I've asked hundreds, probably even thousands, of agency personnel why people should buy insurance from them. I estimate that 95% answer, 'We provide great service.' Unfortunately, few can prove that they provide great service, and even fewer know what great service is.
Even if an agency can define great service, is it an advantage? An advantage must be unique. For example, if a wide receiver can run a 4.0-second 40-yard dash, what advantage would he have if everyone else on the field could do the same? Great service isn't an advantage if everyone offers it - which apparently most do.
Many companies haven't even positioned themselves that well. They don't want to be the best. They don't even try to rise above average. How many successful businesses strive for mediocrity?
Agencies must find a way to stand out, if only in a cosmetic way. Think about fast-food hamburgers. The price, nutritional value, and taste are comparable, according to many people. But McDonalds and Burger King have distinct corporate images and target markets. McDonalds targets kids. Burger King boasts charbroiled hamburgers with a unique taste.
Because all agencies sell insurance, what makes people buy from you? Do you customize coverages for each account? Do you give away a lot of promotional items to get customers? Do you use coverage checklists with every account? Or do you only quote coverages that are requested or that the client currently has? Do you have a unique or at least memorable personality that stamps an impression on peoples' minds? What are you doing differently?
Many sources estimate that more than 300 insurance company groups and 25%-50% of all independent agencies will be eliminated in the next three to five years. The agencies that don't give customers a special reason to do business with them will be the ones that won't survive.