Differentiate or Die is the name of a book by Jack Trout. It discusses the necessity of developing a differentiating factor in your brand to stand out from the crowd. In today's marketplace, products are becoming so similar, that people don't see the differences between brands, and when that happens, you become a commodity where price becomes a major factor in the buying decision.
This idea seems particularly appropriate for insurance agencies. When I talk with insurance agents, most tell me that the thing that makes them special is the great service they give their customers and the wonderful people they have working for them. Those are both great things to have, but frankly they are not differentiating factors. These days people expect you to provide great service, and if every agency has great people, where's the uniqueness in that?
What are you doing to stand out from your competition? Do you know what makes you truly unique? If you don't, you may face stiffer and stiffer competition in the years to come.
Your first step is to understand who you really are - what your "brand" is and if it's strong enough to withstand the market forces you face today and in the future. If it's not, you should seriously consider making some changes in your agency.
Think about your business and how you stand out. I have one agency who caters to contractors, so the office opens at 6 am every morning so they can serve their customers before they go to work. That's different.
Another agency focuses on specializing in musical instruments. He has an easy online system, and good prices. It also helps that he is a professional musician himself and understands his customers. Now that's different.
Another agency works with high-net-worth individuals. He offers them free fine art, jewelry and antiques appraisals, does in-home inspections and develops a risk mitigation report for them. He also provides them with a dedicated 24 hour phone number to contact their own "protection team" at any time. Now that' s different, too!
Without a differentiating factor, you'll fade into the background and people will make their buying decision based on your pricing. That means the next time they get a better price, they'll be leaving you. Find out what your unique selling proposition is, build your brand and your messaging around it and you'll be much better positioned to succeed in the future.
Wednesday, November 4, 2009
Tuesday, October 20, 2009
Reflections on Turning 50
I turned 50 on Sunday. It wasn't a big deal - I worked out, did some shopping, had take out Sushi for dinner. It was really a non-event. But it did get me thinking about what I've got to be grateful for.
My mother died of cancer at age 48, so I've already lived more than she ever did. I makes me think that this part of my life is precious and not to waste it on petty prejudice and anger. It also makes me count my blessings. So, here's what I'm thankful for:
1. My family. My husband and children are the center of my life and the most important. My kids are kind, generous, intelligent and fun to be with. I'm also grateful for my sister, brother, dad and stepmother and my many aunts, uncles and cousins that I love so much but don't get to see very often (thank goodness for Facebook!). They are never forgotten and never taken for granted. They are my center and my rock.
2.My home. When I was a kid I used to dream of having a home where I could have lots of animals, especially horses. Well, that dream came true when we bought our current home on 81 acres of undeveloped land in New Hampshire. Now I have 5 dogs and 2 horses and miles of woodland trails to wander. Spending time in nature rejuvenates me and connects me to the "unexplainable." It is where I draw my energy from. At least three times a week, you'll find me in the woods on foot or on horseback, recharging my batteries.
3. My work. My mother told me to find work that I loved and found rewarding - as I'd be spending most of my time doing it. I am blessed to be doing just that. I love what I do - it's creative and interesting, and changes every day. I love the people I work with - they are intelligent, stimulating, creative and fun. It seems like I took a winding path to get here, but every step lead me in the right direction.
4. The opportunity to travel. I love to travel and see new places, experience new things and meet new people. I think it opens us up to new ideas and makes us more tolerant of other cultures and beliefs. More Americans should travel outside the United States - even live abroad for a while - to understand a fresh point of view. I've had the opportunity to travel quite a bit within the United States as well as to other countries. Those experiences have shaped my life.
5. Music. I love music. My mother was a wonderful singer, and she instilled in all of us a love of music. Since my kids have gotten older, I've had the opportunity to begin singing more and have enjoyed every minute of it. Music feeds my soul.
6. My health. Not to tempt fate, but I've been healthy all my life. Besids a broken wrist, I've never been injured or sick. I exercise regularly - and enjoy it! I hiked Mount Monadnock three times this summer, and ran in a 5K race. I've got enough energy to do the things I love to do.
There's lot more to be thankful for, but I won't make this blog too long. Thinking ahead to the next 50 years - I'd like to keep doing what I'm doing and continue to have the above blessings in abundance in my life. I wish everyone else the same. Here's to the next 50!
