Buying a new agency - keep old name or change it?

[Smalltownagent]

To those of you who have more than one location, when you acquired the other location...did you change the name immediately, gradually, or at all?

We bought a new agency in June if last year. Its a profitable agency, in a REALLY small town. Family owned since 1948, and the previous owner is a long-standing, born and raised member of the community. We've left the name as-is, for the past year, but I guess its the pride in me that cringes everynow and then when our girls answer the phone with "Good morning XXXX XXXX insurance agency." or "Hi, this is Jane from XXXX XXXX's office" Whereas, our home office bears that of my last name.

Since we occupy two agencies, both in small towns, we haven't gotten a website going or anything yet. I've thought about that, but the two different names make me hesitate. Also, I hesitate when approached by advertising agencies for long-term/permanent types (signs, billboards, etc) because I don't know if i'll ever change the name or not.

I guess my current strategy is to leave it alone until i've been in the town for a couple of years, and the policy holders get to know me...then one day make the switch. I guess I left it alone because I didn't want everyone to feel like some out-of-towner just came in, bought the agency, changed the name, is so different..etc. I wanted it to be as smooth of a process as possible for the customers. I'm trying to incorporate my name into all the advertising, so people can start seeing my name associated with the agency, so perhaps one day it won't be such a shock.

Just thought i'd get some other thoughts. Thanks.

[scott]

Change it now. Your brand is being diluted.

I assume your new customers - those you purchased - know that you bought the agency. They are wondering what you are waiting for.

Some will leave you. Some competitors will take advantage. Get it over with now rather than waiting.

You are the new brand in town - improving on the old.

Recall that there are also prospects who would not do business with the old agency. They may come to you now.

You are more worried about this than most of your customers are. They just want great value.

Build a plan to have each client personally contacted in the next few months - a phone call. Promise great service and great value. Offer account reviews and the other components of your service process.

[thebeacon]

I would not change it if it is a great sounding name for insurance agency. I would avoid naming agency after your self for liability and legal purposes

[scott]

Liability and legal purposes????

People will sue you more often if an agency is named after you?

Nothing short of boneheaded.

The kind of pablum that is spewed way too often in this industry.

[GanisConsulting]

You've taken exactly the correct action so far in keeping the name of the family and agency that existed long before you acquired it.

Some of the other answers you've received on this matter might be appropriate for a text book in some college course, but don't take into account the realities of your marketplace. You mention the recent acquisition is in a very small town. You don't need to worry about diluting your brand...you're not trying to build a brand. You're trying to hold onto a very profitable book of business with longtime loyal clients who have seen only one name on the door their entire lives...and that name isn't yours.

As an agency owner, I acquired 6 other agencies and made the mistake of changing the name too soon only once, letting my ego and "brand building" get in the way of sound business practices. By announcing you are "new in town", you are essentially giving notice to those customers that they can now start shopping around since they've never heard of you before.

Now that you've had the new location for a year, start answering the phone with both names. If the old owner's name was Smith and your name is Jackson, start answering the phones, "Smith - Jackson Insurance". That way if clients receive carrier mail or marketing information with "Jackson" in the name, they will have heard it before.

As for your website, get it started under your name and on the Contact Us page list your office as "Jackson Insurance" and the office you acquired last year as "Smith-Jackson Insurance". After another year, you can probably drop the Smith and nobody will notice a thing, but at least there was a smooth period of transition instead of an abrupt change.

You made all the right moves for the type of family agency you acquired. Now is a good time to start easing the clients into the reality that "old Joe" isn't around anymore, but his successor was respectful enough to keep his name on the door. Small town customers appreciate that.

[Porter]

Ganis,

Good advise. I would do the same.

Porter

[Smalltownagent]

Ganis-

That is what my thought process was in the beginning. Making a gradual change. You are right, the same name has been on the door since 1948. I can't tell you how many customers have told me, "I've had my insurance with Mr. "Jackson" for 35 years." I like your ideas, and will probably start putting them into use soon.

Thank you all very much for the ideas!

[HFA]

Have your cake and eat it too...
Since there is Value in name recognition, preserve all you can:
If your original company is Dewey, Cheatham and Howe, and if your new acquisition is the Smith Agency, then answer the phone Dewey, Cheatham and Howe, Smith Branch (or similar)... and tag EVERY base!

[jctwindad]

I have purchased 11 agencies over the last 15 years. In some cases, where the agency was in a city where I already had another agency, I simply merged it under my agency name. However, when I did that I had letterhead printed that listed every agency that makes up my "group", with the year founded, in the left margin of my letterhead. So, I sometimes put the new agency under my master agency name "Heritage Insurance Group" but then list about 8 agencies (XYZ Agency - 1942) in the left margin. That way, everyone that gets a letter from any of my agencies can see the names that make up my group.

However, I have purchased agencies in towns where I did not have a presence, as you have done. In some cases, where those agencies were relatively young or did not have a large market presence, I placed those also under my "master" agency name. In other situations, where the agencies were older, better known, with larger market presence, I have continued to operate those agencies under their original names. After all, part of the value of that agency is the name that everyone in that town knows. Time will tell as to whether I eventually change that agency name as well, but I would not change it during the first 5 years.

As for those accounts that Scott referred to, that would not do business with the agency purchased, I would simply visit that account, to make them aware of the ownership change, and the fact that there is a new player in town, with more to offer.

[ignotus25]

I completely agree with the gradual approach. I'm not sure what the heck the guy was talking about when he said to hurry up. Given the setting, rapid change is the worst thing you could do.

[wlunday]

I did exactly what you did... 12 years ago! I bought a small-town indy agency for 3.5X commissions (not something I'd recommend to others) and as part of that I kept the marketing rights to the gentleman's name and he stayed full-time for 6 months and part time for another year as part of the deal. He'd been here since 1964 and is the only indy agency in our little town. And, even though I live here and raised my kids here, and it's 12 years later... I still have clients coming in to see how Mr. Quaife is doing. Just like your seller... Mr. Quaife is a 3rd generation pillar of the community.

The process is on-going, and this year (when Liberty Group buys the next sign for me) I'll change the signage out front. Our letterhead already has the High Cascades Agency / Quaife's Insurance on it, the phone caller id says "high cascades" but when my staff answer the phone they say "Quaife's Insurance". That will change over the next year, too.

I do gotta defend Scott in as much as many agencies expend lots of cash and energy to build a marketable name for themselves. If that's the case then sooner is better. It just was not the case for me, and probably not for you, either. Enjoy it!

Wayne Lunday, LUTCF, CLU, ChFC
Owner, High Cascades Agency / Quaife's Insurance
Castle Rock, Washington