The Consultative Broker™ Briefing
Volume XII, Number 3
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2010

"What Have You Done for Me Lately?"

I was speaking last week with a young broker client of our firm.  He was commenting on the state of the marketplace and a prospect’s response to his approach.  He remarked that although prospects are extremely interested in reducing costs and improving productivity, they seem more focused on immediate relief from premium expenses.

Now those of you who follow our Consultative Brokerage guidelines know that the premium is the smallest part of a prospect’s Total Cost of Risk.  But, unfortunately, the premium is the most visible component of cost to senior managers in these difficult economic times.  Therefore, the attitude of some buyers is:  “What have you done for me lately?”

That answer is one of the simplest buyer’s objections to overcome, if you know the right buttons to push.  It demands that you have a complete understanding of how a buyer thinks and what their goals are.  If so, here is the tried and true strategy that most seasoned brokers’ employ:

• They adopt the financial language of the prospect or client. They engage the prospect in a business discussion that focuses on the outcomes of their value proposition rather than simply the price of the coverage.  By doing so, they move to the buyer’s side of the desk and elevate themselves above that of an insurance salesperson.

• They paint a picture of improved business risk.  They show the client how they are prepared to assist them and reduce frictional costs immediately inside their business.  They understand that virtually all businesses are under financial, competitive, productivity, and human capital pressure.

• They are astute ‘brokers.’  This is completely different than being an excellent technical agent.  (While most are!)  This includes the ability to analyze an account and present it to underwriters in a way that extracts the most favorable terms and conditions.  This is not simply the transmission of data; it includes a pro-forma of “what if” the losses change and how that will come about through application of resources.  This gives underwriters a benchmark to justify their approach.

• They understand Conceptual Selling.  A conceptual sale provides a prospect with a window into the future without entering the marketplace.  They demonstrate how their resources, broker skills, and ability will offset Business Risk.

• They are able to put their mouth where the money is.  Through the application of Total Cost of Risk, Stewardship Reports and Benchmarks, they provide their prospects and clients with a quantifiable yardstick to measure them by.  These important tools provide them the ability to say:  “We are who we said we are.”  (To paraphrase Denny Green.

So the next time a client or prospect attempts to stop you in your Consultative Broker tracks, remember this.  A client’s first objection is never the real one. If you take this bait and go down the road of short-term premium only savings, expect them to ask you next year . . .

“What have you done for me lately?

 

Best Regards to Consultative Brokers,

Rob Ekern
President
C.R. Ekern & Company