Establishing an annual review process in your business can help you stay close to your customers, provide you with new referrals on an ongoing basis and, when new sales are determined to be appropriate, may increase your sales production.
Perhaps the easiest way to get started is to ask your primary company, or one of your brokerage agencies, whether they produce brochures that guide clients through an annual review process. If they do, ask for copies of both their best individual and business customer materials. As you review these brochures, you should be able to quickly determine the type of clients (e.g. individuals and/or businesses) sales and/or services that your firm wants, and the type of sales you will want to refer to others.
If you have individual clients, you may wish to use annual review materials that focus on clients’ savings and protection needs. The most common savings needs for individuals include funding financial emergencies, a child’s college education and retirement.
Many clients have other savings goals to consider. For example, some clients want to save for a second home or a major purchase. Or they may have other plans for their money, such as a charitable gift or bequest.
A well-designed annual review brochure should encourage individuals to consider their protection needs. These may include different forms of property-casualty coverage such as personal property; automobile and homeowners coverage; umbrella coverage; and other forms of personal coverage.
Clients also need to weigh their personal insurance needs, such as medical and dental insurance, long term care insurance, disability income insurance and life insurance. Life insurance needs can change significantly during one’s lifetime and should be reviewed periodically. The amount, type, and length of this coverage will often depend upon a person’s family needs and priorities, financial situation, and health considerations. Because of the personal nature of these variables, this coverage deserves your attention.
If you are active in the business market, you may also wish to use the annual review process with these clients. Recognizing that there are many ways that one might design an annual business review, you may wish to consider focusing your client’s attention on 3 important areas of concern:
(1) Compensation and benefit plans.
(2) Succession planning and business insurance.
(3) Personal needs.