6 Feb 2001 ... Insurance Times: NEF Finds Advanced Marketing Agencies Outperform Others.
February 6, 2001, Vol. XX No. 3. Company strategy involving ...
Insurance Times: NEF Finds Advanced Marketing Agencies Outperform Others February 6, 2001, Vol. XX No. 3 Company strategy involving mentoring and target marketing improves productivity and retention BOSTON- General agencies at New England Financial that have followed the company's new way of marketing their local businesses are growing at nearly three times the rate of the company's other agencies. The success is so significant that New England Financial is in the process of transforming the remainder of its agencies to this marketing firm focus, according to Thom Faria, president of NEF Distributors. The Advanced Marketing Firm approach is a key component of NEF's distribution company strategy. "It is an intense process that takes long-term commitment and perseverance from everyone-the field management, the producers, the home office support team and executive management," explains Faria. "Essential to its success are two ingredients: leadership and execution. This strategy combines many proven elements of the past with new innovative approaches of the future, but these two ingredients must be present for it to work over the long-term." Culture Change "In many w ways, the Advanced Marketing Firm is a culture change. But with so many success stories of how change makes both the local firm and the producers more productive and more successful, it is truly transforming our distribution system," Faria continued. The company's agencies that have graduated from the program show better results in key measures when compared t agencies that have not yet integrated all the advanced marketing techniques into their firms, according tot he company's studies. These results include: • Growth: Advanced marketing firms' growth rates exceeded 20 percent compared to 7 percent growth rates of other agencies from 1998 to 1999, and continued to g row at an accelerated rate in 2000. • Recruiting: These firms have consistently reached more than 100 percent of their recruiting goal. With this momentum, NEF grew its field force for the fourth consecutive year in 2000 and its recruiting of experienced producers grew 21 percent in 1999 to 38 percent by the end of 2000. In addition, the company has been able to grow its sales power a average of 8.4 percent a year over the last three years, in an industry where sales power growth is down three percent, according to Limra International. • Retention: NEF has achieved one of the strongest retention rates in the industry over the last four years as well. The company's current actual fouryear retention rate is nearly 27 percent. The industry's rate is 16 percent. The marketing firms' results are higher than the other agencies in the NEF system. Faria contends NEF is poised for continued growth. He credits the participation of the field managers and top producers who helped NEF design and roll out the program for its successes. "As wit any major strategic endeavor of this company, our field managers and producers are partners in developing and implementing programs. They are our customers and play the most important art in increasing profitability, productivity and growth for the company," Faria added.
Advanced Marketing Program Through the Advanced Marketing Firm program, the agency management team learns to analyze and segment its current client base as well as new, growing markets to determine their positioning in the marketplace. From that research, they develop a strategic marketing plan to expand their client base and focus on select industry markets that will bring the most potential business to the firm. A team of producers becomes intimately involved in understanding the unique needs and concerns of the industry market. Field management, along with the home office staff, conducts a number of marketing campaigns throughout the year to support the producers' sales efforts. A key member of this team is the marketing director, who assists in implementing these marketing and client cultivation plans, and developing alliances with other professionals who target that market, including CPAs attorneys, bankers, technology experts and human resource professionals. A team of product and advanced sales specialists are also available in the local firm to producers to support the sales, competitive analysis, and case design efforts of the marketing team. The program features a mentoring theme that pairs newer producers with experienced ones. "The benefits of these relationships are incredible and vastly improves upon the traditional joint work model," Faria maintains. The protégé, as the new recruit is called, works closely with the mentor and his or her senior team members to learn the ropes, helping to manage and expand the block of business. This system frees time for the mentor and the protégé to be in front of top priority clients and prospective customers to bring in new business. In addition, a managing associate, often called a sales manager in other companies, works with the producers to help them say on track to meet their goals. The managing associate also focuses on recruiting, selecting and training, and resolves any conflicts that might arise between mentors and their proteges. "What you get is a new recruit who becomes very productive in a much shorter period of time and an experienced producer who can propel his or her business to the next level of success because of the support of the protégé," Faria says. "This can translate into higher retention rates for new recruits who in the past might have given up on the business. I've also seen it renew the veteran producer's passion and enthusiasm for the business." All of NEF's 80 offices nationwide are involved n various stages of the Advanced Marketing Program. Twenty-one firms have graduated from the program; the goal is to have 50 fully functioning marketing firms by 2002. Mike Thompson, managing partner of Thompson Financial group in Charlotte, N.C., believes his business has thrived because of the new environment. "Our performance in key measures are all excellent. Our production is yup 25 percent. We are meeting our recruiting goals and just as important, our producers are staying with us. I believe the team approach to marketing and the mentoring program have driven this success for our producers and our firm overall," Thompson said. "The support I get from my firm has helped me take my business to new heights," contends T.J. Rogers, a producer with Baystate Financial Services, a marketing firm in Boston. "I am surrounded by experienced estate planning, product and investment specialists and take advantage of the marketing programs offered by the firm. With this approach, I can double my income without doubling my hours."
