There is no doubt there is a divided front in the insurance agency world. The direct writers vs. the independents. Both have their own pros and cons but as an independent agent you need to be prepared on how you are going to sell when you may not have the same level of name recognition. This blog will help you tastefully handle going against a captive quote.
Understanding Why Someone Would Think a Captive Quote is Better
Everything in sales starts with empathy. Why would someone want a quote from a captive agent, or even select the quote from a captive? The answer is simple.
- They spend BILLIONS of dollars to build and buy awareness
- Name recognition equals safety and security for many people
- They can quote over the phone making the process simple and easy (People love convenience more than price. If you doubt me tell me when is the last time an Amazon box came to your house?)
- In the times of disaster they are the first on the scene cutting checks, handing out water bottles and bringing their branded trucks right into the neighborhood
- They are trained, and trained well, to hold on to their clients, not sell on price and build relationships
- They have PR firms dedicated to their online reputation so the bad reviews get buried and the good ones give them credibility
- Their sites are massive SEO beasts. With locations across the country, backlinks, blogs and massive traffic they can often easily overcome your site in SEO and local rankings. Don’t forget, they don’t mind spending for paid search and sponsorship either! With their technology they will nurture a lead for decades until it converts.
Let’s be honest, there have been many changes to the direct writer landscape in the last few years. Nationwide Insurance decided to go independent and many other direct writers now have outlets to write with independent companies if and when the company can’t write it. The landscape is changing but don’t discredit their power. The independent agency organizations have failed us by not spending their $$$ on building the reasons why independent agents are the way to go. So somewhere along the way my nieces and nephews and for that matter neighbors don’t know independent agents exist.
The Best Way To Handle An Objection is To Not Get One at All
You may be thinking “yea, duh of course.” But do you do it? We recommend a strong rapport building process that introduces the agency and what an independent agency is and why the prospect should care. In our AppX Sales program we actually spend 2 weeks just reviewing this to nail it down and make sure it’s happening consistently. When you let people know what an independent agent is and why it’s best for them, they think differently. When you wait until the end then you have to defend your quote. You’re playing defense. Plus, when you explain how many carriers you are going to be shopping for them they can go back to shopping online for shoes, not hoping to get a competitive quote.
Best Talking Points To Overcome the Direct Writer Objection
If you do happen to get the direct writer objection you have to be prepared with your response. If they provide a healthy savings, the person had a great convenient process and the prospect has brand recognition, you need to be ready to throw down.
Earn the right to get a copy of the quote
I have heard too many calls when people say “send me a copy of the quote” and then try to pull it apart. That is not your first defense. You are asking your prospect to do more work. Instead you need to really hit home the reasons they should be reconsidering. You going tit for tat with the direct writer isn’t one of them.
Identify what services YOU personally provide
Each agency should have it clearly written what you do for proactive service to clients. People will pay more when they see value. However, our clients are not mystic mind readers. You need to let them know a few important items:
- Your review process
- Your claims process
- The fact they get a YOU
As frustrating as it is we still struggle to make ourselves a selling feature. And we should be. Getting a you is critical!
Know your policy language and carriers
Another part of AppX Sales is to do a through carrier review. What are the features, benefits and details included that we can get someone interested in. A policy is not a policy and there is no such thing as apples to apples. Be prepared to explain the details!
Shop Local
For many agencies they are local and part of the fabric of the community. You give to scholarship funds, little league and countless community programs. When they buy from you they too are helping their communities.
Tastefully Build Your Case
So if the direct writers are spending BILLIONS where is that money coming from? They aren’t a charity. It’s coming from policy holders. You can use this script to tastefully poke holes:
“I also enjoy those commercials, in fact my friend was Flo for Halloween. However, where do you think all of those advertising dollars come from? It’s the policy holders. I’d rather my insurance company invest in great service, reducing rates and taking care of me rather than billboards or TV commercials.”
Then be quiet and listen to the prospect to work to overcome the objection.
Only If You Need To….
Ask to see a copy of their quote, but don’t do it unless you need to. You are getting the prospect off the phone and now chasing them to do something for your sale. Try to close it but if you can’t, see if you can review it on the phone with the prospect. Less, on the phone off the phone the better you have a shot of closing this thing down!
Interested in learning more? Check out our latest podcast for more tips!
