This is the second of a two-part series on the capabilities needed to write and retain larger, more complex accounts. Part one dealt with the problem of training new agents on small, transactional accounts and the first two capabilities (message and leadership to change). This piece examines the last three capabilities: specialization, implementation and measurement.
Capability No. 3: Specialized Expertise
The world is evolving and your agency’s greatest competitor may not be the broker down the street. Competition is hitting middle-market agencies from the all directions. Agencies that historically only had to differentiate themselves from other local agencies are now finding themselves competing again their national counterparts as well.
In order to defend against this threat, middle-market brokers have to demonstrate that they have the skills and ability to manage their clients’ risks. It is not enough to have great markets, a low price and a shiny brochure. The national brokers can and will win at that game. Independent brokers must be able to differentiate with their capabilities.
Whether it’s in workers’ compensation, mergers and acquisitions, contract compliance or some other area of focus, brokers must gain specialized knowledge in order to help their clients identify and manage the risks and threats facing their business.
Good service, a friendly staff and the ability to place a policy are table stakes. The world is becoming flatter and increasingly complex. Knowledge is king; gaining it not only protects your clients, it protects you.
Capability No. 4: Implementation Strategies
The first three capabilities we outlined focused on what the broker needs to do in order to compete and win in today’s challenging marketplace. Implementation is what brokers must do in order to retain accounts and grow their book of business.
In many ways implementation provides the greatest opportunity to differentiate since so few agencies are actually successful at doing it. Perhaps it’s because implementation requires a hand-off, and in order for that hand-off to be successful, a strong action and service plan must be developed.
Failing to develop mutually agreed upon action plans listing agency and client accountabilities is a common broker error.
The time to create action plans is during the sales process. Action plans are the culmination of the agreements gained. They represent the work that needs to be accomplished by both parties in order to strengthen and protect a client’s business.
Without an action plan, timelines and agreements won’t be kept, and promises will be broken.
If you truly want to differentiate, implement.
Capability No. 5: Measurements
If you’re ready to take on the challenge of implementation, then you also need to consider how you will measure success.
Measurements of success are the essential building blocks of a client-broker relationship. Measurements allow us to benchmark data so we can later illustrate a return-on-investment. They illuminate the need for additional or continued interventions and provide us with the opportunity to recognize where improvements have occurred.
So, what do we measure and how frequently?
Let’s go back to capability No. 4. The agreements we make in the sales process must provide us with an opportunity to take a before and after snapshot of client outcomes.
Did we determine that one of our clients’ business objectives was to reduce the number, cost and duration of employee injuries? If so, how many injuries did the employer have last year, and what is the goal this year? How many lost time days did the client have last quarter versus this quarter? What was the cost per claim last year and what’s the goal this year?
Simply setting goals isn’t enough. To demonstrate a positive ROI we must be able to illustrate how our interventions, training and process improvement strategies have impacted the measurements. That brings us back to implementation!
Implementation and measurements go hand in hand. Without a strong implementation plan, it’s impossible to demonstrate improvements. It sounds difficult, but it really isn’t. The key is to gain agreement with the client. What do they want to improve? How important is it to their business? Are they willing to do the hard work with you? If so, with the right strategy, the numbers will move in the intended direction.
Measurements highlight broker capabilities and provide both parties the opportunity to recognize the value of a true partnership.
By developing the five capabilities of messaging, leadership, specialization, implementation and measurement are essential to building a pipeline filled with high-value prospects. This is how independent brokers can set themselves apart from local and national competition.
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