Uncover Your Agency’s Value Proposition
—Reprinted with permission from Professional Insurance Agent Management Services Inc.—
In addition to a reliable prospect list, your agency’s value proposition is arguably the most vital element of your overall marketing messaging. A value proposition explains how your product solves customers’ problems or improves their situations. Let’s face it, it’s not always easy to differentiate in the insurance industry. From our work helping insurance agencies get sales appointments with their prospects, differentiating (on paper) has proven to be the most challenging piece of the sales process—but it is the most important first step toward an effective sales strategy.
It’s easy for an insurance agent to be a quote shop, but in an effort to not become commodity-based, let’s explore how to uncover the value proposition to get the insurance buyer’s mind away from just thinking about the price of a policy. That is not to say that the cost shouldn’t be part of the prospects’ mindset, as saving money often is the first consideration. However, how you save them money is part of your value proposition. A solid value proposition demonstrates credibility and expertise while developing trust.
Five primary elements make up a strong value proposition statement.
No. 1: It’s clear. Your value proposition should be easy to understand over a phone call and in written marketing collateral.
No. 2: It’s thorough. It communicates concrete benefits, features and the results a customer will get from purchasing insurance policies from your agency.
No. 3: It sets you apart. A value proposition should show how you’re different or better than your competitors.
No. 4: It avoids the hype. Try to avoid statements like, “We can save you 30%,” and superlatives like, “We’re the best.”
No. 5: It is concise. It should be understood (in about 20 seconds) to capture attention, until you have earned more time to be descriptive.
Why should a prospect buy from you?
Think about what differentiates you in the marketplace. If you don’t tell prospects what makes you worth their attention and money, they won’t spend the time to figure it out on their own. Think about these questions:
- Do you offer anything that other agencies don’t?
- Do you have an online portal for clients to access policies, endorsements, claims, certificates, auto ID cards, etc.?
- Is there something particular about your expertise from a consultative standpoint that allows you to uncover client advantages a good portion of the time?
- Can you formulate benefits and features that relate specifically to a given industry? Your competitors may offer similar products, but if they’re not communicating it, consider it a differentiator.
- How can your value propositions offer better statements than: We’ve been around for 30 years. or Our customer service is excellent.?
You don’t have to be the best in every way. However, if you can show better value in at least one or two ways, you’re the best option for people who value that advantage you bring. Identify and promote what makes you different. For example, can you make the following statements (or something similar)?
- “50% of our business is in high-risk trade. We understand your risks like no one else because it is a big part of our business. We can likely find gaps in coverage; offer you access to an exclusive program; or maybe even find that you’re overpaying in certain areas.”
- “Risk audits at no charge. We’ll examine things like insurance contracts, policies and procedures, training programs, safety programs, conduct employee interviews and present our findings within two weeks.”
Support your value proposition
Supplement the value proposition with factual evidence, case studies or stories to which prospects can relate. For example:
A commercial glass company was feeling cash-flow pain from having to pay a large increase in its workers’ compensation premiums. It had never been advised on coverages by a broker who was well-versed in the line of business. So, when we had the ability to review policy information a few months before the policy renewal, we realized it was being wrongly classified under construction codes. Once we coded the business properly and shopped it to a series of carriers, the company’s current broker was not able to match the quote—we were able to produce a policy quote that was 18% less than the incumbent’s quote—leading to $26,000 in savings, which of course, won us the account.
In conclusion, consider your industry expertise to develop your value proposition. Attach numbers (e.g., what was a client’s premium prior to your consultation, and what was the premium after you reviewed the account?) Why were you able to do what the former broker could not do? Use storytelling to demonstrate problem-outcome-solution. Identify your value proposition and transform your agency.
AMANDA PUPPO
Owner, MarketReach Inc.
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