In a world where everyone is looking for a “great deal,” it can be tempting to join the crowd and base your services on low prices. Odds are, however, that you will be unable to maintain the lowest prices in the industry for very long. There will always be someone else willing to tempt your clients away with better discounts.
But the price dilemma is not quite the quandary it appears to be. While everyone around you engages in a price war, you could benefit by simply selling insurance based on the value you can provide. If you can show prospects that the value of your services outweighs the price, you will have little to worry about cheaper competitors.
As the saying goes, “You get what you pay for.” You just need to get that message across to your prospects and clients. If the price is your primary focus, you will most certainly have a hard time growing a profitable book of business. Here are a few tips you can implement to begin selling stable, value-based services.
Become the Best Educator in the Industry
Most of your prospects have access to all the information they need via the internet. That does not mean that they have all taken the time to understand insurance products, though. Most will still need an expert hand to guide them through the process.
Offering that layer of value to clients demands that you have an exceptional level of knowledge. You should also have the ability to find the information required, to educate your potential clients, and do so faster and better than your competitors. If your insurance prospect sees that you offer more than just insurance products, they will feel more comfortable with your agency and be more likely to shun cheaper alternatives.
Highlight Your Insurance Experience
When speaking with clients, it is a good idea to focus much of the conversation on your agency experiences and capabilities rather than the price of your services. Speaking about your extensive insurance history is one way to demonstrate how you stand out from the competition.
People are more likely to buy insurance and financial products from companies they trust. Highlighting your experience is one way to develop that layer of trust.
Always be talking to your prospects and clients about the history of your agency, how knowledgeable your staff is, and how your experiences align with the prospects own. People are more likely to spend a little extra money if it means getting a service from an agency that has extensive experience in handling issues they may have.
Choose Your Target Prospects Wisely
One thing that often forces new insurance agencies to compromise on price is that they do not narrow their target market. Barry Farber, a business consultant who has worked with AT&T, American Airlines, and BMW, says this of some sales people, “They just make sure the prospect is breathing and then they dump all this info on them.”
That, he says is not an effective way to land quality clients. Instead, you should take the time to research each client to make sure they meet your target demographic – i.e. they can, and are willing, to pay your prices. If you don’t want them to compromise on price, it is important to find prospects that understand, and appreciate value-based pricing.
Identifying the right target for your services will save you wasting time talking to people who are overly price sensitive. Then, selling insurance becomes a whole lot easier.
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Emphasize Customer Service
Customer experience will overtake price and product as the key brand differentiator by 2020, according to a Walker Info report. The new generation of insurance buyers are inundated with choice, and so they have grown to value, above all else, the experience. That differentiator helps them make the choice of which companies to give their business.
Price is not such an issue to these kinds of buyers if they receive the type of customer experience they demand. Many brands across the USA, however, are failing to adapt to the shift. According to one study from the Cloud Contact Center, companies are losing an astounding $41 billion a year because of poor customer service.
Clearly, there is work to be done to meet the service needs of consumers. That provides an opportunity for you to differentiate your agency from many others and capitalize on the many disgruntled consumers. Providing high-quality customer service throughout the lifespan of the customer is a good way to future-proof your company. You’re also in a far better position to build your book of business through W.O.M. (Word-of-mouth), referral and repeat business. Also it’s simply good business, and the most profitable way to run a successful agency.
Ask Questions and Listen
It’s difficult to offer value to your prospects if you do not know what they find valuable. To find out what matters most to your potential clients you have to ask key questions and listen CAREFULLY to the answers. There is an emphasis on careful listening because prospects do not always communicate their needs clearly.
Here is an example of a question you might ask – “What is the second most important thing to you when it comes to insurance? I’ll assume price is number one.”
With a question such as that, you can avoid the conversation straying to price and potentially get straight to an issue you can address with your value-driven service.
The conversations you have with your prospects should themselves, provide an incredible amount of value. It is a way for you to give clarity of information while building relationships with your prospects. When they see that you take the effort to truly listen to them and address their needs, they will look forward to speaking with you and your team on a regular basis.
Building strong relationships with your clients makes it difficult for another agency to come in and steal them from you; even if the competitor is offering lower prices.
