How to Be More Than Just Another Broker by Michael R. Ocilka

Standing out in a Cluttered Marketplace:
How to Be More Than
Just Another Broker
by Michael R. Ocilka
Director of Marketing
PT Marketing Group
Pittsburgh, PA
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Employee benefits decision makers are bombarded by brokers and
consultants who all claim the same thing—that they can offer better
products, provide more service and help control costs better than anyone else. Indeed, improvements in these areas are needed in many
company-sponsored benefit plans.
Years of consecutive double-digit rate increases have employers and
employees frustrated and looking for solutions. But, according to industry studies, there is little relief in sight. In the meantime, employers need to maximize their returns on every health plan dollar spent,
both in terms of the effectiveness of their benefit plans and in the
service provided by their broker or consultants.
Shopping Brokers, Not Carriers
The practice of shopping for brokers rather than for
carriers or health plans is a novel concept for some
prospects. But the extent and impact of marketplace
changes has obliged many buyers to challenge the
status quo, resulting in an increased level of competition among brokers and consultants. This
level is even more heightened by the realization
that many employers are not receiving the
service that they expect.
HIU N O V E M B E R 2 0 0 4 • 13
At best, there are probably three or four major carriers
in most markets throughout the country from which a
client can choose. Therefore, brokers who can offer a menu
of comprehensive and valued services, proactive solutions
and timely responses to any issue best demonstrate their
specific worth to clients. Three brokers with successful
businesses and years of experience share the following bits
of advice about how to stay close to your clients.
“We probably have a 94% or better retention rate yearto-year,” says Richard Ramsburg, MBA, CSA, a senior account executive for EBD Financial in Herndon, VA. “It’s
an ongoing challenge to keep everyone happy. But, as
basic as it sounds, what you have to do is to stay in tune
with your clients’ current and emerging business needs, as
well as their overall strategic plans. If we do lose a client, it
generally is a surprise to us, usually due to a merger or acquisition, clients going out of business, or some radical
change in the business model or benefits program. If approached by other brokers, our clients tend to alert us.
That’s exactly what happened in two recent instances and,
in both cases, we were able to demonstrate and reaffirm
our value and retain those clients.”
Ramsburg emphasizes that it’s the “blocking and tackling” areas that are most important in keeping a client satisfied. Whether it’s proactive
meetings throughout the year,
The big deal is doing a discovery process of what your client really wants, what’s
a monthly wellness newsletter,
benefit surveys, carrier upworking and what’s not, and coming up with solutions. Everyone thinks that they’re
dates, or designing and assistdoing that … but some do it better than others and that’s what makes the difference. ing in worthwhile and
ongoing employee communications, all of this and more
Let’s face it, no advice will be taken seriously and acted
can ensure that clients are receiving the attention they
upon unless the employer feels that his unique situation is
need and deserve.
truly understood. This is possible only when you truly are
At least once a year, EBD Financial invites clients to an
close to the client.
offsite seminar to learn what’s new, with presentations focusing on two or three timely topics, followed by a casual
‘Just Understanding’ Isn’t Enough
wine-and-cheese get-together. At a recent gathering, EBD’s
Employers expect you to know and understand their
clients heard presentations about absence management
business, its culture, the workforce and the significant role
and its impact on various facets of the company, received a
that the health plan plays in an employee’s life. Only by
HIPAA and COBRA compliance update, and heard an
being close to the employer and the employees—by underoverview on HSAs. Those who attended found the session
standing what aspects of the plan are important and why
worthwhile and informative. Clients who couldn’t be there
—can you determine what changes to consider and apprewere sent a complete summary of the proceedings.
ciate the true impact that any changes may have. When
changes are made, they require careful and proper rationWhat’s the Big Deal?
ale, positioning, communicating and an ongoing analysis
Getting the right people on the account right from the
of the impact. The depth of this type of understanding
beginning is how Randy Achenbach of Murray Insurance
and action goes far beyond simply gathering a census, reAssociates in Lancaster, PA, stays close to his clients. “The
viewing claims histories or the obligatory shopping for
first decision you have to make, and probably the most
rates at renewal.
