I'll throw this out here for discussion and see if anyone bites.
My agency is located in California. Flat out, business is slow. The phone doesn't ring with any frequency with quote requests from prospects. When the phone does ring, often is someone who is asking for ways to reduce premium or cancel a policy, having found lower rates elsewhere. Or, if it is a prospect, it tends to be a 'fringe' risk with various issues that the mainstream can't/won't accommodate, or perhaps is someone looking for an accommodation policy, some wierd-ass risk that their current carrier/agent isn't able to assist with...and when you hint at perhaps taking a stab at dealing with their entire account, you hear that 'they're fine...good rates/good service' from the current agent and no desire to switch...just please, give me a quote on this specific risk...
When I've attended recent company meetings for agency owners, I listen to sales managers tell those attending that 'we're in the market for good books...and we'll pay big time for first year commission of profitable book rolls'. I have other companies that are spiffing extra commission for all new biz placed before the end of the year. I get email and faxes offering extra money for each bound application over and above a certain minimum.
Yellow Pages, direct mail, newspaper ads are pretty much dead. When I look at a new Yellow Page book for my area, the Insurance section grows smaller and smaller each year. The popular wisdom tells us to try the internet, but doing a quick Google or Yahoo search for something like 'Auto Insurance Quote' or 'Home insurance rate' turns up 7 million hits, with each promising 'lowest rates,safe-strong-secure, great service, immediate SR22's, professional advice, "we shop for you" slogans and monthly pay plans available...blah, blah, blah'.
One of my marketing reps for a company that has traditionally had a very active, successful lead program with shared costs tells me that agency owners are asking him if they've been disconnected from the program because the lead volume has ground to a halt.
I'm not in any danger of going out of business, but clearly the bloom is off the flower, at least from my vantage point. The Insurance trade magazines that offer articles of advice have reverted back to the 1980's mindset of upselling your existing book, going back through the comparative rater to revive old quotes from prospects and asking for referrals. Even the direct mail pieces from Michael Jans, the insurance agency promotion guru have changed from strict recriprocal marketing techniques with powerful, emotional messages to customized agency business building plans.
So, what I'd like to know...is my experience becomming more common either in my own state or elsewhere? Or are there pockets where traditional advertising and promotion sources survive and succeed? Well, let's hear it...
It was the best of times, it was the worst of times
Moderators: Josh, independent guy
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d's insurance store
- Insurance Journal Addict
- Posts: 350
- Joined: Tue Mar 14, 2006 11:04 am
Re: It was the best of times, it was the worst of times
D, good post.
I think traditional advertising "yellow pages" etc is out the door now.
Do you have a company that has a special discount for a certain occupation, say teachers? This allows you to get them in a group, see many people at once in stead of one by one AND you are offering something their current carrier isnt. I do this and 35% of my book has these special disocunts, and I have a 100% retention with them,
Find a nitch and work it HARD AND REPEATELY
Take the info from quotes you havent written and actually mail them quotes, use a higher deductible, makes the monthly cheaper, if you have all their info already, it should be a pretty accurate quote.
I also use NON-WHITE envelopes, and colored paper and have pretty good response and we hand write the the address. I think it makes them open it more often and the colored envelopes I think are opened first, The colored paper they keep and will notice it later, I have people that call weeks or months later and I think it is because they notice thw colored paper and grab it.
also, I advertise my email on EVERYTHING, I think in this economy, people are taking second jobs and dont have the time to deal with looking around for damn insurance! Also, some people work all day and maybe cannot get on the phone to talk to you, but they can sneak away an email to you. I have done alot of business thru strictly email only.
Also, I have done some business thru TEXTING!!!
I think traditional advertising "yellow pages" etc is out the door now.
