For Your Eyes Only

Strange title?  Not really. This article isn’t for everybody.

If you don’t realize your business is in jeopardy or don’t care, this article isn’t for you. If you don’t see any reason to change the way you have been operating for the past 10 years, this article isn’t for you. If you think social media is just a passing fad and doesn’t really impact your business today and in the future, this article isn’t for you. If you aren’t willing to do what it takes to convince consumers of the importance of having professional advice to properly protect themselves, their families and their business, then please don’t read any further.

But if you believe there is no better way of buying insurance protection than from a committed and professional independent agent—one who cares about making sure their clients are adequately and properly protected and advocates for them when they have a claim—then this article is meant for you!

I know I sound like a broken record, but what we believe in and how we do business is under attack. This new generation of competitors wants to turn this from a people business to a technology and artificial intelligence business. They want selecting coverage to be tied to cost instead of understanding how it works and buying the proper protection. They infer all coverage is the same even though we know it isn’t. We realize that even a few different words in an insurance contract can be the difference between being made whole or suffering an unreimbursed financial loss.

These new competitors are smart. They spend millions on advertising and are very effective at using social media. They are well versed in psychological marketing, preying on consumer biases with insurance companies and agents. They depict us as overcharging, profit mongers with no social conscience interested in lining our pockets with increased profits while screwing honest folks by undercutting or denying claims.

Besides preying on consumer biases, these new competitors have identified and capitalized on several serious weaknesses in the way we operate.

• Offering consumers a choice currently makes our process slower and more cumbersome.
• Our traditional carriers continue to use older legacy systems that don’t take advantage of today’s technology.
• Agents are also struggling with updating their technology to provide the same level of efficiency and service as these new competitors.
• Consumers, especially the younger ones, want to do business over the internet, usually through a mobile device.
• Consumers in general are pressed for time and want to take care of insurance when it is convenient for them and not during traditional 9-5 hours.
• Younger consumers, starting with Millennials, want to do business with firms that are socially conscious and care about people and the environment.
• The new competitors have better-trained sales associates primarily because they sell on price, which is much easier than teaching how to sell the value of explaining coverage and providing proper protection.
• Because of their advanced technology, and in keeping with their psychological marketing, these new competitors are constantly in contact with customers and prospects, which affords them a stronger customer relationship.

So, what do dedicated and interested independent agents need to do to compete?

• Make every effort to automate and improve on your current sales process wherever possible.
• Push your carrier partners to join in this effort and to make the connection between you and them seamless and effective.
• Wherever and whenever possible invest in new technology that will improve efficiency and the level of services. Start with reviewing and revising your procedures to immediately improve the process where possible.
• Make sure your agency website is updated, effective and mobile friendly. Purchase and provide your customers with a mobile app and the ability to transact via it wherever possible.
• Decide to offer service capabilities on a 24-7 basis or at the minimum from office closing time to 11PM on weekdays and from 8 AM to 11PM on weekends.
• Take the time to promote the social and charitable activities your agency and your employees are involved in. I find many agencies do quite a bit; however they don’t publicize it because they aren’t doing it for that reason. You need to let people know.
• Invest in providing your sales team with effective sales training and hold regular sales meetings where ideas and issues are exchanged. Provide your sales associates with coaching and mentoring to give them the guidance and confidence that will make them successful.
• Over the years agencies have grown and their ability to stay in touch with their clients has gotten lost. Now more than ever agencies need to have regular contact with clients using every technology and medium available. Agencies need to create an optimum customer experience, starting with how the phone is answered and carried on through every interaction the customer has with the agency. Today’s consumer does business with—and remains loyal to—firms that work hard to earn and keep them as customers. Remember: it’s the little unexpected things that make a difference.

 It’s not always possible to do everything that needs to be done. Pick the most impactful and important changes and get them done first. Always be focused on implementing effective changes whenever and wherever possible. The competition isn’t going away, but you have something they don’t—a real compassion and commitment to do the right job for your client. Show it by making the changes that will let you win in the end.