until you start talking with them. Find out what their needs are and learn to match a product that addresses those needs. The insurance business is no longer about selling policies. It’s about what you can do for your customers. What a concept!
STAY FOCUSED ON FILLING CUSTOMER NEEDS
The owner of a small, fast-growing agency on the West Coast shares his thoughts: “I learned many valuable lessons in learning how to refocus my agency, using my time and energy to be customer-focused instead of product-focused. One of the most important things that’s helping my agency grow is systematizing appointment scheduling. This gives me the opportunity to spend the majority of my time meeting with clients and getting to know their needs. I want to stay up to date with the needs of my customers and continually build the relationship. And my customers need the ‘face’ time to feel safe, secure, and sleep well at night.”
Customers Don’t Care about the Transaction
For years this industry has been focused on the “transaction.” We sold an auto policy—a transaction. We sold a homeowners policy—another transaction. That might work for the agent, but does the customer really care about “the transaction?” Of course not. What John Q. Customer wants is excellent service, knowledge that the product he purchased “delivers,” convenience, and someone he can trust to go to for answers. As an insurance professional your job is to protect your customers’ assets now and in the future, and to help build them. If you can do this, you’ll be successful. Delivering anything less is just baloney!
So much of what we do appears complicated and confusing to customers. Take auto insurance, for example. One of the reasons auto insurance has yet to take off on the Internet is that most consumers are confused by the specifics. First of all, they have to wade through perplexing terms such as “limits of liability,” “deductibles,” “limits,” and “riders”— buzzwords that few consumers fully understand, and no wonder! It’s our jargon, not theirs! Second, there’s no one in cyberspace who can help them isolate what they really need. What they thought would be a convenience when they got online to ferret out some information turned into a fat waste of time. Unfortunately, the same thing sometimes happens in face-to-face encounters between agents and prospective customers. The good news is that it doesn’t have to if you’re dealing with your customers using a needs-based approach.
Let’s take another look at explaining auto insurance, only this time using a needs-based method and ditching the jargon. Say you’ve got a customer who’s just come to you for a low quote. That’s hardly unusual. But is the lowest price really what your customer is looking for? Is it the only thing? No. What he wants is a product that lets him get in his car every day and not have to worry if he winds up in an accident. Your explanation might go something like this:
“I can give you just a low-price quote, but it may leave you exposed if something happens. Instead, let me ask you several questions to identify the coverage that will enable you to get in your car every day and not have to guess whether you’re really protected.”
It’s a straightforward, easy-to-understand explanation, and it opens the door to some real dialogue. So if you think you have the upper hand by spewing forth gobbledygook insurance lingo, stop it! Start thinking about providing customers what they really want—one place to do business, someone easy to do business with, and peace of mind.
Break out of that limiting box labeled “insurance salesperson.” See the larger opportunity and see the big picture—the true picture. That picture is of the household, and what products and services you can provide that best serve not only the needs of a particular customer, but the needs of the customer’s entire household. It’s such a vital component of profiting from change that the next chapter is focused on it.
Customer-Focused Growth
Product-focused managers at the corporate home office like to talk about growing individual product lines. Their entire mission is to sell more and more of the products they manufacture each year. In fact, they’re so focused on product sales that many have lost touch with the people they’re selling to. Don’t let that happen to you. A more successful approach is to identify the needs of your customers first, and concentrate on finding the products that fit those needs. The sales will follow.
PUT THE CUSTOMER FIRST—NO MATTER WHO THE CUSTOMER IS
After 22 years of owning and operating an insurance and financial services agency, I can honestly say, “I have seen it all.” Accounts come in all shapes and sizes. However, the philosophy in my agency is that every person deserves the same level of attention and service. Everybody’s money is green. And no matter what the dollar amount, that transfer of funds buys them the type of service they desire and have every right to expect. We don’t service policies, we don’t service premium; we just service people. We get paid for the value we bring at the end of the day. Put another way, instead of worrying about the specific transaction, we focus on the sum total of our service.
I guarantee that as you adopt a customer-focused approach you will revitalize your business. It’s no longer dialing for dollars or even X-dating. In fact—and don’t panic—I believe that as you adopt a customer-focused approach, the number of customers you serve could actually shrink. But that’s not bad news, because the number of products per customer will increase significantly.
Look, why did you decide to become an insurance agent? Did someone promise you that if you worked hard for five years, you would be able to coast for the rest of your career on renewal commissions? Did you fall into the insurance business because you weren’t doing anything else at the time or were frustrated with what you were doing? Did you want to be your own boss and make a lot of money? Did you always want to be an agent?
Whatever your reasons, what I’ve found is that too many agents are frustrated, bored, and uninspired with running their agencies. Some flatly dislike what they do. They don’t feel like they’re adding value or making a difference. If you’re one of those agents, don’t despair, because if you can adapt to the changes that have impacted our industry—and you can—you can win big. And guess what? You’ll find that your job has morphed into something you enjoy. In fact, when you make your daily goal one of helping your customers, you’ll find that your job is downright invigorating.
The Big Changes
So what’s been going on? As I described in Chapter One, technology, access to information, and constraints on time have changed the typical consumer. Consumers know more, they expect more, and they’re less forgiving. You’re no longer the only game in town and you can no longer sell on price because the direct writers will beat your rates. So how do you compete? You have to provide value so your customer can justify paying more.
Take a look at retail clothing for an example of the success of customer-focused growth. Nordstrom department store has had phenomenal success by delivering high-quality service. Sales associates are trained to put the needs of the customer first, ahead of making a sale. Are their prices higher? Yes, but thousands of people enjoy shopping there.
HOW I CAME TO BUY A PINK SHIRT
I
