Should we add life and health insurance to our agency?

[pita3333]

All:

Once again Scott has hit it right on the head....tho I am sure many (perhaps most) will not agree...and that is part of the problem!

Stop treating insurance as a commodity (one that can be bought off the shelf from anyone) and start treating it as a customized product. Focus on building relationships...this is not a short or easy process, but it is the most rewarding.

We have ourselves created the beast by always focusing on price. I remember being taught in a sales class to say "I know that price is always a consideration, but other than price what other factors will be driving your decision making?" This catches them off guard and they will usually have to think it over. IF they say only price...then that moment is the time to walk away before you have wasted any time. Let your price shopping competition (is it really your competition?) have this account and loose money.

There is quite a bit of lack of attention to quality and focus on quantity in our world today. To the point where we think having lots of accounts is good..when in fact we would all be better off having fewer good quality accounts. Accounts that won't beat us up over a few dollars.

I picked up a note card last weekend "No Matter What Your Role Is In The Business Of Life, The Goal is Quality And The Challenge Is Reaching It" Attributed to Fred Smith. I saw that and said ...ya exactly!

I often present quotes for coverages/limits that my clients do not have. I always tell them (and I really mean it) It does not bother me if you make this purchase, I understand that you have to make a business decision based on your budget and situation. I just want to make sure you know this coverage is available and how much the premium is. More often than not I get words of appreciation from them as well as referrals.

I know that I am in a minority ... and honestly that does not bother me cause I know being the minority that focuses on quality will net me rewards eventually and that I will not have as much competition.

In my personal life I always make sure to say thank you to persons who provide me with good or great service (I say good since to me even getting good service is a fresh change from getting the usual bad stuff) and I also make it a point to ask them their name and use their name in my thank you. Likewise when I get bad service I am very typically the one who will be talking to their manager...as well as not returning to that business. I have many haunts where I go out of my way to and pass other places I could get the same product from (sometimes for less cost) because I like the way I was treated by them.

Examples: I bought 3 vehicles from the same salesperson and dealership over a period of 8 years. I am about to buy my third high end mattress from the same person and store to get to that store I pass 4 others that can provide same product. I have followed one person from 3 different GNC stores to buy my vitamins (he is now a manager) I pass 5 other GNC stores to get to that one person. In each of these cases I get special treatment (above and beyond that great service they give everyone) because they value me as a repeat customer.

Now I will stand back and await the barbs that will be tossed at me from persons who think I am attacking them.

[pita3333]

I should add..I HATE to be sold to! Try and sell to me and I will walk out the door. Focus on finding out what I need and "interview" me to determine that and you will get my business over and over and over again.

Last story...remember me saying I bought three vehciles from same person? When I was looking for the second one I knew what vehicle I wanted and did some research about options and colors. I created a fax that said I AM buying a car...here is what I want in that car, here is what I do not want and here is what I don't care if is there or not. At the top of the list of dont's was red and white in color. My local dealer called me back within minutes and invited me down. I went down and gues what colors he showed me? Yes white and red! I turned to the salesperson and said did you read my fax? He said yes. I asked if he had copy...he looked at it and then realized what he had done. I turned and walked away...he followed and asked me to let him show me more, I told him he already wasted enough of my time.

[independent guy]

If I can use this thread to suggest a paradigm shift...

Many on this forum speak often of selling / closing / prospecting. It is a mindset that is antithetical to the desires of your clients.

Nobody wants to be sold, closed, or prospected. People want solutions to their problems.

I suggest that agents should not be selling anything. Value is the desired outcome. You are trying to help someone with meeting the objectives of economic security using risk mitigation. Insurance is a tool used to achieve the objective.

Agents should see themselves as partners with their clients in reaching mutually agreed upon objectives.

Their interests become your interests.

The mindset of sales puts you in the mode of conquering your opponent. You are pushing for the sale - your prospect is standing in your way.

The mindset of partnership puts the self interest of your client together with your abilities, moving to a common objective.

Risk mitigation includes other tools besides auto insurance. Offering narrow solutions to a client's problems shortchanges you.

Trust is the coin of your realm. Once you have established trust why not be able to provide a broad range of services - insurance products and other risk mitigation tools.

More value to the client always means more income to you.

Your self interest is served by serving your client's self interest.

Scott, I really enjoy your posts and often they're pure gold. This post almost reads like Stephen Covey on insurance. I think people (particularly myself) use the word "selling" to encompass a wider variety of activities than just trying to push someone to sign on a dotted line and cut a check. Its a generic word that describes the process that goes in to getting a potential client from "potential client" to "client", regardless of how that gets accomplished. Is there a better word for it than selling (of closing, or prospecting)? I can't think of a more concise way of putting it. In the end, my father has become very wealthy as an agent through what your describe in the last two sentences. I practice the same way.

One thing I really dislike is how some of the other agents in town treat certain people. Old people, people they perceive on first glance to not have enough money to "dig for", etc. People come to me saying that they have asked the agent to do something, or have requested quotes, only to be brushed off. I have really made a lot of money this week by helping these people that other agents have refused! And I have already gotten referrals this week from these people! They're really happy! All I'm doing is treating them the way I'd like to be treated, and that means taking the time to explain things to them even if I don't see a dollar sign behind the minutes I spend with them. Or more, its not trying to see walking dollar signs.

[robmejia]

I enjoyed reading over the thread and learning some firsthand experiences of some of the members. For sure, these tips will help agents out there to better serve their clients.

[chizcurlz]

It will still depend on your area. But since life and health insurance products are very popular particularly in middle and lower class community, I think you should also add this.