“Great service” and “product knowledge” are common points of differentiation given by most agencies as to why customers should buy, and stay, with them. However, there are two 
key reasons why these are not effective differentiators.
- They are ubiquitous. If everyone is saying the same thing, it is by definition lacking in uniqueness.
- These are base-level expectations by clients.
Here is some tough love. The lack of exclusivity in your messaging is only part of the reason why it’s tougher for you to win new clients today. Today’s consumer is faced with what renowned psychologist Barry Schwartz describes as the “paradox of choice”. The internet has expanded access to information on insurance, but it hasn’t improved their ability to make good decisions about coverage.
This is bad news, because consumers and business leaders make decisions based on areas they understand. By and large, they don’t understand insurance. They DO however understand the cost of their insurance and its impact on their budget.
What does this mean? You are not missing out on leads and sales because your customers are price- conscious. You’re missing out because you haven’t sufficiently educated them with more important criteria. Your job is to give them the tools and perspective they need to make a decision based on more important criteria.
Generate New Clients By Serving Them Before They Buy
According to the 2013 Best Practices report, producers spend about 26% of their time prospecting for new business. Assuming a 50 hour work week, your agency needs to make these 13 hours count. Here are some things to think about for maximizing those hours when prospecting for commercial lines:
1. Deliver valuable risk management insight to the classes of business you want.
Our goal here is simple. Answer the prospect’s obvious question: Why should I spend any time talking to you?
Good news. You typically don’t have to start from scratch. Look through the marketing material available through your carriers, then add a brief synopsis (2-4 paragraphs) specifically relevant to your prospects. (For example, explain to the disaster restoration companies you are targeting why pollution insurance is critical if they are taking on mold remediation projects). Start by adding this to your blog and emailing to those specific prospects. Track for open/click activity and reach out by phone to answer questions. Your prospects will appreciate your insight, and this allows you to begin the process of building a relationship so you can earn their business.
Caution: Don’t just link to the carrier material without adding your insight. This won’t promote you at all.
2. Tell a story.
GE Capital is terrific at storytelling for sales effect. Similar to insurance agencies, banks willing to loan money are everywhere. GE Capital distinguishes themselves from this crowd by delivering insight for business growth in addition to cash. They do this by telling stories about the clients they’ve helped. While the other banks are battling over interest rates, GE Capital is winning clients with valuable insight. Check this concept out here.
3. Don’t forget your existing clients!
Don’t forget that the content you’re creating in point #1 is valuable for your existing customers, too. Use this information as a retention/rounding tool to keep your clients informed and satisfied. You’ll also find that this strategy makes it economical for you to “wedge” your way in to accounts with a single product line because you have a plan for earning the rest of their business.