Don't Set Sail in 2011 Without an Agency Plan – It's Not To Late!

2011 is here and what are your plans for this year? We have a new governor in a state saddled with budget issues and skyrocketing taxes. New York is hardly business friendly and that coupled with our stalled economy doesn’t make for a positive environment in which to operate your business. How do your clients and prospects feel about the current state of affairs? Will the poor economy and unsure future have them concentrating on premium at the expense of protection? If that’s the case you and your staff will need to figure out how to overcome that thinking and get them concentrating on value. How did your agency do in 2010 and what will you do differently in 2011?

There are many questions to be answered. If you have done a good job planning for 2011 then you have answered these questions and many more as part of the process. If you haven’t done a good job analyzing and planning then you’re flying by the sit of your pants with no idea where you’re going.

If you have completed your planning for 2011, are you comfortable with the final product? Have you communicated it to your whole staff and have they “bought in” to their piece of the plan? Were they given an opportunity to participate in the process? If they were, their feeling of ownership will be greater. Does your staff have all the training and tools they need to carry out the plans you have made?

In such volatile times it’s irresponsible and dangerous to run your agency without a well thought out plan. It’s like operating a sailboat without a rudder. It’s not too late to create a plan for 2011. If you don’t have one or are not happy with the quality of the one you have take some time and put an effective plan together. You’ll be happy you did and will have a much better chance of being successful in 2011.

Planning is deciding where you want to go in 2011 and the most effective way to get there. It should not be done in a vacuum. That said, no one has a crystal ball and can tell how things will occur in 2011. Good planning is based on your best knowledge and assumptions. It requires regular review and adjustment. As I am writing this column I try to put myself in the reader’s shoes. If I was reading this column I probably would be thinking: “What are the key areas for agency planning in 2011?”

There are a number of key areas that go into agency planning. First and foremost is sales. The primary purpose of a successful agency is selling insurance! Your agency’s overall sales objective should consider attrition as well as the continued effect of the soft market if you have any significant volume in commercial lines. In personal lines your plans have to consider the effect of the economy on clients and prospects willingness to spend money. You need to determine how you will compete in a marketplace where consumers many times make their insurance purchasing decisions based on price.

Your salespeople need aggressive sales objectives supported by a realistic and well thought out plan for achieving those objectives. They have to monitor their progress weekly and adjust their plans as needed to meet their goals. Those people responsible for overseeing the salespeople and sales result need to be frank and objective in their assessment of each person’s progress and the overall sales plan. Sales is a process that when followed and monitored regularly will focus attention on the areas where work is necessary to be successful and meet the planned objectives.

Effective sales rely on several different areas that create the opportunity to get in front of people. They are marketing, prospecting, communications, image building and branding. One of the goals in this area is to communicate to the public why they should do business with you. You need to explain what makes you different than all the other ways of purchasing insurance. You also need to explain why looking for the lowest premium isn’t in the prospect’s best interest. It is important that you determine how you want to be perceived by the community in which you operate. What does the public think of when they see or hear your agency’s name? Do they even know who you are and what you do? Do people know who your staff are and the level of expertise and knowledge they provide? If they don’t know you and your staff and what it is you do you may never get an opportunity to serve them. You want your whole staff constantly looking for prospects and new sales opportunities. If they are doing a great job for clients they shouldn’t be afraid to ask for referrals. You may find some of your staff requires education and training in order to learn the skills needed to be confident and effective in this area.

On of the keys to distinguishing your agency from others is customer service. I’m not talking the traditional, expected, reactive customer service centered on handling routine changes and service. I’m talking about the proactive, outbound customer service meant to educate clients on important issues and protection needs. This is the kind of customer service that truly customizes the client’s coverage to meet their personal needs and goals. This type of customer service is helpful in explaining to clients why making insurance purchasing decisions based on price are not in their best interests. Here again some staff may need education and training to learn and/or improve their skills. This type of customer service takes time so agencies need to look closely at using technology to assist their staff in freeing up the time to offer this level of service. All good plans not only look at the upcoming year but also key in on the future. Do you have future issues built into your plan? For example who is the customer you will serve in the future? How do they differ from the one you work with now? What changes will you need to make to attract and retain these customers? One critical question is how will you reach them and offer your services. You need to build your image in this community of future clients. Currently everyone is talking about Social Media as the key to reaching these future customers. Depending on your age and use of technology Social Media may be totally foreign to you or you may understand it and how it works. Somehow you need to get these prospects attention and an opportunity to show them the advantages of doing business with you. If not through Social Media how will you get in front of them? I encourage you to explore the use of Social Media and the success it can bring you in reaching this new client base.

In this column I have only touched on a few of the key areas associated with a good plan. The ones I have highlighted here are those I believe to be critical in any plan. The purpose of this column is to draw attention to the need for a good plan to operate under. I am astonished by the number of agencies I talk to that don’t do planning or do very rudimentary plans that are forgotten or abandoned before the end of the first quarter. Planning should not be optional, it should be essential to operating your agency. Properly developed and executed planning, that is monitored and adjusted when necessary, is the key to a successful agency.