If your agency or brokerage firm intends to join forces with another company, the first step should be identifying your corporate culture–those special qualities and practices that have enabled you to build and retain customers. They could include access to superior products, courteous and professional service, and a whole lot more.

Your corporate culture might be difficult to define, so seek input from clients, affiliates and personnel at different levels of your agency, either before or after the transaction. Before PLUSs acquisition became official, we conducted focus groups with our clients (independent agents and financial planners) that revealed what they most feared losing: interacting with the same key personnel, accessing the same carriers and receiving competitive commissions.

After the acquisition, many members of PLUSs top management visited clients to gain additional insight and to reaffirm our commitment to them.

Once you pinpoint the qualities that have helped distinguish your firm from competitors, make sure you keep them. Work with senior management of the other company to incorporate them into the mission statement of the combined organization. Be sure all personnel understand these qualities and how to convey them to clients.

Effective communication is critical. Too many agencies that have been acquired or merged believe the mere act of distributing letters, newsletters and corporate literature touting the advantages of the deal will ease clients fears. If only it were that easy.

Todays customers–whether insurance professionals, employers or individuals–are far too cynical and more savvy than given credit for. They read the business and trade press and recognize the uncertainty brought about by consolidation in the insurance industry. Thats why these mass mailings often come across as the same old company line that few clients buy into.

To break through clients fear and cynicism, you must present convincing arguments–through tactics such as letters, newsletters, seminars and face-to-face meetings–that your agency will not only keep its special qualities, but will deliver new advantages.

Start by empathizing with clients. Recognize that the acquisition or merger might not be a home run to every customer, especially in the beginning. During the first six-to-12 months, some aspects of service might actually fall off until new systems are fine-tuned. Dont deny these realities, but instead express your commitment to rectifying problems and solicit their suggestions.

Also, be upfront about the reasons for the acquisition or merger. Clients know bigger profits played a key role in the decision. So dont give them the, “We merged to deliver better service” line, because nobody will believe it and youll lose credibility. Its okay to say the new affiliation will enable your agency to increase revenues, some of which will be re-invested to enhance customer service functions.

Wherever possible, give specifics on why and how the transaction will benefit clients. For example, discuss the faster average response time you anticipate in six months following the implementation of a sophisticated customer database management system.

Keep reaching out to clients. Even if the acquisition or merger occurred several years ago, dont stop the dialogue with customers, because fear and cynicism will persist. Use written communications such as personalized letters, newsletters and your Web site along with face-to-face forums to remind clients about how much pride you take in maintaining your corporate culture.

At the same time, keep stressing each positive change. And take every opportunity to solicit feedback.

Lloyd West is president of the Southfield, Mich.-based Professional Life Underwriters Services, a wholesaler of life, annuity, disability, long-term care and dental products that became a wholly-owned subsidiary of Comerica in 1995. He can be reached at [email protected].

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, November 19, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

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