what is happening and making adjustments to increase the chances that they reach their goals for the year. Continued on page 15
Page 14
March 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com YOURSELF THAT YOU GIVE YOURSELF THE BEST CHANCE OF REACHING YOUR DESIRED Continued from page 14 ‘DESTINATION’ OR, IF YOU CAN PREDICT THAT YOU WON’T REACH THE DESIRED GOAL, AT LEAST No, it is NOT ‘comfortable’ to review the numbers and CHANGE THE OBJECTIVE TO ONE THAT WILL BE find them wanting. But if you don’t analyze your results ACHIEVED THROUGH YOUR CONTINUED EFFORTS vs. your expectations and goals on a regular basis BY THE END OF THE YEAR. during your ‘road trip’ you will a) eventually run out of gas at the least opportune moment, and b) never reach If your goal is to get from New York to San Francisco your goal in the time allotted for the trip. but your progress monitoring indicates that you will only reach Kansas City by the end of the year, what good is What do you need to do to avoid “empty” in your leaving the goal at San Francisco? agency ‘road trip’ this year? Either make the minor adjustment of increasing your 1. SET A PLAN WITH OBJECTIVES FOR THE speed (changing the Action Plans) to reach the desired CRITICAL ITEMS OF NEW BUSINESS COMMISSION goal or, if you have no other ideas for moving your AND CLIENTS AND RETENTION OF COMMISSION agency faster, change your goal to Kansas City and AND CLIENTS. identify what you will be able to do (with the revenue that This is similar to setting your destination in the ‘road you will eventually generate in total) once you get there. trip’ each year. The components of the Agency Plan is Will you be able to make a profit? Will you be able to the combination of NB and Retention just as the pay yourself what you had planned? Will you need to components of the road trip is following the map’s ‘lighten the load’ or will you have to live on less income? guidance and making sure you have enough fuel in yourself and in your vehicle to reach your goals. The implication of asking and answering these questions defines whether you are just the driver or are 2. CREATE ACTION PLANS THAT YOUR managing your agency as well as motivating it forward. EXPERIENCE TELLS YOU WOULD LIKELY ACHIEVE THE DESIRED RESULTS FOR NEW BUSINESS AND Reprinted from The PIPELINE, the national newsletter RETENTION. for agency principals. The PIPELINE is published by Agency Consulting Group, Inc., a leading consulting firm Every road trip is marked by way-points and for independent agents in the U.S. for over 30 years. expectation of average speed and time you will travel Call 800-779-2430, Visit www.agencyconsulting.com for daily. In your agency, simply telling your staff to work information about the content of this article or PIPELINE harder is insufficient to assure that they reach the waysubscription information. points that define interim success on your annual journey. Action Plans define the “How To” of generating NB and retaining clients.
The Difference Between Doing & Managing
3. BENCHMARK YOUR RESULTS ON A MONTHLY BASIS AND MONITOR THOSE RESULTS AGAINST THE PLAN TO SEE IF YOU ARE ACHIEVING EACH ACTION PLAN AND REACHING THE BENCHMARK POINTS ON YOUR ANNUAL ‘ROAD TRIP’ If you don’t look at how far you’ve gone until you either reach your destination or run out of gas you will likely not have a wonderful trip. Similarly, if you don’t look at the progress of your NB plan and your Retention plan until the end of the year, you give yourself no opportunity to make adjustments and you never know whether to pat yourself and your staff on the backs for a job well done or understand that you are not achieving your expectations. All you know on a day-by-day basis is that you are coming to work, answering the phone and doing what the customers expect of you. In other words, you are the agency’s “driver” but not its manager. 4. MAKE QUARTERLY ADJUSTMENTS TO YOUR ACTION PLANS AND TO YOUR GOALS TO ASSURE
AIANC’s STREET WISE
AIANC Members may download a Step-by-Step Guide to YouTube Marketing for free. AIANC Members may download Animated Video software & online tutorials for free.