My mother died of cancer at age 48, so I've already lived more than she ever did. I makes me think that this part of my life is precious and not to waste it on petty prejudice and anger. It also makes me count my blessings. So, here's what I'm thankful for:
1. My family. My husband and children are the center of my life and the most important. My kids are kind, generous, intelligent and fun to be with. I'm also grateful for my sister, brother, dad and stepmother and my many aunts, uncles and cousins that I love so much but don't get to see very often (thank goodness for Facebook!). They are never forgotten and never taken for granted. They are my center and my rock.
2.My home. When I was a kid I used to dream of having a home where I could have lots of animals, especially horses. Well, that dream came true when we bought our current home on 81 acres of undeveloped land in New Hampshire. Now I have 5 dogs and 2 horses and miles of woodland trails to wander. Spending time in nature rejuvenates me and connects me to the "unexplainable." It is where I draw my energy from. At least three times a week, you'll find me in the woods on foot or on horseback, recharging my batteries.
3. My work. My mother told me to find work that I loved and found rewarding - as I'd be spending most of my time doing it. I am blessed to be doing just that. I love what I do - it's creative and interesting, and changes every day. I love the people I work with - they are intelligent, stimulating, creative and fun. It seems like I took a winding path to get here, but every step lead me in the right direction.
4. The opportunity to travel. I love to travel and see new places, experience new things and meet new people. I think it opens us up to new ideas and makes us more tolerant of other cultures and beliefs. More Americans should travel outside the United States - even live abroad for a while - to understand a fresh point of view. I've had the opportunity to travel quite a bit within the United States as well as to other countries. Those experiences have shaped my life.
5. Music. I love music. My mother was a wonderful singer, and she instilled in all of us a love of music. Since my kids have gotten older, I've had the opportunity to begin singing more and have enjoyed every minute of it. Music feeds my soul.
6. My health. Not to tempt fate, but I've been healthy all my life. Besids a broken wrist, I've never been injured or sick. I exercise regularly - and enjoy it! I hiked Mount Monadnock three times this summer, and ran in a 5K race. I've got enough energy to do the things I love to do.
There's lot more to be thankful for, but I won't make this blog too long. Thinking ahead to the next 50 years - I'd like to keep doing what I'm doing and continue to have the above blessings in abundance in my life. I wish everyone else the same. Here's to the next 50!
Monday, October 5, 2009
What I Learned at Brand Camp
Last week was a great week. I spent three days in Chicago with some of the best people I've ever met. Where was I??? At Brand Camp. What's that you ask? It was a conference put on by Aartrijk to explore the world of social media and its impact on insurance branding. Sure, I learned a lot about how social media can be utilized effectively, how to "Tweet" and how important blogging can be. But what really struck me was the energy of the group. The people who attended were really excited about the prospects, willing to learn and energized about their agencies. It's probably the first time I didn't get a sense of "quiet desperation" about the future of the independent agent and the power of the direct writers.
I learned that the independent agent has some huge opportunities because their business is based on building and maintaining relationships - a perfect match for social networking.
I learned that there are some amazing young agents and their staff that have great new ideas to reach "Generation Y" and that they should be listened to.
I learned that the agents that adopt this new way of marketing and sales will be the ones to succeed.
I learned that listening is as important as talking, whether it's face-to-face or on the Web.
I learned that being open to new ideas and new ways of doing business is critical to long term growth.
Yes, we did discuss how to find "fans" on Facebook and "followers" on Twitter. We talked about effective Web site design. We talked about search engine optimization. But they were secondary to the new attitude that was circulating in the room. I wish we could capture that and sell it over the Internet!
I learned that the independent agent has some huge opportunities because their business is based on building and maintaining relationships - a perfect match for social networking.
I learned that there are some amazing young agents and their staff that have great new ideas to reach "Generation Y" and that they should be listened to.
I learned that the agents that adopt this new way of marketing and sales will be the ones to succeed.
I learned that listening is as important as talking, whether it's face-to-face or on the Web.
I learned that being open to new ideas and new ways of doing business is critical to long term growth.
Yes, we did discuss how to find "fans" on Facebook and "followers" on Twitter. We talked about effective Web site design. We talked about search engine optimization. But they were secondary to the new attitude that was circulating in the room. I wish we could capture that and sell it over the Internet!
Monday, September 21, 2009
The Future of Independent Agents
Last week I attended a conference with Scott Addis and his Organic Growth Engine members. Scott's approach to insurance is revolutionary - the agent isn't just competing on coverages and price, but offering a professional service as a risk manager. It changes the relationship between the agent and client from one based on price to one based on respect and partnership.
In the past 10 years ,we've seen a significant shift in how insurance is marketed and bought. The Internet has allowed clients to shop their insurance and has increased the focus on price. Independent agents can't compete against the large national companies that flood the media with "lowest price" messages - even though we know that independent agents can often beat the best price of the nationals. Perception is reality.
