|
 An agent asked me the other day how he could get more prospects to call him. His agency had been in the same small town for 50 years and everyone was familiar with it, so name recognition wasn't a problem. His difficulty was the same faced by most agencies: He needed to let prospects know why they should do business with him.
For countless years independent agents have failed to advertise their competitive advantages. They've failed to let people know why consumers should buy from them. Several years ago the Independent Insurance Agents and Brokers of America (IIBAA) National Survey results showed that 67.2% of consumers prefer independent agents because they represent and can select from multiple companies. Yet independent agents had a market share of less than 30%!
Another IIBAA survey showed that only 44.1% of independent agency Personal Lines clients knew that their agency represented multiple companies, and more than half of these customers thought their agent was a captive! If your own customers don't know independent agencies offer multiple companies, what do you suppose noncustomers think?
The fact that independent agents represent multiple companies could be a major selling point. But only a minuscule number of consumers is aware that independent agents offer what they desire! How would Ford and McDonald's fare if people didn't know Ford made trucks or McDonald's made Big Macs?
Insurance Web sites are advertising heavily about their ability to offer quotes from multiple companies, and consumers are enthusiastically responding. Independent agencies are expected to lose almost four market share points to the Internet within the next three years.
Independent agencies missed their first opportunity to use their prime competitive advantage. The good news is it's not too late: The Internet is providing a great opportunity. Because Internet companies have been so successful at raising people's awareness of the availability of multiple companies, independent agencies must advertise that they offer this same advantage. Forget all those slogans about great pricing, great service, and great whatever. Everyone advertises these features so much that no one pays any attention.
Instead, advertise that you offer the choice of multiple companies and always give customers quotes from at least two different sources. Then you must raise the ante. Publicize that you not only offer multiple companies, you also work for the customer - you don't work for an insurance company. Raise the ante even further: You offer multiple companies, you work for the customer, and you can provide professional advice. No other type of insurance seller can offer all three advantages, and the majority of consumers want these benefits.
Advertise your advantages everywhere. Put them in your proposals. Use them in your sales pitches. If independent agencies get this message across, consumers and prospects will know why they should do business with you!
|