Here’s a sample: http://youtu.be/pBNbqxXP7L4?list=UUdScMM7TDqnXrh RRVte0jPQ
Page 15
March 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com “Last night I posted on my local news page about the death of Leslie Gore, 60's chanteuse. My page has 5,800 or so fans. But I noticed that it was not getting a lot of activity. "So I randomly chose to 'boost' it for $20.So far, it has reached 15,160 people, gotten 210 likes and has 76 shares. With still $5.42 left on my $20. So this is one area where I might use it. Of course, it will be better once I have the post on that page which allows them to request a quote.” Using Facebook's Ads to Generate Leads In one of last month’s TechTips I wrote about why I think every agency should consider adding Facebook advertising to their marketing mix. As is often the case with Facebook, some things have changed. The Facebook team is putting a lot of time and energy into developing and enhancing their advertising platform. It is their main source of revenue.
For those of you who would like more information on why your agency needs to add Facebook advertising to your marketing mix and how the platform actually works, I have created a three-video series explaining the details. There is no cost or obligation. I hope you will sign up. And be sure to let me know what you think. Click here for instant access to the free Facebook Advertising video series.
Multi-Product Ads Facebook has added a new type of ad: the multiproduct ad. This new ad format allows you to display from three to five specific products or images within a single ad. Each product or image has its own description and a link that takes people to your landing page. It is currently only available within the news feed for both mobile and desktop. Mobile users can swipe to get more information about a specific product, while desktop users can move between images by clicking on the left or right arrows. This might be useful if you are promoting multiple types of insurance products that are commonly combined – auto plus home with additional discounts. Facebook Ads Keyword Search Tool As I mentioned several times, there are a large number of ways to target a specific audience. An interesting tool I discovered allows you to do a meta search of the various search term options using a specific targeted term(s). There is currently no cost for using this tool. I highly recommend taking a few minutes to view the how-to video to make sure you understand how to best maximize the information the tool provides. One Agent’s Experiment An agency on Long Island has been actively creating a Facebook presence. Their agency page has about 5,800 likes. Yet, they were seeing fewer engagements and fewer people were actually seeing their status updates. They decided to try something new and began experimenting with paying Facebook to “boost” their updates. The results? AIANC’s STREET WISE
AIANC Members may download Booklet at www.AllianceInsuranceAgentsNC.com Eddie, I need to be more like you. You always have something positive to say. You remind me of the boy that came home from school and his dad asked him how he did on his algebra test. The boy said, “Dad, I’m afraid I flunked the algebra test”. His dad said, “Don’t say that, that’s negative, say something positive”. The boy said, “Dad, I’m positive I flunked the algebra test”. Eddie Hall Page 16
March 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com BOOK of BUSINESS
$150,000
ANNUAL EXPENSES
An Excellent Strategy: Hire Incompetent Producers The strategy of hiring incompetent producers was recommended to me by a group of agency owners who thought my advice that no producer is better than a bad producer was: 1.
Just wrong
2.
Too harsh
3.
Short-sighted
I have seen some consultants make the same case so I thought I should have an open mind and reconsider my position. Their point was that every commission dollar sold is worth (pick a multiple) 1.3 or 1.5 or 2.0 times. That makes every commission dollar a commodity. A commodity is defined as something of value but it is interchangeable. For example, one barrel of West Texas crude is priced the same as all other barrels of West Texas crude of the same grade. Therefore, from these agency owners' perspectives, one way to build value is to put as many commission dollars on the books as possible because the value is same regardless of whether the sales are personal lines or commercial. The value is the same regardless of whether the sales are profitable or unprofitable. The value is not affected by whether the accounts carry more or less E&O risk. ALL sales carry the same value in this perspective. Some people will argue I have taken their point too far, but that is impossible. Remember, their point was that poor producers, meaning unprofitable producers, still have enough value to justify keeping them. This means that even if the producers' sales have a -20% profit margin, which is common, they believe these sales have the same effective value as books of business with a 20% profit margin. An interesting facet of their point is that their strategy is quite relevant if the agency can grow fast enough and sell themselves quickly enough. More than one such flip has made an agency owner wealthy. The key is how long the producer is with the agency before the sale. Let's say that at the end of five years a producer has generated $150,000 commission. The profit on this book is (using industry standards for agencies with $1 - $2 million in revenue):
AIANC’s STREET WISE
Producer Commissions @ 40%
$60,000
CSR
$35,000
Benefits (incl taxes @ 18.5% of wages)
$17,575
Total Compensation
$112,575
Selling Expense @3.82% of commissions Admin Exp @ 20.02% of commissions TOTAL EXPENSES
$5,730 $30,030 $148,335
