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The Oregon Agent • Summer 2014
Acquisition Strategy
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SUMMER 2014 IIABO Office 5550 SW Macadam Suite 305 Portland, OR 97239 Phone: 503-274-4000 Fax: 503-274-0062 Toll Free: 866-774-4226
IIABO Staff Directory Executive Vice President Jim Perucca jimp@insureoregon.org
Sr. Vice President Marketing & Communications Barb Demings barbd@insureoregon.org Vice President Education & Finance Tyra Dressel tyra@insureoregon.org Director Asst. Vice President Abby Kahl abbyk@insureoregon.org IIABO Lobbyist Roger Beyer roger@rwbeyer.com
INSIDE THIS ISSUE: 6
Letter from the President, Steve Wilson
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IIABO 2014 - 2015 Leadership
10 Big “I” Legislative Conference 12 Is the Future Positive for Small, Traditional Agencies? 15 - 18 IIABO 86th Annual Convention - Get Around...Get Ahead
16 Schedule of Events
17 Registration Form
18 Workshop Highlights
20 Beyond Networking: Cultivating Your Real World and Online Connections
For more information on advertising, contact Jim Aitkins Blue Water Publishers 22727 - 161st Avenue SE Monroe, WA 98272 360-805-6474 fax: 360-805-6475 jima@bluewaterpublishers.com The Oregon Agent is the official magazine of the Independent Insurance Agents and Brokers of Oregon and is published four times yearly. IIABO does not necessarily endorse any of the companies advertising in this publication or the views of its writers.
24 Thirteen Steps to Keeping Both Internal and External Customers Happy through Effective Communication 27 Agents are Not a Commodity 28 Six Strategies to Compete in Business 30 Big “I” is Working For You
THANK YOU ADVERTISERS:
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Anderson and Murison
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Mutual of Enumclaw
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BCE Consulting
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Preferred Property Program
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Burns & Wilcox
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Quirk & Co.
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EMC Insurance
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RT Specialty
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Grange Inc.
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Risk Placement Services
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Griffin Underwriting
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Ron Rothert Insurance Services
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Imperial PFS
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TAPCO 25
LaPorte
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Western National Ins Group
Liberty Mutual
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The Oregon Agent • Summer 2014
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FROM THE PRESIDENT
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xciting changes are coming for the IIABO’s 86th Annual Convention, “Get Around, Get Ahead”, August 24-26, 2014, and it is all about bringing value to independent insurance agents! Perhaps the biggest change is the new venue---Eagle Crest Resort, Redmond, Oregon! See the full page ad in this issue and visit their website www.EAGLE-CREST.COM. Why Eagle Crest? VALUE! We loved our meetings at Sunriver Resort, but, over time, the resort simply priced themselves beyond the reach of many of our members, especially the young agents who represent the future of our distribution system. Eagle Crest is beautiful and has all the amenities such as golf, swimming, horseback riding and fine dining, but it is just a lot more affordable. Rooms in the lodge will be much less expensive, starting at the IIABO rate of only $119 per night! This is not just about saving money for the IIABO. The move is focused on providing a quality venue and program at a cost that all agents can afford. Additional registrants from the same agency will be able to attend the entire convention for only $49 –AND PLAY GOLF FOR FREE! This would amount to a full convention registration for no more than the price of dinner! This means second registrants will pay only $49 and that will INCLUDE, FREE GOLF, Sunday & Monday receptions, entertainment, exhibit hall, prizes, workshops and ALL meals! THIS IS MUCH MORE THAN SIMPLY AN EXHIBIT HALL AND SOME CE!
Cost savings is only part of the equation. The other component is convention content that brings VALUE and an opportunity for attendees to become better owners/managers/ producers. 1. Patrick Galvin, The Galvanizing Group, will conduct two workshops, “Beyond Networking” and “Building your Irresistible Brand”. This is the third convention appearance for Patrick. His cutting edge workshops provide attendees the latest in social networking and branding. 2. George Nordhaus, Chairman, AgenciesOnline, a legend in the insurance community, will conduct a workshop that will help agents find ways to brand without the high cost of advertising and to stay ahead of the technology curve. 3. Finally, IIABA Chairman, Tom Minkler, will host a Champagne Breakfast and tell us about the latest on Project CAP, a multi company, industry sponsored, web portal, EXCLUSIVE to IIABO members, that will drive new business from the web to your agency. A registration form is included in this issue, or register on-line at www.iiabo.org Register now and I’ll see you at Eagle Crest Resort!
n
lso S teve Wi
Steve Wilson, President IIABO Ashland Insurance
Your association staff: Executive VP Sr. Vice President Vice President Asst. Vice President Toll Free Numbers: 6
The Oregon Agent • Summer 2014
Jim Perucca Barb Demings Tyra Dressel Abby Kahl
1-866-77-IIABO or 1-866-774-4226
503-274-0583 503-274-4000 ext. 26 503-274-4000 ext. 31 503-274-4000 ext. 23
jimp@insureoregon.org barbd@insureoregon.org tyra@insureoregon.org abbyk@insureoregon.org
WN-2013FallAd-(IIABWA-(WA)).pdf 1 10/25/2013 8:17:24 AM
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Summer 2014 • The Oregon Agent
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2014 - 2015 IIABO LEADERSHIP The IIABO Board of Directors is a diverse group of insurance professionals representing the varied interests of agents throughout the State of Oregon. We would like you to learn more about these volunteer leaders and the years of experience they bring to the association.
