What Do You Do When a Producer Doesn’t Have Time to Produce?
When producers reach a critical point, you notice that their New Business production diminishes each year. They are still active, but they spend their time managing their client relationships to keep the clients happy and renewing. Something is happening that needs to be addressed if you agree that a producer’s job in your agency is to build an ever-growing book of clients for the agency. But there are two types of Producer personalities and each must be treated differently if you want to continue to grow your business.
Author: Al Diamond You are not alone!This happens a lot! You hire aproducer whether a fresh and new producer or an experienced producer. Theyspend several years diligently creating new clients for the agency. You use ourProducerAcquisition and Management Program to acquire them and our ProducerValidation Program to assure yourself that they are as active as needed toboth support themselves and the agency as they grow your book of business. Then, when theyreach a hundred or a few hundred clients, you notice that their New Businessproduction diminishes each year. They are still active, but they spend theirtime managing their client relationships to keep the clients happy andrenewing. Something is happening that needs to be addressed if you agree that aproducer’s job in your agency is to build an ever-growing book of clients forthe agency. But there are two types of Producer personalities and each must betreated differently if you want to continue to grow your business. The producers witha true Salesman’s personality are complaining that they don’t have time to getout and sell anymore – their time is occupied by the existing clients inservice, relationship management and renewals. The second type of producers isa Service Agent. This persona is comfortable when he has reached hiscompensation level. Once his goal is reached, the agency’s production will slowdown or new business will plateau. Hence, that producer is now satisfied tobecome Service Agents, tending a book of business. They simply haven’t told theowner that they are no longer Producers. It’s important toidentify which category of producer you are facing when the time comes thattheir NB production has diminished. Both types can be motivated to regain theirposture as New Business producers, but the motivating factors are a littledifferent for each type. If you have a trueSalesman Personality in your producer, the correct action is to take theirlowest 5% of clients (by revenue size) and re-assigning them to an AccountManager or to an Account Executive. Your goal, of course, is to retain as closeto 100% of your clients every year AND, simultaneously, have your productionteam both replace lost clients and grow new clients every year. The advent ofAccount Managers for smaller accounts in partnership with the producers andAccount Executives who assume an entire book of business with the goal ofmaximizing retention will take much of the producers’ workloads away, allowingthem time to prospect and penetrate new customer relationships. Once trueproducers realize the luxury of more time, they will penetrate more (andusually larger) accounts, paying themselves and the agency better for theirefforts. Producers who haveconverted to Service Agents are motivated differently than True Producerpersonalities. While the True Producer personality is always looking for moremoney and will do anything you permit to grow that compensation, Service Agentsare seeking to solidify their on-going compensation according to the revenuelevels that have permitted them to achieve their current comfort level. The motivation fora Producer turned Service Agent is to continue to pay their residualcommissions only if the book of business grows (as defined by either revenuegrowth or customer count growth) each year. Knowing that their income leveldepends on growth, they will regain their motivation to sell.Thereis much more involved in either the Producer Incentive Program or the ServiceAgent Incentive Program that is specifically tailored to the producer andcurrent condition of the agency in question. We invite your call to familiarizeus with your producers and allow us to create specific incentive programs tokeep them involved in customer growth within your agency as long as they workfor you. Reprinted from The PIPELINE, the national newsletter foragency principals. The PIPELINE is published by Agency Consulting Group,Inc., a leading consulting firm for independent agents in the U.S. for over 30years. Call 800-779-2430, E-mail info@agencyconsulting.com, or visit www.agencyconsulting.comfor information about the content of this article or PIPELINE subscriptioninformation. ?Last Updated: April 5, 2016? |
