Agency Impossible

There’s a show on the  Food Channel called  Restaurant Impossible that I enjoy watching. If you’re not familiar, English Chef Robert Irvine takes two days and $10,000 to turn around failing restau- rants. His team is headed by two other peo- ple, his builder and his interior designer.

On his first visit to these establishments many times he finds an owner drowning in loss but oblivious to all the problems associated with their  business. Occasionally he encounters an owner willing to accept blame for some of the problems, indicating the problem is due to a lack of knowledge and/or time to properly run the business. The bottom line is a small business owner with a failing business who needs to either turn things around or continue to have their business suffer.

What he finds during his initial con- versations with an owner is that they: • Believe their business is attractive and inviting when it isn’t. • Believe their product is good when it isn’t. • Believe they know what people want when they don’t and won’t even ask them. • Don’t understand that successful businesses are built on building rela- tionships that make the customers want to keep coming back.

During his initial assessment Irvine attempts to determine the following: • What does the restaurant look like? Is it inviting? Does it encourage cus- tomers to keep coming back? • How is the management? Are they capable and experienced or do they believe they are doing a good job when actually they are not competent and are also unwilling to change? • How is the staff? Are they competent, well trained and engaged? Do they take direction well and follow the procedures provided? Are they inter- ested in creating an exceptional cus- tomer experience? • What does the marketplace look like? Who are the existing customers? Who are the potential customers? How can they attract the largest number of customers by modifying their offering to meet the customers’ needs? How do they change the busi- ness’ bad image and invite potential customers to return? • Lastly he looks at the product. Does the cost equal the value? Are they providing the value they promise? Does their product and service war- rant the customer’s investment and will it encourage them to return and buy more?

As I was watching the show recently, I realized that the issues these businesses had to deal with were no different than what many independent insurance agents deal with.

You might think that an agency doesn’t need to worry about the attractiveness of their business but you would be wrong. When a prospect or new customer visits your agency their initial impression is based on the physical space, how they are greeted and the professional atmosphere they observe. In today’s world, we use social media and digital marketing to attract and gain new customers so that impression extends to an agency’s website, Facebook page, blog and other social media.

I don’t think anyone would disagree that a well-managed agency is essential for success. The management staff has to be capable and experienced. They need to make sure business is being transacted in a professional manner and in accordance with the agency’s procedures and stan- dards. They also need to make sure that customer expectations are being met and that the staff has the training and backup necessary to meet those expectations.   Great management can’t overcome inadequate staff that are unwilling to carry out the agency’s direction and expecta- tions. Staff that isn’t friendly and profes- sional, even in the face of an unhappy cus- tomer, can’t be tolerated. Staff that is unwilling to get on-board with the agency’s value proposition, objectives and level of customer service can’t be accepted. The staff is the front line in any agency and if they are not on-board with everything they can destroy it. Most successful agencies have found a way to meet the needs of the agency and customers while providing the staff with the tools they need to do their job in an enjoyable and fun agency atmos- phere. Does this sound like “pie in the sky”? It’s not really, it just takes commit- ment and hard work.

From a market research perspective there are a number of questions. Who are your current customers and why do they choose to have you handle their needs? Do your current customers exhibit the char- acteristics of your ideal customer? How do you find more customers that meet the ideal definition? Are you struggling with attracting younger customers? What do you need to do to reach them? Are you overwhelmed by price shoppers that you and your staff can’t convince of your value? How do you attract more customers that see the value in the service you offer? How is your agency perceived in the communi- ty? Are you seen as professional and knowledgeable? Does the public recognize you as an expert in handling the types of insurance you offer? The key is to ask and get honest answers from clients and poten- tial clients. If your agency isn’t where you want it to be with its image and marketing then it’s time to sit down and devise a plan to turn that around.

Last but most importantly, does the value your agency brings to the purchase of insurance protection equal the price the customer has to pay? Remember, you are working with a buying public that is being bombarded with advertising meant to con- vince them the only indicator of value is price. You need to show them otherwise. You need to convey an honest and sincere desire to do the best job protecting them, their families and their businesses. You need to convince them that although they don’t believe they will ever experience a significant loss, they need to protect them- selves in the event of one. It’s important to educate them to the many differences in coverage that can exist and how that changes over time as a person, family or business grows. They need to see you as their trusted advisor who will be there to keep them updated with the correct cov- erages to provide the protection they want and need.

So do you agree that any agency can benefit from a review of their operation similar to what they do on  Restaurant Impossible ? The difference is you don’t need to do it in two days and with $10,000 like Robert Irvine does. He’s making a TV show and instead you will be building and refining your agency which supports you, your staff and your customers. You need to move forward at a pace that makes sense and work on the priorities first. The key is to do the research and be honest in your assessment. Some of the necessary changes you can handle and some you may have to reach out for help with, like Irvine does with his builder and interior designer.     Are you up for a little “Agency Impossible”? I think many agencies could benefit from the review.