Life insurance distribution organizations can still use travel incentives to further their business goals.
Once you begin exploring the logistics of structuring an incentive travel program, you’ll want to think about how to use the program to promote more effective agent behavior and, most importantly, better outcomes for your clients.
Consider leading indicators and lagging indicators.
Lagging indicators are measurements of the desired outcome, such as sales data or customer satisfaction.
Leading indicators are process-based measures that influence those outcomes, such as product knowledge, response time, and client follow-up.
Life insurance distribution companies can run into trouble when they incentivize lagging indicators without considering the bigger picture. Your goal might be to increase sales, but rewarding life insurance agents strictly on sales metrics may result in them cutting corners, chasing new leads at the expense of current clients, or demonstrating behaviors that are a little too “salesy.” In an industry where customers rely on agents to act as trusted advisors, this can be damaging for your brand.
Incentivizing other lagging indicators, such as client satisfaction, doesn’t take into account the knowledge or structure your agents might need to achieve this outcome. Your agents probably want to provide the best for your clients, but it’s up to you to provide the structure your agents need to figure out how they can break that goal down into measurable steps. Failure to do so can lead to frustration, resentment, and might jeopardize your relationship with your agents.
Incentive travel provides motivation for agents. But it’s necessary to have structure in place to harness that motivation into behaviors that are constructive for your organization long-term, while giving your agents the tools and direction they need to achieve the goals you lay out for them.
Here are five ways to do that.
1. Choose the Right KPIs
Start by focusing on measuring and improving important leading indicators that will lead both to more sales and to higher customer satisfaction.
Three of the best leading indicators are product knowledge, response time, and follow-up.
2. Increase Product Knowledge
By improving product knowledge, your agents will be better equipped to knowledgeably pitch prospective clients the benefits of your policies and will be able to spot additional opportunities to sell add-on policies that fit their needs. Chances are that someone in the market for life insurance might also be interested in other policies your organization provides, such as short-term disability or dental insurance. They just have to be educated on your offerings.
Not only do insurance agents require extensive knowledge of your company’s policy offerings, they must have the ability to translate that knowledge into laymen’s terms. But given that insurance policies are not exactly light summer reading material, rewarding incentive travel points to your agents based on their performance on educational modules, quizzes, and trivia, can make this process more engaging.