Put Sales Last To Succeed

PUT SALES LAST TO SUCCEED

by Michael Jans

Impossible dream? No.There are agents who are living this dream right now. We’ll take a look at how well they’re succeeding later. But first, let’s take a look at how they got there.

It starts with the difference between sales and marketing. 'Sales' should be the last phase of a Strategic Marketing Process. Without marketing, it’s like the tail wagging the dog. You end up with producers wasting costly 'face time' with low-probability prospects. It’s no wonder our industry burns out so many producers. Put the sales step at the end of a Strategic Marketing Process, however, and producers will face only pre-qualified prospects, making the agency’s books of business swell — together with the bottom line.

Why does our industry have such lackluster marketing? There are two principal reasons:

1. During the past 100 years, the American economy has grown faster than a jackrabbit in front of a prairie fire. Everything needed to be insured — and our industry has been the lucky beneficiary. With 'automatic growth' like that, who needs marketing?
2. We throw producers at the market like Marines on the beachhead. Without solid marketing to prepare the field, 80% get blown away. But that’s okay; we’ll just go get some more.

It’s not only the insurance industry. Marketing stinks everywhere. My mechanic’s a lousy marketer. My lawyer’s a lousy marketer. My accountant’s a lousy marketer. Wherever you look, most people are better at their technical trade than they are at marketing their technical trade. Only a lucky few understand that their well-developed technical skills are not the skills that get their phones ringing off the hook or customers stampeding to their door.

However there are agents who experience explosive growth thanks to marketing –

and their secret isn’t rocket science. They’ve created a Unique Selling Proposition (USP) that answers the most important and toughest question any agency will ever face. And more importantly, it’s the question that prospects already are asking silently:

You need to come up with a straight-for-the-gut, honest answer that rings with truth. A plateful of empty platitudes is not an acceptable answer. You don’t want answers like these:

• 'We’ve been in business since 1939.' Fine. Does that mean if I find another agency that has been in business longer, I should go with it? (By the way, I’m a Chicago Cubs fan, so I’ve learned the hard way that being in business a long time does not equate to greatness!)
• 'Service.' Boring. Look up 'service' in Webster’s and you still won’t know what it means. Remember, your prospect is tuned into radio station WII-FM (What’s In It For Me?). Fluffy words don’t cut it.
• 'Integrity.' Does that mean you won’t steal my money? Is that really a selling point?
• 'Excellence.' Like every other buzzword touted by management experts, it’s had the life beaten out of it.
• 'We take really good care of our people.' Isn’t that special? Again, what does it really mean?

Your Unique Selling Proposition (USP) needs to have a 'hook' so compelling that it really matters to prospects and clients. It must be so unique or gripping that it makes them stop and say: 'Really? Tell me more!'

Then, you’d better back it up with proof. Don’t tell clients how good you are. Show them!

Many agents respond that they don’t have anything unique or compelling. That’s because they’re focusing more on the product than on the relationship. They’re falling into the 'commodity trap.'

When we sell commodities, only one thing matters: Price.

Do you really believe that you’re selling only a commodity — and can’t create a Unique Selling Proposition? Think about this. Imagine taking a real, dyed-in-the-wool commodity business and not changing the product at all. Then you listen to what your market wants and create a USP that grabs the market so powerfully, that within 10 years you’ve got 80% name recognition in every medium and large community nationwide. Later, you sell your business for $1 billion and build a university. That’s what Tom Monahan did.

His business was built on flour, salt, water and tomato paste. You guessed it, pizza. And his Unique Selling Proposition? 'Fresh, hot pizza delivered to your door in 30 minutes or less. Guaranteed.' Not a cute slogan, but a direct offer that the consumer wanted backed with an ironclad guarantee.

How do you create a Unique Selling Proposition in the insurance industry?

Here’s the bad news. If I could hand you a USP on a silver platter, it wouldn’t be unique. This is one of the few things in business worth losing sleep over. You should be tossing and turning at night if you’re stuck in a commodity business. That’s the trap you want to get out of before you get flushed away. Lock yourself (and your key team members) in a room, roll up your sleeves, sweat blood — and create a USP.

Here’s the good news. Agents just like you have done this and watched their businesses explode. Some examples:

The Specialization USP. John Baccarella of California has built his business by insuring contractors — and contractors only. Every e-mail, letter, and written communication from his office declares: 'We only insure contractors.' Then he backs up his specialization with a powerhouse of information, education, and advocacy for his marketplace. Books, free reports, bulletins. Contractor prospects are absolutely convinced 'this is the guy for me.' And this 'guy' is writing $45,000 to $60,000 in new business commission a month. Every month. He’s written $3 million policies with contractors he’s never met. Why? Because they’re rock-solid certain that he’s the expert.

The Consumer Advocacy USP. Although Many agents say that they 'work' for the consumer, John Mason proves it. His prospects and clients are deluged with a stream of educational material that demonstrates that he’s not only an expert, but that he puts his expertise to work for them. They get 'dripped' with information they can use to protect themselves and their families — information that also emphasizes John’s membership in the National Society of Agents for Consumer Education. The result? More than 9,000 Personal Lines clients — from an agency in a 2,000-population town and more than $10,000 in new business commission a week, not to mention a loss ratio that’s the envy of the industry.

The 'More Expensive' USP. After selecting his most profitable niches and creating informational bulletins for them, Bill Hale storms into his marketplace with confidence. He tells his prospects that he’ll consult with them only if they’re prepared to pay 7% to 13% more. That takes him off the commodity list immediately and turns him into a Trusted Advisor before he even meets with them. Would that be worth six figures of growth to you every year? It is to Bill.

Remember, the essence of your USP is the idea, not the slogan. Sure, you might be able to craft some powerful words that deliver a punch. But you must have the idea first! Also, your USP is not your marketing campaign. The three agents I mentioned are masterful marketers who understand how to fill their funnel with hot prospects and build systems that keep them in the loop until they’re ready to buy.

But it all starts with a USP. Miss that step and the rest of your Strategic Marketing Process will be as stale as week-old bread. Dig into your market and your own business enough to pull out your Unique Selling Proposition — then buckle up. You’re on your way to the exciting ride of growth through marketing.