Do you have a company that has a special discount for a certain occupation, say teachers? This allows you to get them in a group, see many people at once in stead of one by one AND you are offering something their current carrier isnt. I do this and 35% of my book has these special disocunts, and I have a 100% retention with them,
Find a nitch and work it HARD AND REPEATELY
Take the info from quotes you havent written and actually mail them quotes, use a higher deductible, makes the monthly cheaper, if you have all their info already, it should be a pretty accurate quote.
I also use NON-WHITE envelopes, and colored paper and have pretty good response and we hand write the the address. I think it makes them open it more often and the colored envelopes I think are opened first, The colored paper they keep and will notice it later, I have people that call weeks or months later and I think it is because they notice thw colored paper and grab it.
also, I advertise my email on EVERYTHING, I think in this economy, people are taking second jobs and dont have the time to deal with looking around for damn insurance! Also, some people work all day and maybe cannot get on the phone to talk to you, but they can sneak away an email to you. I have done alot of business thru strictly email only.
Also, I have done some business thru TEXTING!!!
Re: It was the best of times, it was the worst of times
That's funny that you wrote a policy through a text message.... lol
Re: It was the best of times, it was the worst of times
LOl, its true, texting, someone calls (usually a friend or a long time client) calls and tells me they are at the car lot, I say text me the VIN, or some times I just get a text, steve, added car heres VIN just add it.....
all I can say is CHA CHING! LOL,
just mail them or email them a ID card and good to go!
CHA CHING
all I can say is CHA CHING! LOL,
just mail them or email them a ID card and good to go!
CHA CHING
Re: It was the best of times, it was the worst of times
D, you're not alone. Every agency owner goes through these lulls. In spite of change, some things always remain the same. If you look back to the 70's, 80's, and 90's you witness agency owners trying to figure out the best way to pull new clients into the agency and keep old ones from leaving. You had marketing gurus advising you on how to position yourself in the market (George Nordhaus and his NIMS product - Nordhaus Insurance Marketing System, and Silver Plume to name two.) You witness agencies turning to mergers and acquisitions to develop growth, or cluster arrangements to open up markets.d's insurance store wrote:So, what I'd like to know...is my experience becoming more common either in my own state or elsewhere?
Yotes' take on specialization is the current wisdom. Small, General Practice agencies find it hard to differentiate themselves from the Direct Writers. These smaller agencies simply don't have the resources to saturate the media with slick ads aimed at capturing the indiscriminate insurance consumer. You'll have to find a way to get yourself in front of that select audience you consider to be your target. There are many ways to go about it...your discussion of the options would probably be somewhat more concise than mine, so I won't launch into a five page treatise on shouting out to your home boys here.
As you are painfully aware, living in California, there is loss of confidence in our financial system - verging on panic. People are hesitant to make change and appear to be hunkering down for the economic cold snap. What they want and need is confident leadership. Someone who can assure them that everything will eventually work out, and to trust in them to make the proper decisions to see that that happens. That understanding of what people want and need and being able to successfully package the rhetoric is what brought Obama onto Pennsylvania Avenue. We, as agency principals, need to be able to understand what our customers need and want, and have them feel the stability and experience fulfillment when they do business with us.
But, how to go about the work of positioning D's Insurance Store in your prospects' minds whenever they think about insurance? Well, I suppose if the Direct Writers are attempting to accomplish the same thing with saturation advertising, you will need to get your positive, confidence building messages into the hands of the thousands you are targeting on a routine and continuous basis as well (we'll assume that these marketing giants have studied the issue). What is the most effective way to do that? Perhaps, an organized, multi-pronged marketing approach will be the answer. Periodic letters and/or e-mail to prospects with helpful "Information You Can Use" content, flyers and give away merchandise (branded pens, writing tablets, golf tees, etc.) hung on doors or provided as gifts during fund raising events, organizing/sponsoring/advertising/executing a fund raiser for a high profile charity, volunteering to talk to buiness/church/civic groups, eventually paying to be heralded as the "Expert on Your Side" by the local TV or Radio Talk Show station, the suggestions could go on forever. You were creative enough to start the agency, use that same spark to ignite an aggressive ad campaign. Just do it in a way which sets you apart from the crowd. Reposition your resouces away from the Yellow Pages (unless you're targeting high risk auto and prospects with problems). Attempting to use the internet as a way of capturing clients will only work if the website is robust and functional. A three page brochure does not make an engaging or effective website. Your approach needs to be 'hands-on' with a lot of face time - people crave personal warmth and conversation. Even the lizard attempts to connect on a personal level.