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Steve Wilson President, IIABO Ashland Insurance, Inc. Ashland, Oregon - 32 years
Ed Davis Vice President/Legislative Chair, IIABO Maps Insurance Services Salem, Oregon - 49 years
Gary Githens Immediate Past President, IIABO Data Breach Specialist Brown & Brown NW Bend/Portland, Oregon - 35 years
Ryan Miller Finance Committee Chair, IIABO President, Miller Insurance Tualatin, Oregon - 23 years
Brian Wilbur National Director, IIABO Owner, Pacific Insurance Partners Forest Grove, Oregon - 21 years
Mark Atkinson Board Member President, Atkinson Insurance Group Portland, Oregon - 25 years
Keith Blackerby Board Member Chief Operating Officer, Bisnett Insurance Offices throught Oregon - 28 years
Steve Fitzwalter Board Member President, Rogers, Fitzwalter & Powell Portland, Oregon - 40 years
The Oregon Agent • Summer 2014
Trish Fulwiler First Vice President, IIABO President, J.D. Fulwiler & Co. Portland, Oregon 24 years
Jim Ginger Board Member President, KPD Insurance, Inc. Springfield, Oregon 35 years
Adam Harris Board Member Vice President, LaPorte & Associates, Inc. Portland, Oregon - 18 years
Greg Horner Board Member Commercial Lines Producer, Insurance Partners, LLC Portland, Oregon - 20 years
Kay Hunkapillar Board Member President, Wheatland Ins. Ctr., Inc. Pendleton, Oregon - 46 years
Marty Kantola Board Member Owner, Chet Hill Insurance Portland, Oregon - 30 years
Debbie Krambeal Board Member President, CAL/OR Insurance Specialists, Inc. Brookings, Oregon - 32 years
Matthew Pidcock Board Member Co-Owner, Valley Insurance LaGrande, Oregon - 17 years
Brett Slater Board Member Chief Operating Officer, Slater & Assoc. Insurance, Inc. Tualatin, Oregon - 26 years
Steve Smelley Board Member Chief Operations Officer, PayneWest Insurance Beaverton, Oregon - 25 years
John Timm Board Member President, Timmco Insurance, Inc. Portland, Oregon - 39 years
Insurance carriers and service providers do not serve on the IIABO board of directors, but support the association as Associate Members, Sponsors and Exhibitors. If you want to learn more about the IIABO, or if you would like to get involved, please contact any of these individuals. If you are not a member, please email Jim Perucca, jimp@insureoregon.org for information on membership.
Summer 2014 • The Oregon Agent
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E
ach year a group of IIABO members attend the Big I National Legislative Conference. We joined over a thousand agents from across the country to go to the “Hill” April 10th to visit our legislators and discuss issues important to independent agents. This year Ed Davis, Brian Wilbur, John Timm and Jim Perucca were joined by Liberty Mutual Regional Vice President Debra Pooley. We had face to face meetings with Representatives Walden, Schrader and Bonamici while Ed Davis discussed issues later in the day with Senator Ron Wyden. In all other offices meetings were held with senior legislative staff. We talked about the importance of an extension of the Terrorism Risk Insurance Act (TRIA), agent licensing reform, the importance of state regulation and the taxation burden of small business. The day started with a breakfast kick off meeting where we heard from House Majority Whip Kevin McCarthy (R-Cal) and Representative Steve Israel (D-NY). McCarthy (who started his own business when 19 years old) said, “We should not leave our problems for another generation—we need to face them head on”. He also stressed the need to reform the tax code. Representative Israel talked of the five future trends that will affect America in the next two decades; booming growth of a global middle class, rapid expansion of the elderly population, movement back into the cities, an increasing demand for resources and a “breathtaking” acceleration of technology. It was a great day and we were reminded just how effective and respected a national lobby we have. 10
The Oregon Agent • Summer 2014
Debra Pooley; Representative Susan Bonamici; and Brian Wilbur
Jim Perucca; Ed Davis; Representative Greg Walden; John Timm; Brian Wilbur; and Debra Pooley
Brian Wilbur; Jim Perucca; Representative Kurt Schrader; and Ed Davis
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I
Is the Future Positive for Small, Traditional Agencies? s the future positive for small, traditional agencies? As with most broad looking-into-the-future answers, it depends. It depends on knowledge, commitment, and recognizing reality.
