2010 Best Practices Study

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Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
2010 Best
Practices Study
Agencies
with Revenues
Under $1,250,000
3
Analysis of Agencies with Revenues Under $1,250,000
Recruiting & Developing Talent
More than half of the agencies in this study group are
located in communities with less that 50,000 people.
While the pool of potential candidates tends to be
more limited than in larger cities, the smaller
communities allow these agencies to network very
effectively to fill a position via referrals from business
contacts, existing employees, and clients. Another
method is to seek out candidates from people such as
the bank teller or store manager who had provided a
positive service experience.
Although turnover is typically low in these agencies,
the most successful agencies try to be are aware of
“who is out there”. They maintain a pipeline of
candidates generated from their network and are
prepared to hire should the unexpected occur.
Help wanted ads, placement agencies, and recruiting
from college campuses were used, all having varying
degrees of success. Interestingly, the agencies in this
study group, particularly those with younger principals,
tended to use technology as a recruiting tool. They are
comfortable with online services such as
to post openings and often employ social networking
to “get the word out.” Not surprisingly, exceptional
computer skills are now required for all positions in
these agencies since technology is an integral part of
all agency activities.
Many agencies in this group prefer to hire producers
with sales experience but with little or no insurance
backgrounds and service staff without experience so
they can be“indoctrinated to the agency’s way of doing
things”. As such, they have developed specific new
employee training modules and use testing profiles
such as OMINI, DISC, and others to help review,
manage, and motivate these employees.
Achieving Organic Growth
The mantra for this group of agencies seems to be
“cross-sell and ask for the referral.” These two strategies
allowed them to drive positive organic growth in a
difficult environment.
As they identified and pursued the lines of business not
written for existing clients, they nurtured client
relationships through discounts for multiple policies
with the same carrier, increased client communications
and education, and enhanced service. This heightened
level of service improved retention and created a fertile
ground to ask for referrals.
The most successful agencies established and
enhanced trusted relationships with lenders, realtors,
bankers, accountants, business owners and others who
are influential in their communities in order to provide
and obtain referrals. As one agent said, “They comprise
90% of our referral network.”
To support their increased sales efforts, these agencies
also put resources into new advertising/marketing
materials and activities. Although traditional
marketing support was used, this group, more than
others, embraced the internet, email, and social media
to create brand recognition, reach new prospects in a
broader geographic area, address niche audiences, and
communicate with existing clients.
Other successful growth strategies included
specialization and niche marketing to homogenous
classes, franchises and associations. Results show that
Keys to Recruiting Talent
(Top 5 Listed in Order of Frequency Mentioned)
1. Solicit referrals from business network,
clients, & employees
2. Seek out candidates who have provided good
service/experience in a business setting
3. Utilize placement agencies
4. Place ads in newspapers, publications, online
services
5. Recruit on college campuses
Keys to Organic Growth
(Top 5 Listed in Order of Frequency Mentioned)
1. Implement disciplined cross-selling, account
rounding, upgrading
2. Aggressively seek referrals from existing
clients and centers of influence
3. Expand advertising/marketing efforts
including website/social media/internet
4. Develop more niches/specialties/target
markets
5. Nurture existing accounts through superior
service delivered by knowledgeable staff
Keys to Developing Talent
(Top 5 Listed in Order of Frequency Mentioned)
1. Provide in-house training/mentoring
2. Pay for out-of-office seminars, programs
3. Utilize carrier training
4. Require and provide incentives to acquire
industry designations
5. Provide vesting / ownership opportunities