Earning a living as a group benefits broker demands tremendous attention to detailed customer service. But there is a set of brokers who go above and beyond for their clients, often distinguishing themselves through personalized relationships with their customers. These brokers are so aligned with each customer's individual needs that they become an extension of the human resources department, able to take on any number of tasks the department is unable or unwilling to do.
It's the difference between good customer service and world-class customer service.
Of course, there are plenty of companies that let price dominate their decision making over service, and seek commodity service from their brokers. And some companies prefer a type of customer service that uses technology to push benefits administration onto Web sites and other software. That's a specialty all by itself. But the number of customers who still view strong broker relationships as an avenue to adding value and solving problems is surprising.
In fact, according to a pair of studies conducted by The Guardian Life Insurance Co. of America, poor customer service has as much weight as price - if not more - in a company's decision to switch carriers at renewal time. Depending on the benefits involved, less than half of all decisions to switch carriers are based on price alone, the studies showed. One conclusion from these figures is that many employers are willing to pay a little more, or stick with their benefits package through price increases, when the service justifies it.
The benefits brokerage industry is generally under enormous pressure amid the evolving benefits landscape. There has been a great deal of discussion about the rising cost of benefits and the trend toward shifting more of the cost to the employees themselves. But the cost of administrating benefits is also rising, driven by changes in a number of laws and regulations governing everything from taxes to compliance to privacy.
As companies look to keep their HR costs in check, departments are learning to do more with less. A gap in HR services exists for these companies and they are looking to brokers to provide support and for employees to move toward a more self-service-oriented environment. In particular, many companies are using fewer benefits administrators today than they have in the past, electing instead to spread the responsibility for explaining and managing benefits to brokers and the employees themselves. This trend has made the broker's job more complex, but it also has created greater opportunities for brokers to fulfill a client's needs and position themselves as a trusted advisor.
One area where brokers can fill the gap for their clients is legal and regulatory issues. There is a growing trend toward helping benefits administrators navigate the changing legal and regulatory environment. Particularly among small companies, where the resources are usually stretched, brokers make themselves more important to their customers by offering seminars on HIPAA, FMLA, ERISSA standards and HR compliance. Some brokers are building capabilities in this area - hiring specialists who can consult with HR departments, or offering their customers subscription information - while others are partnering with outside groups. Either way, brokers find themselves in the position of providing their customers with continuing education to help them keep pace with the changes in the industry.
Another opportunity for brokers to strengthen relationships happens during enrollment, when employees make a number of important decisions in a short time that will affect them for a full year. Preventing problems throughout the year is directly linked to how well employees understand the reasons they need insurance and the full extent of the benefits they are buying. The best brokers understand how important this is and have found ways to simplify the decisions for plan members. They use their communication skills to help employees make the right economic decision.
Post enrollment programs are popular with some brokers. They view them as an important way to bring value to the relationship and help ensure the plan members are taking advantage of their benefits. Some hold periodic meetings to remind employees about the benefits they have selected. Others work with their carriers or outside suppliers to sponsor health fairs where employees can get a range of tests, such as cholesterol, glucose, body mass index and flu shots. They view this as another opportunity to make sure employees understand their benefits.
Just as brokers are shouldering a larger burden for providing new services to their clients, they are looking to carriers to be more involved in the process as well. Though brokers have different opinions on exactly what role they want carriers to play, they seem to agree that they want to work with carriers that will help enhance their position as the trusted advisor. It means they want to work with carriers who can deliver useable and timely information that keeps them up to date on the latest trends and products.
Brokers who excel at world-class customer service measure their carriers carefully. Claims paying ability is just the price of entry. Carriers also need to be able to help with enrollment, lending representatives who bring a high degree of consistency and product knowledge to the process, ultimately preventing problems in the long run and making the broker's job easier.
When problems do occur, carriers need call center agents who can solve problems in the first call. And carriers must offer a stable support structure. Nothing seems to frustrate brokers more than a revolving sales force where the "regular" contact doesn't last long.
Good carriers also communicate well. They listen to brokers, providing them with information and research that help drive client loyalty or improve their businesses. And they create timely sales materials that directly meet the broker's needs, educating them on products and services so they are in a better position to build their own expertise.
Brokers who differentiate themselves through relationship building and customer service tend to rise above the cost point challenge and do a better job of attracting and retaining their customers. These brokers are competitive, of course. They love the thrill of the sale. But more importantly, they turn ordinary business relationships into something more, often striving to create personal connections with their clients through an investment of face time and customized service.
As a result, they end up working with companies that value the relationships.
They also tend to rely on carriers who invest in making their jobs easier and their businesses more successful.