Knowledge I find one reason many small, traditional agency owners are discouraged when looking into the future is partially caused by a lack of knowledge. Sometimes they read too much industry press written by inadequately knowledgeable people and sometimes they just don’t read. (As Mark Twain famously asked, “What is the difference between a man that doesn’t read and one that can’t read? Nothing.”) The inaccurate information being written and causing consternation includes the aging industry, the inability to develop new people, and how a few heavy advertising direct writers are having all the success. First, the industry is not really aging. Individuals are aging, as are their peers, making it seem like everyone around them is aging. The average agency owner age has not changed materially since I’ve been in this industry which has been 25 years. It was 56-58 years old then and its 57-59 years old now. Writers expressing concern the industry is nearing collapse because of aging agency principals are simply Chicken Littles. Second, the ability to develop new people has never been better. The resources for testing, hiring, educating, and training new people are of far higher quality and abundance than any time in my career. The problem I see is that few agency owners know of the resources or they do not use the resources appropriately. Third, the heavy direct advertising is having an effect. It is successful. However, it is a strategy that ONLY APPLIES IF 12
The Oregon Agent • Summer 2014
MAYBE
the company/agency is big enough to spend enough AND if the client target is not primarily interested in more than a superficial transactional relationship. The independent insurance agency system WAS DESIGNED TO AVOID BOTH CONDITIONS. The carriers that originally distributed insurance through independent insurance agencies did not advertise to the general public because they relied on their agents to advertise. Those agents in turn advertised generally on a community platform and marketed on a social platform. The advertisements were at the Little League park, high school year books, local newspapers, and so forth. The marketing was through relationships and true social networking versus electronic social networking. These methods worked because the client target was someone wanting a relationship. Going forward then the question becomes, who is your client target and if it is people wanting superficial transactional relationships, can you afford to advertise adequately? Commitment The question is not only can you afford to advertise adequately, but will you commit to advertise so significantly? Your advertising budget may have to quintuple. Historically agencies, especially smaller ones, have not had to make much of a commitment once established. This is because once established, agencies’ retention rates were adequate to generate safe cash cows and since a great many agency owners were satisfied with the cash generated, they could just ride along. I hear the concern in many agency owners’ voices these days because they see they have to make a commitment and they don’t want to do so. One reason they enjoy the business is the flexibility they have and a commitment can sorely limit that treasured flexibility. The emotion tied to committing oneself to building a future is what causes so many to wonder about their future. On the other hand, approximately 5,000 new agencies have been created in the last five years. That is an amazing
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number and many of these agencies have made a commitment Secret, Survivors could do just fine in this industry. Going to the future. They haven’t yet experienced the cash cow and forward, this industry has a great future for Thrivers, but flexibility so they’re just busting their butts to pay the bills. maybe not Survivors. In fact, I don’t think I have seen more They don’t really have the same concerns. They are playing opportunity for Thrivers than ever before because historically, offense to win and the traditional agents are playing to not lose. the ease with which Survivors survived was an important Playing to not lose is rarely a winning strategy and insurance impediment to Thrivers thriving. Companies protected carriers recognize the difference when appointing agencies. Survivors, customers would not leave Survivors easily, and the The solution many such agencies have latched onto is historic independent agency distribution model was designed to a cluster or aggregator. Done well, clusters and aggregators protect Survivors. The upheaval pressure Survivors are feeling, may be a solution, but the majority of these entities have been causing them to question the future of small traditional agencies, established sloppily. Sloppiness seems to abound because is directly correlated to their position as Survivors. Thrivers are the members do not want to make a true commitment to an not concerned about their futures because their futures are so enterprise that ultimately requires a true commitment. These bright, they have to wear shades. entities are partnerships and any partnership that truly succeeds requires a complete commitment. Chris Burand is president of Burand & Associates, LLC, an Going forward then, the future is truly bright for those insurance agency consulting firm. Readers may contact Chris at willing to make a true commitment to building their agencies (719) 485-3868 or by e-mail at chris@burand-associates.com. every single day. This means selling every day. This means developing people using the great tools available. NOTE: None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel Accepting Reality is recommended before acting on any matter discussed in this The reality is that owning and running an independent