“Have I got an insurance story for you!” One thing I've learnedfrom working in this industry is that people love to tell me“insurance stories.” A common element in these stories is anunpleasant experience for the insured-usually resulting from a lackof service. First, I'll relay one such experience, and then I'llgive you some tips for putting the “service” back into the term“customer service representative” and for helping your clients livehappily ever after.

Recently, a long-time business friend told me an “insurancestory” about John, his 24-year-old son. After graduating from theUniversity of North Carolina, he moved to California.

“A few days ago, John called to tell me he had been involved inan auto accident and asked me what he should do,” said the friend.“I told him to contact his insurance agent. He replied that hedidn't have one; rather, he'd obtained his coverage on theInternet. I asked him how he was supposed to submit a claim, and heanswered, 'I don't know. That's why I'm calling you.'

“Then I asked him how, if he bought his policy online, he knewhe had the right kind and amount of coverage. He said hedidn't!”

I wonder how many times each day this same story plays out.Someone goes online to shop for an insurance policy, finds one at acheap rate and buys it without ever seeing or speaking to anyone.Although this process is quick and convenient, it has a significantdrawback: The insured may get little help-if any-in the event of aclaim. I don't mean to disparage the Internet's usefulness tocommerce, but let's face it-people who buy insurance policiesonline don't always know exactly what they're getting.

You can set yourself apart by offering insureds a level offservice they're unlikely to receive from an anonymous onlinevendor. It's an important factor that people might not know theywant or need, but that they expect once they have a claim. Whenpeople say they shopped around and found a great price forinsurance on the Internet, we need to remind them-and perhapsourselves-that we offer not only a live, local presence, but alsopersonal relationships, advice and recommendations, and confidencethat coverage will respond at claim time. A company may offerdirect billing and a toll-free telephone number for reportingclaims, but that does not diminish the value of an independentagent when clients someone to hold their hand and guide themthrough the claim process.

Trust

To better serve our insureds, we must earn their trust andassure them that we will perform satisfactorily and reliably,keeping their best interests in mind. Doing so might mean steppingoutside our comfort zone. Suppose one of your clients has a15-year-old child who soon will start driving. You've offeredpersonal umbrella coverage in the past, but the client has declinedto buy it, telling you he or she doesn't want to spend any more oninsurance. Therefore, you might be reluctant to explain that theclient soon will face greater liability and that an umbrella policycan help cover it. But to look out for your client's bestinterests, you must provide this information and credit the insuredfor having the ability to make the right decision.

Don't assume an insured won't buy a product because the price istoo high. When one has a covered claim, insurance is the bestbargain in town! Arm yourself with examples and testimonialsshowing how all your coverages have performed for clients.

Selling the invisible

An excellent resource for insurance professionals is a bookcalled “Selling the Invisible,” by Harry Beckwith. In it, Mr.Beckwith explains that professional services are invisible productsand offers hundreds of tips for selling them. He states thatlawyers, doctors, accountants (and I would add insuranceprofessionals) tend to think clients are buying their expertise.However, most prospects for such complex services can't evaluateexpertise. They can't tell if a tax return is accurate, a diagnosisis perceptive or an insurance policy is appropriate-but they doknow if their relationship with you is good, if their phone callsare returned, and if they feel valued. According to Mr. Beckwith,we're not really selling expertise because prospects assume we haveit, and they can't evaluate it anyway. If we're selling a service,we're selling a relationship and an experience.

Examples of companies that successfully sell the invisibleinclude Walt Disney (think “magical vacation”), Federal Express(reliability, “absolutely, positively”) and Nike (personalempowerment, “Just do it”). A Starbucks patron might think thecoffee is a bit overpriced, but it's consistently good. The shopsare everywhere (convenience) and the company is innovative.Customers can customize their coffee with a variety of flavoringsand toppings before downloading music clips onto their iPods usingthe Internet connections (and now Wi-fi) the stores offer.Similarly, if insurance agents provide an outstanding experiencefor their customers, they'll maintain relationships and create abuzz that will attract even more business.

Customer service moments of truth

Jan Carlson, former head of Braniff Airlines, used to travelaround the country teaching sales professionals how to improvecustomer service. He said the culture is built on positive momentsof truth, and we can create such moments by making small changes inour daily interactions. Following are 10 practices that I recommendevery agency implement.

