by Structured Settlement Watchdog
Jan Carlzon's 1986 book Moments of Truth focuses on the following timeless core business concept "Anytime a customer comes into contact with any aspect of a business, however remote, is an opportunity to form an impression".
Mr. Carlzon, former President of Scandinavian Airlines used this guiding principle to turnaround a then sputtering airline. Some examples of "moments of truth" cited in the Carlzon's book:
- when you call to make a reservation to take a flight,
- when you arrive at the airport and check your bags curbside,
- when you go inside and pick up your ticket at the ticket counter,
- when you are greeted at the gate,
- when you are taken care of by the flight attendants onboard the aircraft, and
- when you are greeted at your destination.
In the structured settlement industry some "moments of truth" are unfortunately receiving less attention than they should be and real opportunities are being lost by the insurance companies issuing structured settlement annuities. As a young insurance agent in 1983, with Northwestern Mutual, I was taught that the policy delivery was one of the most important elements of the sales cycle. It is an opportunity to (1)reinforce the concepts which produced the decision to buy and (2) to grow your business by seeking referrals to others who the buyer thinks might be able to benefit from the "positive" feelings about the services that the buyer has just experienced. The latter is obviously not possible unless the buyer has a good feeling about his or her experience in dealing with you.
- So why is it that one annuity carrier delivers their structured settlement annuity contracts to structured settlement brokers in an embossed 1970s style "construction paper" stock folder that won't fit into a standard letter size FEDEX, UPS or DHL overnight envelope?
- Why is it that others shroud their contracts in plastic one grade above Saran Wrap?
- Some companies are making photocopies of documents such as guarantees and direct deposit forms which highlight shortcomings in such basic clerical tasks as operating a copymachine. How difficult is it to feed something through an "automatic document feeder" folks?
Think about the impression that this leaves on someone who has just agreed to place a substantial amount of money with you!
You can go into Tiffany's and spend $1,000 on earrings and get better packaging than when you allocate $1,000,000 of a settlement on a structured annuity with certain annuity issuers. Who doesn't know Tiffany's famous blue box packaging and the cachet it brings? In the case of the ill advised over sized logo embossed "construction paper", the one insurance company has blown two "moments of truth" and wasted valuable company resources. The branding opportunity is lost because most structured settlement brokers will remove it rather than spend extra money on the larger FEDEX/UPS/DHL envelope in addition to avoid being embarrassed by the inferior quality. Those that make it through the broker's gauntlet do nothing to enhance the lasting impression that the consumer has (whether that consumer is an insurer, plaintiff or defendant, or their counsel). The sad thing is that I have brought this up privately with one company in question and they have done nothing about it in over a year. I have spoken with other structured settlement brokers who feel much the same way that I do. Is a public pillory necessary to get someones attention at a decision making level? When people opt for security they don't want to see inferiority. Donate the remaining supplies of the stuff to a school, or use it for kindling, and reinvent yourself!
MetLife is a good example of a company that has turned itself around on the post-sale and delivery front.
Several years ago the company's structured settlement operations experienced significant growing pains. Since then MetLife has made positive investments in branding consistency from its brochures through delivery materials.
The delivery kit is impressive looking, has a convenient pocket to hold critical documents and fits into a standard letter sized FEDEX/UPS/DHL overnight envelope.
AIG Structured Settlements introduced simple but effective new packaging for its contracts which take better advantage of branding opportunities and look worthy of the funds being spent
Other companies have clearly spent some time and thought on the packaging of delivery materials and the experience of the structured settlement brokers and their clients who deal with them. Several annuity issuers make courtesy copies (properly sheet feed copied) of each of the documents thereby reducing the end work that the structured settlement broker must do
Structured settlement annuity issuers should not to lose sight of the opportunities gained or lost by packaging decisions
Packaging should reflect quality at all times and should fit in a standard FEDEX/UPS/DHL overnight envelope. Remember that what we are "selling" is an intangible and the packaging is the one tangible element. It is something that a consumer can touch, place in a drawer or file and refer to again in the future. To the surviving child who has lost a loved one and had had a structured settlement set up for them to pay out for college and certain life milestones, the annuity contract, or copy thereof, is a tangible of an intangible that creates an element of financial certainty in their life.
It is one of those "moments of truth"
Improvements in technology today leave no excuses for poor impression from poor quality promotional materials, including delivery packaging of annuity contracts.
If you can't do it in-house then outsource. What else can you be doing to automate your workflows?
"Moments of Truth" people…"Moments of Truth"
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