Metrics - The New Normal

The CFO of today uses metrics and analytics for any number of purposes. These new data points help ascertain product launches, business goals, customer acceptance and yes even vendor evaluation. So, if you want to do business with larger organizations one of the keys is to provide your clients and prospects with business metrics that others are not providing.

If you want to have an enlightening conversation with a CFO prospect or client, ask this question:

"What are some of the metrics you use to evaluate your business performance?" It will lead you into a discussion that will rock your world. The information that CFO's need and use has changed at light speed over the course of the past several years. They have moved into metrics and analytics that help them improve their business on a quantifiable basis.

The CFO of today uses metrics and analytics for any number of purposes. These new data points help ascertain product launches, business goals, customer acceptance and yes even vendor evaluation. So, if you want to do business with larger organizations one of the keys is to provide your clients and prospects with business metrics that others are not providing.

The insurance brokerage business has traditionally provided clients with only one key metric . . . How their insurance premiums stacked up historically against exposures. For the most part, everything we have done points to only one thing . . . Price.

Oh, I know. In many cases, we do show clients or prospects how we drive down their claim costs. I suppose some would call those metrics. Not me, I call those project features with no quantifiable outcome; other than a reduction in claim costs or risk financing price.

As a Consultative Broker(TM), you are now able to provide your clients with a number of meaningful metrics that actually proves your Value Proposition and places it on the client or prospects financial statements. This is done by translating your Total Cost of Risk impact into the 6 areas of Business Risk.

Ready, here goes:

1. Hazard Risk - This is the simple comparisons that we have always known. (Hazard Risk Only)

2. Financial Risk - The entire Total Cost of Risk impact as it relates to profits.

3. Operational Risk - The TCOR impact as it relates to the clients competitiveness.

4. Strategic Risk - The ability to translate TCOR into business productivity improvements.

5. Human Capital Costs - Focusing the impact of cost reductions in turnover, training and human productivity.

6. Equity Risk - Demonstrating the impact of TCOR improvements on ownership evaluation.

These are the metrics that Consultative Brokers are becoming astute at providing their prospects and clients. They understand that to be acknowledged as a consultant and paid like one; it is imperative that they provide CFO buyer's metrics that are meaningful. These Consultative Brokerage Metrics become the backbone of their quantifiable value proposition.

So, if you intend to stay in the game of writing and retaining larger accounts; here is a word to the wise. You really need to get on board with discussing business risk metrics with your clients and prospects. They are getting them from other industries and using them to plan and operate their businesses. I can assure you that many of your best opportunities will come from being perceived as a valuable organization that helps create and provide outcomes based upon metrics.

They are now the new normal!

Best Regards to Consultative Brokers,

Rob Ekern

For more information on how to quantify TCOR, manage projects, build a value proposition, and consistently deliver stewardship reports and new business presentations to your customers, check out the Major Account Development System (MADS), an on-line consultative broker's toolkit. Available now!

Ready to learn more about Consultative Brokerage Sales Training? Visit the Consultative Brokerage Academy.

To learn more about C.R. Ekern & Company, please visit our website


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