MARKETING AGENCY OF THE MONTH:

NORTH DAKOTA FIRMTHRIVES ON MARKETING &COMMUNITY INVOLVEMENT

PROPERTY & CASUALTY AGENTS AGENCY MARKETING • INSURANCE MARKETS • NEW PRODUCTSJULY 2008

SPECIALTY LINES: EMPLOYMENT PRACTICES LIABILITYMARKETING: WEATHER PROTECTION VIA CAPITAL MARKETS

TECHNOLOGY: AGENCIES AND E-COMMERCEBENEFITS: REBIRTH OF AGENCY’S BENEFITS DIVISION

ALSO: PREVIEW OF VCIA ANNUAL MEETING

BEING DIFFERENTAND MAKING ADIFFERENCE

Dawson Insurance is a standout in theFargo/Moorhead environs

MARKETING AGENCY OF THE MONTH

By Dennis H. Pillsbury

here’s just a constant awarenessof being different,” says TomDawson, CPCU, CIC, presidentof Dawson Insurance, Fargo,

North Dakota. “We’re not just relying on goodservice and being around 90 years. That’s been areal change in recent years. We focus on ways todifferentiate ourselves from the competitionthrough value-added services to our clients andto our community.”

Of course, it certainly doesn’t hurt that DawsonInsurance has been serving the Fargo area since1917 when it was founded by Tom’s grandfather,Charles A. Dawson, as a crop insurance generalagency and an independent agency for other linesof business. Tom’s father, Bob, and his uncle, Jim,

“T

Tom Dawson, CPCU, CIC,President (on left), and DanArmbrust, CIC, CPIA,CPCU, CRIS, Vice Presidentand Sales Manager.

Reprinted from the July 2008 issue of Rough Notes magazine

both joined the agency in the ’40s afterWorld War II. Jim concentrated on thecrop insurance side, while Bob began tobuild the independent agency side of thebusiness. In 1995, the crop insurancebusiness was sold and DawsonInsurance became strictly anindependent agency.

As of 2007, the agency has grownto reach $6 million in revenue with 40 full-time employees and a few part-time people. There are 13 producers,including several young producers“who like to knock on doors,” Tom says.“We still do that, although we’vebecome more focused on prospectiveclients and industries. We have criteriain terms of the size and types ofaccounts we are after and we spend alot of time analyzing how much of anopportunity we have by securing anew account.”

The agency also brought in anadditional life producer last fall. “Hehad been in radio advertising for

many years so he knows how to sell,”Tom says. “We can teach himinsurance, but we can’t necessarilyteach him how to sell.” Anotherproducer recently joined the agencyfrom Gallagher.

“A turning point in our agencycame in 1980 when we merged withAllied Insurance Agency which wasowned by Dan Armbrust,” accordingto Tom. “Dan is an insuranceprofessional, having earned CIC,CPIA, CPCU and CRIS designations.He is our vice president, salesmanager and a significantstockholder and, at the time of ourmerger provided a strong focus onsales, which we needed,” Tom says.“We have also made two otheracquisitions which have not onlycontributed to our growth but haveadded key personnel and companies.”

“Because of our desire to providevalue-added services and differentiateourselves from the competition, we

Dan Armbrust meets with GPK Products, Inc., President Spencer Hildre.

Wayne Lauwers, CIC, Surety Manager (on left), meets with DarinPfingsten, President of PKG Contracting, Inc., on the site of aneffluent reuse facility which generates water for use at an ethanolproduction facility.

Agent Todd Anderson, CPCU, CIC (center) meets with Steve M.Scheel (left) and Steve D. Scheel, 4th and 5th generation ownersof Scheels, the world’s largest all sport store and co-sponsorswith Dawson Insurance of the Scheels Fargo Marathon.

began developing niche areas ofconcentration where we could reallystand out,” says Dan. “One of our firstmoves in this direction occurred 12 years ago when we hired a suretyspecialist. Wayne Lauwers gave us theexpertise to concentrate on construction,and that has been one of our majorfocuses since then. We work closely withthe Association of General Contractors,participate in their conventions andmeetings and make sure that we have a presence at their other events.”

Learning from others“One of the things that greatly

benefits us is our relationship withMarsh, Berry & Company and theAPPEX Group,” Tom says. “APPEX(Agency Peak Performance Exchange)helps us concentrate on the financialside of our business by allowing us tocompare ourselves to our peers anduse benchmarks to help us improve.

Community service

“Another unique difference withinour agency is something that we havetaken pride in for a long time: ourcommunity involvement,” Tom says.“We have a close connection to theFargo/Moorhead community. Ourpeople are very involved, from severallocal service clubs to coaching youthteams and committee work forcommunity churches and theMinnKota Red Cross.

“In addition, the agency isrecognized in the community bysupporting the United Way, thePlains Art Museum, and severalother local charities including theFargo/Moorhead YMCA, YWCA, andDollars for Scholars. We are also asponsor for the Scheels FargoMarathon and partner with ClaraBarton Elementary School as anAdopt-A-School Business Partner.”

“Our people also are active in theChamber of Commerce, and last yearwe were honored to receive theFargo/Moorhead Business of the YearAward from the Chamber. We’ve alsoreceived several awards from UnitedWay and other local charities. Thatvisibility in the community definitelyhelps us get in the door whenprospecting for new clients,” says Dan.

