I often hear benefits advisors say, “We compete on price, but we retain on service.”
Price is always a factor; however, in most instances in this industry, it is a level playing ground. With precious few exceptions, brokers have access to the same carriers, same plan designs and same prices. By admittedly competing on price, advisors never give themselves a fair shot at earning new business.
Related: 10 ways to find new business in your market
When it comes to fully insured plans, isn’t getting quotes one of the most basic tasks a broker does? By “basic,” I don’t necessarily mean it’s easy, but being able to get quotes and negotiate the renewal is a minimum expectation that clients have.
In baseball, the tie goes to the runner; in our game, the incumbent broker will almost always win the spreadsheet game.
You retain on what?
Now let’s talk about the “we retain on service” declaration. Isn’t this just another minimum expectation a business owner has of their advisor? Don’t they expect you to fix problems, advocate on their behalf, and respond quickly?
Now, put both of these back together. If a business owner was working with an advisor who wasn’t able to handle the renewal effectively or who didn’t provide good service, what do you think they would do? They would fire them in a heartbeat.
Meanwhile, some try to use a capabilities presentation as a tie-breaker. They accumulate a long list of “value-added services.” Guess what? That list of stuff is now part of the minimum expectations. If you don’t have the tools, don’t even bother showing up for the job.
Sure, you will occasionally win with the spreadsheet when going against a traditional broker. You may even catch the incumbent asleep at the service wheel and pick up an account from time to time. And, just maybe, you were an early adopter for that very solution an employer wants but hasn’t yet been offered. It does happen, just not often.
The universe insists on balance
The reality is you will lose every account the same way you won it. This is because you train clients on how to buy based on the way you sell to them in the first place.
The most hypocritical of all are “spreadsheeters” who are offended when a client asks other brokers to quote at renewal. Who the hell do you think taught them that?
Way more important than the price on the spreadsheet is an advisor’s ability to put together an overall cost-control strategy. This is what should be discussed during the sales process. The spreadsheet is simply a lagging indicator. You should be competing based on your ability to develop a strategy that will have a positive impact moving forward.
We also agree just scrolling through the list of what you have to offer leaves you sounding like every other broker.
Put yourself in the seat of that buyer. Do you think they are more interested in listening to your we-have-it-too list of resources or sharing a list of problems that they need to solve?
Most of your competitors are taking the lazy route to new business. Make yourself the painfully obvious choice. Your new business acquisition strategy must be built on proving you can continually deliver better results than anyone else. When this is the way you acquire new business and the client experience you provide, you will find yourself losing fewer clients.
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