Don't ignore the "up-sale" in your current book. You need an excuse to continually touch your clients to keep them talking to their friends, family and neighbors. What better way than to round out their accounts. My personal opinion about trying to recapture lost accounts - don't. If they left you on price, they will do so again. If they left you because you didn't scratch that itch just the way they wanted, then it's going to be difficult to convince them that you've learned a new technique. It's cheaper in the long run and more satisfying to keep current clients and knock on new doors.
Once you get started, I do believe that you will begin to hear your phones ringing again with referred prospects...it'll just take a bit of work to get that prospect funnel filled again.
So the bloom is off the rose, eh? Perhaps a bit of gilding is in order. You may never experience the freshness again, but with age and careful grooming, the scent will become exquisite.
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mica.cooper
- Insurance Journal Addict
- Posts: 127
- Joined: Thu Nov 02, 2006 12:56 pm
Re: It was the best of times, it was the worst of times
Good news for independent agents...
The HARD MARKET is coming!
Reinsurance rates for large captives are going up significantly. These companies have suffered losses from storms and the stock market as well. Many large captives are facing a situation where they may make 0% on their investments for 2008. For the first time in a long long time, they will need to make an underwriting profit as opposed to an investment profit.
What does this mean?
It means that smaller regional and mutual companies will also take a hit for reinsurance but not as much. In most cases, they also operated investments differently, resulting in less investment losses, and many did not suffer the storm losses either. These companies will be able to offer rates that are very competitive to large captives, and perhaps national independents.
Our agent base is already starting to see business migrating from captives as they have started taking rate increases. This should increase over the next year as those reinsurance contracts come up for renewal.
This means there is an opportunity to market to captive insurance customers...and you need to beware of your large independents raising rates, so that you may be able to move them before they walk from you.
The HARD MARKET is coming!
Reinsurance rates for large captives are going up significantly. These companies have suffered losses from storms and the stock market as well. Many large captives are facing a situation where they may make 0% on their investments for 2008. For the first time in a long long time, they will need to make an underwriting profit as opposed to an investment profit.
What does this mean?
It means that smaller regional and mutual companies will also take a hit for reinsurance but not as much. In most cases, they also operated investments differently, resulting in less investment losses, and many did not suffer the storm losses either. These companies will be able to offer rates that are very competitive to large captives, and perhaps national independents.
Our agent base is already starting to see business migrating from captives as they have started taking rate increases. This should increase over the next year as those reinsurance contracts come up for renewal.
This means there is an opportunity to market to captive insurance customers...and you need to beware of your large independents raising rates, so that you may be able to move them before they walk from you.
Re: It was the best of times, it was the worst of times
This is a very interesting topic, and timely, too.
My office manager and I have been contemplating dumping all but the smallest presence in the local yellow pages, and using the money not spent there as incentives for current staff or hiring a part-time telemarketer to actually produce leads for our producers to use. Just think... a well-trained, part-time marketing person could easily produce dozens of opportunities each week for producers to work on. Plus, if they also are trained to review the opportunities in current client files we will increase our cross-selling, too. Currently we spend close to $20,000 each year for advertising, over half of that going to the yellows. And, "D's" is right... the yellows are not doing it for us any more!
My agency is in a small town in Southwest Washington State, so it's not only California with the slowing business cycle.
