Look for prospects with problems

Now you're ready to find prospects in need of your solutions. When you probe for problems and a prospect responds, “I can't think of any-just give me your best quote,” consider that a big, red flag. Be extremely careful with such a prospect-you are about to enter the “waste your time, agency resources, and insurance company support” zone with an unqualified buyer. Remind yourself, “No problems, no reasons to change.”

So, what's the problem?

Cost: Nearly every buyer frets over cost. Lower premiums mean higher operating profits to most prospects. Many buy insurance based solely on the lowest bid. Ask the following questions to uncover cost problems your prospects may not know they have: Are reasonable and realistic rating bases used? Are exposures estimated fairly and classifications appropriate? If exposures increase or classifications change, how much additional annual audit expense could accrue? How would unplanned audits affect profitability?

Coverage: Too often, prospects want “apples to apples” coverage comparisons. They believe such a comparison makes it easier to measure value. If coverage is the same, the only difference is price.

Buying insurance as a commodity is a bad plan. Ask the following questions to uncover coverage problems your prospect may not have thought about: “What are the current coverage terms, conditions and limits? Is the proposed coverage package materially better than the incumbent's? What gaps in the current coverage could lead to unpaid claims?

Service: When prospects are asked about service expectations, they usually respond, “I want the best service possible.” Don't respond just by speaking glowingly about the fine service and follow-up your agency provides. Instead, ask these questions to uncover service problems: “In the past, have you ever had problems you felt were handled poorly (e.g., claim handling and reserving issues, unexpected or inaccurate premium audits, billing or payment confusion or certificate of insurance delays)? If not, how would it affect you if your problems were handled poorly in the future? What are your standards for service excellence?

Tie solutions to dollars

After you solve cost, coverage or service problems, be certain to tie your solution to the buyer's pocketbook-that's how your prospect or client measures the value of your solutions. Don't lecture anyone. Instead, ask questions that demonstrate how your solutions affect customers' bottom line.

When counseling a commercial client, ask how your coverage ideas protect profits. Weigh coverage recommendations such as business income, employment practices liability, or equipment breakdown against unplanned claims expenses. For example, ask a prospect how adding equipment breakdown coverage to his insurance program can help prevent a long shutdown and lost revenue.

How do your solutions protect cash flow, revenue, or even creditworthiness? To know what questions to ask, you must understand your buyer's operations and business world thoroughly. This alone separates you from the competition and builds trust and long-term loyalty. Tying solutions to dollars for personal-lines clients is equally critical. For example, when recommending a personal umbrella to a client, ask him how it protects retirement accounts, savings plans and personal income. Without a personal umbrella, where will money come from if a catastrophic personal liability claim occurs? Demonstrate how your solutions ensure the survival of your client's lifestyle or standard of living, or protect valuable assets. Emphasize the value of your professional support, solutions and ideas.

Non-insurance solutions

Insurance professionals known for problem solving do not limit solutions to insurance products and services. A well-crafted, monitored and serviced insurance program is an important risk management option. Numerous non-insurance solutions are also available. Many insurance agents also provide support for such pre-loss, non-insurance solutions as hazard avoidance, accident prevention, segregation of assets and disaster planning, to name just a few.

As you network in your industry and community, serve as a center of influence for your clients and search for people who could help them solve problems. Perhaps you can refer a candidate for employment, a new supplier or a CPA to your customer. Your customer may have a friend who needs needing insurance help. Find a way to take care of the referral and make your customer look good at the same time. Opportunities are endless when you know your client's needs thoroughly and are regarded as a trusted adviser.

When you are known for the problems you solve, everyone benefits. Clients get the best insurance program value, risk management solutions and access to your network of professional alliances. Agency owners benefit when problem-solving skills lead to profitable, long-term clients. Producers gain new clients and keep customers year after year.

Find prospects who have problems that you can solve. Your closing ratio climbs as you qualify prospects with problems instead of simply quoting insurance. Find ways to help your customers increase profits, decrease expenses and save time. Provide insurance, risk management and non-insurance solutions. If you want to distance yourself from the competition, prove your superior value, and build concrete client relationships, then be known for the problems you solve.

Ed Lamont, CIC, leads Dynamics of Selling and teaches at the National Alliance School for Producer Development. He presents professional selling, sales management and customer care programs for insurance associations, national brokerages and insurance agencies. Contact Ed at (561) 737-7388 or by e-mail at [email protected]. For more information about Dynamics of Selling or the National Alliance Producer School, visit www.TheNationalAlliance.com or call (800) 633-2165.'