CUSTOMER SERVICE FOCUS

By Bettye D. Buffington, CIC, CRM, CPCU, ARM, AAI, CPIA

MOVING UP

Customer service skills provide basis for
transition to producer/agency owner

Who remembers the very first day of his or her work at an insurance agency? I remember it as if it were yesterday (well almost). After graduating from college with a double major--Business Management and Accounting--I immediately went to work as a cost accountant. I was not happy with my choice. I like dealing with people and solving problems. As a cost accountant, I became bored with completing the same reports week after week, month after month. So, I quit the job and responded to a newspaper employment ad titled: "Insurance Agency Accountant--need immediately." To my delight I was hired and began my new career. What a fun place! The holiday season was in full swing. It seemed there were luncheons and holiday parties with the other companies in our business complex for the entire first week on of my new job.

After the holidays, my work truly began. I was requested to bring the financials up to speed. This was a difficult job because I had no training in insurance other than a personal finance course that devoted two chapters to insurance coverages. An insurance agency's accounting is quite different from other businesses because most of the assets are not identified on the financial statements.

My first task was to reconcile the insurance company payables. This was a challenge because I didn't understand the terms used on the invoices such as "WC audit," "endorsement," "re-write," etc. I began working with "the girls" to determine the root of the billings and tried to explain to them the effect on the various general ledger accounts created by a single invoice. The phone rang constantly at our busy office, and I was informed by "the girls" that there were more pressing issues for them than verifying the accuracy of a few invoices. I am the type of individual who wants to understand why and how things work. I asked if I could assist them in exchange for their assistance with my requests. I was directed to a stack of papers and told to match the papers with the files. I read the papers and began to learn a little about insurance terms and coverage. In turn, I was then asked to answer the phone. I wanted to be able to help the caller, but due to my lack of knowledge, I could only take messages.

The first move

After several weeks I decided to learn more about becoming a licensed insurance agent. I was encouraged to enroll in the next property and casualty insurance course. I did, then passed the 17-week course--and my license exam. The agency president said that I could sell insurance and receive commission in addition to my salary as long as I continued to perform the functions of my accounting position.

I began to solicit my friends and family for personal lines insurance. After writing a few policies, I found that I truly enjoyed the customer contact and was able to answer customers' questions. The agency was located in a truck dealership and specialized in trucking. I enjoyed speaking with the truckers and helping them solve some of their problems. (Trucking accounts require a great deal of service. If insurance filings are not in place, the trucker is literally shut down.) My brother, who was driving an 18-wheeler at the time, began to refer some trucking accounts to me. I was successful in placing most of them. There were very few other agencies in our area that specialized in trucking.

The next step

One day, about two years into my new career, the agency president asked me if I would be interested in a new position called Agency Operations Manager. The position was really what we now refer to as Customer Service Representative. I would be in charge of all customer service functions and a new accountant would be hired for my old position. I accepted the new responsibilities and began to assist customers on a full-time basis. I also enrolled in additional classes covering commercial and personal insurance. I truly enjoyed my new position. I was helping clients by responding to their requests and counseling them on additional products to meet their needs.

Another step

I try to learn something new each day and always want to know more about my chosen profession than my competitors. After a few years of working in customer service, I decided to attain the Certified Insurance (CIC) Counselor designation. I enjoyed the classes and the networking opportuni-ties. The role of the professional Customer Service Representative has evolved and no longer is "just a job." We provide a valuable service to our customers who appreciate our professionalism and knowledge.

Our agency worked together to increase sales by account rounding and asking for referrals. Our production soared. Our retention was excellent. Referrals were coming in constantly. I had to spend more time on production and hired an additional licensed service professional so that I could devote all my efforts to production. I used my customer service skills to produce additional business for the agency. Production was increased by over 25%.

I attended the state insurance agents' convention for the CIC conferment ceremony. After the ceremony, I met with a former agency employee and was told that the agency at which I was employed was for sale. This was unbelievable. I returned to the office the following Monday and requested an appointment with one of the owners. He suggested that I purchase the agency, named the price and told me that although he had another buyer, he thought that I should have the same opportunity. I didn't know what to think. I was happy in my present position. We were known as an agency that truly provided excellent customer service. I had spent years developing personal rapport with my customers, yet did not think that I would enjoy working for a new owner. After much thought, I decided to buy the agency.

That was 21 years ago. We have had some challenges over the years and continue to face new threats and opportunities. Both the insurance marketplace and regulations affecting the trucking industry change frequently. When the CISR program was introduced in our state, we immediately enrolled our staff. They enjoyed the classes and now are proud to use the CISR designation. I began serving as a faculty member for the program. We use the skills today to provide the service to our customers that they so rightly demand and deserve. Our agency continues to grow because of our dedication to quality customer service. We understand that quality customer service is a team effort that requires management support and agency-wide participation. *

The author

Bettye Buffington, CIC, AAI, CPIA, ARM, CPCU, CRM, is president of Central Insurance Services, Inc., in Adelphi, Maryland. The agency specializes in insurance and risk management for trucking risks. Buffington's agency was voted Marketing Agency of 1990 by the readers of Rough Notes. She serves as a national faculty member for The National Alliance for Insurance Education & Research by teaching at CIC, CISR, CRM and Dynamics of Service programs. For more information on the CISR program or Dynamics of Service, go to www.TheNationalAlliance.com, or call (800) 633-2165.

MEETING CUSTOMERS' NEEDS

Being a successful CSR requires being able to think like a customer, anticipating customers' needs and effectively handling customer complaints.

Customers need to feel understood. Sometimes customers express this need by repeating the same words over and over, or by becoming angry and frustrated. We can satisfy their needs by taking the time to listen and empathize with their situation, then responding to them with affirming statements and clarifying questions.

Customers need to feel welcome. They may look around the office if they are not greeted immediately or bring a friend or relative with them when they do not feel welcome. We satisfy this need by greeting them and offering them a drink and telling them how good it is to see them again.

Customers need to feel important. Sometimes they are loud and appear flamboyant or flashy. We address this need by using their name and providing immediate assistance and response to their request. This must be done with interest, enthusiasm and a smile!

Customers need to feel comfortable. With today's many stresses and demands, our customers need to feel that they can relax and trust us to put their needs above our own. We must take the time necessary to provide customers the excellent service that they deserve.

A typical business hears from only 4% of its dissatisfied customers. The other 96% just quietly go away. Most dissatisfied customers will tell eight to 10 people about a problem and one in five will tell 20. Seven out of 10 complaining customers will do business with you again if you resolve their complaint in their favor. If you resolve it on the spot, 95% will continue to do business with you. On average, a satisfied complainer will tell five people about the problem and how it was satisfactorily resolved. Because of these statistics, I have discovered a few methods for handling complaints:

* See complaints as opportunities to correct problems

* Never take complaints personally

* Always be courteous and helpful

* Concentrate on solving the problem

* Apologize for the problem

* Be patient and tactful

* Thank the customer for bringing the problem to your attention.