I was talking to an agency owner last week. They had just scored a very large prospect via broker of record. When I asked about the prep time to bring it home, he simply smiled and said, “We believe games are not won on Sunday.” He went on to discuss the tremendous amount of work that was done even before this prospect entered the pipeline. His firm met weekly to discuss positioning, marketing, activities and how they compared to the competition. Then they went to work turning their dream of growth into a reality.
An ever-more challenging environment
You don’t need me to tell you that brokers are facing one of the most difficult business environments in the history of the industry. Employers are downsizing, carriers are reducing commissions and making them more transparent, the soft market for P&C is showing no signs of hardening, employers are cutting benefits, health care reform is looming and to top it off, clients are expecting more. All of these factors are putting a squeeze on an agency’s growth and retention and overall value.
It has forced brokerage firms to take a good, long look at their agency to determine how to adjust to these market conditions. Many have found they do not like what they see. Stagnant producers, lack of vision, weak value proposition, administrative inefficiencies and price-focused selling are just some of the areas that inhibit growth.
Turn challenges into opportunity
While it seems like a daunting task, some firms, like the one above, have looked at this as an opportunity. They are creating a path to greater growth and retention through building a sales culture, creating cost-saving strategies, implementing proactive value touches, utilizing insightful analytics, marketing value over price and positioning as a trusted advisor.
But where does a firm start? It begins with your story. Why should people buy from you? If your answer is your people and your service, that will not distinguish you in the slightest. It needs to be quantified. What makes your people great? Their knowledge? Are they really better than the firm down the street? Firms driving to be an agency of the future are focusing on their story. They are sitting down and putting together who they want to be.
Want to know what prospects are looking for? Go to our 2012 Broker Services Survey (available soon in Broker Briefcase) and it is all right there. Develop a compelling message based on employers’ needs. Based on our survey, here are a few things they don’t want to hear about:
- Years in business
- Number of carriers the agency represents
- Education level/designations
If your introduction discusses these things, our survey of over 2,000 employers tells us it is of no interest. The prospect wants to talk about their problems and wants to see if your story is compelling and can help them. It begins with your story.
The other secret ingredient to firms that are experiencing growth in these times is the relentless pursuit of execution. Games are not won on Sunday. The amount of preparation and practice an NFL player does is extraordinary before the game.
These difficult times require change and firms that are moving the needle minimally installed an agent of change—someone who understands the importance and will drive through walls to get it done. Roger Sitkins, in his column in the March edition of Rough Notes, suggests naming a Chief Revenue Officer, one who is tasked for holding all responsible for growing agency revenue. This is a great idea that illustrates commitment and sends a signal that the agency is serious about change.
Become the agency of the future—now
Simply put, to get started, create a compelling story and focus on execution to make the story a reality. The good news is many will not follow this path, but instead will continue to do the same things hoping the results will change. For the firms that do make the effort, a road to higher growth and retention awaits.
The great news is it is completely up to you what road you want to take. The choice is yours. I could have called the agency who lost that prospect and wrote a blog about them. Which story would you rather hear? More importantly, which story are you writing for yourself?