While building a successful agency takes dedication and hard work, it may not be as difficult as you think. A wealth of material exists on the tangible factors and steps necessary for building a successful agency, such as product and service offerings, pricing, business planning, etc. But what are the intangible — and often more important — agency success strategies?
Consider what the following, if executed well, could have on your agency’s success.
1. People do business with people they like
With no disrespect to an agency’s products and services, price, quality service and dependability, people are the most critical success strategy. A very frugal colleague of mine recently drove this point home with an experience outside of the insurance field.
My colleague was personally remodeling his home. The bill ran into the tens of thousands of dollars, and the national home warehouse chain had all of the materials in stock for 20 percent less than the local hardware store. What’s more, the hardware store would have to special order many of the materials, which would delay the project by several weeks.
I was shocked, however, when my friend chose to pay more at the local hardware store. When I asked him why, he said, matter-of-factly, “Because I like them.”
His decision ran deeper than price alone when he revealed that the hardware store had given him hours of free advice over the years, and on occasion, had even sent him to the warehouse chain when employees couldn’t find a product faster or for less. He said their honesty and integrity had won him over. He felt he had a contract with his conscience that dictated he have the same integrity in deciding where to purchase the needed materials.
That made clear one of the primary truths of selling: People do business with people they like. Regardless of whether it’s a one-person agency or a large organization with dozens of agents, if your people individually focus on just this while building the agency, you’ll experience much success.
2. Your customers must always feel right — even when they’re wrong
A Nordstrom story provides an excellent example of this truth. Many years ago, a man unknowingly returned a set of defective tires to a Nordstrom’s location where a tire store had once been located. Despite the company’s position as a clothier, the sales associate nonetheless issued some type of refund or store credit, satisfying the customer.
Granted the example is extreme. However, the underlying principle stands: For long-term prosperity and patron loyalty, a customer must always feel right, even when he or she is wrong. Every customer is important, so ensure that you and your people always make each person feel important.
Follow Nordstrom’s lead when creating a customer service charter. You can’t put the onus on customers to get “it” right every time. Too many agencies and large insurance companies focus on the reasons and technicalities as to why they can’t help a customer, rather than offering solutions. The reality is problems will arise.
The problems aren’t the challenge. The challenge is responding effectively, because the responses help determine an agency’s success or failure.