Here's something that concerns me: When I ask a producer if they keep a list of their key accounts, more often than not they don't have a clue what I'm talking about. Yes, most producers know their largest one or two accounts. But what about the other two dozen or so?

What is a key account? You've probably heard of the “80/20″ rule, which generally holds true for all industries: 80 percent of your income comes from 20 percent of your book of business. These clients, usually numbering 20 to 25 for an insurance agent, are your key accounts. Some producers may have a few more and some less, but regardless of the actual numbers, these are the customers who are buttering your proverbial bread.
Once we know who our key accounts are, what's next? The main thing is being constantly aware of who's on this list and knowing the current status of those relationships. I keep my list taped to the inside of my desk, where I can easily glance down and see it while working on my computer. It's a daily reminder of who accounts for the majority of my personal income.
I don't mean to downplay the importance of the other 80 percent of accounts, or to suggest you can take them for granted. Yet the simple truth is that we need to take exceptional care of the key portion of our book of business, both in hard and soft market conditions–and exceptional care takes time. We all get busy with our day-to-day tasks, and before you know it, days turn to weeks and weeks to months. Suddenly it's renewal time and we haven't so much as said hello to our most important customers in a year. Therefore, we must learn to manage our time wisely to best serve the top 20 percent, without slighting the other 80 percent.
One way to free up some time is by transitioning the daily activities for most of your smaller accounts to your CSRs. If you haven't already, you must begin training your accounts to contact a CSR for many of the day-to-day needs. This is unquestionably easier said than done, which is why so many agents avoid doing it, but it's imperative that you make this transition. Another idea many agencies use to free up a producer's valuable time is annually reviewing their book of business and moving the bottom 5 percent of clients to either a new producer or a seasoned CSR as a house account.
The next step is to take a look at our key accounts for similarities: class of business, industry type, premium size and other demographics. Is there something here we can capitalize on? Is there a common factor that can help us go after more of the same type of profitable business?
As already noted, one simple but effective approach to growing this portion of your business is by offering exceptional service and attention–and while you're doing it, asking these clients for referrals to similar types of businesses. Usually, your key accounts will be more than happy to help you. Then, look to your carrier partners for programs or for help with a marketing campaign to write more key accounts.
Exceptional service has to include the CSRs, too. Review your key account list with them and make sure they understand your service expectations. Also make sure they know the contact names, personality styles and anything else of importance that could affect the service your agency is providing. CSRs are direct extensions of the producers, so there isn't any information we shouldn't share with them.
Believe it or not, exceptional service is whatever our key accounts decide it is. It may be constant personal attention, or it may be something as simple as an occasional handwritten note. In my case, I provide 24-hour access. All of my key accounts have my cell phone number, home number and e-mail address. I want them to be able to get in touch with me anytime, day or night.
One tool I use for determining what exceptional service means to my clients is a customized service agreement. The key account and I develop such an agreement at the beginning of our relationship or at renewal time every year. It's a simple idea, but it's been a huge benefit that really separates us from our competition. The service agreement commits to paper exactly what our client expects from us: claims handling, certificates of insurance, changes to the policy, audits, marketing of their account, visits to their office, etc. It also serves as a report card on whether or not we lived up to their expectations. What better way to be sure you provide exceptional service than to specifically ask what they would regard as exceptional?
We should also have a goal of contacting one of our key accounts every week, whether for breakfast, lunch, golf, an office visit or simply a “how's it going?” phone call.
As critical as it is for us to continue writing new business, hanging on to existing profitable business is even more important. We need to know our numbers and our key accounts and provide them with service beyond their expectations. David L. Rice Jr., CIC, CBC, is vice president-sales for Michigan-based Craft Agency Inc. He specializes in both the property/casualty and employee benefits areas. He manages his own book of business, but also heads producer development for the agency. David is also an instructor for the Dynamics of Selling program. For more information on Dynamics of Selling, call 800-633-2165 or visit www.thenationalalliance.com.