21st Century Communication For Insurance Agents - Part 1

10 New Ideas To Grow Your Agency And Keep Your Clients Happy During Challenging Times

Times are changing in the insurance industry and unfortunately too many agents are NOT keeping up.  New threats to our profession are popping up every day including a constant barrage of ads trying to convince clients that they no longer need us.  Consumers can - and do - buy insurance without an agent almost 65% of the time. Those that choose to work with an agent expect more than ever before from that agent. They want to be wowed and impressed not only by an agents knowledge (all agents are expected to be knowledgeable) but also by their ability to communicate and provide an experience they can not get from anyone else.

What worked in the past doesn't work the same anymore, but if you're willing to learn new ways to communicate with clients and new ways to be successful than these can actually be very exciting times. As times get tougher and more agents go out of business (because of their refusal to change), those of us that are left will get the lion's share of both the clients and the income. 

                                                                                     

In fact, I predict that the professional agents who can survive the next 5 years will find themselves in the best position of their entire careers, making more money and reaching new levels of success. But, you must make it through the tough times first. You MUST adapt. You MUST incorporate new strategies to engage with your clients. You MUST expand your communication arsenal. You MUST take action today, or find yourself out of business tomorrow.

There are three rules to keep in mind when developing your client communication strategies:

1. Frequency: How often do you touch your clients? How often do they see you, hear from you, get something from you or interact with you? Studies show that if you don't touch your clients a minimum of 13 times per year then they don't even remember your name. Did you catch that? Your clients don't even know who you are if you are not touching them in some way, shape or form at least 13 times per year! If they don't know who you are how likely is it that they are going to be loyal to your agency when rates get a little tough? If you don't touch them 24 times per year then they don't feel special about you or think that you feel special about them. Did you touch your clients 24 times last year? If your clients don't think that you're special are they going to send you referrals? Most agents touch their clients 2 times per year and unfortunately those touches are coming from the home office in the form of renewal packets and a bill. If they only hear your name or see something from you 2 times per year and both involve them paying large sums of money, how good are they going to feel about you?
2. Perception: You get to choose the way your clients see you. Whether you want to be the funny agent or the high class agent or the ultra professional is completely up to you and completely under your control. It doesn't really matter what you decide to be to your clients as long as you are something besides just another insurance agent. There are plenty of those around and believe me, you don't want to be one of them. Clients need to know why you are different and what makes you tick so they can have a connection and you can develop a lasting bond. Remember, these are social times we live in.
3. Uniqueness: Clients expect more than just insurance policies from their agent and their insurance companies these days. If all they cared about was the actual policy and coverage it provides then we wouldn't have lizards selling insurance and Flo wouldn't be the best known spokesperson of any company, in any industry, in the entire country. People want to be entertained! They want an experience, not just a transaction. They want something different, and your communication strategy gives you the opportunity to give them everything they want PLUS the things they really need (like a knowledgeable agent looking out for them). If 95% of the agents in your area do things a certain, specific way then you need to do the opposite. Fortunately, 95% (or more) of agents don't do anything so being different is not too tough. Don't be a part of the herd, following everyone else and doing what they do will only get you one thing - slaughtered. As Robert Frost says, take the road less traveled and it WILL make all the difference.

There are 10, 21st century ways to communicate with your clients that WILL give you a true advantage over your competition - both big and small - and help you take your agency to the next level. My next post will be about the first method, video mail. Why do I use it, how do I use it, when do I use it and what does it get me in return.

By Robert Edgin

"I Know I Can Find Cheaper Insurance"

What do you say to clients when they tell you they know they could find cheaper insurance somewhere else?

I just met with a client who's agent is no longer in the business and who's policies were transferred to me. This was our first meeting together and unfortunately we were reviewing their policies which had about $400 in increases (not my favorite first meeting!). Right away the client attacked with the cheaper insurance statement and I had to make the decision on how to respond. Here's what I said:

This might not be the right response every time BUT it is good to remind people of why they have insurance - and more importantly - why they have insurance with you! The result from this meeting was a client who better understands their premium, better understands their policies and better understands the value we bring.

By Robert Edgin

What Are People Really Buying From Their Insurance Agent?

I know a lot of insurance agents who think that their prospects and clients come to them because they need to buy insurance. Do they need the insurance? Yes, but are they taking time out of their day to drive across town and sit face to face with an insurance agent (not known for being the most exciting people on earth) simply because they need to buy insurance? No!

If all they really wanted was to buy the needed insurance they would just get on line or pick up the phone. Then, 15 minutes later they would save 15% on their car insurance and then move on with their life. There are many, MANY ways to buy insurance that are both easier and cheaper than using an insurance agent. They may need the insurance, but they want something more!

They'll hardly ever tell you they want more because often enough they don't even realize it but the fact that they are talking to an actual, living and breathing, local, professional agent should tell you enough. Do they want good rates, sure. Do they want convenience, absolutely. But if that was all they wanted you wouldn't know they existed because they never would have called you. Deep down inside they want more than an 800 number or web site can give them, and if a professional agent has the opportunity to fill those needs, that agent has no competition! At least not from the 800 number and internet insurance companies.

People still want to feel cared for, taken care of and protected. They want someone to put their arm around their shoulder and say "don't worry, you're safe with me." People want to interact professionals who are more concerned with protecting their family than entertaining them with a funny commercial. People want the expertise and knowledge that an agent provides and the peace of mind that comes with knowing that their personal agent is looking out for them. People want an insurance agent! People want YOU and they are buying YOU as much or more as anything else they are buying.

Does everyone feel this way? No, but why would a professional agent waste their time on someone who doesn't? Let those people go elsewhere until they find themselves in a situation without the helping hand and support that an agent brings. Let the prospects focused on cheap go with cheap.  Find the prospects focused on value and you'll build a lasting, successful agency.

So many agents whine and cry about the prospects who went elsewhere because the rates were cheaper. They were never prospects to begin with, they were price shoppers and future headaches. The old saying still holds true, if you win on price you'll lose on price because you won't always have the best price. However, if you educate clients about what they really want - the best value and the best agent - then price is only ONE of the considerations. Quite often, it is not even the primary consideration!

My favorite sales are to new clients who's current price is $200-$400 below mine. I know that if I can help them realize what they want deep down inside and understand the importance of the best value then the sale will not be hard to make. I also know that a client who chooses to pay more to work with my agency will be a client for life and a great referrer of similar clients. My least favorite sale to make are to people who are already paying more and are actually saving money when working with me. I know I'll have much tougher sales to make in the future to the second client because they typically switched started working with me for the wrong reason - price!

Stay focused on what people are buying first and foremost when you sell them insurance. They are buying the peace of mind and comfort of working with you, a local, professional agent. They are buying you first, insurance second.

By Robert Edgin