My first memory of my Dad’s agency

Self-service enrollment might be more efficient, but the 1970’s had a personal touch

Things you don’t get with self-service

• Stopping at all of the good sandwich shops around town

• Chance run-ins with business owners to uncover opportunities

• Connecting with the future business leaders in the company

Customer Support for Employees: Let’s use the technology to get in front of more people

Strategy: Hire a staff to monetize your customer base• Staff & promote customer support call center

• 15% of employees will call

• Set-up a support line

• Create outbound call center to sell other products

• Life events

• Major salary increases

• New employees who key to the business

What do employees want?• 1/3 of employees want to meet with a counselor they can trust• 1/3 of employees want to talk to someone• 1/3 of employees are on auto-pilot…Self service is just fine

Customer Support for employees: Let’s use the technology to get in front of more people

Thoughts:

• How can someone change brokers when you have a relationship with lots of employees?

• Cross-selling products is exactly what a VC would do

Find Out What’s Important to Drive Your Market

I started selling group insurance in the fall of 1991

What was driving my marketing?

• Conversion from indemnity to manage care (technology)

• Cafeteria plans

What is driving the market now?

• Easy HR

• Entering data into multiple system

• Compliance

Customer Support for Companies: Become an invaluable member of the team

Strategy: Make your software where all new hires go

• Do an in-depth software demo after renewal

• Better manage onboarding

• Work with HR to understand “their” compliance needs

Make life easier for HR: Software can help

• New employee registration: i9, W4, state

withholding, direct deposit

• Compliance support

• HR document library

• Automate time-off requests

Differentiate Agency by providing 1st class HR support

Find out the needs in the industry

• I received 50% of by BOR’s by doing 5500 Schedule F for customers, &

I charged for the work

Strategy: Promote HR support services

• Don’t buy the service, provide the service

• Sell compliance & “Piece of mind”

• Develop a internal checklist for compliance to allow less experienced

staff to audit HR services

• Audit their handbook for missing state policies

• Have a set of HR handbook language which you share

• Master the HR legal requirements in your state

• Educate HR on all benefit disclosure requirements & load them in EN

Creating a Sales & Marketing Engine

Sales: Executing the fundamentals is key because the statistics haven’t changed

Prospecting

• 50-60 calls per day

• Reach 20% (10)

• 10% will schedule meeting: (1 per day, 5 per week, 20 per month)

Sales

• 30% will let you quote (6 per month)

• 1 will buy= $6,000 in annual commission

Lead generation creates a career path for younger employees

• Identify my target market• Purchase leads from Infousa for 20-100 market segment (Indiana has 19,000)

• Load contacts into SalesForce & capture renewal, carrier & payroll provider

• It would take 3 years, 2 employees & $300,000 (12 reaches per day)

• Hire recent college grads to make 60 calls a day• Schedule software demo

• Schedule in-person meeting

• Use the demo as a lead-in for an in-person meeting

• Would hire a minimum of 2 employees

The software business is just like to insurance business, but they have modernized the sales process

• Compensation• Base salary of $40,000

• Pay $25 per demo & $50 per in-person meeting

• Have a goal that to transition to FT sales after• Have an inventory of 1,500 renewals

• Have attended 200 meetings

• Try different sales ideas• Host an event for 50 people or do weekly webinars

• Do educational webinars for carriers and get into the details

Marketing Themes

Themes for lead generation

Assemble a list of services the average broker can’t easily duplicate

• Put HR’s mind at ease

• Fortune 500 benefits & services for small companies

• Employee call center for questions

• Electronic W4, I9 & State withholding

• Compliance support to set-up onboarding tasks

• Payroll deduction reporting

• Integrated payroll to reduce dual entry

• Counseling for employees:• Nutrition• Life insurance counseling• Understanding car & homeowners insurance

The Paperless Benefit Offering: In the 1970’s, brokers sold everything to their customers

Company Paid Contributory Voluntary

Health ✓ ✓

Telemedicine ✓ ✓ ✓

Critical Illness ✓ ✓

Accident ✓ ✓

Supplemental Med. ✓ ✓

Dental ✓ ✓ ✓

Vision ✓ ✓ ✓

HSA ✓ ✓

Health FSA ✓

Daycare FSA ✓

Short Term Disability ✓ ✓

Long Term Disability ✓ ✓

Life ✓ ✓

ID Theft ✓ ✓

Here’s the HR Services, I’d be selling

Services Fee

Employee Benefit options 17 Types of Benefits

Employee benefit call center Included

Obamacare support 1095 filing fees: $4.00 per form

HR Document library Included

Employee Handbook Included

Electronic new hire registration Included

Onboarding compliance Included

Paid Time off tracking Included

HR Advisory services Included

HR Activity Alerts Included

Integrated payroll Optional

Integrated FSA $1.00 PEPM

Integrated COBRA $0.75 PEPM

Operational Discussion

• Spend $1,000 on a really nice brochure (printing not included)• Use a crowd source provider

• Would not put existing benefits, except for health online• Set-up takes too long• Enrollment feeds cannot be automated• Should be easier if you are selling benefit are a commodity

• Class simplification:• Employee Navigator can accommodate• Untidy way to administer benefits

• All renewals need to be in sync

• Administer grandfathered plans & employees outside the system

• 1st of the month eligibility

• Bundled plans…sounds cool, but administration is not

• Worksite: High/Low/No with guarantee issue

• Simplify benefit end dates & definition of compensation

• Don’t do everything for HR, teach them

The long term revenue opportunity

Round out the benefits with Employee Navigator

• Sell all of the benefits to every customer

Rep selling $6,000/month in new business over 3 years

• $216,000 in recurring premium

Value to business owner @ 3x revenue= $645,000

Managing Existing

Customers

Converting existing customers is a longer term project

Categorize your groups (the age of the benefits contact is important)

• Would be interesting in modernizing & simplifying• Younger HR staff• Higher turnover• Highly skilled employees

• Indifferent

• Not interested• Small group• Agency does all of the work

for the HR• Low turnover

What would George do?

• Webinars for my customers• Conduct semi-annual webinar

• Let them know you have technology

• Promote the simplification

• Do a technology demo for all of my customers at renewal

• Identify the largest 30% of my customers• Categorize their current technology partners• Meet one-on-one and do a software demo• Identify customers who compete for employees who need to

expand benefits

Various operational

• Improve efficiency• Don’t covert existing benefits, it takes too long

• Put all of the benefits on the same renewal, no exceptions

• Consider purchasing cyber liability coverage

• Negotiate with carriers• Spread business out among multiple providers

• Negotiate benefits & rates with key providers:

• Cafeteria plans, COBRA, Worksite GI issue limits

• Web site• Brand your service

• Put marketing videos on your web site

Let’s take a look at how Employee navigator can be

leveraged

Questions?

Questions