So, what's the future for independent agents? I think the agents at the Organic Growth Exchange have the right answer - change the equation from one based on price, to one based on diagnostics, analytics and consultation. Insurance agents should start to build a reputation that rivals an attorney, accountant or financial advisor, not a used car salesman. And how do they do that? Focus on risk mitigation and management. Do more to help the customer reduce risk and operate in a safer environment. By doing so not only do you build a strong relationship with your customers, making them customers for the long-term, but you also reduce their overall cost of insurance. It's a win-win for everyone.
Independent agents should start taking a critical look at how they do business and consider making a cultural shift from commodity sales to consultative sales. It's not an easy transition, but one that is critical for survival.
In the past 10 years ,we've seen a significant shift in how insurance is marketed and bought. The Internet has allowed clients to shop their insurance and has increased the focus on price. Independent agents can't compete against the large national companies that flood the media with "lowest price" messages - even though we know that independent agents can often beat the best price of the nationals. Perception is reality.
So, what's the future for independent agents? I think the agents at the Organic Growth Exchange have the right answer - change the equation from one based on price, to one based on diagnostics, analytics and consultation. Insurance agents should start to build a reputation that rivals an attorney, accountant or financial advisor, not a used car salesman. And how do they do that? Focus on risk mitigation and management. Do more to help the customer reduce risk and operate in a safer environment. By doing so not only do you build a strong relationship with your customers, making them customers for the long-term, but you also reduce their overall cost of insurance. It's a win-win for everyone.
Independent agents should start taking a critical look at how they do business and consider making a cultural shift from commodity sales to consultative sales. It's not an easy transition, but one that is critical for survival.
Thursday, August 27, 2009
Great Podcast from Insurance is Fun!
If you've ever heard Chris Amhrein speak, you know you're never bored when he's got the floor! He's entertaining and he really knows his stuff. Listen to his latest Podcast with Peter van Aartrijk comparing the success of baseball to agency success. It's got lots of good ideas and it's fun! http://www.insuranceisfun.com/podcast.php
Thursday, August 6, 2009
Great Podcast on Insurance Journal
Just listened to a great Podcast on Insurance Journal with Peter van Aartrijk, and Rick Morgan interviewing Cindy Donaldson from Founders Insurance Group in CT. They discuss the use of a blog and how it's impacted the agency. Cindy is a great resource for insurance marketing and use of social media. Check it out at http://www.insurancejournal.tv/videos/2719/.
Tuesday, June 30, 2009
New Graduates and Insurance
I just read an article recently about how new high school and college graduates look at insurance differently than we did. It's not so much about the coverages, but it's about the level and speed of information and service. The younger generation expects online functionality, the opportunity to research and buy online, and fast response to questions and inquiries.
I have a son who graduated from high school this year. His comfort level with computers and the Internet is much higher than mine. He communicates with his friends more via the Internet and Facebook than he does via telephone. He almost never watches TV. It's a fundamental shift from what we are used to.
Independent agents, as well as many insurance carriers are behind the curve when it comes to taking advantage of these shifts. It's time we take notice of the changes and start implementing plans on how to cope - by communicating more electronically, investigating the possibilities with social media, offering more functions, information and communication on our Web sites, and focusing on fast, content-rich exchange of information. The insurance agent of tomorrow will look a lot different than yesterday. We need to change our focus from process-driven to customer-driven, by listening and offering consultative and adivsory services that help our customers thrive.
Thinking that we can survive in the new millenium by continuing to offer the same level of products and services will put the independent agent in the same category of the buggy whip manufacturers of yesteryear.
I have a son who graduated from high school this year. His comfort level with computers and the Internet is much higher than mine. He communicates with his friends more via the Internet and Facebook than he does via telephone. He almost never watches TV. It's a fundamental shift from what we are used to.
Independent agents, as well as many insurance carriers are behind the curve when it comes to taking advantage of these shifts. It's time we take notice of the changes and start implementing plans on how to cope - by communicating more electronically, investigating the possibilities with social media, offering more functions, information and communication on our Web sites, and focusing on fast, content-rich exchange of information. The insurance agent of tomorrow will look a lot different than yesterday. We need to change our focus from process-driven to customer-driven, by listening and offering consultative and adivsory services that help our customers thrive.
Thinking that we can survive in the new millenium by continuing to offer the same level of products and services will put the independent agent in the same category of the buggy whip manufacturers of yesteryear.
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