article. Regulated individuals/entities should also ensure that insurance agency is going to get tougher. More business they comply with all applicable laws, rules, and regulations. operational knowledge will be required, more insurance technical knowledge will be required, and more leadership Copyright 2013 by Chris Burand. Reprinted with Permission will be required. Instead of resting on one’s sales, reality is that no amount of volume will ever be enough. For example, historically in small towns many agencies would grow to some large percentage of the market and then plateau because the reality was that with their market share, they could not grow much more. The new reality is that it is time to start selling insurance in the next town over. The reality is that more structure is Imperial PFS, the leader in premium financing, required to minimize E&O exposures, continues to focus on the success of our agency partners. to appeal to younger employees, and to
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The Oregon Agent • Summer 2014
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The Independent Insurance Agents & Brokers of Oregon 86th Annual Convention
Get Around... Get Ahead August 24 -26, 2014 Eagle Crest Resort Redmond, OR
IIABO 5550 SW Macadam Ave, Ste 305 Portland, Oregon 97239 503.274.4000 Toll Free 866.774.4226 Fax 503.274.0062 ww www.iiabo.org Summer 2014 • The Oregon Agent
15
IIABO 86th Annual Convention & Trade Show Eagle Crest Resort, Redmond, OR August 24 – August 26, 2014
“GET AROUND...GET AHEAD” Saturday, August 23 1:00p - 4:00p 5:30p - 6:30p 6:30p - 9:00p
Board Meeting Convention Center / Room A or River Run Board Reception Convention Center / N/G Patio or River Run Board & Past Presidents Dinner (by invitation only) Convention Center / N/G Patio or River Run
Sunday, August 24 1:00p 4:00p 6:00p
Golf Tournament Resort Golf Course, Shotgun Scramble Registration Open Convention Center / Foyer “Beach Party!” – Enjoy the tastes and sounds of the 60’s Convention Center / Golden Eagle Ballroom Buffet Dinner, Golf Awards & Entertainment
Monday, August 25 7:00a – 8:45a Registration Open / Breakfast with Exhibitors / Raffle Convention Center / Foyer & Juniper Hall 9:00a - 12:00a “Beyond Networking; Cultivating Your Real World & LinkedIn Connections” & “Building Your Irresistible Brand” – Patrick Galvin, The Galvanizing Group Convention Center / Golden Eagle Ballroom 12noon – 1:30p Lunch with Exhibitors / Raffle Convention Center / Foyer & Juniper Hall 1:45p – 4:45p 5:00p – 6:30p 6:15p 6:45p
Ethics – John Poe Convention Center / Room A Cocktail Reception with Exhibitors / Raffle Convention Center / Juniper Hall Raffle Drawings Banquet Convention Center / Golden Eagle Ballroom Exhibitor Drawings, Grand Prize Drawing
Tuesday, August 26 7:30a – 9:00a Champagne Breakfast, “The Changing Consumer”, Tom Minkler, IIABA Chairman Convention Center / Rooms B,C,D 9:15a – 12:15a Law – John Poe Convention Center / Rooms B,C,D 9:15a – 12:15a “AgenciesOnLine” – George Nordhaus, Chairman, AgenciesOnLine Convention Center / Rooms B,C,D Adjourned! Have a safe trip home!
CONVENTION WORKSHOPS >>
“GET AROUND...GET AHEAD” In keeping with this year’s conference theme of “GET AROUND… GET AHEAD,” Patrick Galvin, who has was a popular speaker at IIABO conferences in 2008 and 2011, will return to present two new interactive 90-minute workshops that will move you and your agency into the fast lane. “Beyond Networking: Cultivating Your Connections,” Patrick will provide simple yet powerful strategies for integrating your face-to-face and online networking activities. For independent agents, networking helps drive the referrals that are essential for business success. According to a 2011 National Association of Insurance Commissioners report, 79% of people asked family and friends for referrals when shopping for insurance; 65% also asked colleagues and social acquaintances. You’ll learn how to create lasting connections that will increase your rate of referrals as well as policy renewals. Patrick will teach you how to: • Build long-lasting, mutually beneficial relationships • Connect on LinkedIn in personal ways • Choose and use the right social media channels • Convince clients to introduce you to high-quality prospects with enthusiasm • Ensure that you meet or exceed your networking goals
America and Canada. He is an expert speaker for Vistage, one of the world’s largest peer-to-peer membership organizations for CEOs, business owners and executives. In 2002, Patrick cofounded The Galvanizing Group, a brand strategy and marketing consulting firm in Portland, Oregon. As the firm’s “chief galvanizer,” he has helped increase customer loyalty, referrals and sales for hundreds of businesses from privately-owned independent insurance agencies to large publicly-traded companies. In addition to speaking and consulting, Patrick writes about innovative marketing strategies and tactics for a variety of publications including his monthly eNewsletter, his company blog and on Twitter. He is active in the Rotary Club of Portland and currently serves as membership recruitment chair. Patrick graduated cum laude from Georgetown University with a BS in Foreign Service. He received a prestigious Rotary International Scholarship for postgraduate studies at the University of São Paulo, Brazil and went on to earn an M.B.A. in international marketing from Thunderbird, one of America’s top-ranked programs. Upon graduation, he worked as the international sales manager for an industrial and agricultural equipment manufacturer and built a profitable sales network throughout North and South America. He subsequently became president of his family’s furniture stores. Under his leadership and marketing direction, sales rose 300% in three years.
