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Winning Strategies
Becoming the competition that is feared
Specific strategies of feared competitors
By Roger Sitkins
One of our members once said to me, “You either fear the competition or become the competition that is feared!” That really got me thinking. Actually, because I like to use sports analogies, it made me wonder whom this applied to in the world of professional sports.
In their heydays, what did the New York Yankees, Green Bay Packers, New England Patriots and UCLA (coached by John Wooden) all have in common? They all were feared by their competitors.
Do you fear, or are you feared? In this article, I’d like to share with you the characteristics of feared competitors and the basic strategies they employ.
The Fear Factors
How do you determine whether or not you’re a feared competitor? Here are some distinguishing features that I call “Fear Factors,” which make an agency and/or its agents really tough to compete against.
• Overall professionalism. How professional is your agency? What is the overall image projected by your producers? How do they look? How do they dress? What do their point-of-sale materials look like? Are their presentations well rehearsed and polished?
• Value proposition. The term “value-added services” has been overused to the point of becoming a cliché. But “value proposition” is different, in both definition and concept. It is the unique and appealing ideas and factors that separate you from all other “Me Too” competitors. It is what the true feared competitor brings to the marketplace—something totally different. Feared competitors don’t look like every other agency. Consequently, they never hear things like, “You insurance people are all the same,” because they truly are different.
• Risk surveys. On the P-C side, risk surveys are often discussed because they’re about as basic as you can get. Yet, on what percentage of your A and B accounts have you conducted a formal risk survey? More important, if a feared competitor came in and offered a full risk survey, would it be something that your client has never seen before?
Agents who write policies without completing a risk survey are as unacceptable as doctors who write prescriptions without making a diagnosis—that’s malpractice! The same goes for agents who prescribe solutions without taking clients’ “histories” and understanding their needs. If you’re not sure how to go about this, don’t worry because it’s never been easier! Just ask for Producer Online from The Rough Notes Company, which includes risk surveys for agents to use.
• Differentiation. Is your approach totally unique in your marketplace? Do your prospects ever say things such as, “No one has ever brought that to my attention” or, “No one has ever asked me that question before” or, “I didn’t realize how much my actions could affect my Total Cost of Risk”? If not, you’re probably no different from the competition. However, if you’re a feared competitor, your approach is so different that your competitors are constantly trying to catch up to you.
• TCOR measurement. Can you quantify the Total Cost of Risk for a prospect or client? Can you define it specifically? Do you have a tool that allows them to measure their TCOR per $1,000 of sales? A feared competitor can and does.
• Community and industry involvement. Feared competitors are those agencies that are involved with and giving back to their industry and community, and are doing so for all the right reasons. Typical, non-feared competitors get involved with the sole purpose of getting business. Their behavior is that of a common, unskilled vendor who cold-calls indiscriminately. Not surprisingly, they’re looked at negatively and viewed as highly unprofessional.
• Professional introductions. Working exclusively on accounts that stem from formal referrals or professional introductions gives an agent considerable credibility and a reason to be feared. That’s because if the client were fully satisfied, a competitor couldn’t get past the reception desk. Chances are, the client may have complained to one of his or her advisors about an insurance-related matter and was subsequently referred or introduced to another agent (i.e., feared competitor). The moral of the story: If someone comes to work on one of your clients on the advice of the client’s attorney, CPA or other trusted advisor, you’re in deep weeds.
• Record of success. Feared competitors know their numbers. They know precisely how successful they’ve been without any guesswork involved. They can honestly say to a prospect, “Currently, 83% of the business owners we have met within the last two years have moved their accounts and risk management programs to us. There must be a reason.” When someone has achieved that level of success, they’re a feared competitor.
• Formal risk reduction plans. It is imperative to show specifically what your agency will provide over the next 12 months. Feared competitors always have a formal risk reduction plan, complete with calendars, outlining their agency’s services on an annual, quarterly and monthly basis. On large accounts, feared competitors will schedule monthly meetings, ranging from informal relationship visits with managers to in-depth visits to discuss loss control services or provide disaster recovery training.
• Accountability. Feared competitors not only have the above-mentioned plans in place, they also have the confidence to invite your clients to hold them accountable. If they don’t do exactly what they say they’re going to do, they expect to answer for it, even if it means being fired. Feared competitors over-promise and over-deliver. Conversely, non-feared agents over-promise and under-deliver.
• Business acumen. Any producer who is a feared competitor can converse at “The C Level.” In other words, they can easily talk with any organization’s CFO, COO and CEO. They truly understand business at a much higher level and can offer advice on critical matters such as risk management issues and strategies. Feared competitors are much more than insurance salespeople; they are trusted business advisors.
• Target market knowledge. Knowing more than the competition—in terms of both the technical aspects and the marketplace—is the mark of a feared competitor. They know everything about the niche markets they want to pursue and are true specialists within their target markets. Specialized knowledge also gives feared competitors a financial edge, as specialists will always make more money than general practitioners.
• Trusted advisor. Part of a feared competitor’s overall strategy is to become a member of the client’s trusted advisor team. One of our members’ top producers has a great line that he uses when he first meets a prospect: “Do you consider your agent a vendor of insurance or a member of your trusted advisor team?” If the prospect says “vendor,” he’ll strongly recommend that they fire the agent because a vendor relationship is not to their advantage. Now that’s what I’d call a feared competitor!
• Private client group. Feared competitors view their book of business as a private client group, with a limited number of clients and a special Risk Services division. Their goal is not to write everyone’s insurance, but to have fewer clients who place all of their business with them, pay at the highest level, demand the most and receive the most. Most often, you see this in legal firms, accounting firms and financial services companies. But it also applies to insurance agencies. Exclusivity makes clients proud to be part of the group and makes prospects eager for the opportunity to join it.
• Cross referrals. Although few agents or agencies can meet every need of every client, they can certainly outsource solutions for them. Top competitors are always helping their clients—and prospects—connect with other people to help them solve their problems. Think about it in your own agency. How many times has a client had a need that might be better addressed by someone else you know? Trusted advisors will outsource. They don’t try to do it all. Rather, they help clients solve problems by connecting them to others in their network who can best assist them.
The bottom line
Are you implementing the strategies that will distinguish you from the traditional “Look, Copy, Quote and Pray” agents and agencies? Are you going to become the competition that is feared in your marketplace, or are you going to fear the competition? Someone will always be the feared competitor in the marketplace. Shouldn’t it be you?
As always, it’s your choice.
The author
Roger Sitkins is CEO of Sitkins Group, Inc., which offers The Vertical Growth Experience™ exclusively to its membership known as Sitkins International. The programs focus on continual improvement of agency/brokerage operations, providing members with ongoing development and strategies that literally force vertical growth in the critical indicators of closing ratios, revenue per employee, revenue per relationship, and revenue per producer.
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