Do your CSRs know they need to sell?

Misaligned Roles: The Hidden Cost of Agency Dysfunction.

Nothing better than visiting clients in their office, meeting their staff, listening to their situations, stories, challenges, resilience and their commitment to serve. Among many thing, one of the prominent topic was account rounding. Everyone wants to do it but very few understood the conditions that needed to be created to accomplish the same. Thought of this article came from one such conversation.

In the fast-paced world of advertising and marketing, agencies often face the challenge of aligning roles and responsibilities with the specific needs of their clients. A common pitfall, as highlighted by Paul Stefano and G. Edward Kalbaugh in their article "Cross-Selling and Account Rounding: An Economic Approach" (Rough Notes Magazine, 1999), is the delegation of account rounding to Client Service Representatives (CSRs).

The Problem with Misaligned Roles

CSRs are the primary point of contact between the agency and the client. Their role, as the article states, focuses on building strong relationships, ensuring client satisfaction, and providing exceptional service. They are the face of the agency and are expected to be knowledgeable about the client's business goals and challenges.

The Misfit of Account Rounding

Account rounding, on the other hand, involves identifying opportunities for additional business, negotiating rates, and closing deals. While CSRs may have some sales experience, their primary focus on service might not equip them effectively for these sales-driven activities. This misalignment can lead to several problems, as discussed in the Five Dysfunctions of a Team model by Patrick Lencioni:

• Absence of Trust: If CSRs feel pressured to close deals that are not in the client's best interest, trust between the agency and the client can erode.
• Fear of Conflict: CSRs may hesitate to engage in the negotiation process, potentially leaving money on the table for the agency.
• Lack of Commitment: The lack of strong sales training and incentives for CSRs can lead to a lack of commitment to achieving account rounding goals.

The Solution - Aligned Roles and Incentives

To address this issue, agencies should consider realigning roles and responsibilities to ensure that each team member is focused on their core competencies. Here are some strategies:

• Dedicated Account Executives: Assign account rounding to dedicated account executives or business development professionals with the necessary sales skills and experience.
• Incentive Alignment: Develop a compensation structure that rewards producers for meeting overall account growth goals, not just individual policy sales, providing motivation for both rounding and client satisfaction.
• Training and Resources: Provide CSRs with training in identifying account rounding opportunities and the value proposition for additional services.

By aligning roles and ensuring that each team member is equipped for their specific function, agencies can foster a more effective and collaborative environment. This will ultimately lead to improved client satisfaction, increased revenue, and a more robust agency structure.

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