In “Building Your Irresistible Brand,” Patrick will explore how to leverage your most valuable asset to gain a competitive edge. You’ll see how your brand builds trust and provides clients and prospects with an assurance of quality and value. If this sounds like a lot more than a logo, tagline, website or marketing brochure – it is. A strong brand represents an emotional bond that is built over time. Patrick will discuss how to: • Define what your brand stands for and how it connects with policyholders and prospects on an emotional level • Develop a plan for managing your brand’s high impact touch points • Create a clear and consistent communications plan for your agency that reinforces your brand’s value • Leverage your social media (Facebook, Twitter and LinkedIn) and owned media (blogs and newsletters) to reinforce your brand image • Make sure that your brand stands out in a crowded and competitive marketplace
George Nordhaus, Chairman, AgenciesOnLine, is a legend in the insurance community, with over 40 years of “hands on” experience. Mr. Nordhaus is the former Executive VP of the Insurors of Tennessee and the Indiana Association of Insurance Agents. George also formed an insurance education publishing firm, Insurors Press. Located in Los Angeles, Insurors Press became the publisher for the IIABA (Independent Insurance Agents and Brokers of America). It became the number-one provider of insurance newsletters for agencies and eventually rebranded as Insurance Marketing and Management Services (IMMS), publishing eight books and manuals on marketing, written by Mr. Nordhaus. In his years of working with the insurance industry, he has conducted literally hundreds of seminars and conferences on marketing and management. His workshop will help you find ways to brand your agency without the high cost of advertising and stay ahead of the technology curve. With websites as the cornerstone, you will learn how to grow your agency through a systematic approach to sales and marketing.
About Patrick Galvin Patrick Galvin, past president of the Oregon Chapter of the National Speakers Association, has received enthusiastic testimonials for his presentations to associations and companies throughout the United States, Latin
These workshops will bring value to your agency and solid advice that can lead to improved sales and profitability. Convention registration is on the previous page, at www.iiabo.org or by contacting Barb Demings, barbd@insureoregon.org 503-274-4000 x26 18
The Oregon Agent • Summer 2014
By Patrick Galvin
Beyond Networking:
Cultivating Your Real World and Online Connections
W
hether you seek to strengthen existing client relationships or develop new ones, the difference between success and failure in the insurance industry often lies with your ability to network effectively. The most successful networkers are adept at face-to-face and online networking. Observe these ten best practices and you can join their ranks: 1. Follow your clients I recently interviewed a successful insurance agent who told me that he’s an active member of his state chapter of the Association of General Contractors (AGC). He first attended an AGC meeting because one of his contractor clients suggested that it would be a good way to meet other contractors with similar insurance needs. Indeed, it has become one of his best sources of new business. To discover useful networking opportunities, ask your key clients where they network. Your inquiries will likely result in invitations to visit organizations which could be outstanding places to build relationships. Moreover, clients who bring you to their groups as their guest will often introduce you and endorse you simultaneously. 2. Volunteer to lead In his first year of AGC membership, the aforementioned insurance agent made a handful of connections that resulted in business. It was not until he accepted a leadership position on the AGC’s board of directors that the group became an outstanding source of business referrals. His board position raised his visibility and credibility and gave AGC members a chance to observe his professionalism as he worked through the organization’s critical issues. As their trust in him deepened, more AGC members asked him to weigh in on their insurance issues—and many became his clients. 20
The Oregon Agent • Summer 2014
3. Be strategic A simple networking strategy is powerful. An entrepreneur I know was on the verge of dropping out of a business group that he had belonged to for several years. He felt that he wasn’t getting much networking value out of the group because he was always spending time with his friends instead of meeting new people. Before quitting, he decided to make one simple change. He vowed to meet at least five new people at every meeting. A year after establishing his “Rule of Five,” the quality and quantity of his network had expanded dramatically. A group that had been inconsequential for his business soon became one of his best sources of client acquisition. 4. Focus on each connection There tends to be an inverse relationship between the number of people you meet at a networking event and the quality of the connections that you make. I prefer chatting with one or two people at an event and learning about their personal and business backgrounds in detail than having perfunctory conversations with as many people as possible. By making sure that I listen carefully and ask meaningful questions, I have a good sense of whether my services might be a good fit or not. From there, I can follow up with information tailored to an individual’s specific needs—thus greatly increasing my chances of making a sale. 5. Give to gain Zig Ziglar wrote that “Networking is getting what you want by helping others get what they want.” Successful networkers use the information that they gather through networking to follow up with people in ways that are meaningful to them. That might mean introducing people you’ve met to others in your network who could be valuable professional connections. Or, it might
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mean sharing helpful information (in the form of articles, research data, blog posts, etc.) that is relevant to their personal or business goals. 6. Stay LinkedIn LinkedIn, the most popular online networking website with over 93 million profiles (more than 50% of the entire US workforce), is an ideal complement for your real world networking activities. It is a simple way to connect with people you’ve met and to stay in touch with them on an ongoing basis. For instance, your news feed (which appears when you log onto LinkedIn) will update you on the noteworthy achievements of your connections. You can then follow up with a congratulatory phone call, email, or—for maximum impact—a personal note of congratulations through the US Mail. 7. Offer testimonials It takes just a few minutes to write unsolicited testimonials for people who belong to your LinkedIn network. After you’ve written such a testimonial, the recipient gets to approve it before posting it to his or her profile page. Whenever I’ve spontaneously recommended somebody via LinkedIn, I’ve always received an enthusiastic “thank you” in return. Your efforts will be doubly appreciated since most people only received LinkedIn recommendations when they ask for them. 8. Get a foot in door When you want to sell to a specific company, type the company’s name into the search bar on LinkedIn’s home page. You might be surprised to find somebody in your network working for that company, or connected to one of its key decision makers (LinkedIn displays these connections in a clear graphical format). Now, instead of having to make a cold call you have a foot in the door. Ask your connection(s) for insights into the company and for suggestions on how to best position your services.
