Differentiation

"When you fail to differentiate yourself from another service firm, the competition is reduced to choosing between commodities. But, law firms, accounting firms, management consulting firms, financial service firms, insurance firms, and the like are certainly not commodities – unless those in the industry commoditize themselves by failing to differentiate their offering from that of another."

The author went on to say that any buyer, faced with competing firms that all seemed "near clone-like," will either stay with what they have or make their decision based on the best price.

The above quote and reference is from a long blog dealing with the process of responding to RFPs in writing. You can read the entire article here. The message is applicable whether the "proposal" is in response to an RFP, in writing, or verbal. And the point is clear - your ability to differentiate yourself from other insurance agencies and, perhaps more importantly, from Internet carrier and consolidator sites, is what will enable you to survive and thrive in this economy or any other.

It's NOT all about the economy

Even in this difficult economic environment, is price the driving criteria for any purchase? When you've lost an account, it's easy to assume so - especially in the absence of a more definitive reason. When clients tell me it's all about the economy, I'm more than a little skeptical. Our own unscientific research shows that, whether it's insurance or groceries, price is almost never the only reason why anyone selects one product or service over another.

And now there' s research that supports my theory - and the "buyers" in this case are insurance agents. "When it comes to an agency's satisfaction with its personal lines insurance companies, commissions do not rank as tops. Nor do commissions rank second. In fact, out of six satisfaction factors, compensation from an insurer ranks dead last, according to a new industry study. "

You can read the article on the Insurance Journal website but it's not surprising. You select your carriers based on a whole package of customer needs and preferences, knowing that it's value, not price, that will influence their purchasing decision.

A good thing to remember if you're losing business and wondering why.

Keep Your Eye on the Ball

It's baseball ball season coming on fast and soon Little League will be starting up again. I'm not so much into baseball as I am into watching my grandson play. I'll sit in the stands and watch him swing for the fences - missing a few - while his father stands on the sidelines yelling for him to "Keep your eye on the ball!" That's what I'm suggesting to my business clients, too.

There are so many distractions now - and most of them negative. The market is still too soft. Retention is off. Revenues are down. It's oh so easy to get caught up in the media frenzy about companies laying off workers or closing their doors.

Now, more than ever is the time to keep your eye on what your business is all about. Now is not the time to thrash around looking for some new strategy or some silver bullet program that will distract you from doing what you do best. Now is the time to take a look at your strategic vision and the plan you have in place to reach your goals. Do the tactical details need adjustment? Or do you just need to focus - to keep your eye on the ball?

Can't see the forest for the trees?

Strategic perspective - the ability to manage everyday problems within the context of your mid-term and long-term goals - is often impossible to maintain without a little help.

The ability to help business owners maintain that strategic perspective is what I want to bring to the table. The fact that we have had the opportunity to work with hundreds of successful insurance agents, and we know how the business works - from both the company and the agency side - means we can bring perspective along with practical knowledge and advise.

My biggest kick is being able to help an agency owner see another way to solve a problem.

Transformation Advisors provides strategic management consulting to independent insurance agents and brokers who want to take their businesses from good to great – and keep it there. We are intimately familiar with the challenges you face and we design strategies and tools to help you create winning teams for sustained, excellent performance.