What do you want your clients to say about you?
Everyone has to buy insurance at some stage. That may be a slight exaggeration but anyone who drives certainly has to and it would be sensible for home owners to do so as well. Most of us have experienced this need and you probably don’t like the fact you have to spend money on something you have “just in case”. In addition to this there are a huge number of companies (and therefore Insurance agents) vying fo your business – it is a very competitive field.
Networking events and referral groups are fertile ground for insurance agents seeking to find new clients. Given the wealth of options and the competitive nature of the business, marketing messages tend to revolve around price. “Give us the chance to quote your insurance – I am sure we can save you money” being a common refrain.
Allow me to relate a story that illustrates how effective marketing can be in this highly competitive arena.
Understanding your customer is key
There was once a business owner who knew that insurance was important and, on the recommendation of a family member sought out the help of a local agent. He was new to the area and had little in the way of price information so he accepted the referral and the advice of the agent, purchasing several policies covering auto and home as well as general liability. He was satisfied with the service he received and went back to building his business.
The agent had served him well, but had basically assumed the business was hers since the man was a referral from an existing, long term client. She did a good job of explaining the various options available and sorting out appropriate cover. However what she didn’t do was ASK her new client what was truly important to him – what he cared about, what he wanted from his insurance agent, how she could help.
Therefore they parted ways that day both happy, but really without any rapport.
Your clients may not value what you think they value
The client in this story had a pet peeve. He disliked paying out money but, don’t we all? What really riled him though was being surprised by bills in the mail he had forgotten about. He was also not the most organized individual so he was frequently surprised by such things! His disorganization also meant he was not especially fond of filing so laying his hands on documentation was a chore and a time consuming one at that.
Also, and this is important to the story, he was only price sensitive up to a point. Insurance was necessary and he didn’t want to feel ripped off but he didn’t buy PRIMARILY on price. This made him reasonably immune to the traditional approach from competitors because:
a) they tried to sell him on price,
but more importantly
b) They asked him to provide all his documents so they could compare them and find a cheaper option. Remember – he doesn’t like filing and can’t find such things quickly.
So what happened?
The next communication was from the insurance company (Not the agent personally) basically saying: “Here is your new premium, due in two weeks, it’s gone up a little, please send us a check to ensure continued cover”.
Oh, oh. Pushes all the pet peeve buttons. No communication up front makes it worse since it is clear there is no relationship there. The agent has mis-understood (or more likely, not found out) her client who is now susceptible to a competitor but only one who has something different to offer. As luck would have it, he had met one at around the same time and a few weeks later, switched.
And to make a long story short, here is why:
- The price is the same, or very similar
- The new agent writes to his client around 8 weeks BEFORE the premium renewal is due to advise him it is coming
- When there was a storm in the area he sent an email asking if all was well THE NEXT MORNING
- When the client had to take a road trip he wanted another driver added. He called, left a message that was answered within the hour explaining coverage was included
- When, due to his disorganization, he let a policy lapse through late payment, the agent had his late fee WAIVED
- Whenever the client has a question he can call or email and he gets an immediate response that means he doesn’t have to have ready access all the time to his files.
The moral
The agent (who is called Michael Fitkin by the way and yes, you can have him as a referral if you need it) “gets” his client. He understands what makes him tick and how to make his life easier and better and knows that it is not simply cost of policy.
To repeat: this understanding makes the client’s LIFE EASIER. How great is that? How loyal do you think the client is to his insurance agent and how often (like now) does he tell others this story?
In a highly competitive market, Michael has figured out at least one of his clients intimately from a marketing point of view and tailored his service to that client’s needs. It isn’t what you might think i.e. the cheapest price and it took several meetings to figure it out but what a great investment in time.
Do you know your clients this well? Can you articulate their key issues and therefore market to them accordingly?
And yes, the client is me as I am sure you figured out.
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