Related: Read another column by Jack Burke “Balance Sales and Retention.”

Unfortunately, there are many consultants who constantly look for a new edge in generating clients—and a market change offers them opportunities for new business. Generally, that is good because we all need fresh eyes to help break bad habits and reinforce good ones. But I have read articles that concern me. The general drift is that it is time to throw out the “service” side of the business to blindly focus on “sales.” These articles assert that service is not a hard close and the industry needs to become much more sales oriented.

Well, in a word, balderdash! Sales and service are as inextricably bound together as the chicken and the egg. You can't have one without the other.

The biggest problem is that many agencies haven't specifically defined service within their operations, nor have they branded themselves with a unique service. The phrase “we provide good service” is still rampant in our industry. Even our customer “service” reps are judged more by their abilities to push paper and data than by providing service to clients.

So how do you define service? Some say good service is answering the phone within three rings; others say it is having a live telephone receptionist rather than an automated system. Although those may be elements of service, in today's world of partnering with your clients, it has to be a whole lot more. Service includes outgoing communications, claims processing, providing business resources, webinars and seminars, recommended consultants and risk management programs.

For instance, one Midwest agency has focused on business partnering as its unique service brand. The agency works with each of its commercial clients to find solutions for whatever problems those businesses face. The solutions include guidance in setting up an intranet to resolve interal communication problems, or helping to develop a workplace wellness program to mitigate the costs of health insurance.

One of the agency's former prospects was a small county in its state. Work comp claims were running in excess of half a million dollars per year when the agency took over the account. Working with the county, it developed a strategic plan to reduce work comp claims. It began with a seminar program to teach clients more about how work comp really worked and better methods for managing the ex-mod. One of the agency's staff then began working with the county in the management of each work comp claim.The employee implemented safety and wellness programs, reviewed and updated employee policies and procedures and initiated better relationships with medical providers. Slowly but surely, as the graph indicates, the county reduced claims from $573,830 to $12,817 over a 5-year period.

Is that sales or service? It's both. During this process of work comp management, the bond between agency and client grew stronger. As a result, the producer for the account was able to round it out by bringing health, property and other coverages into the agency. As for retention, the services received are now part of the bidding process because the county feels indebted to the agency—and rightly so.

Related: Read Jack Burke's column “Disciplines of Success.”

Services offered helped make the initial sale and the subsequent service experience has reinforced the sale. Additionally, that county began referring other counties to the agency and the producers were able to use the performance analytics to present a well-rounded picture to prospects. Today the agency writes more counties in its state than any other agency, including many that are significantly larger.

The answer to the chicken-or-egg question is simple: It's culture. An agency culture that is predicated on effectively and efficiently serving the client, coupled with a strong emphasis on the importance of sales, will be successful in any market.

Get started

The next question is where to begin:

1. Brainstorm. Determine what you are providing and what you could be providing. Begin with the perceptions of your staff, but then move on to your key clients. What do they like best and what do they wish you would do? Develop a game plan of resources that will provide a positive impact on existing client relationships and attract new clients.
2. Assess. What are your CSRs really doing? Are they processing paper and data, or are they serving, up-selling, and cross-selling your clients? Unfortunately, we all know the answer at most agencies. Consider the benefits many successful agencies realize from outsourcing data processing, policy checking, etc. If you have four or five CSRs, they are probably spending 100 to 120 hours per week on data processing. Now imagine the potential bottom-line results if those hours were spent in nurturing relationships, assisting producers with presentations and marketing, up-selling coverages, cross-selling additional lines of insurance and reacting to inbound needs and requests from the clients.
3. Partner. This correlates with brainstorming. Develop the resources, relationships and programs that can enable you to offer assistance in every facet of a client's business: human resources, wellness, safety, employee policies and procedures, claims management, accounting, legal, communications, workplace efficiency and more.
4. Communicate. Have an ongoing proactive system of regular communication with your clients and prospects about everything. Don't make it all sales pitches, but focus on the needs of the client first.
5. Educate. Invest in continual sales and motivational training for both producers and CSRs. Help them keep the tools in their arsenal sharp and ready to use.

Related: Read the column “Producers: Plan or Perish” by Jack Burke.

Obviously, this is only the tip of the iceberg. Successful agencies put similar efforts into everything: lead generation, referral programs, community relations, account stewardship, company relationships, performance analytics and strategic planning. However, you have to begin at the beginning and take it one step at a time.

The key take-away of this article has to do with melding sales into service. Most producers will focus on new sales if they are not tied down with service issues. That means your service staff has to become less paper-focused and more client-focused. This also is where your greatest profit potential resides. The cost of upgrading coverages and cross-selling additional lines is minimal compared with the cost of bringing a new client online. These activities add the greatest net dollars to your pre-tax profits and improve retention levels. Although they will resist the idea, explain to your service staff that they are not really “selling,” but are truly serving the best interests of your clients and therefore creating superior relationships—actually nurturing the client.

Don't buy into the arguments that sales and service are distinct and separable. Meld them together into a singular culture within your agency. After all, isn't that what you would like your insurance agent to be? We all want a helpful partner, but no one wants to deal with a salesman except through necessity.