This excludes all administrative wages such as the bookkeeper, receptionist, claims, and so forth. It excludes ANY owner compensation. It understates the CSR compensation too because the average commercial CSR makes much more than $35,000. If we include these real additional expenses proportionately, this book likely is still losing money in the fifth year, anywhere from $10,000 to $30,000. Losses in the prior years were even greater as the book was built. Over five years then, the agency has likely lost between $75,000 and $150,000 net dollars. Using $75,000 and a one times multiple and an agency sale in year five, the agency still nets $75,000 (($150,000 times 1.0 times) - $75,000) = $75,000. But if the agency hangs on too long or the five-year loss is too great, this strategy fizzles. So to make this work financially, the agency owner has to have a firm and fast exit plan. Going back to the original strategy, is the strategy posed by this group of agents a false strategy? Why not hire quality producers initially? Then the agency gets profit and value simultaneously. Besides, who in their right mind would pay the same multiple for an unprofitable book versus a profitable book? Let's use an EBITDA example. If the profit is $25,000 and the EBITDA multiple is six, then the value is $150,000. What is the value of a book with a profit of $25,000 and six times? Why would someone pay the same multiple for a low profit book as a high profit book? For example, pay five for the former and seven for the latter. Maybe the thought is the books all average out. Why do they have to average out? If one focuses on quality producers that generate profit and value, then why should all the books not be valued at a seven times EBITDA, for example? Continued on page 19
Page 18
March 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com work, is upfront before the hire and given all that agency owners already have to do, finding the time and energy for this key element is not so easy, but it is essential if Continued from page 18 the goal is to truly build profit and value. A poor producer cannot take an entire book, even Chris Burand is president and owner of Burand & most of a book with them if fired. If they were so good, Associates, LLC, a management consulting firm that has they would not be fired. So agency owners can alleviate been specializing in the property/casualty insurance the issue of whether unprofitable producers are industry since 1992. Burand is recognized as a leading necessary by eliminating them and then reassigning consultant for agency valuations, helping agents their books to staff or other producers at lower increase profits and reduce the cost of sales. His commission rates, which is common when books are services include: agency valuations/due diligence, transitioned between producers. This is a key secret to producer compensation plans, expert witness services, the success some serial acquirers have achieved. They E&O carrier approved E&O procedure reviews, and completely understand that poor producers are agency operation enhancement reviews. He also completely unnecessary so when they buy, they fire and provides the acclaimed Contingency Contract AnalysisÂŽ they keep the business but make it profitable. Even if Service and has the largest database and knowledge of 20% is lost, that is 20% losing money versus 80% contingency contracts in the insurance industry. making money. Burand has more than 20 years' experience. He is a I truly feel for agency owners struggling to find quality featured speaker across the continent at more than 180 producers. If it was easy, everyone would do it. Is hiring conventions and educational programs. He has written poor producers really the solution though? My for numerous industry publications including Insurance experience, and I've seen the hard data, is that when Journal, American Agent & Broker, and National agency owners properly prepare their agencies for Underwriter. He also publishes Burand's Insurance finding quality producers, use the right interviewing tools Agency Adviser for independent insurance agents. and tests, and create a quality Sign up at http://www.burand-associates.com. development/management plan, successful hire percentages quadruple. All the work, and it is a lot of
An Excellent Strategy
AIANC’s STREET WISE
Page 19
March 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com anyone from your company they form an impression. At that moment, the opinion that the customer has of your company may rest on that employee’s shoulders.
YOU HAVE MORE RESPONSIBILITY THAN THE JOB YOU WERE HIRED TO DO
It doesn’t matter if that employee is on the front line and supposed to have contact with the customer or the employee is behind the scenes and just happens to get a call, the customer is not only going to form an opinion of the company, but potentially the other employees of the company as well. A Third Responsibility While this might not be as applicable to every company, it’s still worth consideration. I’ve been fortunate to have attended a number of the Disney Institute programs. They have been practicing this concept since the first theme park was built, but with something extra. Walt Disney used to say that everyone had three jobs. You already know the first two. The third was to keep the park clean. In other words, just as it is everyone’s job to take care of the customer or guest, it is also everyone’s job to pick up any trash or clean up a mess they might spot. Or, at least arrange to have it done. The bottom line: Everyone must realize that they have more responsibility than just the job they were hired to do. Copyright ©MMXIV, Shep Hyken – www.Hyken.com
Shep Hyken, CSP, CPAE is a customer service expert, hall-of-fame speaker and New York Times and Wall Street Journal bestselling author. He works with organizations to build loyal relationships with their customers and employees. He is also the creator of The Whether you realize it or not, everyone has at least two jobs or responsibilities at work. The first is to do the job that they were hired to do. The second is to take care of the customer. Simple concept, but let’s elaborate.
