We all get that technology players are rushing into the benefits business and trying to disrupt the traditional broker value proposition and client relationship.

Brokers are being challenged like never before to demonstrate their true value to clients and prospects.

Some view this as a daunting challenge, but I see it as an opportunity for brokers to continue creating client relationships that are even more productive, sustainable and profitable.

Here are some suggestions on how brokers can strengthen their competitive position to win in the year ahead and beyond.

#1: Re-emphasize the fundamentals of being a great broker

Some brokers are trying to compete with, and position themselves against, technology players.

It’s certainly worth knowing your competition well, but brokers should never lose sight of what made them successful to begin with--their expertise, personal service and unwavering client advocacy.

You should always be focused on excelling at broker fundamentals: Crafting a great benefits plan for each client so they can attract and retain the best employees, negotiating optimal plan pricing to reduce costs, and serving as your clients’ trusted advocate.

This all may seem self evident, but it’s important to remember that most new players aren’t able to compete with what you do so well. Take the overall benefits plan.

In my experience, nearly every time a tech competitor takes over a broker of record (BOR) their default position is to keep the current plan in place.

Why? The business models of these tech companies are based mainly on technology and scalability, not on advocating for clients and personalized service.

Good brokers, on the other hand, are constantly fighting for the best package for each client group, continually evaluating different carriers and delivering a customized combination of services.

When you emphasize the fundamentals of being a great broker, you remind clients of why they chose you and your agency in the first place.

#2: Articulate your value to clients

If anything keeps a broker up at night it is client retention.

Tech players want to focus their prospects (your clients) on the efficiencies their technology will create.

They don’t want to talk about choosing plans, negotiating with insurance companies and advocating for the client and their employees.

Your job is to articulate clearly the core services you provide in both written and spoken communications to clients.

In doing this, you will ensure that no competitor gets a “free pass” at trying to poach your business.

#3: Invest 10 to 15% of your commissions in tools that save your clients money and time

A good rule of thumb is to invest part of your commission in compelling, value-added services and tools that save your clients money and make it very hard to unwind you from their business.

For example, online enrollment tools have led to huge efficiency gains for HR teams and meaningful increases in retention for brokers; online enrollment is very hard to unwind.

You may also want to consider the rapidly growing technology category of online training, also called e-learning.

Your clients are likely already spending significant amounts of money on training.

In California, for example, any company with 50 employees or more is required to host a sexual harassment course for all managers.

When you quantify the real value of the efficiency building, cost saving services you provide, you create valuable “stickiness” in your client relationships.

#4: Establish a regular schedule of communicating elements of your offering to clients

How you communicate the value of your entire services offering is just as important as what you actually provide to clients.

Without communicating clearly and often, it’s too easy for your clients to forget just how involved you are in adding real value to their organizations and day-to-day jobs.

I’ve found that establishing a regular schedule for communicating this value is a powerful way to deepen and prolong client relationships.

Make it a point to educate your clients every couple of months on how they can take advantage of all the services you are providing. For example, one month you might call attention to meeting mandatory training requirements by using your e-learning platform, and the next you might address the efficiency associated with your online enrollment tool.

Each service doesn’t have to be brand new to warrant a client update. A simple email reminder of the services your clients already receive from you can go a long way toward keeping your agency top of mind.

It can also keep competitors locked out.

Knowledge is power. So is communicating that knowledge to your valued clients.

While it’s hard to predict the exact future of the brokerage industry, you can be certain that the influx of new competitors in the benefits space is not going to subside anytime soon.

It’s also safe to say that employer groups are still going to need brokers who serve the essential role of being trusted partners and expert advisors.

The more you can strengthen that essential partnership, the more you will enhance, expand and maintain your profitable client relationships for many years to come.

Instant Insights /

4 ways brokers can win in the midst of historic change and disruption

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