Summer 2006 / No. 68
Who gets to pick?
Distribution is key
to success in the voluntary market. In fact, we believe it
is the starting point for success. There are plenty of products,
plenty of prospects, and many needs to be filled. But there
is a limited amount of distribution to marry all of these.
In our consulting practice, we advise clients to start their
strategy development and business planning by targeting one
or a few distributor segments and then focusing their efforts
on these. But can you really just choose which distributors
you want to do business with and then expect them to do business
with your company?
Some carriers seem
to think so. We’ve seen carriers decide that they want
to target a specific segment (usually because the company believes
that the segment is more appealing to them) and then define
what they (the carriers) want to sell and how they want to
deliver it. When all is done, they then present their offering
to the marketplace, expecting results. Sometimes carriers with “big” brands
expect that their brand will attract producers. But while brand
is important, it is not always strong enough to produce good
results.
Reality has shown
that carriers really don’t get to pick producers—the
producers pick the carriers! So while we say “pick a
target,”
that’s not all that it takes. Once the producer segments
are chosen by the carrier, there is still a lot of work to ensure
that your wants (as a carrier) align with those of the producers
or brokers. Only when you align with their needs and give them
a better solution than others are you picked!
For more information
about how to target distribution and succeed in the worksite
market, give us a call. (860) 676-9633. |