1) CSRs should end every conversation with a client bysaying, “Is there anything else I can help you with?” Peopledon't want to be dismissed. They want to feel that they've beenheard and that they decide when the conversation ends.CSRs who conclude conversations this way report that clientssometimes respond, “Now that you ask, I do have a question,” or,“As a matter of fact, my child is going away to college and buyinga used car. What's the best way to insure it?”

2) Order business cards for all associates, including thereceptionist and the summer intern. The cards don't cost much,but they show that the agency values its employees and wants themto represent the agency well. Although only a licensed agent canwrite insurance, a receptionist and a file clerk can hand outbusiness cards. It's a marketing opportunity. Also, put a nameplateon the receptionist's desk with his or her name on it (not“receptionist”-that's obvious!) and a business card holder in plainview.

3) Buy notecards printed on nice, heavy card stock andfeaturing the agency's name and logo. Leave them blank on theinside. Provide some cards to every associate for sending thank-younotes, congratulations, announcements, birthday and anniversarywishes, etc. Some agencies award points, and ultimately prizes, forsending out notecards and generating referrals.

4) Require everyone in the agency to change his or heroutgoing voice mail message daily. For example: “Hello. Myname is Julie. Today is Friday, Oct. 8. I am out of the office butwill call in for messages at noon and return phone calls later inthe day.” Such a message increases the level of an employee'spersonal accountability, performance and professionalism. Itprompts associates to check their voice mail daily and reassurescallers that, if they leave a message, someone will hear it andrespond. If employees object to changing their message daily, holdfirm. Tell them you understand that it takes a minute or two eachday, but it's the agency's standard, and the benefits are wellworth the extra effort.

5) Ask CSRs to make two, three or four“I'm-thinking-about-you” phone calls each week to clients with whomthey haven't had contact in awhile. If they reach an answeringmachine, then they can leave a message. “Hi, this is Emily of ABCAgency. I haven't talked with you for a long time, but I want totell you that we appreciate your business. If there is anything wecan do for you, please let us know.” The primary reason insuredslet another agent in the door is because they haven't heard fromtheir own agent lately. If a CSR makes three calls each week-oneevery Tuesday, Wednesday and Thursday-that's 156 contacts each yearthat improve client retention and perhaps generate a few moresales. It's a proactive approach to customer service, and the costis minimal.

6) Be aware of recent claims. Most clients expect theiragents-whom they trust to handle their insurance needs-to knowabout any activity regarding their account. If an agent or CSRbumps into an insured who recently had to replace a window in avehicle or file a homeowners claim, you can bet it's going to comeup in the conversation. Even if the claim was handled properly andthe client was taken care of, it's better for the agent or CSR toknow about it than to be caught off guard. That happened to oneagency owner I know. Before long, he instituted a new practice.Now, every Friday at noon, everyone in the office receives ane-mail message with a list of claims reported by the agency'sclients. It's easy to run such a report from most agency managementsystems-and the account you save may be your own.

7) Mirror client communication. People often ask me,“If someone leaves me a voice message, is it OK for me to respondby e-mail?” The answer is no. If someone calls you, return theircall. If you get an e-mail message, reply to it. Clients willcontact you using the method that works best for them, and they'llhave a better experience if you respect their communicationchoice.

8) Establish e-mail standards and communicate them to yourentire staff. It's professional and legally prudent to end allyour e-mail messages with a signature that includes the samecontact information that appears on your letterhead-your name,title, address, phone number and fax number. Corporate attorneyshave told me most people don't realize that every business-relatede-mail message they send is a legal document that can be saved,printed or forwarded by the recipient. Expressing your creativityby selecting colorful “stationery” or festooning notes with smileyfaces, daisies, footballs or whatever suits your fancy may be finefor personal correspondence, but it's not appropriate for businesscommunication-electronic or otherwise. I also highly recommend thatemployees refrain from checking their personal e-mail at workbecause doing so exposes the agency's e-mail system to possiblevirus or worm infection. (I have no objection to employees visitingcommercial Web sites during their lunch hour, so long as the samestandard applies to everyone.)

9) Survey your customers. It's important to obtainfeedback from the people with whom you conduct business. Surveyscan help us adapt how we do business to better serve our clients.One of the things I offer on my Web site(www.sellingstrategies.com) is a free client-satisfaction surveythat asks such questions as: Are you happy with our hours ofoperation? Is our location convenient for you? Are your claimshandled to your satisfaction? Send notes to former clientsexpressing your regret for losing their business, and include asurvey asking them why they went away and if you may call on themagain. If prospects choose another agency, use a survey to ask themwhy.

