Restoration Rewind

Delta Development Group Monthly Newsletter

November 2014

2015 is on FIRE!

How you ask, do we know that 2015 is already a fire year? One word, CONVENTION! The plans are coming together for our 2015 Franchise Convention and it is going to be amazing. We have some great stuff in our minds and in the works and most of all, we can’t wait to have all of our offices together again.

We don’t want to release too many details just yet, but here are just a few to get your minds going. The theme for the 2015 convention is “Get Fired Up!” We are going to be filling up our two days with everything FIRE!

The dates for the convention will be Friday March 13th from 8:00am – 5:00pm and Saturday, March 14th from 8:00am – 3:00pm with the awards banquet to follow the sessions on Saturday evening. We have chosen a new and beautiful spot to hold the event. This year The Golden Hotel will host all of our meetings, sleeping arrangements and awards banquet. You can check out the fantastic hotel at http://www.thegoldenhotel.com/ There will not be a direct link to make your reservations, you will need to call the hotel directly to make your hotel arrangements. Make sure they know you are coming for the Delta Disaster Services Annual Convention. Just as a reminder, the convention is mandatory for all owners, however all of your employees are invited to attend any and/or all portions of the event. The more the merrier.

As always you can expect to hear talks from industry professionals, see and test new equipment and processes, and most importantly network with your fellow Delta Disaster Services owners.

A specific schedule will be sent out as plans come together so STAY TUNED. One thing that we are asking is for round table discussion points from all of our owners. If you have

specific topics that you would like to open up for discussion in a round table forum please email them to Ragan at rneblett@delta-us.com You may also contact her if you have any questions about the convention event. We are looking forward to an exciting and informative event. We can’t wait to see everyone there!

Claims experience is key for customer retention

The claim is the great moment of vulnerability for property and casualty insurers. Many insurers have invested heavily in improving the claims experience, and, according to Accenture research, customers are generally satisfied with the way their claims are handled. In a global survey of nearly 8,000 auto and home insurance customers, only 14% of those who had filed a claim expressed dissatisfaction with the way their last claim was handled.

That sounds good – but the survey also indicates that of the 14% who are unhappy, 83% either plan to switch to a new provider or have already done so. And the claim itself is a trigger for switching, no matter how satisfied customers are with the experience. The mere fact of having filed a claim increases the customer’s likelihood of switching from 22% to 41%.

The two most important factors that influence customer satisfaction—aside from the perceived fairness of the settlement itself—are the speed and transparency of the claims process (both identified by 94% of respondents who had filed claims). These are followed by the customer’s ability to contact the insurer anytime to find out the status of the claim, and good, timely communication that keeps the customer informed (both 90%). Empathetic interactions with the insurer’s staff are also an important factor (86%), as is the ability to engage with the insurer using the preferred channels (80%).

While the claims experience plays a powerful role in influencing customers’ decisions to switch providers, other factors are also important. For example, 44% of respondents said that they would switch providers if their preferred digital channels were not available for actions such as first notice of loss, checking the status of a claim and checking on the status of repairs or replacement.

Customers are also quick to turn to social media, either to report on a good claims experience or to complain about a bad one; 29% of respondents said they had either posted or planned to

post about a positive experience, while 30% said they had either posted or planned to post about a negative experience. And 44% either read or plan to read such reviews.

Anything insurers can do to increase the proportion of satisfied customers will have a direct benefit in terms of customer retention. Insurers that are also able to use their claims performance as a differentiator – establishing their reputation (especially on social media) as an insurer that is committed to settling customers’ claims quickly, fairly and transparently – will increase retention and also improve their chances of acquiring disaffected customers who are looking for a new provider.

We saw that the claim itself – whether it is handled in way that satisfies the customer or not – greatly increases the likelihood of the customer switching. It might be that the claim rouses the customer from an apathetic acceptance of the terms of his insurance policy and spurs him to compare other companies’ offerings. Or it might be that “satisfaction” implies that the customer regarded the experience as fair and efficient, but not particularly empathetic, and certainly not a pleasure.

Whatever the reasons, carriers should do whatever they can to reduce the incidence of claiming. This is likely to happen naturally as more new vehicles are equipped with systems that help drivers park their cars or automate parking altogether. Taken to its logical conclusion, drivers of autonomous vehicles such as those which Google is testing should never have to file a claim, unless they are the victims of theft or damage caused by other drivers.

