I don’t know about you but I count on my network and computer system like I do with the oxygen that I inhale. Although I and my staff know insurance agencies inside out, I must admit that when the last snowstorm hit and our power went down by immediate response was to close the office because we couldn’t do anything constructive without “the system”.
In light of the importance of our system to our daily operation and following my own advice to always get the very best to support us, my IT “guy” could be the smartest person I’ve ever met. He knows a lot about everything but he is well-versed in all things systems-related and can (and has) solved a myriad of problems and kept our network and systems humming. But he isn’t appreciated as he should be because much of what he does outside of crisis management is done behind the scenes, mostly after hours in order to assure that our system is updated and working well.
Since I am visiting agencies almost weekly, I can’t help but notice the similarities between my little consulting firm and most agencies who count on their system and are lost when and if the system fails.
However, if we look at the BIG PICTURE for insurance agencies their success or failure is based on how their clients feel about the agency and how (and whether) the clients refer their friends to the agency.
Every agent in the country claims that their agencies give “Great Customer Service”. In most cases the agents firmly believe that, whether or not there is evidence or definition to “Great Customer Service”.
So the first question is DO YOU GIVE GREAT CUSTOMER SERVICE?
The second question is HOW DO YOU DEFINE GREAT CUSTOMER SERVICE?
The third question is DO YOUR CUSTOMERS KNOW AND ACKNOWLEDGE YOUR EXCELLENCE?
DO YOU GIVE GREAT CUSTOMER SERVICE?
List on a piece of paper the MINIMUM service standards that a customer should expect. This list defines service levels below which the customer should leave the agency for someone else.
For Instance, examples of Minimum Service Standards (MSS) are:
Customers calling the agency should have a return call within one business day of their call.
90% of all transactions requested by customers should be completed correctly at the first request.
Claims should be handled the same day they are received in the agency.
These are not standards for which agencies strive — they are standards below which the agent acknowledges that his staff is doing a poor job for the client.
HOW DO YOU DEFINE GREAT CUSTOMER SERVICE?
Do your customers expect more or less from your agency than you deliver? If you’ve never published a set of Customer Standards, how do they know if they are getting more, less or exactly what you would like to deliver to them in terms of service standards? Here is a link to our article on Service Standards. Most of our client agencies include their version of Service Standards as part of a Client Bill of Rights in everything they send to clients.
DO YOUR CUSTOMERS KNOW AND ACKNOWLEDGE YOUR EXCELLENCE?
Here’s where most agents fail – communications with their customers.
It is also why my excellent “IT Guy” isn’t appreciated as much as he deserves or expects.
Most agents (and my IT Guy) know if they are giving great Customer Service and when they are not. There is ALWAYS a viable reason for less than stellar service but the reality is that your reason is not important to the client who isn’t getting the grade of service that you or he expect or desire.
But what if you ARE giving your definition of great service but most of it happens behind the scenes in work effort that you and your staff do without fanfare or public knowledge?
If all your clients see is renewal policies delivered by mail once each year, how do they know whether you are simply a delivery service for the carriers or if you are distinguishing yourself and your agency by providing services to the clients that your competitors and the direct writers can’t or won’t provide?
The answer is that THEY DON’T KNOW WHAT YOU DO! And, without that knowledge, your claim to superb customer service is no different than the politicians in power claiming that everything is great while the politicians out of power claiming that everything is terrible.
Of course you will feel offended when customers leave, presumably for better rates, but, in reality, your claims of being unique, different and better than their incumbent when you became their agent has worn thin and they see no difference between you and any other insurance provider.
That’s what happened to me, personally, when I wrote Shopping for a New Agent a few months ago. After many years after a new agent acquired my agent and NEVER even meeting him with no involvement by the agency aside from processing my requests and getting policies delivered by mail, I felt that I wasn’t getting the services of an independent agent as I expected and went looking for a new agency and agent. Did I know whether the new agent reviewed my account annually and revised coverage and shopped for the best product for me? No! But he certainly never communicated with me if he did do some of the things that I expect from an agency relationship with a client. So I’m now available if any independent agent who fits my concept cares to acquire a new client.
Similarly, many of your clients don’t particularly care whether they stay with you or move elsewhere. If you don’t cement your relationship with them personally and by giving them a grade of service that you would give your mother or best friend, the only thing holding them to you is INERTIA.
Of course inertia is a powerful force and that’s why even mediocre agents maintain close to 90% or higher customer retention rates every year. However, if your clients encounter someone who actually markets to them and shows them activities and efforts (that you might provide, but don’t communicate well) different from their experience with your agency, you will lose customers that you never expected to lose.
The answer is simple to state but difficult to do:
- Identify the grade of service that you would provide your mother or your best friend that other agents wouldn’t typically do.
- Define what the customer should expect from your agency and communicate those standards to them often. Make them proud to be one of your clients because of your differences from the common agent.
- Tell your customers what you do for them AS YOU PERFORM THE SERVICES. They deserve to know the ‘above and beyond’ things your agency does to add value to their insurance program.
Remember, if you don’t tell them what you do for them, someone else will have the opportunity to take them from you. No, they are not ungrateful for your efforts – they just don’t know you have exerted those efforts.