Not Every Prospect Deserves Your Time and Attention

I read an article this week about a young consumer (in his early twenties) looking to buy a car, register and insure it. As luck would have it he intended to get a premium indication on a Friday afternoon and planned to buy the car over the weekend. The premium indication was to be based on the type of vehicle he was thinking of looking at and he wanted it so he could start planning the total cost of buying and insuring the vehicle. To add to the situation he was living in one state and licensed in another. His father encouraged him to seek out an independent agent for the premium indication and advice. He on the other hand wanted to go online with a company like Geico or Progressive whose name he was familiar with and who would allow him to do everything online. Things didn’t go well with the calls to the independent agents. Getting a pricing indication met with several roadblocks. Because it was late Friday afternoon time was an issue as several of the independent agents were close to closing for the weekend. In addition several wouldn’t have the capabilities to bind coverage over the weekend as he was looking to do. There was also reluctance to work with him because of the out of state license and time constraints. One agency representative actually came right out and advised him that because of the limited time before they closed and the out of state license they just couldn’t help him.

Going direct online wasn’t a cake walk either. Completing the online information was confusing especially when it came to selecting coverage he really didn’t understand. By accepting the coverage recommended by the company was he buying too little or too much – he had no idea. When the quote he got online differed from the quote he got over the phone from a representative he called back the company confused. Which was the correct quote? The representative he got seemed a little irritated and said “if the online quote is cheaper, then go with that”. After reading the article I was really concerned that the independent agents didn’t write this young man. Once I had a chance to think it through I wasn’t as concerned. Yes there were issues highlighted that needed to be dealt with – after hours availability, overcoming the advertising budget of major online insurance providers and insensitive and rude agency personnel. They were issues but nothing that couldn’t be overcome.

The real issue was this was an exceptionally unusual customer because of all of the circumstances surrounding his needs. Not the type of prospect most independent agencies should build their marketing around.

It’s the same thing that applies to the guy who calls “Jake from State Farm” at two in the morning. He is also not the kind of prospect any agency would pursue. Most clients do not have a need or a desire to speak with their insurance agent at two in the morning unless it had to do with a serious loss. Most agencies have made provisions for clients to reach someone in the event of a serious claim.

The real issue is has your agency identified who your primary prospect or prospects are and is your agency designed to attract and write them? Many agencies like to see themselves as generalists able to write coverage for anyone who has a need. That’s not a problem occasionally under the right circumstances; as long as you have identified the prospects who are your primary market and you have developed the necessary products, systems, and procedures necessary to attract, write and service them.

Too many agencies haven’t identified who their target market is and so they find themselves struggling to write any and every prospect they come across getting more and more frustrated. Some of those prospects are price shoppers and so the agency finds itself selling based on price and very likely getting frustrated with their success rate or their agency retention. If you are attempting to write younger prospects without the ability to offer them web based information and accurate online quoting you’re not going to be very successful. You may be able to overcome the agency’s shortcomings in the short run but long term these clients are going to get frustrated or will be lured away by online insurance providers. All of the extra work and frustration the agency experiences going after the wrong prospects takes the staff away from working with the clients they have who purchased insurance from them, see value in the service they offer and want them to handle all their protection needs.

To be successful I believe an agency has to identify the prospects they want as clients. They need to understand what those clients are looking for and they need to support their needs while educating them on the most effective way to protect themselves. Most clients that exhibit the characteristics of your ideal client are great referral sources of friends and relatives that are very much like them. They communicate on social media about things they like and value and that will raise your image in the mind of their friends and relatives. They want to feel special and appreciated. They look for their agent to keep them informed and provide them with service when and where it is most important to them.

If you and your staff are feeling frustrated. If you find yourself trying to write any and every prospect that crosses your path. If you are totally focused on selling on price. If your retention is slipping and the referrals you get are just as frustrating as the new clients that sent them to you. If you wish you could write quality clients who appreciate the professional services you provide. If you want clients interested in carrying proper protection and growing their account with you. Then it’s time to stop and develop a well thought out plan to locate the clients you want and offer them the kind of agency experience they desire.

They are out there but you need to do the necessary work to identify them and make them a client. Many of these prospects aren’t actively looking to switch agencies but they may not be getting appropriate advice or protection. Many aren’t getting the attention or service they deserve. Just ask any prospect you meet “When was the last time your agent reviewed your protection with you, recommended new or different coverage or sent you information that you find interesting and/or helpful?” You’ll be surprised with the answers you get.

Stop running on the treadmill of frustration trying to write every prospect that contacts you. Pick the ones that fit your new customer profile or that want the services you provide. Actively pursue the prospects that fit your profile. Develop your marketing and sales to help you attract them and make them clients. Be proactive and go after them. In the long run you’ll be happier and more satisfied. Your clients will appreciate what you offer and you’ll attract more like-minded prospects that will help you grow organically. Getting started isn’t easy and being successful takes perseverance and the confidence and commitment to providing insurance protection the professional way.