In our Mythbusters series, we’re uncovering some of the common myths or flawed ways of thinking that the general public has about insurance, and how you can rectify these misconceptions in the minds of your customers and potential customers.
Myth: Apples-to-Apples Quoting
What does this mean?
You will frequently hear someone refer to apples-to-apples quoting when speaking to a customer who is curious as to what price you offer for the exact coverage they have with their current company. Each Agency owner will need to define their reasoning for making sure that their customers know apples-to-apples quoting is a myth. It seems like such a simple task to just hand over those numbers, for a simple insurance comparison, when in reality this type of mindset can backfire.
The main reason why we believe apples-to-apples quoting is a myth is due to the fact that when a customer calls your Agency they immediately get YOU, they’re getting your team!
That knowledge and expertise matched with compassion have absolutely no comparison. This reason alone blows the apples-to-apples myth out of the water! Your Team Members should have the mindset that the level of service your Agency provides to every customer is hands down worth more than any other provider is able to give.
Another great reason why apples-to-apples quoting doesn’t work is that it is a disadvantage to the customer.
It’s our job as carriers to make sure that each insured member has the correct coverage for their specific situation. Making sure they understand their limits and why they’re in place is crucial to this process. Turn the conversation personal and really dive into getting to know your customers’ situations. What do you currently have? And more importantly, why did you choose that level of coverage, and is it enough should the worst happen? Only providing an insurance comparison falls short. Developing strong relationships is KEY.
Here is an example as to why we need to get to know our customers and develop those relationships.
This conversation didn’t start as an apples-to-apples quote, it actually has to do with a retirement account. What started out as a new customer reviewing their auto coverage turned into much more.
While auditing his policy I let him know that I would be asking some deep questions to make sure I understood his financial picture and make sure he was protected to the best of our ability. He looked confused as I was asking him to tell me what he needed to protect. I proceeded to ask about his checking, savings, and retirement accounts. All the while, he was getting very loud and irate.
These are extremely private conversations and must be approached with delicacy. I explained that I understood it’s a personal asset and I didn’t need specifics but just roundabout figures to be able to make sure we were protecting him exactly how he needed to be. The last thing we want is for something unfortunate to happen and have our customers not be properly covered! Explaining the WHY will put most folks more at ease and they will feel relaxed about opening up with such guarded information.
When given the right information and understanding the consequences, should it go wrong, you most always find that the customer will share information they didn’t even know you needed.
I was able to fulfill a need this customer had and no one had spoken to him about previously. It’s just that, that opportunity that you care about somebody. Their business with you is more than a monetary transaction.
Have we busted this myth for you yet?
You need to have a personal, real relational conversation with every person you talk to. And as you have that conversation with those people, then you can find out what their true needs are. The goal isn’t to get their business with only a promise of savings. A comparison of insurance policies is more than just quoting pricing.
We don’t want to only make the conversation just about paying less for their insurance. We want to make sure they’re covered properly in every situation. We’ve got to have the hard conversations that put them exactly where they need to be. And guess what? In two years it might be different. So we’re going to continue to have these conversations every one to two years and make sure that they’re fitting your personal needs.
In the end, if all you do is quote apples-to-apples, all you do is quote, the only reason somebody is going to switch to you is that you’re cheaper. And guess what? They’re going to turn around and leave you just as fast as they came to you because somebody else is cheaper.
Let’s create relationships. That’s what we’re about here at Insurance Agency Optimization. We want you to build relationships with your clients. The relationships will turn into sales, will turn into referrals, will turn into reviews, will turn into anything that you need from that client. And that’s making a real relationship with them.
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Read More: Check out this post to understand why a Mission Statement is so important to your Agency.
