From the Week of June 11, 1999

June 14, 1999 Mutual benefits Firm sheds light on company insurance plans Stephanie Patrick   Staff Writer TURTLE CREEK -- Failed landing gear in a Lear jet led Marcia Zimmermann to a new career direction in 1982. A busy grocery executive for what was later to become Whole Foods Market, Zimmermann was traveling with her then-husband, a pilot, in a chartered plane to California when it began dumping fuel. They had to fly around for 30 to 45 minutes until emergency equipment arrived. Zimmermann used less than 30 seconds of that time to re-evaluate her life. "I had a nanny who took care of my son and I had a housekeeper but I was not there for him," she said. "After that first 30 seconds I felt relieved. I knew I was going to sell all my businesses and I knew I was going to be a better mother and have a family life." The scare moved her to trade in her 18-hour workdays for homemaking in an Arkansas log cabin. But, she eventually became short on money and returned to Dallas to begin a career in insurance sales. Her first job at Businessmen's Insurance Agency allowed her a flexible schedule and a chance to educate her clients about their insurance choices. Her love of educating clients convinced her to open Benefit Seminars Plus in 1985, a company that helps businesses evaluate insurance packages and explains insurance benefits to their employees. BSP expanded 30% in 1997 and 1998. Gross receipts exceed $25 million. "Most insurance agents just sell you a policy; you hear from them during the holidays and at renewal time," Zimmermann said. "When I entered the business 15 years ago, I saw how much agents make for such minimal effort. I decided businesses needed and deserved a lot more." BSP includes a communications package as part of the insurance sale, something her competitors sell as additional options, Zimmermann said. The customized, multi-media presentation includes a benefit analysis for each employee. Most benefits run about 30% of payroll. "We make sure everyone understands the full value of his or her benefits, even the hidden ones like matching social security contributions, worker's compensation and unemployment taxes," she said. A typical BSP search analyzes 60 insurance plans. Once a company chooses a particular plan, BSP can act as the company's benefit department. Company employees call BSP staff, who are licensed, directly to discuss specific insurance questions or problems. Each call is logged into a computer. "We are personalizing the process and making sure these insurance companies do what they are supposed to do," she said. Outsourcing such tasks, even informally, saves money and reduces overhead for most companies, said Dianne Ogle, owner of Marketing Makes It! "To have an outsourced relationship work effectively, it needs to be built upon trust and effective communication," she said. "It allows the client firm to focus on their product or service and listen more closely to the ever-changing needs of their customers." For each employee call, a BSP staff member spends an average of two to three additional hours on the phone with doctors, pharmacies and carriers, Zimmermann said. "The insurance companies all know BSP and they all know that they'd better resolve the claim because we're not going away," she said. BSP's extra-effort approach goes back to the days of Zimmermann's first business in 1975 at age 19. She opened The New Morning Cafe in Fort Worth, a whole foods restaurant, long before the health food craze hit the Metroplex. Zimmermann opened the business with $1,500 and sold it two years later for $45,000. "Be willing to do what other people aren't," she said. "That is the difference between successful people and those who aren't. You have to be willing to give of yourself. "My grandfather used to tell me, `Tell people you can do things whether you can do them or not and then throw yourself over the line and you will.' He said most people come up to the line and they back away." Zimmermann, who began her business with three of Businessmen's clients, has a roster of 18 clients and doesn't go after new clients until she knows she has the time and manpower to serve them. BSP did a telemarketing campaign early in the business' infancy but 90% of its business is referrals, said Lisa Mizell, co-founder. The company will turn down or delay potential clients. BSP, which opened a San Diego office in November, targets companies with 200 to 1,000 employees and, Zimmermann said, has never lost a client, except in cases where the company was purchased, Mizell said. "If companies got more committed to keeping customers instead of getting new customers, they would ultimately make more money," she said. "They get real involved in trying to build, build, build their business instead of taking care of the bread and butter that they have already. That's where they get in trouble." Her nurturing approach extends to her own employees, all of whom get a percentage of every sale. "I chose that because I don't want to have to worry about what these people are doing," Zimmermann said. "Part of being a business owner that can really bog you down is having to worry about what everyone is doing. If you give them a piece of the pie, they are going to do their jobs. If we lose a client, every person's pay goes down. "We are all tied to the client. To us the client is the employees, not just the owner of the business. My competitors work just with the decision makers." Zimmermann, who does all BSP's sales, is looking toward the future. She plans to hire an apprentice salesman this summer so she can focus on other things. "You have a shelf life as a salesperson," she said. "You are the best salesperson you can be from 35 to 45. That's the dog that can go out and sniff out and prospect. After you are age 45, you don't feel like prospecting. You want to go home and be the closer." Zimmermann said she's learned there is a value to the service she offers and her clients are willing to pay for her knowledge and assistance. "Never, never underestimate your value because people push you down when you are weak."

Go To The Original Article In The Dallas Business Journal | Home | Top of the page