An agency owner in Illinois called me one day and excitedlyinformed me that his agency had just expanded its business toSaturday mornings in response to a customer survey finding. Some ofthe CSRs said they would be happy to work a few hours on Saturdayin exchange for an afternoon off during the week. They even workedout a schedule for keeping the office open until 6 p.m. on certainweekdays. So, customers got the extended hours of operation theyhad requested, CSRs got to enjoy the flex time they wanted, andeveryone was happy.

10) Be accessible and responsive. Some offices havere-instituted formal break times to manage the time employees spendaway from their desks. Employees may insist that they don't needbreaks-”We just do our work and leave our desks only when it'snecessary”-but if you spend a day in their offices, you'll see themtaking plenty of unofficial breaks. Establish office standards fortaking breaks, for using telephone “do not disturb” buttons and foranything else that makes staff members unavailable to clients.

Some of the changes I've discussed may seem a bit radical, butif you slowly integrate and enforce them, they become tippingpoints-little things that make a big difference and increase thelevel of trust both within the organization and betweenclient-service personnel and your customers.

Advice and recommendations

One of the best ways independent agents can demonstrate theirvalue to customers is by offering advice and recommendations. Hereare a few ways you can become an indispensable resource for yourclients:

? Develop a list of frequently asked questions (FAQs) and giveit to every CSR in your agency. In theory, a customer could askthree people in an office the same question and get three differentanswers, which does not help build trust. We need to equip ourinside agents with tools that help them correctly and consistentlyanswer clients' questions. Ask each of your producers to write downthe 10 questions they're asked most often, and determine the top 15questions in each department. Then assign someone to research theanswers and get a consensus of what the answer to each questionshould be.

Every agency needs an intranet, where it can post its personnelmanual, workflow charts, procedures, vacation schedule, continuingeducation class information, employee birthdays, etc. If youragency doesn't have an intranet, create one and use it to post theFAQs and official answers for each department.

? Use a “coverage of the month” for seasonal selling.Every month, choose a coverage to feature for each department. Forinstance, you can tell clients, “In January, we're remindingeveryone of the limitations on a homeowners policy. Jewelry iscovered only for so much and for certain types of losses.” Explaina bit more about the topic, but be brief enough that people arelikely to listen to and remember the information. In February, youcould discuss flood insurance; in March, talk about coverage forrecreational vehicles, second homes, umbrella policies or whateveryou think best.

Also, assign someone at your agency to develop a roster ofstories explaining the benefits of various coverages that might beunfamiliar to clients. Have them include examples of when theymight apply. Post the coverages of the month and story rosters onyour intranet and make sure everyone on your staff knows how toaccess them. Often, CSRs don't recommend certain policies becausethey don't fully understand them and don't feel comfortableexplaining them. A story roster may educate your CSRs and help themovercome their reluctance to recommend certain coverages. It alsocan ward off E&O woes, build self-esteem and confidence amongCSRs, and help create standards that you can use when appraisingjob performance.

? Use a personal-risk questionnaire. Every couple ofyears, meet with clients to analyze their risks and update theirinformation. Ask if they need to add any drivers to their autopolicies, if they want to insure any recreational vehicles, whetherthey've bought or sold any businesses, etc. Price is not the mostimportant factor in the buying decision. The No. 1 reason you loseclients is because they haven't heard from you. In a salesrelationship, the seller, not the buyer, should take the initiativeto maintain contact. You need to get in front of your clients andprospects; conducting a risk analysis is a great way to do so.

We now have four generations buying insurance-the Matures, theBoomers, the Generation Xers and the Millenials-and we must adaptour delivery methods accordingly. Younger insureds might be morecomfortable with electronic communication, while senior citizensmay prefer face-to-face contact and a chance to show you picturesof the grandchildren. Regardless of age or circumstances, however,we all want the same things from insuranceprofessionals-personalized service, sound advice, and assurancethat they care about us and will pay our claims.

The head of Macy's department store once advised “be everywhere,do everything, and never fail to astonish the customer.” That mightsound impossible, but you don't need a magic wand to meet yourclients' needs. You do, however, need to establish and adhere tostandards, create positive moments of truth, equip staff members tooffer advice and recommendations, and provide tools for deliveringthem. Follow that advice and more of your own insurance storieswill have happy endings.

(This article is based on Ms. Huling's presentation at theASCnet TENconference held in October in Orlando, Fla.)