DIFFERENTIATING SELLING FROM CONSULTING

Many Agency Consulting Group clients and PIPELINE readers are aware that some of my recreational activities involve ocean cruising. We have been to many parts of the world and we enjoy the experience as much as the destinations. It re-charge my batteries with respect to the definition of what WE do for you as consultants AND what you do for your clients as their agents.

We compare and contrast different experiences through the eyes of a consumer to determine what we feel defines GREAT SERVICE for the recreational experience on our free time AND for the comparison of service requirement that you customers expect, desire and find thrilling about dealing with you as an independent agent.

This trip we were with 40 professional travel agents who were mixing business with pleasure, taking courses while on board to better familiarize them with the class of ship on which we were sailing.

Within a few days I realized that the Travel Consultants (their choice of a more suitable term for what they did instead of Travel Agent) and our own independent insurance agents shared much more than they diverged in their methods of operation and in both in their successes and frustrations striving to get more clients to believe in and use their services. This is why we strongly recommend that your insurance professionals be called Insurance Consultants instead of simply Agents or certainly instead of “Producers”.

Here are some of the commonalities and how they can be used to your advantage to build the client base for you and for your agencies:

It was shocking how closely the travel agents’ problems and frustrations compared to our own in the insurance industry. The bane of their existence and their biggest time waster is the traveler who thinks that all travel is alike and the only difference is the price point (sound familiar?). They, like us, assume that among the millions of price-driven shoppers that more than a few exist who can be made to understand that YOU ALWAYS GET WHAT YOU PAY FOR.

Story after story arose about travelers who found themselves in an unfamiliar place with a language they didn’t know facing incorrect accommodations, travel issues or service issues that couldn’t be resolved because, in great part, they had no personal representation dedicated to making their experience exactly what they desired. How close is that to our belief that competent personal relationships between client and agent is critical to the customer achieving the correct types and levels of protection for their particular risks and risk tolerance?

A professional travel consultant, like a professional insurance consultant are most valuable by knowing the individual client well and treating every prospect as if they were already a trusting customer until and unless they prove otherwise.

The experienced professional travel consultant and the experienced professional insurance consultant use their histories with people to gauge the level of trust of their prospects and customers and avoid being USED (and abused) by those who wish to glean your knowledge and experience only to book the travel or write the insurance through who they believe are lower priced brands. What these short-sighted people don’t understand is that the knowledge that allows you to identify which staterooms they should get on a ship or which coverage and specific insurance carrier is most appropriate for them is only the first step toward the customer achieving their goal, whether it is for recreation or protection.

The reason people need help in planning their protective devices and in planning their vacation is similar. They don’t know what they don’t know!

I know that insurance is required by financial institutions by some government authorities and by the common sense that tells me that I can’t afford to cover my own risk. I HOPE that I won’t need my insurance coverage but if I don’t then I feel somewhat bad about paying for renewals every year when I can always use that money for other personal or business objectives. Our goal as the insurance consultant is to identify the risks to that customer’s assets, educate the customer so he feels comfortable and secure in the coverage’s that are in his protection package and reminding him that the insurance costs are an investment against a serious financial risk in case of loss.

Similarly, when I want to see the world or to travel of other reasons I know I’m committing some of my disposable assets to that goal.   After all, no one (of whom I’m aware) can take it with them and I’ve seen no gravestones that read “He Died a Wealthy Man”. Whether It’s $100 or $100,000, we all build some part of our asset base to bring pleasure and interest into our lives – otherwise we don’t have careers – we have life sentences.

Whether I know where I want to go or not, I need someone who knows the travel industry to turn my focused or fuzzy goals into realities – and cost is only a measure of the reasonability of my expectation. If I only have $1,000 to spend a good travel consultant will quickly make me realize that a trip to Australia and the South Pacific might be a little out of range.

If I need to protect my home, my vehicles, my business, my other assets and the lives and health of my family I need someone to help me determine what protective devices are needed for all my assets, the costs for each and any ways of ameliorating those costs, if necessary, with fair judgement of the additional risks I take to save some money (i.e. higher deductibles).

So, whether travel or insurance, my consultant helps me tailor my program to my needs, desires and to my pocketbook.

Unfortunately, 90% of the travel agents out there AND 90% OF THE INSURANCE AGENTS OUT THERE stop at the point of sale and fail to take the steps that will guarantee a Customer for Life to either of them.

I have a Travel Consultant. He works for a large, internationally known travel firm but he really works for me and, I’m sure, all of his other customers feel exactly the same way.

When we plan my recreational (or business) travel he analyzes my goals and needs and then sets to work finding me what meets my goals AND a ton of alternatives because he knows that I may alter my goals if he shows me other possibilities that may make my experience more fulfilling.

We all wish we had an insurance consultant who does the same for our risk analysis instead of asking for our current policies to quote against.

Then my travel consultant continues to review alternatives even after booking my travel itinerary in case something changes in my favor before my trip. Most of the time that’s not necessary in a regulated industry like ours.

But, most importantly, my travel consultant continues his service during and after my trip to give me assurance that someone is there if something goes wrong and to evaluate my experience in preparation for the next trip. Here’s where most insurance agents go wrong.

Our carriers would like us uninvolved in the claims process. It is more efficient for the insured to report the claim directly and let the claim department analyze and settle the claim (from the carrier’s standpoint). But I’ve had a recent claim (sewer backup) and I’ve had almost a half a century of insurance experience. I assure you there is a completely different perspective from a claimant’s standpoint than from a policy buyer’s standpoint. My (soon to be) former agent’s participation was to tell me to call the Carrier if I had any questions. The carrier did not care if I had 50 or 500 years of insurance experience – their procedures and guidelines dictated what they were willing to do or to pay regardless of how the contract read. I could arbitrate or take legal action but, as a simple policyholder I had few alternatives.

As an agent I stood with my clients and considered it my job to act as intermediary and “translator” between the carrier and my client. No, I didn’t and couldn’t make uncovered losses covered. But I could (and did) intervene with the claims department, as needed, and tell my client his options – after all, they don’t actually READ the contract – they take our word for it that they are properly covered. So, like the professional travel consultant and the professional insurance consultant, I acted to support my client while supporting my carriers. I sold insurance on behalf of my carriers but I supported my clients in their most stressful times of need as their insurance consultant.

The point of this article is to treat every prospect as if they were your mother. Take the time to learn their needs, wants and asset risks. Assume that they will buy insurance from you if you take proper care of them. As soon as they show you that they are not going to be your customer stop giving away your vast store of knowledge – but invite them to return to you if they decide to take your advice (including buying their insurance through you to allow you to make your living).

Then, as they become your clients – DON’T FORGET ABOUT THEM! Pay as much attention to every client as that client needs and desires (not a pre-determined set contact). Some will want to speak to you regularly and others will not. And be there for them as their lives change and especially if they have to USE the insurance that you recommended through a claim. The client builds confidence in you during the sales process but they become your greatest cheering section when you are there for them in the trying times.

The insurance industry and the travel industry is different but the relationship we build with our clients are the same. The more you know them, the more they trust you. Be a professional insurance consultant. You will gain many more clients that way and you will never have to cold call or solicit again.