Fish and Chips – Salt and Pepper – Spaghetti and Meatballs – Romeo and Juliet or Tacos and Tuesdays.
No matter how you slice it, there are just some things that are better together. In the world of insurance, that’s the Home and Auto bundle.
Whether you bundle, package, wrap up, or tie together, everywhere you look, there is a better deal when you put things together. It could be your phone service, Entertainment package, or maybe your dinner where Two-Can-Dine-for-$19.99.
Insurance is no different when it comes to multi-lining products. Every provider will give you a better deal the more lines of coverage you have with them.
Why is that?
The proof is in the pudding, as they say. If you look at the numbers, your highest Lapse/Cancellation ratio is almost certainly on your single-line business. Your second highest Lapse ratio is on two lines of business. Your third-highest ratio is on three lines of business and so on.
The more types of coverage a customer has with you, the more difficult it is for them to consider going through the hassle of leaving you.
Suppose you write a customer’s Home, Auto, Life, Disability, Accidental, and Retirement planning for them. In that case, the chances this customer will take the time to go through the quoting process with another company are pretty slim.
I tell my team all the time that when we talk to a prospective client, the first thing we do is anchor a wedge between the prospect and their current insurance provider. In all of our interactions with the prospect, it is our job to drive the wedge just a little further in, eventually separating the prospect from the feelings of loyalty to their current provider and bringing them to us. Please make note that we never bad-mouth a competitor. Instead, we take the opportunity to continually emphasize what WE offer, in both products and service, and how their provider “doesn’t seem to be doing that for them.”
I always assume our customers will eventually talk to someone else in the insurance industry (my competitor) and that my customer may even like them or get a lower premium than I can offer. We can all probably find less expensive coverage than we currently have. That being said, we must ensure that price is not the only reason someone is insured with you.
If you live by price-driven consumers, you will die by price-driven consumers. Our responsibility is to convince each consumer there is more to insurance than price. And it is very, very true! But the fact is that price is always important (and the “most important” thing to most people). We must put our best foot forward in every conversation.
If we can offer a discount, it is our responsibility to offer it and explain it. We always quote the best price available if there is an opportunity for a lower price. We are not trying to bait and switch through a low price and then an increase. Rather, we want the customer to know that we want their business, and we have done everything in our power to ensure they are paying as little as possible to bundle everything they need.
We tell our customers that if something ever happens to them, their loved ones will be reaching out to us at some point. We want to make their life now, and their loved ones’ lives later, as easy as possible. That starts with taking care of all their insurance and financial services needs under one roof.
We always say: Wouldn’t it be nice to only have to remember one place and one phone number with a group of people you can fully trust that handles all your needs?
At our agency, we never quote one line of business. There is always something else that can better protect our customers’ needs and assets. If they own a home, then it is homeowners. If they don’t own a home, then it’s Renter’s policy. We cannot, in good faith, not offer to protect more than just the Auto.
Paint a picture of a Peanut Butter and Jelly sandwich for your prospects.
Do you eat just a Jelly sandwich? Or just a Peanut Butter sandwich. No! PBJ is the PERFECT combination.
And I don’t have my Home insurance and my Auto insurance separate either. So why would I even give someone the option to do anything else besides having them together?
Would I quote them separately for my closest family member or my best friend? Never. So don’t treat your prospective customers that way either. Always bundle!
Today’s Action List:
Read today’s Auto Bootcamp email Watch today’s Auto Bootcamp Video on the IAO Bootcamp Facebook Group Read today’s Auto Bootcamp blog
- NEXT STEP: Complete your daily Playbook entry
- Contact at least 20 people from your “Hot 100 List”
- Call every Home No Auto household in your book
- Submit daily tracker results to your Agent