(9-minute Listen)
by Jack C. Randall, CIC, PCLA, PFMM ©2020 Randall Resources Int’l
As the old saying goes, “If it ain’t broke, don’t fix it.”
My friend Mike Rayburn takes this one step farther by adding that, “TIME BREAKS EVERYTHING!”
Because of COVID, it’s now time for your mutual to take this opportunity to either prosper or to punt!
In just a few short months, the effects from this newest corona virus have literally impacted the globe. Yet shockingly, most all mutuals I have spoken with cite that, other than a flattened growth curve and dealing with some employees working remotely, the feeling is that they have experienced only minimal impact thus far. The underlying tone is that they are waiting it out and hoping for things to return to “normal” shortly.
“If your mutual feels this same way, I hope to send a wake-up call to action because Shift just happened! Realize it or not, as a result of COVID, we have all entered a new “next normal” and there is a huge, bright window of opportunity to those who quickly choose to act and capitalize on it – or a dilemma for those who choose to wait and get left behind.”
“Shift”, Pre-9/11 cookies, COVID, and Your Mutual
Back in 1999, our son booked a plane to fly overseas. His aunt baked a gigantic box of fresh cookies for him to enjoy on the trip, but unfortunately, she got to the airline gate after he had already boarded the aircraft. (If you recall, back then, family and friends could walk right up to the boarding gate.) Since the flight had not yet left the gate, she explained to the gate attendant that she urgently needed to get the cookies to him right away. Shockingly, the attendant actually let his aunt board the plane to deliver the cookies to him. Oh, the good old days! Sadly however, two years later, following the events of 9/11, air travel protocol changed drastically and “Shift” happened.
I define “Shift” as:
- A change in how something or someone is viewed, or
- A change in mindset, beliefs, or perceived needs.
Periodically, historical events happen that change how life is significantly impacted from that point on. Using that definition, I’m sure you will agree that 9/11, the invention of the light bulb, and the advent of nuclear power are just a few quick examples of Shift.
Sometimes, as in the case of the invention of the light bulb, Shift is evident, but slow and gradual as the technology becomes more commonplace. Contrast that to the Shift that happened following the events of 9/11. The resulting air travel Shift was very evident, and change happened very quickly. The COVID Shift however, differs yet again. The COVID Shift is happening quickly, but due to the widespread uncertainties of the times, also very silently. The concern here is that many mutuals will be caught unprepared and left behind from a competitive standpoint in reaching, servicing, and retaining their customers – let alone reaching new ones because what may have worked in the past won’t be effective going forward! Your competitors are understanding this and are already adjusting!
Let’s face it. Since 9/11 happened, no longer can our aunt run onto our plane to deliver fresh cookie service to us. Similarly, the current COVID pandemic Shift has silently changed the marketplace including insurance. The needs and buying habits of your customers (insureds AND agents) have forever changed…But how?
What we know because of COVID
- Many people are fearful, (or at least have a heightened concern), for their physical and financial health and security so they seek to minimize direct person-to-person situations.
- Many now find themselves working from home, going out less, and buying and accessing services online 24/7.
These are two big reasons why we need to be able to reach out to them with our products and services as opposed to waiting for them to come to us by old, traditional means. Likely, this will involve your heavier emphasis on online connectivity and marketing. An executive coaching phrase says, “What got you here, won’t get you there”. This applies with marketing, advertising, and servicing your insureds and agents too unless you proactively make changes now.
What recent COVID-related research indicates
- 34% of respondents said they are changing to less expensive products to save $. (McKinsey & Co., August 2020)
- It is estimated that COVID has accelerated e-commerce growth by 4-6 years. (Forbes, June 2020)
- 77% of respondents said they have tried a new shopping behavior since COVID. (McKinsey & Co., August 2020)
- 73-80% of respondents said they plan to stick with the new behavior post-crisis. (McKinsey & Co., July 2020)
- 42% of consumers said they will shop online more frequently even when COVID has ended. (Essential Retail, May 2020) (UK)
Four Key Action Steps to your mutual’s on-going success in response to the COVID Shift
- Change your company culture radically to proactively drive creativity and customer-focused change. (Resourcefulness) This includes ALL Board, Management, and Staff. Change from “Watch and wait” to “Respond quickly”!
- Collect feedback constantly to truly understand your target customer’s needs. (Relevance) You DO know who your primary target customer is, right??!
- Create and/or adjust your Strategic Action Plan accordingly. (Responsiveness) Include Actions, Owners, and Timelines.
- Commit to act promptly and decisively. (Resolve)
Don’t forget your mutual’s biggest advantage over your large competitors – YOUR SIZE!
Just like a small boat can run circles around an ocean-liner, your small mutual has the ability to quickly act and beat out your competitors – that is, if you choose to act.
I am totally convinced this recent COVID shift can be a bright opportunity to better serve your customers and grow your company.
So, which will it be? Prosper or punt? The choice is yours!
All my best to you!
Jack Randall, CIC, PCLA, PFMM Emeritus
(I work with people and organizations who want a clear picture of success and a roadmap to get them there. If I can assist your mutual in any way by answering questions or providing additional insights or Vision Blueprinting services, please let me know. I can be reached by phone at (816) 617-4823 or by email at Jack@RandallResourcesInt.com ) .