important, is who within your firm will be the best indiThat understanding must be combined with the realvidual to sell, service, and retain specific accounts,” he
ization that there are three to four distinct groups within
says. “The broker for a larger benefit client requires a difa company—owners, finance, HR and employees—each
ferent skill set than someone who may be working with a
with their own individual yet interdependent wants and
case of 25 lives. You would think this is a fundamental
needs. Make the lives of the people in each of these groups
strategy but I don’t believe that it automatically happens in
easier and you differentiate yourself from everyone else
many of the regional or local brokerage agencies. Agencies
vying for the business.
that do not understand this will have difficulty retaining
A survey conducted last year by Ross McManus, an
Albany-based business analysis firm, determined that a
sizeable number of company executives do not hold their
consultants in high regard. More than 1,200 senior executives, representing more than 20% of the Fortune 1000
firms, indicated that consultants and professional service
providers rated only a C+ grade for overall satisfaction. It’s
probably safe to say that if some of the largest firms in the
country are dissatisfied, the same sentiment holds true
when it comes to brokers and consultants serving small
and midsize markets.
What do employers really want from a benefits consultant, beyond innovative ways to control spiraling
health costs that transcend the immediate quick fixes of
cost sharing and shifting? In the Ross McManus survey,
96% of the senior executives said that the ability of professional service providers and consultants to understand
their business was their most important satisfaction characteristic, while not understanding their business was the
number-one reason for terminating them. A 2003 phone
survey conducted by the strategic consulting firm
ChapterHouse likewise found that a majority (88%) of
employers indicated that brokers had “significant influence” over their benefit decision.
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Cutting through the Clutter
In more than 12 years of cutting through the clutter, reaching
prospects and scheduling confirmed appointments, we have assisted hundreds of clients with prospecting. When we make the call, here are some
of the points we emphasize:
This is a win-win situation. Position an initial 30-minute meeting
as strictly introductory, an opportunity to hear some innovative approaches and improve the current plan. Objections such as lack of time
to meet, the strength of the relationship with the current broker and
complacency may be overcome by positioning the meeting as a win-win
situation for both parties. At the very least, they may hear that their current plan is being correctly handled, or they may find out that there really is room for improvement.
Not all brokers are alike. Not all brokers offer the same quality and
level of service, marketplace expertise and product knowledge.Today, every
company needs to know about all available options.The meeting presents
an opportunity to discuss the company’s health care environment, touch
upon strategic plans for the future and other situations that the current
broker should be looking into. Granted, there are some client/broker relationships that are extremely strong and cannot be shaken.You can only
hope that your clients echo those sentiments when they are prospected
by others.
Just renewed? No problem. A better time to meet can actually be
outside of the traditional review period. This is when one can take the
time to explore what the marketplace has to offer and determine what
options best address specific needs. There is no pressure to make decisions within a specific time frame and a thorough review and comparison
can be done in a stress-free environment. This also fosters a better blueprint for long-range planning, rather than the implementation of quick
fixes, which may turn out to be short-sighted. The full impact of strategies under consideration can be thoroughly evaluated and, if decided
upon, a well-thought-out communication and education process can be
developed. Besides, this is an initial meeting, an opportunity to find some
common ground for proceeding in the direction of improving the plan.
FYI, here’s something you might find of interest. It’s unrealistic
to think that every objection to a meeting can be overcome during an
initial contact. Therefore, it pays to stay in touch with a good prospect
by periodically sending them worthwhile information—summarized
news about industry happenings, new approaches to various plans, etc.
By all means, know their renewal date and review period. Regardless of
the sound rationale offered above, some decision-makers only want to
deal with benefit issues when they absolutely have to. Be there when
they reach that point.
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larger accounts simply because they may not have the right
team assigned to that client.
The differences in the skill sets is more than just understanding all of the available carrier options or appreciating
the extent and detail of the decision-making process and
the buy-in levels of everyone involved, he adds. Some people may think that, with only three carriers in the market,
what’s the big deal?
“The big deal,” he says, “is doing a discovery process of
what your client really wants, what’s working and what’s
not, and coming up with solutions that meet their needs
and goals. Everyone thinks that they’re doing that, and
many of them probably are. But some do it better than
others and that’s what makes the difference.”
