So You Want to Sell Insurance

Transcription

1 So You Want To Sell Insurance By John Graham Although I have never been in the insurance business, I have worked in it for over two decades, thanks to an iconic agent, Herb Glanz of Suburban Insurance Agency in Holbrook, MA. He came to my office one day to talk about having us work with his agency on its marketing, which we did for a number of years. Our work with insurance organizations has been guided by what Herb taught us about the business, whether customer service, the immense importance of an agent having technical knowledge of insurance or the value of technology (Herb was an early adopter). He was also an effective teacher, whether he realized it or not. Thanks to Herb s introduction, much of our business is in the insurance field, both property and casualty and life and health. Our interest in insurance is as engaging and intriguing now, as it was the day Herb walked through our door. Here are a few things we ve learned about insurance and the business over the years: Insurance people find it easy to alienate customers. Here s what a few people said about insurance agents in response to a recent survey: Greasy, sleazy, all about the sales and not caring about the customer or their wants, needs or concerns, Insurance agents are pushy and I grew up in a small town and insurance agents always bring to mind the patriarch of this one particular family. Every small town has one: moneyed, charismatic and superficial a big fish in a small town. Disagree with them, if you like, but as I read those comments to a large group of insurance agents in the Midwest, almost everyone in the room nodded in agreement! It s interesting that a national agent organization persists with an effort to have their members display a logo that attests to their trustworthiness. Sadly, this is reminiscent of Honest John, the used car salesman or the politician who felt it was necessary to announce, I am not a crook. To feel it necessary to tell the world that you re trustworthy suggests that the popular perception might be different. Customers know what insurance agents sell, but they don t know what insurance agents know. Before working in the field, I had no understanding of the intensely technical nature of insurance, a view that was undoubtedly fostered by the fact that policy language was as difficult as the Greek I struggled with in college. This is a serious mistake. While it s often said that the devil is in the details, protection is in the details when it comes to insurance. The level of knowledge required of first- rate agents is enormous, as those in the business know so well. I have often said that you can put a dozen agents in a room and they can solve any insurance problem you throw at them. Unfortunately, there is no public awareness of this competence absolutely none. 1

2 Insurance agents inadvertently intimidate people. It s ironic that the group that works the hardest to be admired and respected actually intimidates those it wants to win over. What are you talking about? you might ask. Agents give to every cause in the community, serve on every fundraising committee and you find them on the boards of countless charities. Yet, in spite of all this activity and generosity, most of us dread the thought of being asked to meet with an insurance agent, ranking it somewhere between having a root canal and paying taxes. Why? It makes us feel stupid when we don t understand what you re talking about? We feel put in a position to accept what you say, without knowing if it s in our best interest. We don t know if we really need what you want to sell us. We feel at a disadvantage or pushed in a corner and that s unpleasant. While no insurance agent intends for this to happen, it does, and it may help explain why so many agents believe that insurance is sold, not bought. Why would customers want to buy what they don t understand? These are major issues that pose a growing threat to the future of many independent agencies. While such comments should be taken incredibly seriously by the industry, they are only one part of the story, however. The other half is equally important and more instructive. Once an insurance agent has a relationship with a customer, more often than not, the story is different. In fact, something quite amazing occurs. In place of doubt and suspicion, there is understanding, trust and a willingness to take the agent s advice. In fact, customers actually seek their agent s guidance. What accounts for this incredible one hundred and eighty degree change? How can an insurance agent go from being viewed with doubt and suspicion to valued advisor and trusted choice? Yet, this is exactly what happens. And every insurance agent has had the experience. If this analysis is accurate, it leads to an inevitable conclusion: the insurance industry has it backwards. To put it in the most basic terms, customers want to have trust before they buy, while the insurance approach is to buy, then trust. This brings selling insurance to a critical juncture. On the one hand, the traditional approach of agents endearing themselves to customers so they can get them to buy is dead and gone. Most customers are no longer swayed by the See, what a good guy I am strategy. It s irrelevant. If that s not working, what should agents and producers do? First, it takes an attitude change. The picture of insurance agents in effect, hunting customers and getting them in their sights so they can bag them should go. This is the way customers often feel when they say, All that guy is interested in is the commission. Against that background, here are four key concepts for strengthening the insurance industry and, specifically, the agency system. 1. Become a thought leader This may sound strange and you may roll your eyes. If so, I understand your skepticism, since it seems to fly in the face of getting sales. However, the essential change needs to go from push to pull. At its very core, it involves becoming a thought leader. 2

