From ITC Agent Conference 2016... "I don't sell on price. I sell on value." That's fine, but offering what people need will not get people in the door. Consumers want a low price. However, their coverage needs do not often call for that lower price offering. The direct writers know this all too well. In this breakout learn how to use price-based marketing to attract leads but then sell on value.

1. Selling Value with Price-Based
Marketing
It happens all the time…
Laird Rixford
@lrixford/ President

2. No One Wants Insurance
Do you agree?

3. The Current State of
Insurance Ad Spending
Price is always a factor.

4. Bombardment by Billions of Bucks
1. State Farm ($608M)
2. Allstate ($654M)
3. GEICO ($935M)
4. Progressive ($604M)
5. Farmers [Zurich] ($165M)
6. USAA ($133M)
7. Liberty Mutual ($197M)
8. Nationwide ($296M)
9. Travelers ($161M)
10.American Family ($148M)
AM Best, Kantar Media, Nomura Research 2013

5. Bombardment by Billions of Bucks
1. Discount Double Check
2. Will Your Cut Rate Insurance Cover?
3. 15 Minutes saves 15%
4. Name your price.
5. We know insurance.
6. Commitment to a legacy.
7. Rewarding safe drivers with policy perks.
8. Members first.
9. It’s better here.
10.Insure carefully, dream furiously.

6. Bombardment by Billions of Bucks
1. State Farm ($608M)
2. Allstate ($654M)
3. GEICO ($935M)
4. Progressive ($604M)
5. Farmers [Zurich] ($165M)
6. USAA ($133M)
7. Liberty Mutual ($197M)
8. Nationwide ($296M)
9. Travelers ($161M)
10.American Family ($148M)
AM Best, Kantar Media, Nomura Research 2013

7. Auto Premiums in Billions
0
5
10
15
20
25
30
35
40
2010 2011 2012 2013
Price Value

8. Price
• $6B+ Ad Spend in 2014
• Why do they do this?
• Price is always a factor in the buying decision.
• Differences between generations.

9. Price vs. Value Selling
Are they? Are you?

10. Price vs. Value Selling
• What is selling value insurance?
• Is that value to you? To the consumer?
• What is your buying persona? Are you projecting?
• Value is your word. Not a consumers word.
• Have you ever called an insurer that markets on price?
• Upsold?
• Corrected?
• Are you told it is the best price?
• Consistent producer logic.
• Collision
• Rental
• Add-On
• Cross Sell

11. Price vs. Value Selling
• Producers are …
• … an advisor.
• … an educator.
• … an agent.
• … sales people.
• Producers consistently selling value?
• Monitoring producer performance.
• Call monitoring.
• Process review.
• Producer performance.
• Sales
• Loss Ratio
• Monitoring agency performance.

12. Marketing with Price
• Loss leader. Have one. Don’t bait and switch.
• Do not sell on a number. Sell the idea.
• Don’t 15%.
• Don’t $39
• Don’t Discount
• Don’t Cheaper
• Do Lower.
• Do Affordable.
• Sell on the idea of the CORRECT price for the CORRECT
coverage.
• Provide choice!
• You are an IA.
• Embrace the pivot.

13. The Pivot Takes a Salesperson
Are they ready?

14. Be a Sales Consultant
1. Set goals.
2. Determine needs.
3. Create a solution.
4. Inform and educate.
5. Let them ask for the sale.
6. Ask for the sale.
• This works in other parts of life.

15. Automating the Sales Cycle
I am myself.

16. Automated Marketing
• Consistent & continuous.
• Before, during, and after the sell.
• When spending hundreds of millions, do they let the lead
get stale?

17. Protecting Your Agency
The word to learn here is no.

18. Protect Yourself
• Have the markets.
• No bait and switch.
• Tailor your offering to the market.
• Offer sliding agency/broker fees.
• Waive for EFT.
• Educate the customer of the risks.
• Included a written agreement of declination of coverages.
• Be willing to walk away.
• “As your insurance advisor I recommend that you have this
coverage.”
• “Without this coverage, I am not comfortable selling this to you
as it will put you and your family at risk.”

19. Alternative Distribution
The online space.

20. Questions?
Comments.
Live Tweet on Twitter
@lrixford / #AgentCon16