Accenture has long asserted that insurers need to put the customer first, and to shape their organizations and processes – and develop their products and services – with the needs of the customer foremost. To do this, of course, insurers need to have a deep understanding of their customers, and the claim is an opportunity to capture a great deal of information which they might otherwise never have access to.

Carriers that can acquire and analyze this data will not only be able to enhance their segmentation and provide more differentiated, relevant service; they will also improve their claims prevention modelling and fraud detection capabilities. Good data will also give insurers

deeper insights into why different customer segments defect, allowing them to develop specific retention strategies.

Many insurers spread service initiatives too thinly in a well-intentioned but possibly misguided attempt to delight every customer every time. Instead, they should adopt a more focused, segmented approach based on value analytics and the customer’s propensity to defect. An efficient claims operation anticipates the customer’s service needs based on data captured throughout the insurance lifecycle.

Digital technologies – based on good data – offer insurers a tremendous opportunity to transform the claims experience across all of these dimensions. By enabling them to become more customer-centric, proactive and agile, they lay a solid foundation for cost reduction, growth and an enduring competitive advantage.

CASH IN THE DOOR

Cha-Ching! Based on September royalties, the leader of the pack is…

Delta Disaster Services of Southern Colorado and owner Emmis Chellman! They had a great month of production that exceeded $100,000 cash in the door!

Congratulations Emmis! Who will be at the top next month?

Business Planning for 2015

It is that time again!

“Goals are the fuel in the furnace of achievement.” -Brian Tracy, Eat that Frog-

We have two Wednesday Webinar’s scheduled for 2015 planning:

December 3, 2014: Marketing goals and plans for 2015

December 10, 2014: Business Planning for 2015

Sales/Production Goals:

Production Minimums (From your Franchise Agreement)

Year of Operation Minimum Annual Sales Quota

1 No Minimum

2 $850,000

3 $1,000,000

4 $1,225,000

5 $1,350,000

Gross Profit and Net Profit Goals:

Industry Average: Mitigation 70% Construction 40% Other items to track:

• Average Sale (Mitigation and Construction together $7,500) • Number of Jobs (How many jobs do you need to do with above average to

meet your Goal? How does this tie into your marketing goals? • Individual Department Goals? • Equipment Needs? (How will you pay for them?) • Personal Goals? (How do your personal and family goals work with your

business goals)

You can set goals for anything you want to measure! These above are those that are top of mind and the minimum things you need to track.

Things to be aware of and make sure you have ready for yearend:

Subcontractors: • Make sure you have a current insurance certificate or Independent Contractor Release • W-9’s for 1099’s • 1099’s will need to be mailed by January 31 QuickBooks: Call your accountant if needed. Once taxes are filed, you will not be able to make changes to your QuickBooks. Now is the time to

make sure everything is categorized correctly. • Have assets been correctly coded? • Equipment, Start Up costs, Tennant Finish – all are coded as such and not

coded as expenses. You need to address your start-up costs, tenant finish and equipment charges with your accountant and how he/she wants them coded.

• Is everything properly job charged? Now is the time to make sure there are no data entry errors.

Please do not hesitate to contact us if you have any questions or need some assistance in your 2015 business planning. We are always here to help.

Franchise News

Delta Disaster Services is branching out again into the world of vendor programs. Two of our offices have recently been added to national vendor programs. Mac Urie and Delta Disaster Services of Southern Utah were, just this week, added to Allstate’s national vendor program for the St. George and Cedar City areas of Utah. Delta Disaster Services of Western Colorado and Bruce and Tyler Milyard were recently added to the Nationwide vendor program through Crawford Contractor Connection. That is great news for those offices and for the rest of the Delta network. CONGRATULATIONS!

As we grow and our individual offices age, there will be more and more opportunities to become part of a variety of vendor programs. PLEASE, please, please don’t forget that these programs do not and should not ever replace street marketing and the direct referral relationships that you have. These are and will always be your bread and butter. Vendor programs are convenient and a nice nut to have at the beginning of the month, but they should not be relied on for the majority of your business. If you have any questions about your marketing efforts please reach out to Steve Chapman. He has been working very

hard in the Denver office to switch the stream of business from vendor programs to open market referrals. This isn’t an easy change to make so don’t let your business development fall off.

We will leave you with this…

Procrastination is one of the most common and deadliest of diseases

and its toll on success and happiness is heavy.

Wayne Gretzky