Customer Focus, a customer service training program that helps organizations develop a customer service culture and loyalty mindset. For more information contact (314) 692-2200 or www.Hyken.com
The Job They Were Hired to Do This is pretty obvious. If you were hired to be a salesperson, you sell. If you were hired to be an executive assistant, you assist. You might be in the manufacturing plant or the IT department. When you are hired, you know the roll you play in your company. Taking Care of the Customer When someone applies for a job in sales, customer service, or any other customerfacing job, they understand that their responsibility is to take care of the customer. But, what about the people who have little or no contact? They may be in the finance department or the warehouse. It is just as important for them to recognize their role in this important responsibility. They may happen to answer the phone, or a call may be accidentally routed to them. How they handle that customer interaction is important to maintaining consistency in the customer service and brand promise. Any time your customers interact with
AIANC’s STREET WISE
Page 20
March 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
Free Animated Video Software for AIANC Members Download Software & Tutorials at www.AllianceInsuranceAgentsNC.com
AIANC’s STREET WISE
Page 21
March 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
Symbols and motor carrier coverage
If you have the knowledge to see the problem, you will also have the ability to discover the solution. Your Producer Online subscription from The Rough Notes Company, Inc. can help you find solutions to problems in your current customers’ insurance protection and to use that solution-finding-knowledge in soliciting and gaining new customers. The Producer Online IN ACTION is a monthly reminder of how you can turn the knowledge gained from The Producer Online into powerful sales opportunities.
The Insurance Services Office (ISO) commercial auto program uses symbols to provide coverage. The symbols vary by type of coverage form. The best symbol for an insured on a motor carrier coverage form is "61" because any auto as the form defines it is covered. However, the best symbol for the insurance company may be "67" because only those vehicles the coverage form specifically describes are covered. Symbol "47" in this court case was part of the now-obsolete ISO Truckers Form. The Motor Carrier Form which replaced the Truckers Form uses symbol "68" but with the same definition as the Truckers Form"47." Click here to review the PF&M analysis of the Motor Carrier Coverage Form Covered Auto Section.
Coverage while not working Krzysztof owned the tractor that he would use while working for SSTS. However, there would be times when he was not transporting goods for SSTS or another contracted company. While he acted as an agent for those transport firms, their policies provided coverage for him. However, he must have his own coverage for those times when he was not operating under their authority.
Good news – Krzysztof signed a contract to transport freight for SSTS! Bad news – Krzysztof had an accident that afternoon while driving his truck to an SSTS mandatory inspection.
Click here to review the PF&M article that describes CA 23 09-Motor Carriers-Insurance for Non-trucking Use that can be attached to the Business Auto Policy to provide only when Krzysztof would need it.
Krzysztof collided with a vehicle driven by Barbara as he drove his tractor trailer to be inspected by a mechanic as required by SSTS, with whom he had just contracted to haul freight. The contract was signed at 10:00 a.m. The accident occurred at 1:45 p.m. on the same day and before Krzysztof had transported any freight for SSTS. Occidental insured SSTS with a symbol 47 that applied to "those autos you hire, rent or borrow." Progressive insured Krzysztof subject to an endorsement that coverage did not apply while Krzysztof was acting as another organization's agent. Both carriers denied coverage.
www.AllianceInsuranceAgentsNC.com AIANC Members may download “How To” Videos & Tutorials on setting up and maintaining a Facebook for Business page. Join today for only $250.00 per year.
Click here to see who the courts decided would pay the $400,000 settlement.
AIANC’s STREET WISE
Page 22
March 2015
For 135 years Rough Notes has been dedicated to making you a better agent. Become the coverage expert with the Producer Online-Plus Producer Online-Plus Includes Commercial Lines Risk Evaluation Survey Personal Lines Risk Evaluation Survey Policy Form & Manual Analysis Coverages Applicable The Insurance Marketplace Marketplace Cybercast
ACORD Forms Library Business Building Letters Insurance Words & Their Meanings E-marketing for Agencies Rough Notes Magazine In Action Monthly Newsletter Videos for your Website
Producer Online Plus is designed with the powerful technology and technical insurance content you’ve come to expect from Rough Notes. Narrative overviews of operations and exposures for more than 650 classes of business are just a small part of what is included in this product.
