This is part 1 of a 2-part series on what it takes to write and retain larger, more complex accounts. In this first installment we will look at how agencies set new producers up for failure by having them work with smaller transactional accounts. Then we’ll focus on two capabilities that producers need to have in order to successfully land larger accounts.
When we begin consulting with agency owners, we often find them training new commercial producers by having them “cut their teeth” on smaller, more transactional accounts. This seems like a low risk way for new producers to gain experience working with a variety of risks while learning elements of account service.
The flaw in this approach is that it frequently leads producers down one of two paths. Either they become entrenched in servicing the needs of small accounts and begin to take on the role of an account manager, or they become so comfortable working with small businesses that they’re afraid to pursue more complex opportunities.
Servicing small accounts does not help producers develop most of the capabilities they need to attract larger, more profitable accounts. That’s not to say there is no benefit; working with small accounts exposes producers to risk management and to carriers. However, it is important to move the producer from servicing small accounts to prospecting for large accounts fairly quickly.
So what capabilities are necessary to write and retain larger more complex accounts?
Capability # 1: A Message that Differentiates
Attracting the attention of CEOs who are bombarded with all kinds of messages on a daily basis is no easy task. So how do we capture their attention?
Successful messaging accomplishes three goals. First it piques curiosity, second it differentiates you from the competition, and finally it includes a strong call to action that will drive a response.
CEOs are seeking relationships with service providers who understand their businesses and can help them be more profitable and competitive. To demonstrate your understanding of their issues and needs, your message must be prospect focused and outcome oriented. It must clearly demonstrate that you’ve researched their business and have a command of a subject that is of interest to them.
All elements of self-promotion such as: “We have great markets,” “We can save you money,” or “Our firm offers excellent service because…” have to go. Messages that demonstrate your understanding of their unique business needs will resonate far greater than a message promoting you and your agency.
Capability # 2: Leadership to Change the Process
Employers continue to engage in a flawed and dangerous process when selecting their broker relationships. In many cases this occurs because of the way brokers have historically messaged to employers, stressing their ability to quote and market rather than focusing on the outcomes they can help employers achieve.
This process is detrimental to both the employer and the broker. Employers are falsely assuming that all brokers are the same and that an apple-to-apples comparison is possible, with the lowest price policy being the best choice. We know that this is not true as many brokers have specific capabilities that can significantly improve the competitiveness and profitability of their clients. A highly trained broker with specific technical knowledge can save a client far more than a well shopped policy.
Leadership in the sales process is critical and sorely missing. If brokers created this flawed process by poorly messaging to employers, then they need to change it by bringing leadership to the sales process.
Brokers must be willing to help employers understand why a low-cost policy does not necessarily translate into savings. Their sales methods must guide prospects through a self-discovery process, enabling employers to identify risks and threats to their businesses that were previously unknown.
A commitment to a consultative sales process and the ability to convert an employer to it– as well as the courage to walk away from a prospect that won’t follow your process–demonstrates leadership.
In the next installment of 5 Capabilities You Need to Write and Retain Larger More Complex Accounts we’ll examine the benefits of specialized capabilities, implementation strategies and measurements that are critical to developing a pipeline filled with high-value prospects.
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