Tips For Tough Times

Customer Relationship Management
contributed by Ron Webber


The new buzzword in insurance is “Customer Relationship Management” or CRM.
As agencies struggle with how to better manage their customer base, the solution most often mentioned is CRM software or automation. Point of sale software that helps the agency handle the customer’s needs and the endless stream of paper that is generated for each policy issued. While I agree that automation is the answer, I also believe that insurance agencies need to remember their beginnings and good customer relations.

These are crazy times and it is time to re-examine your business model and customer relations policy and procedures. To get started you will need to follow these tried and true steps:

1. Sit down with your entire staff and discuss customer needs.
2. Brainstorm with your team and make it a positive meeting. Don’t allow negative comments.
3. Remind your team of the methods you have taught them for dealing with customers in person and on the phone. If necessary train new members of your team on these methods.
4. Discuss stress management and ways to ease pressure.
5. Establish the direction of your agency. Don’t forget to discuss how you got where you are today.
6. Discuss each team member’s strengths and how you can capitalize on those talents.
7. Identify any existing or potential problems that might keep you from reaching your goals.
8. If you identify problems that exist in your agency, take steps to fix them.  Do not let them continue or everyone will feel the negative effects.
9. Identify exactly what your customers want and expect from your agency.
10. The agency owner(s) will then need to do some homework.
a. Establish a realistic business plan.
b. Optimize your working capital.
c. Examine all costs (decreasing where needed and increasing when necessary.

After you have completed the above reviews and have a workable plan, implement it immediately. Prior to opening each morning hold review sessions for 15 minutes to discuss progress or problems with your entire staff. Examine success and failure and modify where necessary. The main thing to remember is, “have FUN with it.” Do not make it so structured that everyone will dread the sessions.

I know a dentist that has these sessions with his staff each morning before opening. You can sit in his waiting room and hear them laughing and discussing ways to help the customers enjoy their dreaded visit to the dentist chair. Most people dread the dentist far more that a visit to your office.  But is that same customer leaving your office with as much satisfaction as they are from the dentist office?  Now how does automation fit into these tips for tough times and good CRM?
 
Let’s examine what you can expect from automating your agency with agency management software.
1. Complete customer information on the desktop screen, without having to search for files.
2. Good cash controls of all funds accepted from the insured with checks and balances to see that those fiduciary funds are correctly delivered or transmitted to the carriers.
3. E & O controls over policies being issued in a timely and correct manner.
4. Agency accounting procedures that will supply you with business trends and road maps to correcting detours before it is too late.
5. Good fundamental follow up procedures to track customer business and requests.
6. Fast and accurate reconciliation of company statements and accounts receivable for the agency.

These are a few of the benefits and features that agency automation will offer to the success of the agency. Also, the fact that one small error could be costly to both agency and customer makes this a stress filled industry and one of the biggest, hidden benefits of automation is the relief of stress for the owner.  A satisfied customer is a happy customer and a happy customer will remain a customer and refer more customers. Agencies spend hundreds and thousand of dollars to advertise and promote their business, but very little in the way of good CRM.

Agency automation is the best buy and value. That referral from a satisfied customer didn’t cost you anymore than good business practices. And don’t forget the smile. 
Remember in these tough times, all businesses are challenged and you are not alone. What you do about it might make the difference in your survival.  Until next month, keep automating those agencies; I really believe the only way that you are going to survive in the 21st Century is to automate.

Remember, the bottom line is "Automation equals Productivity and Profitability."

If you have any suggestions of articles on Automation in insurance agencies, or comments please feel free to contact me.

Ron Webber

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