Anyone who knows me would vouch that I am a man who speaks the truth. So when I was asked to provide my opinions on customer loyalty with worksite products, I decided it is time we (the selling agents and the insurance companies) accept the truth: There is no customer loyalty with worksite products. You must accept the fact that consumers are not loyal to any agent or any insurance carrier. Loyalty can only be found in the eyes of the beholder.
I was recruited into this business 25 years ago by answering a blind newspaper advertisement seeking a “sports-minded sales executive.”
I wanted to sell sporting goods, and boy, was I disappointed when I realized I had been reeled in to sell supplemental insurance products consisting of cancer, disability, dental and life insurance.
But the recruiting guy illustrated the big income numbers I could earn doing a minimum number of sales per week and told me about a novel wealth-maker called renewal commissions.
My thinking was I only had to make the sale once, and every month the insured or group paid their premium I would get a piece of the action. Sweet!
But the enthusiastic recruiter failed to mention the most relevant part of the success equation: The key to achieving my anticipated level of income would be derived solely from my customers loyalty in renewing their policies with me. And that factor depended largely on the insurance companys level of customer service, or lack thereof, over which I had no control.
During the early growth years of my agency, I would scrutinize my monthly policy reports (sales) against the insurance companys paid commission report (earnings) and by quick comparison could detect who had missed a premium payment. I would telephone them to ask why they had not paid their premium, and then I would mediate the problem. Many supposedly canceled policies came back because I cared enough to call them, find out what had happened or just to see if they were still satisfied with the policy.