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A
NALYSIS OF
A
GENCIES WITH
R
EVENUES
B
ETWEEN
$2,500,000
AND
$5,000,000
B
EST
B
USINESS
P
RACTICES
A
NALYSIS
C
USTOMER
S
ERVICE AND
S
ATISFACTION
The practices of the leading agencies clearly indicate that customer
service and satisfaction is critical to the long-term success of the
agency. The retention of existing business, the referrals from
clients, and the cross-sell potential all serve to enhance both the top
line and the bottom line of the agency. A critical business practice is
the development of the abilities of the employees. A tenured and
professional servicing staff leverages the time of the producers for
new business and also allows the producers to be involved with
client issues. It also creates a better opportunity for career
advancement. As employees are given increasingly challenging
duties and responsibilities, it creates new opportunities for
enhancing income and job satisfaction.
“It is very frustrating to be one of three
agencies offering a similar pricing on a
piece of business with no reason for the
prospect to go with us. Our difference is
the quality of our people, and our ability
to deliver on what we promise.”
“Customer Service is not simply doing
what the customer asks you do. It is
anticipating what the customer’s needs
are in advance of their understanding of
their needs. It is being far more
proactive.”
Many of the leading firms in this revenue category find that a “value
added” approach to selling ensures enhanced client service.
Anticipating the needs of the client and being proactive in
marketing, claims services and loss control are all being used by the
leading agencies.
H
IRING
, D
EVELOPING
,
AND
R
EWARDING
E
MPLOYEES
Hiring, developing and rewarding employees has been cited as a
frustration for many agencies for many years. Many of the best
agencies become targets for competitors in recruiting key
employees. Without creating a career path for employees, many
agencies find it very difficult to retain existing employees. Many of
the best agencies are spending as much as 5% of their total
expenses in the development of employees’ abilities. Training,
development and education beyond the continuing education level
is critical to keeping employees.
“It has become clearer that certain
employees will be successful in our
agency and other employees will not. My
job is to recognize the difference.”
“The best indication of future
performance is past performance. We
spend a lot of time trying to understand
the likes and dislikes of potential
employees, and then making sure the job
we have for them fits them.”
Incentive compensation is an increasingly important element of the
business practices of the leading firms. Incentive compensation
involves staff at all levels with one firm stating that every position
has a measurable goal or goals that influence ultimate
compensation, from the mail room to the President. There was one
consistent theme for all of the best firms: good employees want the
opportunity to influence their compensation. Incentive
compensation that ranges between 5% and 15% of base salaries
for service employees, and incentive compensation that can be
significantly higher than that for account executives/producers, is a
normal business practice of the leading agencies.
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