Swymmer
My office manager and I have been contemplating dumping all but the smallest presence in the local yellow pages, and using the money not spent there as incentives for current staff or hiring a part-time telemarketer to actually produce leads for our producers to use. Just think... a well-trained, part-time marketing person could easily produce dozens of opportunities each week for producers to work on. Plus, if they also are trained to review the opportunities in current client files we will increase our cross-selling, too. Currently we spend close to $20,000 each year for advertising, over half of that going to the yellows. And, "D's" is right... the yellows are not doing it for us any more!
My agency is in a small town in Southwest Washington State, so it's not only California with the slowing business cycle.
Swymmer
Re: It was the best of times, it was the worst of times
I dumped yellow page ads years ago in favor of one line with my name and number and my call in frequency actually increased.
Its odd for me to hear about my peers waiting for the phone to ring. My Marketing instructor from Community College taught the basic principle that if the phgones are not ringing, you need to make them ring. I was in Community College over 20 years ago.
This is easier said then done, I know. After 9-11, I was just about out of business, afraid to answer the phone by 12:00 on monday. My DM told me to s*&^ or get off the pot.
Adjust your mind set and marketing efforts. After all the other agents that are sitting on the hands crying about what is lost, you will be around to pick up the scraps.
Its odd for me to hear about my peers waiting for the phone to ring. My Marketing instructor from Community College taught the basic principle that if the phgones are not ringing, you need to make them ring. I was in Community College over 20 years ago.
This is easier said then done, I know. After 9-11, I was just about out of business, afraid to answer the phone by 12:00 on monday. My DM told me to s*&^ or get off the pot.
Adjust your mind set and marketing efforts. After all the other agents that are sitting on the hands crying about what is lost, you will be around to pick up the scraps.
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jctwindad
- Insurance Journal Addict
- Posts: 49
- Joined: Mon Nov 28, 2005 8:09 am
- Location: East Tennessee
Re: It was the best of times, it was the worst of times
It is apparent from reading the initial message from D's Insurance Store that he/she is either primarily or exclusively a Personal Lines agent. It is also apparent that D is little more than a Commodity seller. Even the user name "D's Insurance Store" is a dead give away.
My God People, is that what your world has become? Are you simply peddling Insurance like any other commodity, like furniture, groceries, used cars, etc. If so, is it any wonder that "the phone just isn't ringing"? Sounds like it is time for a huge reality check.
Do you have a passion for what you do, or is this just a job? What is it about you or your agency that makes you unique, and drives clients to you. What are you doing to separate yourself from the rest of the commodity sellers, to make you the "Trusted Advisor" that clients want to do business with?
Get off your duff, and stop sitting there, waiting for the phone to ring. Start selling Commercial Lines, Life and Health, etc. and be proactive. Don't wait for them to call you - Go call on them. And have something unique to offer them - YOU.
The reality of this picture is that if you aren't willing to make these changes, that most of us made 20 years ago, your insurance future is bleak, and short-term at best. Sell your book of business while you have a book to sell, and find something else to do.
Yeah, that's pretty hard core and blunt...but it's also the truth from a 31 year veteran of this industry who has changed with the times and has a growing, thriving agency, that is still a fun place to go to every day.
My God People, is that what your world has become? Are you simply peddling Insurance like any other commodity, like furniture, groceries, used cars, etc. If so, is it any wonder that "the phone just isn't ringing"? Sounds like it is time for a huge reality check.
Do you have a passion for what you do, or is this just a job? What is it about you or your agency that makes you unique, and drives clients to you. What are you doing to separate yourself from the rest of the commodity sellers, to make you the "Trusted Advisor" that clients want to do business with?
Get off your duff, and stop sitting there, waiting for the phone to ring. Start selling Commercial Lines, Life and Health, etc. and be proactive. Don't wait for them to call you - Go call on them. And have something unique to offer them - YOU.
The reality of this picture is that if you aren't willing to make these changes, that most of us made 20 years ago, your insurance future is bleak, and short-term at best. Sell your book of business while you have a book to sell, and find something else to do.
