Travelers communications executives Sharon M. Steers, director, marketing communications and advertising communications; and John R. Coombe, vice president, communications, oversee the company's ads which promote independent agents.
Travelers recently launched a national television advertising campaign that consists of four ads that can be customized by independent agents for use in their local markets. The new program allows agents to tie in to a campaign that will run 2,324 cable TV commercials on CNN, CNNfn, Headline News, CNBC, A&E, Bravo, Animal Planet, Discovery, HGTV, History Channel, Learning Channel, Lifetime, Sci-Fi, TBS/TNT, Travel Channel, TV Food, USA and the Weather Channel.
Jay Fishman, president and CEO of Travelers Property/Casualty, says the ads are part of the company's "focus on doing a good job for our independent agency partners. Through our long-standing partnership with independent agents, we have built a very successful business for ourselves and our key agent partners. We make all of our money from these partnerships and, while there may be some motion for consumers to buy through other channels, we believe that the independent agency partnerships will continue to provide the vast majority of our business. Even if the public movement toward other channels is overwhelming, we still believe that at least 95% of our business will come from independent agents. We believe that is our future and we're going to invest in it."
Inset photo: Clyde Fitch, senior vice president-independent agent personal lines (left) and Loren Shoemaker, vice president-agency marketing.
Fishman continues, "We listen to the challenges facing independent agents at the annual TLC (Travelers Leaders Conference) and regional meetings and try to respond to those." He points out that agents have asked for help with training. Travelers has responded by starting a college. "They've asked for help with technology. We're responding with really useful, Internet-based solutions."
And in the area of advertising, Travelers is responding with both television and print advertising that agents can customize for their use.
The new TV commercials are black and white with the Travelers red umbrella. The message emphasizes the peace of mind consumers have when they're insured by Travelers. They don't need to be concerned about insurance coverage and can focus on what's really important to them. Each ad closes with "Contact a Travelers independent agent."
John R. Coombe says The Travelers uses black and white for its TV ads (except for the Travelers red umbrella) heightening the focus on the message.
John R. Coombe, vice president-business communications, says the ads are "contemporary and beautifully done. They're about people. Black and white lends a simplicity that lets the viewer focus on the message. The red umbrella takes advantage of the leading brand in the insurance category."
The TV ads are another of a series of agency assistance tools that Travelers offers to its independent agents. "What we're trying to accomplish," says Loren Shoemaker, vice president-agency marketing, "is to maximize the value of the agent with the value of Travelers. We believe very much in the value of the independent agency system and we think we have a lot to offer to them. We have the strongest financials of any independent agency company right now and we're reinvesting our profit dollars back into this distribution system."
Sharon M. Steers studies the print ads which are part of the program to promote independent agents.
In addition to the TV ads, Travelers also has invested in the partnership via service centers for both personal lines and small commercial, a lead generation program, brochures, letterheads, print ads, and its one-to-one retention program for personal lines.
The one-to-one program is a direct mail program that is used by agents writing approximately 75% of Travelers' personal lines business which now exceeds $2 billion. The program includes account rounding materials (information on property coverages is sent to auto customers and vice versa), newsletters, thank you cards that are mailed one month after policy issuance or renewal, annual reviews, risk alerts (which are mailed after a rate increase and which invite clients to ask questions with the idea that this could stop them from leaving at this point of stress), claims satisfaction surveys, policy owner's guides and so on. The program ranks clients to determine which customers provide the agency with the greatest return and targets those customers with the mailings. Agents can choose how many customers will be involved in the program.
Travelers reports that the program has resulted in a 3.4 point improvement in the retention rate from 82.9% for nonparticipating agencies to 86.3% for those who participate. Over five years, the program saves a participant an average of 125 customers.
Clyde Fitch notes that independent agents are starting to gain personal lines market share.
Clyde Fitch, senior vice president-independent agent personal lines, points out, "Last year was the first time in many years that independent agents increased in personal lines. There is a lot of confusion in this marketplace sector. Consumers are being bombarded with commercials offering huge reductions. But, today, the price differential is not that huge. Under those circumstances, consumers are turning to independent agents recognizing the need for independent advice about the best coverages. We're no longer dealing with just a placement. Agents who go out there and help people, who truly recognize customer needs, are succeeding."
Loren Shoemaker says the improved efficiencies brought on by the soft market will benefit agents and companies in the long term.
Loren Shoemaker concludes, "There has never been a better time to be an independent agent. The soft market in commercial lines has been painful, but it has forced both companies and agents to improve their operations with efficiencies that were sorely needed. When the market changes, the additional income is going to drop straight to the bottom line."
Fitch adds, "I go to a lot of meetings and independent agents are talking about achieving and growing. For someone who likes change and takes advantage of opportunities, there's never been a better time to be an independent agent." *
©COPYRIGHT: The Rough Notes Magazine, 1999