When You Can’t Compete on Price—How to Differentiate

Insurance agents don’t have any control over the premiums of the products they sell. The carrier sets the price, and many different agents might sell the same product in your area—at the same price. So how do you set yourself apart from your competitors? Here are a few tips.

Have the best customer service. Be sure that when your customers call, they never have to wade through an automated service or wait to talk to you. Spend time with each customer, getting to know what they need in terms of coverage and what the best solutions are. If someone does have to leave you a message, get back to them quickly, and always deliver on promises you make.

Be the most visible. Another way to differentiate is through your outreach. Insurance tends to be a fairly conservative industry—and any agents embracing social media, who are easily searchable online, stand above the crowd. Be accessible to your clients on the social media platforms where they’re most often found, encourage conversations and answer questions. Off social media, market frequently through a variety of channels so you stay top-of-mind.

Corner a niche market. Stand out by becoming a specialist in placing certain types of uncommon risks. Partner with a wholesale broker and go after large corporate clients who have a specific, sometimes contractual need for certain types of insurance. Depending on your market, there could be very few competitors—and you could develop a very lucrative side business.

Form the best relationships. You might not be able to control premium prices, but you likely know a lot about the ways your customers can save on their insurance premiums. Be their counselor in this area—and let them know you can guide them to a solution that saves them money. Above and beyond that, get to know them. Send Christmas and birthday cards. Call when their policies are set to expire and check in to see if they have questions about upcoming coverage. Demonstrate that you care, and your customers will notice.

There are plenty of ways to differentiate your business that have nothing to do with price. Great customer service is one way; so is visibility on all the channels where you’d most likely find your target audience. Expertise in a niche market can help you grow your business exponentially. And there’s no substitute for building a strong relationship with your customers.

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