In a sales environment where the products have become commoditized, it is essential to establish a clear and concise "why do business with us" story. If having the lowest price is the only thing that matters to you and your customers, then don't read any further. Our industry has seen the demise of many a low-cost provider. How quickly many forget the old adages, "You get what you pay for" and "If it's too good to be true...it probably is."
A VSC provider is really no different than a dealer who faces "low price" competitors from all points of the compass. Enlightened auto dealerships, faced with stiff same-brand competition from as little as a few miles away, are adopting custom branding strategies that literally begin at "Hello, welcome to Hometown Motors."
This same concept applies to a provider. We spend an inordinate amount of our resources articulating to our sales force the value propositions of our VSC, but what about the value propositions of doing business with our company? What do we offer that distinguishes us compared to our competition? Is our sales force adequately trained to sell us as well as our products?
A provider must be able to quickly explain to an agent, a dealer, and ultimately the consumer why doing business with them justifies a decision to rep their products, sell their products, and buy their products now. Get this part right and price becomes less of an issue.
Since the majority of providers operate with an indirect sales force that by its very nature is "independent", the general agent is the provider's first target of opportunity. We want to attract the best, most talented, and hardest working agents possible.
Put price aside for a moment and ask yourself, "Why would an agent rep our products?" With how much facility is your business development staff able to articulate the answer to the above question to a prospective agent?
No one ever buys anything until the value exceeds the price.
We all too often equate the above philosophical statement with the buyer of our VSC contract and not with the people selling them. Don't make this mistake. Take the time to brainstorm with your top creative people the truly compelling reasons why an agent should do business with your company. Realize that your "why do business with us" story is a process and not an event - it will change over time, and should be reviewed often.
A good place to start the unique branding process is to ask yourself, "What do we do that no one knows about?" For example, the average response time to get a live claims analyst on the phone for your company is only twenty-one seconds. This would be valuable info for the agent and the dealer to know so the service advisors are not standing idle waiting to process a claim. Is our sales force equipped with the facts and the reason why this is important? Chances are, your agents are talking to dealers that are frustrated with the level of service they are getting from their current providers.
Other questions to ask yourself:
Are our agents aware of how many tens of millions of dollars in claims we pay out each year? The public perception of insurance companies is that they try not to pay claims. Touting a big number paid out in claims easily debunks that perception, and gives the impression that your company exists to pay claims.
Have we adequately explained the difference between the factory warranty covering defects in material and workmanship and our VSC which covers wear and tear? Have we explained what this means to the dealer that sells the policy and the consumer who purchases it? The distinction is often not understood or even mentioned at the dealership level, at the point of sale, and should not be overlooked.
Are our agents aware of how many millions of dollars are distributed to dealers who participate in our wealth creation programs? Is data readily available to provide prospects with empirical evidence supporting the efficacy of the program?
How often are the details of participation programs reviewed with dealer clients in person? Are our agents adequately trained to discuss the nuances of a reinsurance quarterly or annual report with a dealer or investors?
Are our agents experts on the different types of participation programs available to a dealer, able to explain the features and benefits of each, and recommend a program that has the best chance of meeting the dealer's long-term goals?
Are there technologies you incorporate which streamline the rating, contracting, remittance, and payment of claims? Have we adequately explained why this is important? How easy is it to do business with your company, and why?
What level of training and support have we committed to for our agents? Does our support extend to providing personal growth courses, motivational programs, or business retreats? How accessible are senior staff for accompanying an agent for dealer meetings? Do we take the time, at least annually, to visit our key accounts, meet with the dealer and his managers, and analyze the health of the relationship?
Are there programs in place to accommodate the inevitable claims disputes, and do we partner with the agent in their resolution?
The list above is in no way conclusive. The health of any indirect sales force will be proportional to how much thought and effort is put into fostering a culture of not just product knowledge, but knowledge about the unique attributes your company has to offer.
Let us assume for a moment that your company has invested the brainpower and resources to adopt an internal ongoing think tank to address the "why do business with us" story. Our agents have the value propositions on why to do business with us down pat. What do you suppose will happen the next time the inevitable discussion of price comes up?
The agent will be prepared with one more reason than he needs why it is worth paying a little more than the competition for all that we have to offer. We will have created a desire to partner with a company that has the best attributes, not just the lowest price. We will have equipped our sales force with the tools necessary to succeed in both conquest business and account maintenance.