Yeah, that's pretty hard core and blunt...but it's also the truth from a 31 year veteran of this industry who has changed with the times and has a growing, thriving agency, that is still a fun place to go to every day.
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Shagster12
- Insurance Journal Addict
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- Joined: Mon Feb 04, 2008 11:44 am
Re: It was the best of times, it was the worst of times
Way to go JCT!
A reminder to all of us who claim to be professionals that Insurance is anything but a commodity!
Insurance is a risk management partnership with your clients that should always be done with long term goals and planning taken into account from both the producer and the consumer!
If as a broker you cannot or do not provide more than a 'buy on price' philosophy you will have about as much success as, and garner the same reputation as an 'Ambulance Chasing Attorney'. But worse than that, the experience your clients have with you will unfortunately tarnish the reputations of value that I and others like me strive to generate and maintain by ALWAYS having the best interest of our clients in mind!
So if this fits your philosophy, I think many of us out here would like to kindly extend this invitation to you. Please go apply for a job at McDonalds or Target, we don't really need or want you here!
Shagster
A reminder to all of us who claim to be professionals that Insurance is anything but a commodity!
Insurance is a risk management partnership with your clients that should always be done with long term goals and planning taken into account from both the producer and the consumer!
If as a broker you cannot or do not provide more than a 'buy on price' philosophy you will have about as much success as, and garner the same reputation as an 'Ambulance Chasing Attorney'. But worse than that, the experience your clients have with you will unfortunately tarnish the reputations of value that I and others like me strive to generate and maintain by ALWAYS having the best interest of our clients in mind!
So if this fits your philosophy, I think many of us out here would like to kindly extend this invitation to you. Please go apply for a job at McDonalds or Target, we don't really need or want you here!
Shagster
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d's insurance store
- Insurance Journal Addict
- Posts: 350
- Joined: Tue Mar 14, 2006 11:04 am
Re: It was the best of times, it was the worst of times
Well, I want to extend a hearty thanks to the last two sanctimonious posters, and want to let them know that I'll be ending my office lease, asking my doctor for a prescription of Valium, putting the phones on voicemail with a message that I've become so discouraged that I'm now working as a greeter at WalMart wearing the Blue Vest and donating any residual commission checks to my favorite charity.
Look Jerks!, I've been in the biz for 25 years, still have a viable agency with my name on the door and pull down an income that next President Obama has his sights on for tax increases. I'm not going anywhere soon.
What I put out there on the original post was just a thought piece, observational in nature about what my agency is experiencing insofar as market feedback.
If I've learned anything from reading these forum postings, it's that agency optimism or pesimism is largely based on specific market location. Agencies that were positioned for personal lines sales in those 'hot' home building markets of the past few years, I'm sure felt that all of the right decisions had been made as the new homebuyer's lined up for property coverage and the switched pitch of affiliate lines. Agency owners who found the construction trade coverage during that same time period probably began thinking they'd unlocked the secret to perpetual wealth as construction payroll expanded and with it the premium/commission equasion. Here in California, Work Comp specialists had it good about 10 years ago until that market caved, taking with it commission rates and premiums. Now the market has stabillized with lower commissions and premiums and every day I get solicited to sell someone's product for Comp. The dot.com boom with attending numbers of self employed folks was a great time for me to market individual health insurance. The dot.com bust took many of those customers away. And NONE of these examples have anything to do with value added services of my agency...those extra things many of us do to differentiate ourselves from the competition. These markets just collapsed due to external factors.
If, as agency owner's, you're lucky enough to be in markets where things are doing well...say prayers of thanks. The sustainability of that business may or may not be due to your business practices...but don't think it's solely the talents, skill and forecasting of the agency owner, because many times it has to do with luck and timing of having the right product at the right price in the right place.