After all, the same persistent, consistent and creative
efforts that are made in acquiring a client are certainly
needed to retain that client. What good is it if, while
you’re bringing new clients in the front door, you’re losing existing ones out the back? So a good client retention
strategy should be to always proceed as if both the ongoing benefit plan and the broker/client relationship are
constantly under review. In the reality of today’s marketplace, they are.
“Because of the nature of the marketplace, carrier turmoil
and consistent and significant rate increases, brokers are
having a more difficult time staying close to all of their
clients,” notes Achenbach. “There is a considerable amount
of pressure created by needing to get quotes for every account each year, and unfortunately some things fall through
the cracks. But what’s most important is not just responding
to your client’s situation, but rather anticipating what’s
going to happen at the next renewal. Each account is requiring a lot more service than it did five years ago.”
Not surprisingly, it’s the smaller companies that sometimes fall through those cracks. Achenbach has met with
more than a few who had that deer-in-the-headlights look
when he asked them how they complied with the new
HIPAA requirements or if they’ve explored HSAs or other
consumer-driven concepts. “It was apparent that their broker had not discussed anything about this with them,”
says Achenbach. He adds, “These people are literally crying
for information about what’s going on in the health care
marketplace and how it relates to them. They are under severe financial pressure to handle rate increases and they
want to know what their options are.”
‘I Let Them Use My Credit Card’
Olde Florida Benefits Group has been servicing clients
in the Fort Myers area for more than 34 years and Vice
President Matt Dinkel likes to think they go above and beyond as a matter of business practice.
“You won’t get voicemail when you call our office; we
answer our phones,” he says. “And I give my cell phone
number out and tell my clients to use it; I’m available for
them when they need help or have a question. If someone’s at the doctor’s office or in the ER at 2 a.m. and doesn’t have their card, they can call me and I’ll help them. It
usually only takes a few minutes because I know what
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needs to be done; I do it every day. We take a hands-on,
frontline approach to any problems when they arise.”
Dinkel has actually gone so far as to give a provider his
own credit card number for an employee’s payment. “I
knew the coverage was there,” he says, “and I knew I would
be reimbursed.”
Staying close also means that every client receives a
courtesy phone call bi-monthly to ensure that there are no
unresolved issues or problems. Larger clients are seen in person. In addition, 60 days prior to renewal, Dinkel receives a
census in order to market the group and have all viable options identified before the incumbent’s rates even arrive.
Then he can come in as soon as the client receives the renewal and, if there are changes to be made, there’s ample time.
By providing extensive, no-charge support for COBRA,
Section 125, enrollment, claims, any ongoing administrative issues, and even individual employee billing reconciliation, Dinkel wants his clients to think of Olde Florida as
an employee who they’ve hired for HR. After the renewal
process, all the company has to really do is write the
monthly checks; everything else is handled seamlessly or
with a phone call to Dinkel or his staff. He estimates that
assuming this role can save his clients five to six hours a
week or more, allowing them to concentrate on their core
responsibilities.
Think only a large agency can do all that Olde Florida
does for its clients? Olde Florida services more than 100
clients, ranging in size from 2 to 1500 employees…and
they do it with four people.
“We bring Fortune 500 service to smaller companies,”
Dinkel says. “And, every once in awhile, we take time to remind them of that. What I discovered was that many employers didn’t even realize that employees were calling us
directly or that so many of their HR functions were being
outsourced; they just saw a smooth-working program.
That’s good, but you also should make sure the client understands all of the value you provide.”
At a time when many companies rank customer loyalty
close to the bottom of the reasons-for-doing-businesswith-’em scale, these brokers say that most of their clients
let them know when they are approached by or meet with
other brokers. The reason: Even in the best relationships,
some clients just want to get a different perspective or see
if they are missing out on any information.
Many of them will talk to anybody, but they won’t
move for just anybody. Use some of the aforementioned
tips to stay close to your clients and you may minimize the
risk that they’ll switch. After all, it’s the capacity to provide what others don’t or won’t that is your key differentiator, the fundamental means to acquire and retain
clients, and what is valued above all else. ■
Mike Ocilka is the director of marketing of PT Marketing
Group, a telephone marketing and direct-marketing agency that
specializes in sales support for the insurance and financial services
industry. He can be reached at 800-999-8995, ext. 287, or mocilka
@ptmarketing.com.