It's a Wal-mart World
At some time or another, most Americans have bought discount goodies within those blue and white, smiley-face filled walls. Wal-Mart has changed the way consumers shop for, well, everything.
In a Wal-Mart world, there is no need to make several trips to specialty stores or haggle over prices. And according to Bill Marquard, former Wal-Mart business strategist, it has changed the business landscape as well. Eighty-four percent of Americans have shopped at a Wal-Mart in the last year. So is your business Wal-Mart ready?
In a Wal-Mart world consumers partake in price-comparison shopping and always are looking for a deal. As an agent, you can negotiate price until you’re blue in the face, only to have a competitor swoop in with a better offer. To survive among the big dogs, choose something other than price as your competitive weapon.
Differentiate yourself.
Offer better customer service by improving your prospects’ in-house experience. Fresh-baked cookies and pleasant music go a long way toward helping you stand out. For a few tips, read Megan’s post On Making Customers Smile.
Another way to distinguish yourself—make your service more convenient. How can you better accommodate your prospects? Meet them at their office or work up more than one quote, so they feel they have options.
Provide prospects more information than your competitors. Most consumers have limited knowledge about insurance. Clueing-up your prospects with little known insurance facts and money saving tips shows you are knowledgeable and helpful.
Brand yourself.
Whether you sell insurance independently or for a larger carrier, think of yourself (not the company) as the brand. Every time you sell a policy, you are selling yourself, so work on ways to improve that brand. For tips check out Megan’s post Why Packaging Matters.
Involve yourself.
Getting involved in your community is a wonderful way to give something back. But on the more selfish side, it’s an excellent way to get your name out there. Volunteer work is a means for you to endear yourself to the local community.
As an individual or part of a small company, you don’t have the time or resources to get involved with every non-profit in town. But finding ways to align yourself with organizations that reflect your values is an excellent way to get your name out there in a positive way.
Marquard’s web site is geared toward retailers, so not everything is relevant to insurance agents. But he offers some great advice for thriving in a competitive business, which the insurance industry most certainly is.
Photo from Flickr under Creative Commons license
Comments
Great post, Maribeth.
It makes sense to me. Going head-to-head with Wal-Mart types for the lowest price seems like a losing proposition—one that probably plays right into the big guys' game plan. (By virtue of their size, they know they can win any price war.)
But the advantages that the underdogs have in a world of giants can't be discounted; they are adaptability, uniqueness, and, often, history.
While people certainly like to pay less for things if they can, I don't think they relish shopping at the Wal-Marts of the world. The key, which you so clearly state, is to give them good reasons to go elsewhere.
Posted by: Jeb | February 15, 2007 08:14 AM
Thanks Jeb. I agree; large franchises aren't as adaptable as smaller businesses. I think a big business loses more of its originality and personality the larger it grows. I'd pay a little more to shop somewhere with a unique story and interesting history any day. I think many consumers feel the same.
Posted by: maribeth | February 15, 2007 09:34 AM