by Steve Anderson
We recently received a call from an agent in Idaho, who asked what he could do to enhance the proposals that he delivers to clients and prospects. The reason? Just a few days earlier, he had delivered a proposal, then learned that the prospect had received three other proposals that looked exactly the same. In addition to being embarrassed, he realized that--to the prospect--his agency looked just like each of the other agencies.
Proposals are one way by which you can set your agency apart.
Now, don't get me wrong. Proposals don't sell insurance. People sell insurance. If proposals sold insurance, then you could just mail proposals to your clients/prospects and wait for the check to come in the mail! Proposals, however, do provide prospects with an image of you and your agency. In addition, proposals provide information that is critical to the success of your long-term relationship with the prospect by communicating important terms and coverage information so that your prospect will know what he or she is buying and what you are selling. And--successful long-term relationships mean more profit to you.
When you design and use proposals, you must present important information to your prospects in a way that is going to enhance your professional image and that of your agency. Although the prospect can see the insurance contract when you deliver the policy, at the proposal stage of the process, what you're actually offering is a promise on a piece of paper, so anything you can to do make that piece of paper look great will serve to help improve the sales process.
Boilerplate templates
Technology has made it easier for agencies to create standard proposals. Most agency management systems now include some type of proposal templates that can be used for new business or renewals. These templates are set up to merge data from the policy database into the proposal. Insurance is just too complicated and there are too many variables not to use some form of a standard document in presenting this information to your prospects. This is a great time saver and allows basic proposals to be created quickly and easily.
These templates, however, should be customized for your agency. Too many agents never take the time to customize the templates for their agency. This is what happened to the agent described above. Each agency that was competing for that account used the standard proposal template provided with the agency management system, so each proposal looked exactly the same.
Here's what a proposal should contain--as a minimum: Part 1 should describe your agency. Detail your history, maybe list some of the accounts you currently handle, and make sure that your mission statement is prominently displayed. (You do have a mission statement don't you?)
Next, include the agency service standards. Some agents include in this section a customer service agreement. It is customized for each prospect and lists the services you will provide and the standards by which prospects can measure whether you have met their service expectations. You should also provide a "customer service team" page describing each member of the team who will provide the service and support for the account. This includes the producer, the assigned CSR, the person who will handle any claims, and the accounting contact for any invoice and billing questions.
These beginning pieces help to portray that you are providing more than just a quote for insurance. You are providing a comprehensive insurance program that will address all of the prospect's needs.
Jazzing it up
We've all come to expect a high level of quality and sophistication in the materials we receive from the companies we do business with. The quality of your products and services affects your prospect's and client's impression of you and your agency. Here are some simple things you can do to set your proposal apart from the pack.
Scanners: One of the easiest ways to jazz up a proposal is to add your prospect's logo to the cover page and to the footer of each page. It is surprising how easy and inexpensive this is to accomplish. Agencies of any size can afford to have an office scanner. Inexpensive scanners now cost under $100.
Inserting a company logo into your proposal is a simple, three-step process. First, you scan the logo to create the graphics file. The software you need to do this will be included with your scanner. You can obtain the logo from a copy of the company letterhead or from a business card. Second, you may want to "clean up" the image using the included graphics software package. Finally, you insert the image you have created into the proposal document with your word processing software. Most agencies use Microsoft Word. Simply use the Insert Picture command to place the graphics file in the document where you want it to show up. While this is a small item in the scheme of things, you may be surprised at the reaction of prospects and clients when they see their logo on your proposal.
Pictures: The next logical step is to add pictures to your proposals (and to your company submissions for that matter). These could include the locations covered, special equipment, or even photos of members of the staff who will be handling the account.
At less than $300, a digital camera really is a "must" for every agency office. The old Polaroid just doesn't cut it any more. Pictures may not be worth a thousand words, but they sure will help to enhance your company submissions, marketing proposals, newsletters and other promotional material.
Color printing: Just a few years ago, color printers were expensive and the quality was not that great. That definitely has changed. Good quality color printers are now available for under $200, and just about any agency needs to have one in its office.
There are two types of color printers--inkjet and laser. There are benefits and drawbacks for both. Inkjet printers cost much less than laser. The cost of ink cartridges, however, can add up fast. The cost of laser printers has dropped quite a bit recently. You can now find a good quality color laser printer for under $2,000. This is certainly not cheap, but the higher quality, higher speed and the operating cost compared to an inkjet may swing your decision.
Why is color so important? Color adds pizzazz to proposals. But beyond the eye appeal that color adds, there are some practical uses for colors. In tables, graphs, charts and lists of data, color helps to visually separate objects that in black and white seem to blur. We have found this especially useful in graphs we put together comparing loss-sensitive workers compensation proposals. Using color when plotting the ultimate net premiums at various loss levels makes the chart stand out and makes it very easy to understand.
You also can use color for your standard proposals, primarily to help separate the information on the page. You could use blue for page headings, green for items that relate to money and finance, yellow for coverage limitations and red for exclusions or coverage exceptions. When you use color, you need to remember to use it sparingly and tastefully. Improper use of color can ruin the appearance of a document.
Make sure that you take the time to customize any proposal template you elect to use by adding agency-specific information, as well as by scanning graphics and logos, adding pictures, and using color printers. These are all proven technologies that will help you not only to meet but also to exceed your clients' expectations and improve your relationship with them.
The author
Steve Anderson has been a licensed insurance agent for more than 25 years and is executive editor of The Automated Agency Report. He helps agents maximize productivity and profits using practical technology. He can be reached at (615) 599-0085; e-mails are welcome at Steve@SteveAnderson.com; or visit his Web site at www.SteveAnderson.com.