Consumer Marketing/Retention

I married into a small business owner’s family. My fatherin-law did not advertise at all. No flyers; no advertisements (paper or media); no website; no Facebook, Instagram, or Snap Chat (they had not been invented); no sponsorship except for my wife’s soccer and softball team. I can tell you that when we first started dating, it was nearly impossible to find a space to park at her house when I was visiting. His automotive repair business was in his detached garage in the rear of the property with a driveway that was nearly 100 feet long and always lined fully with cars on both sides the entire length. It did not matter the day. Throughout the day, people were always dropping off and picking up their cars and sometimes even after closing at all times during the evening.

I was eating dinner with them one night and thought, “This guy is a marketing genius. I am going to pick his brain for ideas and find out what the “secret sauce” to his business success is.” As I could see, he wasn’t the cheapest, he didn’t have a nice waiting room with snacks and drinks, and he did not have the newest, flashy equipment or uniforms. He indicated his marketing was simple, he is timely, his work is of high quality and extremely thorough (customers got their issue fixed the first time), and he was honest. Lastly, he didn’t try to sell anything, as his job was to fix problems. He said that as long as he adhered to those things, people would find him and that he did not have to look for any additional customers. He said that he employed the marketing firm of “Word of Mouth” and that they only cost him his hard work and relied on him fixing things the right way the first time. In those rare cases where he couldn’t, he relied on the other marketing firm, “Honesty.” I watched him interact with customers and saw him have numerous tough conversations where the customer wasn’t happy with the answer. They would leave to go to a competitor only to return to him after trying a couple of other solutions to find out that he was right and he had their best interest in mind by fixing it correctly the first time. There were instances where he told customers that the car wasn’t worth repairing and to look for a new vehicle. He knew he didn’t sell cars, and by encouraging them to buy a new one, he would, in turn, lose money. Had he done the fix, which would have been temporary, he knew he could potentially lose them as a customer.

In this hard market our industry faces, do not focus on cost but on coverage and service. Cost will be high for everyone (as referenced in Brett’s 5 sense), and how you set yourself apart is providing appropriate coverage, stellar customer service, and honesty above all else. Be willing to let people walk away, and don’t just settle for what you sell them for the lowest cost (minimum limits). When it comes to claim time, they will blame you for lack of coverage even though they turned down your high limit or better coverage recommendations. If you let them walk, they may later return as they will see that you truly had their best interest in mind when you originally quoted them the first time. Set some parameters that you think are important regarding coverage, and try not to deviate from those minimums. Remember, you are a “Trusted Choice” adviser, not an insurance agent, and having many solutions at your fingertips can provide the greatest opportunity for the best peace of mind. That is what we are all looking for when insuring our property and ourselves.

Recently, my town was rocked by storms/tornado/derecho, which caused a great amount of damage that triggered insurance claims. Whether it be someone’s trampoline hitting multiple houses for blocks; a golf cart going through a neighbor’s wall; hail damage, roof damage, all the way to trees landing on structures, everyone was thinking to themselves, “Thank goodness we have insurance.” The next day when they talked to their insurance agent or adjuster, they truly found out how well they were covered. How good was their peace of mind, truly? My neighbor told me they had full coverage, but the insurer was only paying ACV for their roof. I asked who told them they had full coverage. They indicated that their agent on the phone that they had never met. I looked at their old policy, and it would have been covered fully on their old policy, but they switched due to price, and their old agent refused to play the lowest price game as their concern was to provide them with the best coverage available. My question to them was, “Would you have paid another $200 per year to have the appropriate coverage?” You guessed it; they said yes. Hindsight is always 20/20. Would you want to be their old agent or the agent on the phone indicating that you erroneously had full coverage? While the new agent had the business until the claim, the old agent now has the trust and may have earned a customer for life. Many of my neighbors have asked who my agent is, as my claim has been seamless. Even though I probably pay a little more in premium, they see the benefit of being appropriately insured. Sell yourself, your products, your integrity, your honesty, do not compromise, and you will earn customers for life. In their greatest time of need, you will be there to help your customers pick up the pieces and not be devastated financially. I would always want to be seen as a value add, and by doing things right, that is what you will be.

Word-of-mouth is really underrated as a marketing tool and can take you to the next level. All of the other marketing tools are great, but if you don’t have good word-of-mouth process, those other tools’ success will be short-lived and unsustainable. You are in the best position to build your brand and customer loyalty by being an independent agent due to choices and being able to pivot quickly. If someone leaves you due to price, do not fret, as they may be back after a claim, or they were never meant to be your customer. If you are losing most of your customers to price, maybe rethink how you message the framing of price and provide real-world examples of claims that could make them truly have an accurate picture of how their lack of coverage will affect their pocketbook come claim time. If they still want to go, do as my daughter says and “Elsa them.” Let em go, Let em go, Let em go. If you do everything in your power to provide great, honest, and appropriate service, you will find that you will insure generations of families.

Do not worry about the ones that got away due to the fact you are Stuart Smalley. Additionally, realize that not only are they choosing you, you are choosing them, and maybe when someone goes down the proverbial street, it may be for the best of all involved.

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