Commitment to the professionIn addition to giving back to the

community, the people at DawsonInsurance also are involved in devotingtheir time and talent to the industry.Tom, Wayne, and Todd Anderson areall past presidents of the North DakotaAssociation of Independent Agents andDan is past president of the NorthDakota Professional Insurance Agents.Currently Tom is the State NationalDirector from North Dakota for theIndependent Insurance Agents &Brokers of America. Tom also served onthe Board of Governors for the Societyof Certified Insurance Counselors andDan is currently a member of theAgent Advisory Council for the NorthDakota Insurance Reserve Fund.Several producers in the agency havealso been on numerous company agentadvisory boards. To show its supportfor the Big “I,” the agency promotes theTrusted Choice brand in its marketing.

Tom and Dan both agree thatindustry involvement is very important.“The insurance industry is fortunate tohave so many outstanding people andbeing involved in these professionalorganizations allows us to help our stafflearn and grow,” says Tom. An exampleof how involved team members are inindustry education is the number ofCPCU and CIC designations earned byemployees. Of the 40 employees, 6 haveearned their CPCU, 15 have earnedtheir CIC or CISR, and 8 others haveadditional designations.

“Being a local, privately ownedbusiness is also a big plus,” Tomcontinues. “Fewer and fewer of ourcompetitors can say that. Many arebank owned. Here in the nation’sheartland, many of the individualsand businesses are loyal to localorganizations. They know us andknow how we do business. They knowthey can count on Dawson Insurance,”Dan points out. “In fact, for severalyears our marketing slogan has been‘Neighbors You Trust.’ ”

We have also developed our owndashboard allowing us to better focuson those specific areas where we seethe most opportunity to improveefficiency and profitability. We sharethis information with everyone in theoffice at our quarterly staff meetingswhere we discuss our successes and,as important, what we need to do toimprove. APPEX has been a veryimportant outside relationship for us.”

“MarshBerry also has been reallyhelpful on the marketing side,” Dancontinues. “They have taught us theimportance of differentiating ourselves.One of the things that we have done isto work with a specialized workerscomp program that helps us analyze aclient’s or prospect’s experience mod.We then work with the client toimprove their mod, as well as to makecertain that the insurance company’srates reflect the correct mod if we findany discrepancies.”

The management team (from left): Dan Armbrust; Kevin Bruggeman, CPCU,Commercial Lines Manager; James E. Nyhof, Financial Services Manager; Mary Bjerke,CPCU, Operations Manager; Steve Miller, Accounting Manager; and Tom Dawson.

As part of a community-wide promotion,the agency provides “green” shopping bagsfor its employees.

Work is a three-letter word—FUN

“We have a staff of highly qualifiedand talented people, many of whomhave been with us for several years,”Tom notes. “We work very hard toprovide a positive atmosphere so ourpeople have fun working here. We havea program called SWAT—SpectacularWorkers Appreciating Teamwork— amonthly program designed to recognizeemployee birthdays and employmentanniversaries with unique themes,activities and fun. It’s organized eachmonth by a different group ofemployees, so there’s plenty of variety,”Tom adds.

The agency sponsors severalprograms and events throughout the year including: summer barbequesfor staff and clients; a wellnessreimbursement program to help withexpenses for health club memberships,weight loss programs, and stop-smokingefforts; and a $250 annual clothing

allowance for all the support staff toassist in the purchase of businessappropriate clothing.

Several team members alsoparticipate in the four or fivecustomer appreciation hunting tripsthe agency sponsors each year. Manyof these events and support programshave come from suggestions made atemployee meetings.

“The result is that we haveextremely low turnover,” Tom saysproudly, “and a staff of people whoseattitudes are unparalleled. Noquestion, our biggest asset is ourgreat team of people and the agencyis committed to keeping the workenvironment fresh, fun and positive.”

Dawson Insurance writes most ofits business in the Fargo/Moorheadand West Fargo area. “There are about200,000 people in our metropolitanarea, and that’s where 90% of ourbusiness is concentrated, although wehave accounts throughout the states

of North Dakota and Minnesota,” Tompoints out.

About 80% of the property/casualtybusiness is commercial with thebalance being personal lines. The lifeand benefits division accounts forapproximately 10% of revenue. “Wenow have two producers in thatdepartment and expect that to be astrong growth area,” Dan says.

Future growth“With the depth and experience we

now have, the agency is growing in newdirections,” Tom says. “We’re expandingour marketing reach in North Dakotaand Minnesota. We’re capitalizing onour areas of expertise, targeting newtowns and prospects. We see excellentgrowth in our future.”

“We’re fortunate that we’re locatedin an area that is enjoying steadyeconomic growth,” Dan says. “Weweren’t affected by the subprimemortgage fiasco, so there’s been littlefallout affecting the construction andreal estate businesses. We’re alsolucky to be home for threeuniversities educating approximately25,000 students, a significantMicrosoft campus, large health careproviders, and several regionalsupport facilities for nationalcompanies. Of course, agricultureremains a mainstay of the region, andlast year was one of the biggest yearsfor agriculture in decades.”

Dawson Insurance focuses onmaking a difference—for theircustomers and their employees—bymaintaining an atmosphere of fun andcamaraderie. It all adds up to makingthem an ideal employer. We are pleasedthat we are able to recognize them asour Marketing Agency of the Month. ■

Producer Ryan Hoffman, CPCU, AIC, leads a CPCU in-house training class.

The people on the Dawson Insurance team are known in the Fargo/Moorhead area as “Neighbors You Trust.”

Pho

to c

ourt

esy

Daw

son

Insu

ranc

e