Success Stories
Financial Services Channel Program Success Story
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Incentives have long been a driving force behind financial growth, recruiting and retention in the insurance industry, which relies on independent agents to publicize their policies. Recent crackdowns on illegal rebating programs has forced insurance companies nationwide to reexamine their marketing strategies. A too rigid interpretation could jeopardize valuable business opportunities; the slightest breach could jeopardize the business altogether.
With this in mind, HMI set out to understand the new incentive laws specific to the insurance industry to help its Fortune 500 client create a cost effective rewards program well within the guidelines.
The Solution
Quarterly promotions targeted different agent groups at different times of year while periodic national efforts engaged everyone at once. To keep the program fresh, HMI created an ongoing incentive platform to support numerous spurt promotions, each with its own name, theme, focus, rules structure — while maintaining a level of continuity for the sake of cohesive marketing. Agents could redeem their “miles” for merchandise or travel or carry them over to the next promotion.
Early on, agents were rewarded for quotes rather than policies booked to avoid the perception that the client was paying agents to do business with them; this included a ceiling on the number of quotes an agent could be rewarded for each month. Today, the client rewards per policy with certain stipulations regarding licensure and payment. And as always, HMI works closely with the client to navigate the legal complexities that continue to influence and inspire some creative programming.
The Success
There are more than 11,000 agents participating in the program, which is now in its fourth year. Since its inception, the program — and its criteria for earning awards — has evolved in numerous and innovative ways.
The 2007 Q1 strategy focused on improving the “quote” and “issue” lift in 18 markets throughout the country. Overall, the program helped the client achieve a “quote lift” of almost 14 percent from program participants and an “issue lift” of over four percent, with half the participating regions achieving double-digit “quote lift.” This performance significantly outpaced non-participants, who achieved a “quote lift” of only 8 percent and a 4 percent issue decline, rather than a lift.