Get yo 30-Day ur Free Trial o Inform ationa r an lV www.r oughn ideo at otes.co m
Go to www.roughnotes.com for your Free 30-Day Trial Or call 800-428-4384 To order go to: http://shoppingcart.roughnotes.com/produceronline/ Enter Code: 1POLAAIANC
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
The power of insurance periodicals Make sure that these publications don’t just get put in a pile to read “when you have time” as this has the potential to deprive the staff of some great education and knowledge. Each of the agency staff will greatly benefit from this great material and when they grow, the agency grows. Oh, by the way, using the “tips” in these periodicals is going to help your agency sell more insurance!
Agents E&O Tips http://www.agentseotips.com/ When you stop and think about it, I trust that you would agree with me that the insurance industry is blessed with a tremendous number of quality insurance periodicals. I regularly subscribe to 6 or so (some digital, some hard copy) representing both the P&C and Benefits sides of our business. In any given issue, there is great material. In just the last two weeks, there have been articles regarding key issues that agencies need to be aware with HIPPA, the finer points of boat insurance, tools for account rounding, evolving insurance issues dealing with Lyft and Uber, social media pointers and a host of E&O tips (from a variety of solid E&O professionals). The point for bringing this up is that whether the agency staff is brand new or of veteran status, every agency should have a solid focus on ensuring that the staff is educated on those issues affecting their specific responsibilities and the industry as a whole. These periodicals (many of which are actually free) are a very effective means to accomplish some of this education.
Attention: Insurance Companies, MGA’s, Premium Finance Companies & Insurance Industry Vendors: Check out the rates for the most cost effective method of keeping your message in front of your customers … The Independent Insurance Agent.
If you are not receiving these publications, now is a good time to start. As these publications are received by your office, do your best to peruse them promptly for articles that would be of benefit to your agency staff. While routing the publication through your agency is the easiest approach, at times, the periodicals may get “hung up” at a particular staff member’s desk. A better approach is to make copies for all applicable staff members – this will then enable them to retain a copy for their future use and as a resource. The content of these articles also makes for great subject matter at your next agency staff meeting. Bottom line – there are many excellent authors that are contributing to these publications. They offer great suggestions on a whole host of topics (E&O, coverages, workflow, evolving topics, etc.).
AIANC’s STREET WISE
Ad Size
Monthly
Pre-Pay 6 Issues
Full Page (7.5” x 10”)
$275.00
$1450.00
Half - Page (7.5” x 5”)
$150.00
$800.00
Quarter-Page (3.75” x 5”)
$75.00
$375.00
1/8 - Page (3.75” x 2.5”)
$50.00
$250.00
Questions? Contact Eddie K. Emmett at eddie@fyiexpress.com or (770) 312-2342. HU
Page 24
UH
March 2015
Â
Go to www.EandOQuote.com for more information
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
Surry County Woman Accused of Insurance Fraud RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Amanda Nicole Anderson, 39, of 720 Shoals Road, Pinnacle; she is charged with one count each of insurance fraud and attempting to obtain property by false pretense. Department of Insurance criminal investigators accuse Anderson of presenting false documents for an insurance claim related to an Aug. 29, 2014, fire at her previous residence at 1530 Pinnacle Hotel Road. Anderson allegedly submitted a property loss inventory form to North Carolina Farm Bureau that included items not lost in the fire. Anderson was arrested on March 23. She was charged in Surry County and released on a written promise to appear in court. The Department of Insurance employs 20 sworn state law enforcement officers dedicated to investigating and prosecuting claims of insurance and bail bonding fraud. Since Insurance Commissioner Wayne Goodwin took office in 2009, criminal investigators have made more than 1,000 arrests, resulting in more than 500 criminal convictions with more than 200 cases currently pending court. These efforts have delivered more than $61 million in restitution and recoveries for victims. An estimated 10 cents of every dollar paid in premiums goes toward the payment of fraudulent claims. To report suspected fraud, contact the Department of Insurance Criminal Investigations Division at 919-8076840. Callers may remain anonymous. Information is also available at www.ncdoi.com.
