“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