Randy Schwantz in Insurance Agencies
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June 19, 2023 – 4 min read
Randy Schwantz in Insurance Agencies
Randy Schwantz in Insurance Agencies
Insurance agencies need to stop trying to win business as ‘the local expert who can close a coverage gap’. If they want to stop quoting business and start winning it, a shift in strategy is essential.
I get it—there’s a lot of competition from large and small firms when it comes to insurance. Having worked with over 350 of them, I’ve seen firsthand that many agencies still rely on their reputation as local experts and their ability to close coverage gaps. However, these approaches often fall flat when trying to lure clients away from their current agent, who they likely already trust.
The fact is, no one needs two agents. For you to win, someone has to lose.
To win business, you must drive a Wedge between the prospect and the incumbent agent. To do that, you need concrete differentiation.
To truly differentiate, insurance agencies must shift their focus from traditional selling techniques focused on price and coverage to proactive services. Chances are, you’re already doing some and don’t take credit for it. And, you need to develop a few more that bring significant value beyond what incumbents provide.
Most insurance agencies think they provide the best service, have great relationships with carriers, and offer the best tools and resources. This confidence can be good because it motivates you to grow your business. However, it can also hurt your ability to close deals.
These are the same claims that competitors make. Prospects have heard these promises repeatedly, making it impossible to see any real distinction—or a clear reason to consider ending their existing relationship with their agency to establish a new one. To break through this noise, agencies need to undergo a process of identifying and leveraging their true competitive advantages.
True differentiation comes from figuring out three things:
This diagram very simply represents your differentiation. It’s the services you provide (blue), versus the incumbent services (red), that lead to your differentiation (green).
This enables you to identify your proactive services, convert them into Wedges and go win the business.
The blue stack represents your proactive services. Most of them are not unique in any way. It’s just that you do them and your competition doesn’t. These are your strengths.
To illustrate how the Wedge works in practice, consider a scenario where you’re competing with an agent that has had the account for 5+ years, call him John.
The prospect is willing to see you mostly because they want to keep John on his toes.
From the list of proactive services above, you pick those that should be relevant to the buyer because of the business they are in. You refine that list by comparing it to what you think, based upon your research of the incumbent and what they do and don’t do.
Now you have a refined list of proactive services you are prepared to use to drive a wedge between your prospect and the incumbent agent.
You convert each service into a question that causes the buyer to discover that the incumbent is not doing that service for them. Do that about 3 times and the buyer goes tilt…”these guys aren’t doing their job”. From there you do a couple of more ninja tactics that brings it to a close.
And, you have a high probability of walking out with a BOR.
Differentiating your insurance agency requires moving beyond traditional selling, things we’ve all been taught at most insurance carrier schools. And look, it’s not their fault. Those schools are a product of how most people in this industry think, or for that matter, don’t think.
Instead of focusing on the same thing that most of your competitors do, change the game. Define your proactive services and start winning now.
By identifying and leveraging your Wedge, you can create a compelling narrative that resonates with prospects, ultimately driving business growth and establishing long-term client relationships.
This approach not only helps you stand out in a crowded market but also ensures that your agency is seen as a valuable partner, committed to the ongoing success and satisfaction of your clients. So, the next time you prepare for a sales call, identify your proactive services and drive that wedge. You’ll have more fun and make more money.
How The Wedge Sales Culture Drove New Business Growth
The Wedge Sales Culture is credited as the engine of this growth, and this case study explores how the agency has implemented and benefited from this process.
“Hire Producers with Confidence” Use Our Evidence-Based Interview Process to Eliminate Candidates Who Don’t Have GRIT
With my evidence based interview process you can be sure that your next hire has the GRIT to fight through walls and achieve success selling commercial insurance.
Growing Your Agency Just Got Way Easier
Do you want to work with me to grow your agency?
Take 90-seconds to complete this application
to see if you are eligible for a Growth Session.
How the Wedge Sales Culture Drove New Business Growth
The Wedge Sales Culture is credited as the engine of this growth, and this case study explores how the agency has implemented and benefited from this process.
“Hire Producers with Confidence” Use Our Evidence-Based Interview Process to Eliminate Candidates Who Don’t Have GRIT
With my evidence based interview process you can be sure that your next hire has the GRIT to fight through walls and achieve success selling commercial insurance.
Growing Your Agency Just Got Way Easier
Do you want to work with me to grow your agency?
Take 90-seconds to complete this application
to see if you are eligible for a Growth Session.