Granville County Man Accused of Presenting Fraudulent Liability Insurance RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Ronnie Chris Carpenter, 40, of 2054-C Highway 96, Franklinton; he is charged with one count of obtaining property by false pretense. Department of Insurance criminal investigators accuse Carpenter of presenting false documents in October 2013 to fraudulently receive payment for contract work.
AIANC’s STREET WISE
Carpenter allegedly provided a fraudulent certificate of liability insurance to a customer on or about Oct. 1, 2013, to secure a contract to perform home improvement work at a Durham County residence and collected an $8,000 deposit for the job. Carpenter was arrested on March 19. He was charged in Durham County and placed under a $40,000 bond.
Bladen County Couple Accused of Insurance Fraud after House Fire RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrests of Bradley Jerome Townsend, 39, and Moneat Carr Townsend, 37, both of 7614 Hwy 41 East, Elizabethtown. Bradley Townsend is charged with two counts of insurance fraud and one count each of attempting to obtain property by false pretense, obtaining property by false pretense and felony conspiracy. Moneat Townsend is charged with one count each of insurance fraud, attempting to obtain property by false pretense and felony conspiracy. Department of Insurance criminal investigators allege that the husband and wife made multiple misrepresentations—including overinflating the cost of items damaged—during a claim investigation conducted by State Farm Insurance after a fire at their home in Garland on Dec. 12, 2014. The Townsends received more than $28,000 in benefits from State Farm before the allegedly false claim was denied. Bradley Townsend is also accused of fraudulently obtaining $2,193 from Life of the South Insurance for a claim connected to a personal loan. Townsend reported that electronics used as collateral for the loan had been lost in the fire, but investigators allege he gave false information to the company about the location of the items during the fire and attempted to be compensated by State Farm for the same alleged damage to the same items. Bradley Townsend and Moneat Townsend were arrested in Bladen County on March 16; each was placed under a $5,000 bond. NCDOI News www.NCDOI.com Page 26
March 2015
GREENVILLE CASUALTY INSURANCE “WE
PUT THE AGENT FIRST”
LET US HELP YOU GET CUSTOMERS!!! WITH OUR COMPETATIVE RATES - LOW DOWN PAYMENT AND LOW MONTHLY PAYMENTS, THE CUSTOMER WILL CHOOSE YOU. *13% DOWN AND 5 MONTHLY PAYMENTS* LET US HELP YOU KEEP CUSTOMERS!!! WITH OUR OUTSTANDING CLAIMS AND CUSTOMER SERVICE, YOUR CUSTOMER WILL RENEW WITH YOU. Call: 1-864-884-1277 Ask for Robert Ream
When was the last time you took a closer look at your agency? It all boils down to answering two main questions: 1. How do you get new clients? 2. How do you keep current clients? AIANC is devoted to finding innovative (& usually free) methods you can use to rejuvenate your agency.
FREE VIDEO CREATOR SOFTWARE: At AIANC, we live by two basic philosophies: make it simple, and make it beautiful. And we're proud to offer you the simplest way to create the most beautiful videos online, whether for yourself, your friends, your family, or your business.
For example …
Scan QR Code to see FREE MOBILE SITE: Fully engage your visitors by building a fullyfunctional, smartphonefriendly mobile site in minutes with our Mobile Site Builder. Insert pictures, videos, maps, vCards, contact forms, or other elements. No programming skills required! FREE VIDEO E-MAIL: Software that offers everyone the ability to create and receive video messages in a selfcontained, spam-free environment. With no client to install, you can start using the software immediately with any browser, on any platform.
FREE E-MAIL MARKETING SOFTWARE: This software features and integrations allow you to send marketing emails, automated messages, and targeted campaigns. And the detailed reports help you keep improving over time. FREE WEB SITE: Check out the step-by-step tutorials to create your own free website, browse through the FAQs, and post your own questions for support. FREE EMBEDDED LINKS IN YOUTUBE VIDEOS: It’s no secret that online video is exploding. According to Cisco, more than 90% of Internet traffic is video. Companies today understand they need to do more than just put videos on their website and share them on social networks. They need to find a way to drive more engagements while people are actually viewing their videos – in other words, they need to turn viewers into customers.
Join today at www.AllianceInsuranceAgentsNC.com
All this and more for only $250.00 per year.
Free Software to find Commercial Insurance Leads Here’s a sample looking for Contractors in Charleston, SC