'Tis the Season: To Increase Revenue!

The season is now upon us. Once again, this time of the year brings producers and their respective firms to the most important time of the year. What time is it? Well, of course, it is Stewardship Report Season once again! Take a look at your January 1 renewals. Are there any important revenue accounts that renew around that time? Of course there are. Many of you have the majority of your large account income stream that renews at that time. In fact, much of your Fall is taken up by doing all the work that this important date represents.

The season is now upon us.  Once again, this time of the year brings producers and their respective firms to the most important time of the year.  What time is it?  Well, of course, it is Stewardship Report Season once again!

Take a look at your January 1 renewals.  Are there any important revenue accounts that renew around that time?  Of course there are.  Many of you have the majority of your large account income stream that renews at that time.  In fact, much of your Fall is taken up by doing all the work that this important date represents.

Now, imagine what your life would be like if all your key accounts were “put to bed” in early December with renewal negotiations complete.  The only thing you really had to do on these accounts was to wish them all a Happy Holidays.

Here is the point.  What you accomplish now, in Stewardship Season, will have a direct bearing on your income in 2014.  You really need to do Stewardship Reports in July and August on these key income clients.  If you don’t, you are running the risk of someone else doing it for you in November and December when you are under competition!

Now I know that we have been telling you this for years.  Thankfully, many of you are now acknowledging Stewardship Report Season as an important part of your business calendar.  Remember, Stewardship presentations should be prepared and delivered 6 months in advance of renewal, not during the renewal process.  (It might be too late then!)

There are dozens of versions of Stewardship Reports.  Many of them are nothing more than a review of policies, claims and underwriting data.  Some of them are a list of services.  But, here is what very few do:  demonstrate how your firm actually reduced a client’s costs and improves their business organization in a quantifiable manner.

That is the key point of a Stewardship Report.  In fact, we call ours a ValueReport™.  The main difference is a ValueReport™ actually shows a buyer how your organization has helped them create a meaningful difference on their financial statement.  It demonstrates (in financial terms) how your representation and resources have provided an outcome.

Here is one more thing to consider:  Doing a ValueReport™ will impact your income/productivity by 7% next year.  That is the difference between the attrition in your book along with the cost to you and your family of being under competition on key renewals.   More on this later, but for now, just accept it.

So, if you are going to do a Stewardship Report, make it the best.  Right now the standard of excellence is represented in a ValueReport™.   Here is what they entail:

  • A meaningful cost comparison over time.  The creation of benchmarks and comparison periods that show the buyer your actual Value Proposition.

  • The value of your projects, not the features.  Demonstrating the actual value of your projects and services by quantifying them and translating them to the buyer’s financial outcomes.

  • The impact that your organization has achieved on your client’s Key Performance Indicators (KPI’s).  This is how you actually embed your outcome into a client’s business organization and demonstrate your value.

In closing, please remember this:  What you accomplish now in the heat of the summer ValueReport™ Season, will have a big impact on how “chilly” your yearend renewal season is!

By the way, if you would like to learn more about our ValueReports™, you should visit us at:

 [The Major Account Development System™]

All the best to Consultative Brokers™,

Rob Ekern
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