Are You Really Committed to Life?

I know what you’re thinking: the typewriter isn’t that old. In fact, we still use it in our agency. My first question, of course, is: Why? What are you going to do if it breaks down? Who’s going to repair it? I’m sure typewriter ribbons are expensive. As we all know, typewriters have not gone away. They were modified and became the keyboard for the PC.

Just as the typewriter was modified to be an efficient tool in today’s world, marketing and sales strategies need to be modified and updated to keep your agency on a continued path of success.

It is more important than ever to grow our businesses. Not only does a slow economy play a role, but many agencies are experiencing more state regulation and more stringent carrier requirements—all putting a strain on your bottom line. Unfortunately, agencies have little control over these factors. Let’s concentrate on what agents can control: implementing new marketing and sales strategies.

Every agency strives to give excellent customer service. However, no matter what we do, we still lose major clients. Why? For many agencies, a major portion of business comes from a small number of our clients—the top-tier clients. In general, when we lose our top clients, we lose a significant portion of our revenue stream. Often, we are told that we lost the long-time top client to a competitor due to a lower premium. The truth is, we don’t know the truth.

No one has to stress the importance of cross-selling when it comes to client retention. We all know the stats. As a former propertycasualty agency owner and now an agent with New York Life Insurance Company, there are many things life professionals can do to add to your bottom line.

As with your p-c agency, it’s the extra resources life insurance agents bring to the table that can really make a difference. A life insurance professional may enhance your credibility, creating a win-win-win situation for you, the client and the insurance professional.

Everyone eventually loses a major client to a competitor. If you had a good relationship with a life insurance professional working with your clients, it would be much more difficult for a competitor to come in. In addition, that life insurance professional likely would be able to refer you to other life clients—people who you might not have had access to otherwise.

Your top clients may already be working with a life insurance professional, but with your assistance, may be open to a second opinion. Isn’t it better that you get the commission rather than another agency?

Many primarily p-c agencies tell me that they already sell life insurance. In actuality, often very little life product revenue is on the books. Many agencies sell cheap term insurance, and usually only when asked by a client. And often, when a life insurance sale is made, it is for a single need such as mortgage or family protection, leaving the door wide open for a competitor to enter.

And what may not be intuitive is that p-c sales differ from life insurance sales. P-C is product selling, while life insurance is process selling or a total needs approach, taking several appointments before a sale is made. At least this has been my experience.

A seasoned life insurance professional should ask the proper questions about what the clients’ goals are and what they want to accomplish; for example, getting all their kids through college or maintaining the standard of living for the family. He or she will then analyze the information and return with solutions and recommendations specific to the clients’ situation based on their goals. Again, this process can take several appointments before a sale is made. For businesses and larger clients, the process can be even more complicated In most agencies, the phone is ringing off the hook and the paperwork must be processed. Running the agency and increasing the p-c client base is a full-time job. There is often little time to focus on life insurance needs. Being open to updated marketing and sales strategies, including working with a life insurance agent, can potentially mean continued success and growth for your agency.

Ronald Rogers (rrogers@ft.newyorklife.com), CLU, CLTC, is an agent with New York Life Insurance Company.