Dear Sales Consultant,
CUSTOMER SERVICE FOCUS
By Cheryl L. Koch
Find out what really motivates CSRs--
and use it to reward great performance
"It's amazing what you can get CSRs to do when you let
them know you appreciate their hard work."
Dear Sales Consultant,
I've tried just about everything in my agency, from sales contests to cash for expiration dates, and I just can't get my CSRs to sell! Is there some magic formula?
Signed,
Frustrated Agency Owner
Unfortunately, there's no easy answer to Frustrated's dilemma. When asked, CSRs often cite several reasons why they don't actively engage in the sales process:
* "It's the producers' job -- that's why they get the big bucks."
* "I don't know how to sell -- I'm a service person."
* "WIIFM?" (What's in it for me?)
* "The last thing I need is to make more work for myself."
While they might seem like excuses, these answers have a lot of validity. The truth is, the CSR is the person best positioned in the agency to make additional sales. After all, the client calls the CSR! Whenever a policy change is initiated, a claim is reported, or an account is renewing, the CSR has the opportunity to close the conversation by soliciting the purchase of other lines of business or upgrading the current policies. Yet one of the intractable truths of agency management is that the number of policies per account in the typical independent agency is seldom more than two. We simply are not maximizing the revenue we receive from each customer relationship. Identifying the problem is easy; the trick is in the solution.
We're often led to believe that cross-selling insurance products is as easy as asking someone if he wants fries with his burger or a belt to match her new shoes. While there's an element of truth in this belief, it really isn't the same, and to assume it is does an injustice to the CSRs in our industry.
Service and retention first
First, it's important to understand the fundamental differences between a great service representative and a salesperson. Their dispositions are entirely different. Good CSRs are nurturers. They take care of customers' needs, make them feel important, solve their problems, and genuinely care about what is going on in their customers' lives and businesses. This is a vital function in any independent agency. When customers feel important, they're unlikely to go looking for a new relationship. Retention soars and the agency's profitability increases when the CSRs exhibit these caring tendencies. These important skills are not the same as those required of successful salespeople. That's not to say that CSRs can't sell because they don't have the right personalities. It just means that if they're going to sell, they're going to do it in the name of service. When making the sale is perceived to genuinely benefit the client and improve his or her situation, a good CSR will sell the right product.
Ultimately, however, it's the producer's responsibility to generate the majority of new revenue from the account, and this accounts for the feeling among CSRs that, "It's not my job. That's what the producer is supposed to do." And don't discount the fact that CSRs are well aware that the rewards for selling generally accrue to the producer, not to them. In short, vive la difference! Both sales and service skills are essential to successful agency management. They just don't generally exist within the same body.
Foster professional growth
Second, very few agencies provide sales training to service people. For that matter, not enough agencies provide the right kind of customer service training. Training CSRs often is seen as a luxury, an inconvenience, or just a matter of complying with state continuing education requirements. So we're expecting CSRs to do a sales job without allowing them the opportunity to develop any innate sales skills they may possess. If selling is an expectation of the job, then CSRs require training to do it successfully. This, of course, presumes that there is a minimum level of sales competency to begin with--in other words, the "raw material" from which to develop a good salesperson. Every employee is entitled to a career development plan that addresses areas of weakness and provides ways to build skills and knowledge in those deficient areas. Many people leave agencies simply because they don't think management is willing to make a sufficient investment in their individual success.
Use appropriate rewards
Another stumbling block to CSR-generated sales is compensation. The old idea of paying a certain amount for every expiration date was never wildly successful, yet many agencies continue this practice. If I ask you to do something that you don't like, don't think is part of your job description, and feel incompetent to do, is there any amount of money that would motivate you to do it, let alone get you excited at the prospect? There are exceptions, of course, but for most CSRs this financial incentive is ineffective and meaningless. Because of their personalities, CSRs tend to be more motivated by team-based rewards. When the team wins, they win too. And it's amazing what you can get people to do when you let them know, as often as possible, how much you sincerely appreciate their hard work and how important it is to the overall success of the agency.
If you're going to reward cross-selling and account upgrading, you're better off not paying $10 for an X-date and instead offering a day off, a gift certificate to the mall or a spa, or a two-night getaway for two. You need to be creative and figure out what really motivates the CSR--and it generally will be something completely different from what motivates producers. Most people work so they can have the money they need to do the things they really enjoy. Figure out a way to give CSRs more of the time and money to achieve their dreams, and you'll give them the right motivation.
Help CSRs boost efficiency
Last but by no means any less important than the other factors: Many CSRs believe that selling is just one more thing to add to their never-ending "to do" list. This could be indicative of several problems. If the agency culture is not that of a true sales organization, then selling is not perceived to be everyone's responsibility. You end up with the producers versus the CSRs rather than everyone working toward a common goal. When the culture is healthy, everyone understands the importance of his or her role in the success of the agency and selling is once again "Job 1." Whatever facilitates sales will be carried out.
CSRs need to operate with efficient workflows and procedures, supported by the technology necessary to perform their jobs. How could anyone get excited about selling anything if she's already three months behind processing the work on her desk? There are reasons for the chronic backlog that is crippling many agencies, and it's up to management to find a method to eliminate it once and for all. If people believe they're making progress rather than ending each day in a deeper hole, they're much more likely to buy into additional tasks that create revenue for themselves and the agency.
Keys to success
The keys to CSR-generated sales are a matter of:
* Recruiting and hiring the right people. Employees with an aptitude for selling are not necessarily the same as those who provide outstanding service. Every person doing what he or she does best makes for a highly efficient, productive, and enjoyable workplace.
* Training and education. If you hire smart people with the right attitude, they can be trained to do just about anything. But training needs to be viewed as an investment, not an expense. Equally important is the right training at the right time. The Dynamics of Selling program can help develop CSRs' sales potential.
* Motivation. Recognize that you cannot motivate another person; all motivation is self-motivation. If you help your people achieve their dreams, they'll help you attain your business goals and objectives--it's the classic "win-win" outcome.
* Rewards. What do CSRs really enjoy, and how can selling enable them to have more of it? And don't forget to reward CSRs for their main purpose as well--keeping your customers happy! "Thank you" is a huge reward when it's meant sincerely.
Like everything else in agency management, motivating CSRs all comes down to leadership. If the culture is right, if people feel confident, competent, and supported, and if the appropriate compensation system is in place, everyone does what is necessary and performs at the highest level. Agency leaders need to recognize the differences in people's skills, knowledge, and attitude and determine how each individual's contribution can be maximized. For agency owners and managers who patiently do the right things, the rewards are substantial. *
The author
Cheryl Koch, CPCU, CIC, ARM, AAI, API, AIM, AAM, AIS, ARP, ACSR is an agency management consultant and educator and is a frequent speaker at industry meetings and events nationwide. Most of her 27-year career has been spent on the agency side of the business, including ownership in a large southern California agency. Cheryl is a faculty member for Dynamics of Selling and The National Alliance School for Producer Development. For information on these programs, contact the National Alliance for Insurance Education & Research at (800) 633-2165 or visit its Web site at www.TheNationalAlliance.com.