Differentiate or Die

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.