meet. For some, an early morning coffee meeting is best. Others might prefer meeting for lunch, taking an afternoon walk, or even playing a game of golf or tennis. In-person meetings help build rapport and provide the insights that you need to be of service—which is the best to grow your repeat and referred business. In conclusion, there has never been a better time to build your insurance business through networking. The key is to integrate real world and online networking activities so that they fit your personality and the needs of your client base. By following this approach, you’ll discover that your networking is not only highly productive but enjoyable as well. Patrick Galvin is the chief galvanizer of The Galvanizing Group (www.galvanizinggroup.com) in Portland which helps companies leverage word of mouth to increase loyalty, referrals and sales without advertising. He is also past president of the Oregon Chapter of the National Speakers Association and speaks to audiences throughout the country. Patrick will present, “Beyond Networking: Cultivating Your Real World and Online Connections to Grow Your Agency” and “Building Your Irresistible Brand”, at the IIABO 2014 86th Annual Convention & Trade Show. 11716 WA IIABA ad.pdf
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9. Stay top of mind Posting occasional activity updates on LinkedIn is an excellent way to stay top of mind as your updates will appear on the home pages of your connections. Consider posting links to blog posts, client case studies and articles that have broad appeal to your connections. Don’t overdo it, though. By posting activity updates more than a few times a month, you run the risk of having people tune you out.
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10. Meet face-to-face As powerful as LinkedIn is, it doesn’t replace meeting with your connections in the real world. Outside the office environment, people are more likely to take the time to talk about their successes as well as the issues that keep them up at night. Let people choose how and where they’d like to 22
The Oregon Agent • Summer 2014
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Summer 2014 • The Oregon Agent
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13 Steps to Keeping Both Internal and External Customers Happy Through Effective By John Chapin
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Communication
ost problems and complaints both outside and inside your company arise from poor communication. Poor communication most often results from either miscommunication or a lack of communication. Below are thirteen steps to ensure you communicate effectively. 1. Have a clear objective for your communication. The key in this first step is to stop and think about what message you’re trying to convey and how you can maximize the results of your communication. 2. Decide what form of communication is most appropriate. Is it more appropriate to communicate verbally or through written means? Should you send an e-mail, should you pick up the phone, or should you visit the individual in person? 3. Prepare for your communication. Make sure you have all your facts straight and decide what you want to say. Prioritize the various points and put them in order from most to least important. In addition to preparing to present your communication, prepare for how your communication will be received. What are the possible reactions and how will you respond to those reactions? 4. Be direct and specific. Use as few words as possible while still giving all the detail necessary. Include the who, what, where, why, how, and under what conditions. 5. Whenever possible, communicate directly with the person or people you want to get your message out to. When you ask someone to give information to someone else, your message will not have the same meaning as if you deliver it yourself. The message may be only slightly different, but it will be different. In addition, you may give the recipient the impression that he is not important enough for you to take the time to deliver the message personally. Gauge the importance of the message. If the message is important, deliver it yourself, if it is not of major importance, you can delegate it—just make sure the person ultimately delivering the message is clear about the point you’re trying to convey. 6. When you want someone to do something, ask directly. Ask him to do it, explain what the objective of the task is, and let him know why the task is important. When you ask in this way, you show consideration for the other person and make him feel important. As a result, the person will generally do a better job for you. 7. Document communication when appropriate. Having the facts in black and white will make sure everyone has the same understanding and is on 24
The Oregon Agent • Summer 2014
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Summer 2014 • The Oregon Agent