To completely pooh-pooh the customer's view of looking at out products as commodities with certain price points is to deny reality. If you walk around with a Costco card in your hip pocket or shop the internet and bypass the neighborhood retailers in search of better pricing, then you're as guilty as the rest of the population in violating the 'value proposition' sales positioning. It doesn't mean that a USP is useless or that extra servicing doesn't enhance acquisition or retention, it just acknowledges that different clients are looking for different things in this current business cycle. And that there are many marketing attributes that no longer have any revelency in this new market place.
I fully realize than when I annyomously participate in these forums, and express opinions, then I may well have to read replies from those who get a kick out of responding, also annymously, from a perch of superiority. Well, shucks, I've been in the insurance business for over a quarter century and my skin is thick enough to deflect the insults given all the rejection I've experienced in the sales process.
I think that my momma's advice about 'say nothing if you've got nothing good to say' is perhaps appropriate, but growing up, I didn't take much of her advice...why should any of you.
And to those who took the time to give thoughtful responses, thank you very much for the dialog.
D.
Look Jerks!, I've been in the biz for 25 years, still have a viable agency with my name on the door and pull down an income that next President Obama has his sights on for tax increases. I'm not going anywhere soon.
What I put out there on the original post was just a thought piece, observational in nature about what my agency is experiencing insofar as market feedback.
If I've learned anything from reading these forum postings, it's that agency optimism or pesimism is largely based on specific market location. Agencies that were positioned for personal lines sales in those 'hot' home building markets of the past few years, I'm sure felt that all of the right decisions had been made as the new homebuyer's lined up for property coverage and the switched pitch of affiliate lines. Agency owners who found the construction trade coverage during that same time period probably began thinking they'd unlocked the secret to perpetual wealth as construction payroll expanded and with it the premium/commission equasion. Here in California, Work Comp specialists had it good about 10 years ago until that market caved, taking with it commission rates and premiums. Now the market has stabillized with lower commissions and premiums and every day I get solicited to sell someone's product for Comp. The dot.com boom with attending numbers of self employed folks was a great time for me to market individual health insurance. The dot.com bust took many of those customers away. And NONE of these examples have anything to do with value added services of my agency...those extra things many of us do to differentiate ourselves from the competition. These markets just collapsed due to external factors.
If, as agency owner's, you're lucky enough to be in markets where things are doing well...say prayers of thanks. The sustainability of that business may or may not be due to your business practices...but don't think it's solely the talents, skill and forecasting of the agency owner, because many times it has to do with luck and timing of having the right product at the right price in the right place.
To completely pooh-pooh the customer's view of looking at out products as commodities with certain price points is to deny reality. If you walk around with a Costco card in your hip pocket or shop the internet and bypass the neighborhood retailers in search of better pricing, then you're as guilty as the rest of the population in violating the 'value proposition' sales positioning. It doesn't mean that a USP is useless or that extra servicing doesn't enhance acquisition or retention, it just acknowledges that different clients are looking for different things in this current business cycle. And that there are many marketing attributes that no longer have any revelency in this new market place.
I fully realize than when I annyomously participate in these forums, and express opinions, then I may well have to read replies from those who get a kick out of responding, also annymously, from a perch of superiority. Well, shucks, I've been in the insurance business for over a quarter century and my skin is thick enough to deflect the insults given all the rejection I've experienced in the sales process.
I think that my momma's advice about 'say nothing if you've got nothing good to say' is perhaps appropriate, but growing up, I didn't take much of her advice...why should any of you.
And to those who took the time to give thoughtful responses, thank you very much for the dialog.
D.
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jctwindad
- Insurance Journal Addict
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- Joined: Mon Nov 28, 2005 8:09 am
- Location: East Tennessee
Re: It was the best of times, it was the worst of times
D sorry for the ruffled feathers. Your initial posting was basically "I no longer get phone calls from Prospects responding to my yellow page ad, newspaper ad and direct mail pieces" and wondering what has happened. My response was astonishment that anyone could operate like that in today's world. Now somehow I'm the bad guy. You asked "what am I doing wrong" and I responded. If you can't stand the heat...