7 Strikes against Commoditization…the Risk Revolution is Winning!
The Risk Revolution was launched just over a month ago, transforming agents and brokers, sales managers, producers, and carriers in a fight against commoditization.
So why is a Risk Revolution necessary? According to a recent McKinsey Report, “There are signs that the economics of the traditional agent model are beginning to unravel…Local agents are not in danger of extinction, but the role they play will continue to evolve. Those that can adapt to a new set of circumstances will thrive.”
The 7 Wonders of the Risk Revolution lists seven people who reshaped their traditional thinking about the 90-day insurance bid and have used the Risk Revolution to improve their productivity and results:
- Overthrew the 90-bid cycle and changed culture. Using Risk Revolution tactics, a prominent Cincinnati-based agency transformed its entire agency culture to serve clients as consultative, diagnostic risk strategists. A new client said, “You have invested more time to get to know my organization in the first few months than any other partner relationship I have ever had.”
- Achieved 90% New Business Hit Ratio. After implementing the tools and techniques taught in a Risk Revolution program, a new producer at a large North Carolina-based agency achieved a new business hit ratio of 90% – far above the industry standard of 25%!
- Used Value Prop to Create Personal Brand. A 24-year-old producer from a family-owned agency in Connecticut struggled to find his own identity and connect with prospects. His value prop previously was to read the firm’s “about us” section from the website. After applying the techniques he learned from a Risk Revolution program, he developed a unique value proposition that differentiated him and his agency in the marketplace. As a result, he turned more prospects into long-term, profitable clients by focusing his message and personal brand on what really matters to customers in his niche.
- Built a 100% Referral-Based Business. Instead of cold calling and spending time at business card exchanges/networking functions, a producer on the East Coast used the training from the Risk Revolution to set up a strong referral network. She said, “Now my business is 100% referral-based. I never have to go to those networking breakfasts again!
- Walked Away using Prospect Criteria Filter. An agency principal inform Georgia worked diligently on his risk assessment and insurance proposal for a new prospect. When he presented it, the client ignored the in-depth report on his business risks and thumbed to the end to see the price. The agency principal stood up and said, “I’m sorry, but that’s not the way we do business at my firm. We are not going to be able to work with you after all.” He took his proposal and left. By using the revolutionary Prospect Criteria Filter, he was able to walk away from a prospect who failed to treat him respectfully or with trust.
- Generated Million-Dollar Cross-Selling Success. An Illinois-based firm developed a cross-selling relationship with one of the Risk Revolution’s recommended partners. By adding a new product line, this firm grew its business by $1 million!
- Regained a Sense of Passion and Fun. An agency principal from Ohio was burned out after online commoditization hit the insurance industry. After attending a Purple Cow Leadership Workshop, he felt transformed…purple…revolutionary – and his passion was reignited. With a new sense of purpose and passion, he actively challenged commoditization within his agency and started serving customers using a diagnostic, consultative approach. He tells everyone that joining the Risk Revolution put the fun back in the business for him – and improved his agency’s bottom line.
Seven strikes against commoditization…the Risk Revolution is winning. How about you? How will you strike commoditization?