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the same page. This will also help establish responsibility and a timeline. 8. Communicate often. A lack of communication can lead to problems. When you don’t communicate with someone, you begin to slowly grow apart from him. 9. Don’t avoid communicating bad news. One of the biggest customer complaints is a lack of communication. Letting bad news sit can only make the situation worse. People realize that things won’t always go perfectly, and while they won’t be happy to hear bad news, the majority will appreciate it. 10. If you are communicating about a problem or challenge, go into the conversation with some solutions. If the situation puts you in a position where you need to compromise, know in advance what you are looking for, how far you are willing to bend, and what you are willing to accept. 11. Don’t argue or find blame. Try to take a team approach to the problem and put yourself on the same side of the table as those you are communicating with. Give the benefit of the doubt wherever possible. 12. Take notes when communicating if appropriate. If you are given a simple task you probably don’t need to take notes; however, often communications can quickly become complex. Take good notes and read them back to make sure you understand them correctly. 13. Act on communication as soon as possible. The facts are the clearest in your mind immediately after the communication has taken place. If you wait for several days to act, or even several hours, you may find that you have forgotten crucial pieces of the conversation. We realize those are a lot of steps to keep straight. However, not all steps will apply to every communication. Just keep this list handy and take a glance at it before you communicate something important. John Chapin is an award winning sales speaker, sales trainer, coach, and co-author of the gold-medal winning “Sales Encyclopedia” a comprehensive how-to guide on selling. “Sales Encyclopedia” is written for sales professionals in all industries at any level of experience. Utilizing more than 21 years of sales experience and as a number one salesperson in three industries, John co-founded Complete Selling Incorporated, a company helping salespeople double their sales and find their motivation. If you would like access to John’s free white paper on what it takes to be successful in sales along with a monthly newsletter, you can visit John’s website at http://www.completeselling.com. For permission to reprint, or to reach John, email him at johnchapin@completeselling.com 26
The Oregon Agent • Summer 2014
WHO SAYS YOU CAN’T TEACH AN OLD DOG NEW TRICKS! A successful agency is based on a thoughtful combination of quality people, innovation and the relentless pursuit of what is right for the customer. In that spirit LAPORTE has invested in creating a fresh new look. A new logo and color scheme, a state-of-the-art Website and an industry-leading “Risk Management Program” (INSource). All of these tools are now in place to support our clients and staff. Quality people hold top billing at LAPORTE and as one of the largest independent agencies in Oregon, we rely heavily on attracting and retaining the industry’s top talent. If you are an agency owner looking for a strategic partner, or a producer considering a change, we welcome the opportunity to talk with you. • • • • •
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Agents Are a Commodity
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NOT
ow do you keep all of your customers and continue to add more customers while noticing around you that you are losing ground to the direct writers and alternative distribution system who are blossoming in the insurance industry? The cry we hear loudest from agents is that they are losing customers to cheaper alternatives. Yet watching the buying habits of these same customers, they don’t buy the cheapest clothes they can find, the cheapest cuts of beef, and the cheapest cars on the market. WHY? Clothes are commoditized. A shirt is a shirt. But, whether by perception or good marketing, people will still select clothes based on qualities beyond price, alone. Meat is even more commoditized. Yet, more people are aware of the differences in cuts and many are willing to pay more to get the best cuts. When we purchase a car, what do we look for? Are cars means of transportation or reflections of one’s personality? In reality, vehicles are a means to get one from point A to point B reliably. But there are thousands of brands and models available throughout the world. Each car maker spends billions of dollars differentiating their form of transportation to those of others car maker convincing the customer of their perception of what defines them as a person/personality instead of spending billions in advertising for the cheapest type of vehicle. Many in the insurance industry are desperately trying to convince us and the buying public that insurance is the ultimate commodity – they are ALL THE SAME!! While it’s easy for the gecko or Flo to convince the buying
public that ’15 minutes can save 15%’ or that you can pick a box off the shelf and ‘name your price’, most intelligent people and all insurance professionals understand that insurance is more like medical procedures than like cans of peas. A medical procedure may be common, but the practitioner you choose determines whether you will recover quickly or face complications. Similarly, insurance products may be relatively common (although real and subtle differences exist that can radically alter insurance coverage) but the difference is in the person that you choose to tailor, service and administer the insurance program for you. Most agents feel the pressure from existing clients whose relationships with the agencies are based on price, alone. Selling price is easy. If you are competing in only that dimension, you either have the lowest price or you lose the client. But think about your most loyal clients – the ones who trust you to protect them and count on you as their insurance advisor. Cost is certainly a consideration for them as well as for the priceshopper. But most subscribe to the ‘You Get What You Pay For’ philosophy. Reprinted from The PIPELINE, the national newsletter for agency principals. The PIPELINE is published by Agency Consulting Group, Inc., a leading consulting firm for independent agents in the U.S. for over 30 years. Call 800779-2430, E-mail info@agencyconsulting.com, or visit www. agencyconsulting.com for information about the content of this article or PIPELINE subscription information. Copyright 2013 by Agency Consulting Group, Inc. Used with permission.
