Get to know your clients' competition with this guide
Insurance agents and brokers can grow their business by learning about the needs of their clients' peers.
Many professionals within the same trade want to see their peers do well, so how can this lead to more insurance business for agents and brokers?
The simple answer is they can tell you about other people in similar businesses. They know who is new in town and who has just started their practice. They know whose children are taking over their parents’ business. They know who is doing well and who is having problems.
8 observations your client can share about their competitors
Let’s assume your business-owning client isn’t in a fight to the death with a competitor. They might work in a profession with many practitioners. You’ve heard the expression “It’s a small world.” They know each other. Here’s what you can learn:
1. Who are your competitors? You might know a few because they are your clients. They will see the bigger picture. They will know the traditional competitors. They also can see threats from farther afield. The woman owning the supermarket is concerned Walmart carries groceries, and Amazon owns Whole Foods. The brick-and-mortar stores are concerned with online competitors.
Lesson: You can easily learn about the traditional competitors.
2. Who is new in the area? When a store is new, they have Grand Opening banners. But when a specialty orthodontist moves to the area, they might locate in a cluster of medical offices, and the visibility isn’t as obvious.
Lesson: Your client will know who is new.
3. Are they a competitor or a complementary business? Not everyone in the same business directly competes. The local dentist might be able to perform specialty dental work, but it’s not their core business. Having a specialty orthodontist locate in the area might mean there’s the potential for referral business back and forth.
Lesson: There are instances where a business owner wants another to succeed.
4. Who is retiring? Business owners don’t live forever, yet businesses are supposed to go on into perpetuity. In many cases, the next generation is groomed to take the reins. You’ve read plenty of stories about the older business owner who always did things a certain way, then in comes the next generation, who brings in technology and improves quality.
Lesson: The next generation is often interested in making changes.
5. Which businesses recently changed hands? If the next generation doesn’t step up, the business owner might choose to sell out. When the new owner comes in, they want to keep the revenue flowing from current customers, but they also want to get better prices on the services the business buys.
Lesson: The new owners might be interested in seeing if better insurance plans are available.
6. Who is having problems hiring quality employees? Today, the answer is “everyone.” As time passes, hopefully, the labor market will improve. If a local business is having problems filling job slots, they might need a more attractive benefits package.
Lesson: Business owners need to hire and retain quality employees. Benefits can make a difference.
7. Who is scared of the 800-pound gorilla? Your client runs a specialty wine shop. They can source hard-to-find wines because of their established relationships. Their customer base is loyal. The guy who runs the liquor store in the strip mall may be worried about the beverage superstore opening nearby.
Lesson: Here’s a business that wants to get its money’s worth when buying insurance.
8. Who hasn’t met the right people yet? This might be a service you offer as a fellow Chamber member. The business is new to the area. They want to raise their visibility. You are an Ambassador for the Chamber of Commerce. You meet with them, make a case for joining the Chamber, then learn who they want to meet. You start making those connections and introductions. The two of you become friends. They see you as a Center of Influence.
Lesson: They decide if they have insurance needs, you are the right guy to know.
There are many reasons your business-owning clients will share information or make introductions to their competitors. They may even feel they are doing the other business owner a favor!
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