Spring 2009/ No. 79
Economic Lessons
Historically, some companies have taken advantage of economic weakness and emerged as much stronger players once the economy recovered. Others have retrenched and emerged smaller and battered. While all of the lessons from these “opportunistic leaders” may not be applicable (“double down on your R&D”), three may be perfectly appropriate. And we add one more specifically for voluntary business.
Expand marketing and advertising.
Opportunistic leaders speak of weak economies as the ideal time to build market share. Competitors may be retrenching and their marketing budgets may be under pressure. This may be the time when gaining market share is least expensive.
Invest in your sales team.
In order to capitalize on the first lesson, opportunistic leaders say that it’s important not to cut back on sales efforts. While adding staff may or may not be feasible, investing in new skills, processes, and technology may give your team an edge.
Expand service and customer retention efforts.
All of the opportunistic leaders agree that customer retention is a key to profitable growth in weak economic times. Better people, methods, contact points, and conservation all are seen as keys to weathering the storm.
Manage the voluntary risks.
Utilization of certain product benefits may be accelerating, and disability claims may or may not increase. Regardless, you need to be increasing your vigilance on the risk side. Participation rates, rate changes, and guaranteed issue management are key. Little deviations from plan can make a major difference. These issues all start with the same basic voluntary underwriting discipline: underwriting the broker. Know your broker, the quality of the broker’s business, and the broker’s business practices—now more than ever.
For more information on how your company can expand and thrive despite the current economy, contact Eastbridge at info@eastbridge.com.
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