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Six Strategies to Compete in Business By Shep Hyken
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his article started out to be about how the little guy company can compete with a big company. Specifically, in a recent interview I was asked how a small local business can use customer service to compete when a large national competitor, known for aggressive low pricing, comes to town. As I wrote out the answer, I realized that the business strategies used by a small company competing against a big one are actually sound strategies for a company of any size. By the way, customer service is important, but in this situation, there is much more to consider. A “Big Box” store, such as Home Depot, Lowe’s, Costco, Sam’s Club, etc. comes to town. Local businesses get nervous. How can they compete with the “everyday low prices?” How will they hold on to their customers? How will they attract new customers? After all, they don’t have the advertising budget, the inventory, the buying power, etc. While there is some reality to all of the concerns that a local or small business might have, they are really just excuses. Plenty of local and small businesses flourish, long after one of these larger stores move into their territory. Now here is the reality of the situation. It doesn’t matter if it is a major chain store, a big-box store, a discount store, etc. And it doesn’t matter if it is a small or local business. It doesn’t matter what type of business or industry. Any type of business that moves into your area, large or small, will pose many of the same competitive threats. So, what can you do? 1. Decomoditize your business. A business gets caught in the commodity trap when they sell the same goods and services as their competitor, and other than price, the customer doesn’t see a compelling reason to do business with one company over the other. This is 28
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where customer service becomes the strategy of choice. A company can distance themselves from the competition with customer service that provides an obviously better overall customer experience. 2. Sell something that the competition doesn’t. There is a small hardware store just down the street from a Home Depot. They are always busy. The reason is because they figured out what they can sell that Home Depot doesn’t. And, the Home Depot store will actually refer business to them when they don’t stock the item a customer needs. 3. Find out what you do best and let the customer know. Why should someone do business with you instead of the competition? Outside of the customer service you hope you are known for and the different goods and services that you might sell, is there one thing that really separates you from your competition? 4. Be active in your community. Be visible. For example, some of my Ace Hardware clients allows kids raising money for charity, sports teams, etc. to sell their candy bars, cookies, etc. outside of their store on Saturdays, endearing themselves to their community. By the way, this doesn’t have to be a local community. The company’s market defines the scope of the community, which can be local, national - even international. 5. Build an army of evangelists. Use your happy customers to help promote your business. Be actively engaged with them through social media, mail and any other form of communication that is appropriate. 6. Have a loyalty program. Consider a formal loyalty program that gives incentives to do more business with you. (Like the airlines, hotels and restaurants do.) Or, just deliver amazing customer service that makes the customer feel so special that he/ she wouldn’t consider doing business with anyone else.
There are dozens - even hundreds - of strategies that could have been mentioned. These six came to mind as no-cost or low-cost competitive marketing strategies. Are there any others you can think of that you would want to add to the list? Post them on my Facebook page: http://www.facebook. com/shephykenspeaker. I’ll include you and your ideas in a future article. Shep Hyken, CSP, CPAE Shepard Presentations, LLC 711 Old Ballas Road, Suite 215 St. Louis, MO 63141 (314) 692-2200 shep@hyken.com http://www.hyken.com http://www.TheCustomerFocus.com Author of “Moments of Magic,” “The Loyal Customer,” the Wall Street Journal bestseller book “The Cult of the Customer” and the New York Times bestseller, “The Amazement Revolution.”Shep Hyken works with companies who want to build loyal relationships with their customers and employees. Copyright 2012 Shep Hyken, Shepard Presentations, LLC. All rights reserved. Reprinted with permission.
B C E Consulting, LLC Our mission is to help you grow your business and improve your bottom line. Our team of professional and experienced consultants has assisted insurance companies and agencies in achieving their goals and objectives for many years. We focus on the following areas of business development. • • • • •
Strategic, succession and contingency planning Business growth and development Market feasibility studies Education, sales training and professional development Operational efficiency and process improvement
Tough, high-hazard property, casualty, transportation and professional and management liability risks require detailed expertise and specific industry experience. At RT Specialty, our brokers draw on the most comprehensive resources worldwide to provide better, faster, smarter insurance solutions. We do whatever it takes to find the solution that meets your clients’ complex coverage needs. When it comes to tough risks, experience the difference a tough broker can make. Tough risks demand tough brokers. For more information, contact: Ed Bukovinsky | 206.708.2074 ed.bukovinsky@rtspecialty.com 1200 Fifth Avenue, Suite 1910 | Seattle, WA 98101 www.rtspecialty.com
For further information or details please see our website: www.bceconsulting.co or contact: Jeff Bronaugh, CPCU, CLU, ChFC, CIC jeff@bceconsulting.co 404 3rd Ave S, Edmonds, WA 98020 (520) 343-4394
R-T Specialty, LLC (RT) is a subsidiary of Ryan Specialty Group, LLC, specializing in wholesale brokerage, MGA/MGU underwriting facilities and other services to agents, brokers and carriers. In California: R-T Specialty Insurance Services, LLC License #0G97516 © 2013 Ryan Specialty Group, LLC
Summer 2014 • The Oregon Agent
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We stand shoulder to shoulder with our independent agency partners to provide coverage
that really covers.
www.thoughtfulcoverage.com Summer 2014 • The Oregon Agent
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You’re passionate about your clients. We’re passionate about protecting them. You have a passion for supporting your clients. Liberty Mutual has a passion for protecting them with coverages like commercial auto, workers compensation, and business owner’s policy (BOP). With regional offices, industry understanding, and comprehensive coverages for businesses of all sizes, we have the local knowledge and national resources to help your clients thrive. Talk to your territory manager today about Liberty Mutual Insurance, or go to libertymutualgroup.com/business. We are proud to support the Independent Insurance Agents & Brokers of Oregon. @LibertyB2B
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