3 Douglas Esposito, a producer at Owen- Dunn Insurance Services in Sacramento, CA is a good example, of someone who has put his energy into pulling customers to him. It was almost accidental, but Doug saw possibilities in the emerging solar industry and immersed himself in it. That intense, time- consuming commitment has paid off, however. He has become the solar risk management go to guy. He was recently an invited presenter at an international solar meeting in San Francisco and businesses seek him out for his advice. Underwriters turn to him when they need a better understanding of solar issues. Doug has created pull. And, if you ask him, he ll say to others in the insurance field, There are hundreds of similar opportunities. While price is always an issue, price, as insurance agents know, doesn t create customers, those who really want to do business with you. Price does not create value and it certainly does not produce customer loyalty. It only gets a sale. Doug Esposito s customers need what he knows because it makes a difference in their businesses. That s the standard. 2. Build a reputation based on helping, not selling There are many ways to help and insurance agents are known for lending a hand in the community. But that s what we re talking about. What just about every business needs is help in the sense of what is working and what isn t, use ideas, obtaining referrals and becoming aware of new opportunities. Because insurance agents have a window into so many businesses and organizations, they are in a unique position to share their experience with prospects and customers. That s being helpful. One insurance sales executive, Curt Dumbleton of Widerman & Company in Haddonfield, NJ recognizes the value of helping, which is why he started a networking and sales group with some of his current clients, along with prospects he wanted a chance to work with. When he approached them, their response truly surprised me, Dumbleton reports. Everyone jumped at the opportunity to join us. And for a good reason. Rather than taking the popular So, what do you do? approach, Dumbleton turned networking on its head. We keep it very simple, he says. It s about How can I help you grow your business? Dumbleton says that this isn t a message that those involved hear from insurance people or probably anyone else for that matter. My clients have no problem inviting others to our monthly luncheon because it s different from other networking groups they re involved with. He says there s a new success story every month. It s gone so well that I ve been asked to start two other groups. Dumbleton summarizes his success this way, I m meeting new people and opportunities keep coming. I m currently working on two very nice accounts, primarily because we wanted to help these people grow their businesses. 3. Focus on customers Once again, those in the insurance business will say that their first concern is the customer. And to some extent that s accurate, but not always. It may be helpful to check out these items: Stop talking like insurance people. If you re a customer, you don t want to be 3

4 known as an insured. Granted, insurance language is necessary in the conduct of insurance business. But dump it when you re communicating with customers. They don t know what you re talking about, which makes them feel lousy. Sometimes I think insurance types use insurance jargon because they don t really know what they re talking about. Get rid of all those horrible agency letters. They ve been around too long, some for 20 years. They re stilted, dull, clumsy and confusing and certainly not conversational. You know the ones. They start out, Pursuant to our conversation. Human beings don t talk that way. Just be friendly. How would you like to receive a registered letter that sounds like it s from a judge telling you that your insurance is being cancelled? Forget about trying to impress everybody. Why do agencies use a photo of a large office building on a website, when they occupy a small amount of the total space? Why do their presentations open with exaggerated information about the agency? Or, like one we reviewed recently, described in great detail the many awards bestowed on the agency president? And who cares how long you ve been in business? To make it as clear as possible, most of us can t stand to be around those who are always talking about themselves. If that s true, it s safe to say that customers may feel the same way about agencies that want to impress by telling us how wonderful they are. Don t use the social media for self- promotion. Some insurance professionals make it a practice to use the social media to promote themselves. Nothing turns people off faster, whether it s overt or thinly veiled. Unfortunately, it reveals one s true colors and shows that you don t understand what the social media is all about. 4. Getting it right At the end of the day, sales are critical, particularly when economic conditions are far less than satisfactory. Here are four suggestions: Identify those you want as customers and then cultivate them, carefully and methodically. In other words, pulling them closer to you so they can appreciate what you can do for them. Agencies and producers have a bad habit when it comes to prospecting. Both are only interested in the low- hanging fruit. This is a get lucky strategy, like cold- calling, and has nothing to do with prospecting, which is a process requiring a long- term commitment that pays off over time so you ll be there and known when the prospects get ready. Promote your niches. If you have expertise in a particular industry segment, showcase it. The goal is to be the go to agency in that field. If an insurance carrier wants business in a certain SIC code, be sure to vet it before jumping in. It may be right or maybe not. Go through your commercial book of business and identify possible niches. Stand up for consumers. It s somewhat ironic that the insurance industry reportedly has the largest lobbying operation. While they stand tall for the industry, they are noticeably silent when it comes to consumers, i.e., their customers. It would be newsworthy to have agents speak up for consumers. It would be interesting to hear an agent say publicly, Is this really good for our customers? or 4

5 It seems to me that we can do better for the people we serve. Is it too much to ask that insurance agents be advocate for consumers, those who buy their products? It might be a good way to put agents extensive knowledge to work. Make insurance education your mission. You ve seen the surveys. They all tell the same story. MetLife Auto & Home s recent Insurance Literacy survey underscores the public s abysmal ignorance about homeowners coverage. Just under one- third haven t a clue as to what their homes are insured for, almost half have no idea the amount of coverage they have on their homes contents. What s worse, more than two- thirds believe that their insurance will pay the full cost to rebuild their property resulting from a major loss such as a fire or other natural disaster. How different is it with business owners? Probably about the same since agencies constantly field inquiries about coverages from business owners. If agencies spent less time talking about themselves and more time helping customers and prospects understand insurance, the chances are they would sell more insurance. It s a sound concept because empowering people produces positive results. If you think this is someone else s job, think again. It s agencies that benefit the most from making it part of their mission. Finally, it s little wonder that insurance buyers of both personal and business insurance are suspicious, ambivalent and even distrustful of insurance people. How can they be otherwise unless you make an intense effort to let them know who you are and what you do and how it benefits them? The good news is that there are many insurance agents today worthy of respect and trust like Herb Glanz. What s needed is for the entire insurance to behave in ways that help consumers see them for what they are, trusted advisors. John R. Graham of GrahamComm is a marketing and sales consultant and business writer. He publishes a monthly enewsletter, No Nonsense Marketing & Sales. He can be contacted at johnrg31@me.com, and 5