Enhancing both the quantity and quality of sales remains a top priority for virtually every producer, but the task of identifying and nurturing suitable prospects who ultimately become loyal clients can be quite challenging. The landscape of sales has evolved in recent years, and research suggests that relationship-based selling is often the least effective approach. Nevertheless, this doesn't diminish the significance of relationships; in fact, they remain crucial.
What has changed is the need for producers to leverage their relationships to cultivate advocates who can aid in acquiring new customers. Creating advocates who are willing to publicly endorse and support you may not be as daunting as it seems. The primary obstacle for many producers is their reluctance to request advocacy.
Types of Advocates
There are three categories of advocates: existing clients, professional and personal associates, and potential clients. Each can play a pivotal role in opening doors or facilitating new business, but it's essential to know when and how to engage an advocate. Think of an advocate as your "ace in the hole" — you don't want to overuse them or position them poorly.
Here's a breakdown of when to utilize each type of advocate and how to maximize the benefits while ensuring your strategy doesn't backfire.
- Prospective Commercial Lines Clients: They need to understand your grasp of their business risks and your ability to drive change. Don't assume that the CFO or CEO who introduced you is your sole advocate; focus on the individual who best recognizes your capacity to stand out and lead.
- Prospective Personal Lines Clients: They need to know and understand that you are not selling them the bare-minimum coverage because the price is low, just to make a sale. You must educate them to their risks, and what their coverages need to be to make them whole in the event of a claim. Many agents sell on price, and not to protect their client’s assets.
- Existing Clients: They should know about the key challenges you'll help their prospects address and your unique value proposition. Be cautious not to connect the wrong client with your prospect; select a client from a similar industry who has successfully tackled the challenges your prospect faces.
- Professional and Personal Peers: They should be well-informed about your ideal client profile, value proposition, niches, personal and professional goals. Avoid falling into the trap of accepting referrals that don't align with your agency's focus.
Cultivating Advocates
You now understand the roles of advocates in various scenarios, but how do you build this team of advocates?
- Prospective Clients: The expectation of advocacy should be integrated into your sales strategy from the outset. A prime opportunity to introduce the concept of advocacy is during your initial meeting when you're presenting yourself and your agency. You can easily link advocacy to a robust value proposition.
- Existing Clients: With existing clients, there are ample opportunities to emphasize advocacy. Some even insist that a client isn't considered an A-list client until they've provided a testimonial or introduced them to a prospect. This approach is not for everyone, but if it is, put it into practice. Building a strong client relationship involves reciprocity, so during midyear or annual reviews, you can discuss advocacy and reciprocate by offering referrals or gaining insights into their business growth plans.
- Professional and Personal Peers: Consider creating a presentation tailored for these advocates. These presentations should help your key professional and personal contacts understand what sets you apart from your competitors and educate them on how to effectively advocate on your behalf. Don't assume that just because someone knows and likes you, they can automatically position you and your unique qualities effectively. Invest time with your key contacts to teach them how to advocate on your behalf.
If you aspire to grow your business through referrals, it's time to develop a plan to position yourself effectively and empower those who are willing to support you in this endeavor.
AAI offers proven marketing strategies and the support you need to market yourself and your agency to your target audience, including access to top insurance providers. Contact us today for more information.