Brokers’ Toolkit: Focus on Value to Sell During Inflation
Today we are seeing some of the highest, fastest inflation rates we’ve seen in decades. This can make the sales environment scary for brokers. Many of us place focus on price, and not focus on value. It’s not uncommon to see insureds and prospects hit with sticker shock. But you don’t have to let inflation slow you down. If you treat your product like a commodity, you’re extra vulnerable to pricing woes. But if you treat your product like a service, a partnership, and source of value, you’ll succeed even during times like these. Here are three things you can do today to help you close business using tools like Mineral.
One: Reduce Their Exposures
The first order of business is clear. You must reduce the exposures of your clients and prospects. This makes solutions like Mineral powerful tools for both prospecting and client retention. You might ask, ‘What do you mean by that, David?’ Well, it’s simple. Mineral is designed to help your clients avoid losses. It will reduce their exposure.
When we have inflation at the rates we do now, money doesn’t go as far as it used to. That means that everything costs more– including litigation. The cost of claims around employment practices and fraudulent workers’ comp claims will also rise proportionately. That’s where Mineral comes in. We can help you focus on value.
A tool like Mineral helps problem solvers and beats the price sellers. It lets you help your clients and prospects stop EPLI claims before they happen. Let’s take the example of Mineral’s online employee handbooks. This tool lets employers update the handbook in real time. There are also options to provide Spanish language versions and track signatures. You can also provide a handbook compliant in multiple states. Mineral also includes HR and safety training, legal updates, and the ability to ask experts questions. All of these things are invaluable at the point of sale.
These tools are the exact pieces of ammunition you need to add to your arsenal. They enable you to combat those exposures by giving your clients a process. This remedy isn’t exclusive to insurance or contractual liability. It also helps your clients on the compliance side. These tools provide an enormous advantage to your clients. This would differentiate you from other agents. Rather than being a price seller, you’re now a problem solver.
Don’t focus on products that pay you. Highlight the issues you solve and the value you deliver. With that strategy, you’ll be much more successful in forging lasting partnerships with clients and prospects alike.
Two: Reduce and Control Expenses
The second thing you can do is you can help your clients and prospects control their costs. Many prospects are looking for ways to improve the high experience mods. They may have ignored them in the past, but now they’re worried about it. Maybe they’re concerned with the frequency and severity of claims, but they’ve never looked at those things before. Perhaps they’re afraid that OSHA will come in and ding them. Maybe they need to hire an attorney to defend an EPLI claim or a wage and hour violation. Or perhaps they’ve had a worker get hurt, possibly off the job, and now he’s suing them. Now they may have a fraudulent worker’s comp claim that is sapping their productivity.
These are classic examples of issues that can raise premiums. Mineral addresses these problems upfront. This really the only way to achieve realistic cost savings with insurance. You can only go so low with a premium. You have to fix the root causes of what drives the price upward. Mineral does just that.
Three: Maintain and Improve Company Culture
The third thing you can do is improve the culture of your clients and prospects. Everybody’s facing tough times. There are challenges for folks on both sides of the employer/employee relationship. For employers, it’s hard to find skilled labor right now, and costs are through the roof. For employees, the threat of layoffs looms big and once again, prices are causing a whole lot of pain.
Now suppose that you have an employer that truly cares about its employees. Let’s say their employer invests in their safety, training, and career development. That sows the kind of commitment, loyalty, and productivity wins that you can’t ignore. Fixing cultures isn’t something a broker can do without either a magic wand, or a tool like Mineral. Mineral gives employers the tools they need to have solve for all those problems.
Wrapping Up: Focus on Value
It blows my mind how much we cling to price in our industry. And yet, it’s something I’ve never done. I’ve never had a problem closing a deal, even when I’m more expensive. I believe so much in the total cost of risk model. I break it down so that my clients and prospects understand that their cost of insurance isn’t just premium. It has so much to do with what exposures and loss histories they have.
So don’t make excuses. Look in the mirror, and commit to saying, “You know what, I’m going to try and do these three things.” A focus on value and partnership over a race-to-the-bottom on price. With that, you’ll win in the worst of economies, and thrive in the best of economies.
Partner with Mineral
Turn the challenges your clients face into your competitive edge with Mineral. We help your clients tackle workplace risks and stay ahead of the compliance curve.
Talk to a member of our team today and start closing new business with Mineral right away.