2013 Best Practices Study

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2013 Best
Practices Study
Agencies
with
Revenues
Over
$25,000,000
164
Analysis of Agencies with Revenues Over $25,000,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Developing New Producers
From all of the research we have done on sales
success, the “Producer Development” items listed by
the Best Practices Agencies would be considered a
great checklist for any firm to use in order to maximize
the success of their sales staff. It would be difficult to
argue with any of them.
As far as the source for producer talent, two of the
most common hiring sources mentioned were hiring
college graduates (ideally through an intern program)
or finding older prospects that have already had some
sales experience but in other industries. They reported
success coming from both hiring strategies. To get
more information on how to do this successfully,
we would recommend that you look at Reagan
Consulting’s Young Producer Study. (Download for
free at .)
Finally, these Best Practices agencies reference a
“purging” strategy that many firms use to keep their
senior producers selling ( ., get rid of their smaller
accounts) and to help their junior producers get
experience and build up a book of business.
Adjusting to Health Care Reform
The responses from these Best Practices agencies
certainly confirm that, although a good bit of
uncertainty about healthcare reform still exist, a lot
that can and is being done to position the agencies
for success.
Positioning involves adding and expanding
capabilities. This includes “staffing up”; adding
services such as expanded wellness offerings, self-
funding capabilities, ancillary products and voluntary
benefits; and getting their people up to speed
through education and training. It is also clear that
agencies are going to have to train and equip their
producers to sell these expanded services and to be
much more consultative in their sales approach since
clients will need training and educational offerings as
well. With all of these changes taking place, it is little
wonder that these firms are also finding it necessary
to elevate and improve operating efficiencies in order
to maintain profit margins.
Keys to Developing New Producers
(Top 5 Listed in Order of Frequency Mentioned)
1. Investing in mentoring – generally
senior producers with junior producers
2. Creating a “learning path” for new
producers (teach them an effective
process)
3. Providing sales management for all
producers
4. Focusing each producer in one or more
industry practice groups
5. Expectations/Goals are being clearly
established (with accountability being
provided as well)
“We need to have the principals
of our firm working as hard
at identifying and recruiting
producers as we work at writing
new business. Hiring a talented
producer (that will write new
accounts for years) has a lot
more value than writing a
single new account.”