“Recession: Not on My Calendar,”

a recent article that appeared in Health Insurance Underwriter, contains a lot of wisdom and helpful advice for dealing with our current economy. Here are some pertinent excerpts.

A Bain & Company study of more than 375 companies on the Fortune 500 list “examined the three typical chronological stages of a downturn:

• Storm clouds on the horizon, when the first signs of trouble appear
• Wet and rainy weather, when sales plunge
• The first rays of sunshine, when customers start to increase their buying again

“Interestingly, Bain found that, at each of these stages, companies tend to do exactly what they shouldn’t. In Stage 1, executives tell their employees that the company will be OK so as not to frighten them. In Stage 2, they slash costs like crazy, often laying off employees and cutting back on the quality of their products or services. And in Stage 3, they spend freely, partly to try to make amends to alienated employees and customers.

“To some, that might sound like a reasonable approach, but Bain found companies that have done better at weathering downturns tend to do just the opposite.

“In Stage 1, they start battening down the hatches by communicating to staff and clients about their contingency plans. In Stage 2, they treat employees and clients like partners (‘We’re all in this together, so let’s figure out how to get through the tough times.’). Moreover, to bolster their core business, they open up their checkbooks to acquire key personnel and other firms at bargain prices. And in Stage 3, they gradually ramp up to meet the increasing demand.”
So what are the lessons for all of us? The author of the article, Joe Navarro (Warner Pacific, Moorpark, Calif.) lays out the main points:

• “Make a concerted effort to stay away from those individuals and media who are shouting, ’The sky is falling!’ Take a break from these ’experts’ and establish your own beliefs and possibilities.
• Look for additional opportunities available to you extend your market reach and offer new products and services to an expanded market base.
• Research previous situations (like the Bain study ) that resemble what is going on in your marketplace and identify successful practices you can incorporate into your business. For example, if history repeats itself, the worst time to cut back on sales or marketing is in a recession. There are hundreds of stories of individuals/companies that took a proactive position during a downturn and came out on top.

"Work hard at staying positive!"

• It’s up to you to market and position yourself as the most credible, trustworthy expert in the insurance industry.
• The responsibility for keeping your name in front of prospective clients until the time they are ready to move forward remains totally with you.
• The latest research shows that the average person will not act on something until they see or hear it a minimum of seven to nine times — even if they need or want it. How can you make sure that you are the one who the consumer chooses to buy insurance from?

“Focus on building relationships.

• Relationships are forged one opportunity at a time. They can be solidified in person most effectively, but can be enhanced using e-mails, custom newsletters, the Internet and quick check-in phone calls.

“Share the wealth.

• Get out and meet new people on a regular basis.

“Focus on a niche market

• Be the expert!

“Move from features and benefits selling to consultative selling.

“Always keep in mind that the insurance landscape will change. Your existing clients and future customers are not immune to an unstable economy. Many of them have already been impacted and will be in need of sound advice and a calming influence. Take the necessary steps now to be that calming influence.

“What you need more of today are positive ideas on how to navigate these choppy waters. Many more people will continue to panic and the media will continue to paint a bleak picture of events. Devote time to searching out people and ideas that can help you see the many opportunities in your market and then develop a plan to help you reach the success you are working so hard for today. “

You can read the entire article at http://www.hiu-digital.com/hiu/200904/

Myth Buster #2

Newsletters are a cheap and easy way to get new customers. Just mail them out and when people see how much you know about insurance, they call you.

In some ways, even the most professional newsletter is like a beautiful new Ferrari - without an engine. Sure, it looks nice and it'll attract attention. But if you want to get anywhere with it, you'd better put something under the hood.

To put it in marketing terms, your newsletter is just the part of your prospecting strategy that your prospects see. The real engine, what drives the new business to you, is the effort you make to reach out to your prospects and convert them to clients.

Most agents who use newsletters successfully to build their business take a three-step approach: 1) identify prospects in those markets you feel you can serve best, 2) send newsletters to those prospects, and 3) follow up with a phone call after several months. Your newsletter gives you an automatic opening - "Are you getting our newsletter regularly? Is it going to the right person - and, oh, by the way, is there anything we can do for you? We'd love to quote your business."

Now you have a prospecting program that has real horsepower.

Myth Buster #3

Including business reply cards with your newsletters is just a waste of money. Nobody ever returns them.

You may not get a lot of response cards back, but you will get some. And simply including them is a thoughtful gesture that reminds your customers you value their input and want to hear from them whenever they have questions - not just at renewal time.

Smart's business reply cards reflect the content of each individual issue so it's easy for clients to indicate what they want to discuss or get more information about.

And even if someone doesn't return the card, it may prompt a phone call. If you never hear from your customers, your BRCs will give them a nudge. Sometimes if you ask, you shall receive. But you've got to ask first.

A note to our agents...

Dear agents,

We want to alert you to what may be an extraordinary opportunity.

There seems to be a herd mentality at work on Main Street right now. Business owners are convinced they need to save money and shop around for better value. That’s good news for you. Because now you can get your foot in the door to sell that competitive quote you’ve been trying to offer.

Even better, some of your competitors are following the herd, cutting back on their marketing and client communication budgets. So when you contact prospects, maybe they haven’t heard from your competitor for a while. They might think he or she is no longer interested in their business, making them more willing to listen to you.

