How to Make $1,200 a Minute

For the past year or more we have been speaking to you about the power of Analytics and KPI’s in your large account production.  Our brokerage and agency clients are developing a very specific plan, discussion and process for the implementation of important business metrics inside their large account practice.  They are able to provide buyers a basis of “decision support” that is differentiating them well beyond simply risk financing placements.

Here is a true recent experience from one of our Analytic Broker™ clients.  He is a successful producer in a major Southeastern-based insurance brokerage.  In short, he produced a $110,000 revenue account after a 90 minute meetingwith the President of the prospect organization.

Our intrepid Analytic Broker™ met with the President of a rapidly growing Southeastern manufacturing organization.  This buyer had been recently hired by the owners of the firm to help them expand their business in a professional manner.

In the initial part of the conversation, our hero asked the question:  “Are there any specific analytics and KPI’s that you use to manage your business?”

This triggered the buyer to explain some of the KPI’s that were most important to him.  The successful broker tells it this way.  “As soon as I asked the question, I could tell he was a KPI guy.  He proceeded to explain some of the most important metrics and analytics he uses in measuring their business performance.”

What happened next will endure in the Analytic Brokers Hall of Fame for eternity.

“The President and I spent the remainder of the meeting drawing out Analytic Measurements on how we can help him improve his business organization.  We passed a magic marker between us with a whiteboard as we drew them up.  I brought out my notebook of our existing KPI measurements and we tailored them to fit his management requirements.”

Not once in 90 minutes was the subject of insurance placements, carriers or coverage discussed. The entire meeting became about how the resources and capabilities of the brokerage firm could be used to improve the prospect’s financial results . . . and how they would be created, measured and quantified.

Five days later, after never even speaking about the insurance placement, the President called the broker and awarded him a mid-term Broker of Record Letter.  When asked about the main reason for the decision, the buyer told the broker...  “The previous brokerage firm did not understand how we work, and I don’t have the time to teach them.”

Of course the broker has since spent a considerable amount of time understanding the coverages, making recommendations and improving the placements.  But, and this is the point... The Analytic Broker is already being paid to do this work!

One other thing to note.  In the coming years of their business relationship, this Analytic Brokerage™ firm and the client have a common language to judge the effectiveness of their relationship.  It is now about the results that the firm can bring them.  This will never change and any broker who attempts to pierce that relationship will likely fall short as the Analytic Broker is already deeply embedded inside the buyer’s business organization.

So here are a few thoughts for those of you who want to supercharge your large account production.  I sincerely hope that you will take this advice to heart.  Those of you who ignore it will find yourselves relegated to obsolescence in consistent large account production (This is a 100% guarantee!)

  1. Understand your own analytic results for your client base.  When you are asked the question, “Why should we appoint you as our Broker?”, you will need to provide specific results and outcomes in terms of the financial impact that your clients have experienced. Across your entire large account book of business, not just a few isolated examples.

  2. Understand how your analytic results attach themselves to your client and prospect’s KPI’s.  This requires that you have the data and results of your clients and prospects, and then project how they would improve the buyer’s business outcome.  This is the main part of the sale, not the discussion of the process.

  3. You must quickly accept the fact that building and understanding Analytics, KPI’s, Metrics and Financial outcomes are the most important thing you must do in 2015.  Your best clients and prospects are ALL rapidly adopting them and you will not survive in the large account production business without being really good in that area.

Now, as a long-time reader of the C.R. Ekern & Company publications, you may have noticed several new trademarked terms, Analytic Broker™ and Analytic Brokerage™ .  We are retiring the Consultative Broker™ and Consultative Brokerage™ monikers in lieu of these more appropriate terms for the age of “Big Data” and certified client results.  Through the implementation of the Major Account Development System® and TCORCalc® our firm has the ability to support brokers who are interested and willing to implement this most important business result.

To see how TCORCalc will provide you with the Metrics, Analytics and Quantifiable Data you need to succeed in the age of Big Data, check out our recently-unveiled website.

All the best to Analytic Brokers,

Rob Ekern
C.R. Ekern & Company