In short, the “recession” we are now officially in may be a blessing in disguise for agents who recognize opportunity.

While some of your competitors may think the recession is cause to let their guard down and reduce their marketing and client communication efforts, alert agents know it’s a time of unique opportunity. Businesses always need insurance, no matter the economic climate, so the agents who keep their names out there and are ready to take action are the ones who’ll survive and thrive.

We hope you take advantage of this time to build confidence with clients and prospects and expand your business. Please let us know if we can help.

www.smartspublishing.com

Go Green!

It’s clear that as consumers, we are on a move to “go green”. The number of organic, recycled, environmentally safe products available today closely rival that of their less earth friendly counterparts. Even the insurance industry has done it’s part. Paperless applications, policies, even electronic signatures are the norm these days.

What about marketing your agency? What green techniques do you implement when you plan your marketing strategies for the year? Do you limit the amount of paper advertising you do, hoping that will make a difference? Do you rely only on e-marketing to reduce waste? What about recycled paper?

These are all great ideas, and Smart’s Publishing is excited to announce that we are joining the movement to go green with several of our products/services. First, and most importantly is our paper newsletter. We understand that many of you realize the value of the paper newsletter, and have come to rely on it’s effectiveness. Smart’s Publishing is proud to announce the as of January 2009 all of our newsletters will be printed on paper that is made of 30% recycled content.

Don’t want to use a paper newsletter? We have options available to enhance your e-marketing campaign as well. We offer the newsletter in both PDF format (for web posting as well as e-mail distribution) and our new HTML format DART program. If you haven’t heard about DART, you need to give us a call and check it out! Imagine being able to track who is reading your e-newsletter, and what articles they are reading! Talk about some serious “bang” for your marketing dollar.

For those of you that want to take advantage of the “full package” Smart’s Publishing has to offer, our Business Class package includes both the paper newsletters printed on the 30% recycled paper, and the e-marketing/DART newsletter as well. This way, your whole marketing package is environmentally friendly, and effective too!

Smart's Mythbuster #1

If you send newsletters to clients and prospects, they will call you to discuss the content of their newsletter and thank you.

That would almost be like you making a special point of thanking the restaurant you ate in last night for providing good service and a healthy meal. You probably wouldn’t do it. Not unless good service and a healthy meal were not the norm at that restaurant. The point is that quality service, even value added service, is what clients expect. And if they don’t get it, they are less likely to remain clients.

Little things, like reinforcing your professionalism through regular communications with clients and prospects, matter. Advertising executives call this brand awareness. Most people call it building confidence and trust.

It’s hard to measure confidence and trust. But over time, by providing services that include regular and consistent communications, you will build your clients’ confidence and trust in you. The results will be better persistency, more referrals and easier sales. Just don’t expect people to thank you for making the effort to do a good job.

Improve your Marketing Swing

Who says you can’t learn great marketing tips from your kids? With spring in the air, our marketing manager, Lisa Merriman, was recently asked to coach her son’s little league baseball team. And therein lies a lesson for all us. Here’s how she tells it:

“It was all too obvious when these very young kids (ages 6-7) came to practice that first day that they had a lot to learn. With much trepidation, I started to teach them some baseball fundamentals. Who would have guessed that those kids would also teach me something about the way you and I do business.

“Their swing was stiff-armed, only swinging half way with no follow-through. They couldn’t connect with the ball, and when they did, it certainly didn’t go ‘out of the park’! With a lot of work, and a little patience, they learned that there are many elements that go into ‘the perfect swing’. You can’t just stand there and move the bat in the general direction of the ball and expect anything meaningful to happen. For one thing, your swing will be far too late to connect most of the time. You’ve got to anticipate the ball’s arrival and place your bat strategically at the sweet spot with a full swinging motion, among a host of other considerations. It takes time, but gradually my kids are acquiring the skill that will help them one day hit a few out of the park.

“And so I thought, using newsletters as a marketing tool is a lot like learning how to swing a bat. If you just send out your newsletters month after month, with no follow-through, swinging with no particular strategy in mind, you’re not going to have an effective ‘marketing swing’. At best you might hit a single now and then, but certainly not the home run you are looking for.” So what’s your newsletter marketing swing like? Are you swinging aimlessly, with no particular strategy in place? If you’re sending out newsletters to existing clients for customer communication and retention purposes, that’s one thing. But if you expect to acquire new business that way, you need a plan. Most successful agents use a plan that involves sending out newsletters with a telephone follow-up. There are two simple steps to this plan:

1. Send your prospect your newsletter on a regular basis (preferably monthly) for several months. This accomplishes several objectives: you familiarize them with your branding, including the name of your firm and its corporate identity; you establish your concern for communicating with clients about topics of interest in insurance and risk management; and you indicate your interest in doing business with them.
   
   
2. Once they’ve become familiar with your branding and your reliability after several months, give them a call. Ask how they’re enjoying the newsletter. Most importantly, ask for an appointment to meet with them to review their insurance program. Or maybe you’ve got something important to show them that will make life easier for them, like on-line service and management tools or an approach to customer service that’s unique to your agency (your “branding”). Or maybe even play it low key on the first call and just ask if the newsletter is getting to the right person. As you build trust, your likelihood improves of getting a chance to quote or even get a broker of record letter.

So don’t just take a few wild swings at new business with your newsletters. Develop a plan and follow through with it.