How to Take Customers from Geico

[Guest]

How do you target clients from certain companies?

 

[BTFuzz]

There are ways to market that aren't price driven. Example: my primary marketing "sceme" is promoting referrals by giving prizes and rewarding people for the act of referring.

Networking and having multiple, solid referral sources is almost the only way I market anymore....not saying other ways don't work this is just how I do it.

 

[InsurExcellence]

Personalize offers for a specific niche and fight off the "Big Box" options by adding value at the local level where possible.

 

[AgencyEquity]

That's a pretty interesting take on it.

I'm one of at least three active members of this forum with Geico. I'm with them because they have the best price on the coverage I want and I've had a positive experience with the way they've handled claims.

When I was at Allstate I'd steal clients from other companies, even when we were more expensive, because I took the time to go over their coverages with them and explain what gaps they had. They felt I added value and went with Allstate partially because of the branding, but largely because I helped them understand the value of the coverage and turned the discussion of "I want the state minimums" into a discussion about what that actually meant which led to the obvious conclusion that their last agent did not help them the way they wished they had.

Since you called out Geico customers as shopping on price, I'm wondering what carriers you know of or what agencies that don't use that as a marketing point? Allstate, State Farm, most independent agencies (all?), and the whole slew say "call me to see how much I can save you on your insurance".

If you don't angle on price, what do you advertise? "If you'd like to pay 15% or more, call AgencyEquity!"? I'm being a little facetious with that, but I really am curious as to what your approach is.

Josh,
I do not currently own an agency (I was acquired), it didn't happen much, but when I did have a Geico client call us, first of all they were auto only (they didn't own a home), they felt they had no need for umbrella and even renters insurance. I didn't quote these, I would refer them to an agency that wanted this.

Every once in a while I would get a referral from a realtor who would refer me a potential homeowners policy on a home they just sold. In the few instances I quoted Geico, this was it. 2 our of 3 times, I would get these accounts since I always quoted them as a package and while prices were not less then Gieco, they were close or the same.

As far as other companies pushing price, perhaps companies like Gieco are such as 21st Century (or whatever they go by now). But here is a Travelers commercial, there is a huge constrast to a Geico commercial...


As mentioned, Geico has a place in the marketplace, but for the most part they are not your high income earners cream of the crop clients, Nevertheless I am glad there is a company like Geico to servce this clientele, I don't think these clients are good for insurance agencies who shouldu focus on relationships and account rounding.

 

[kimquotes]

Go get a strategy find things that makes a hole from Geico. I know it is a leading insurance company but everything will be up to your talking.

 

[Bob Klee]

I never worried about Geico but I haven't written a policy since 2006...

But Geico is doing quite well according to this article!

Like others have said & I agree. If you sell on a risk/needs analysis you will generally win. I started in the insurance business in So. Cal. back in 1986. What I don't get is that many Agents still think 100/300/50 is Good coverage! We were recommending that 25 years ago so either the economy has gone backwards in that time or we as agents are not doing our jobs taking care of the needs of our clients.

Un/Under-insured motorists coverage is more important than ever with all the people running around with minimum coverage. How much are you worth? Your clients?

Auto insurance is not a commodity, no matter how much Geico & Progressive try to tell the consumer it is. Don't prospect for minimum wage clients or you will always lose to these folks. Aim higher & you have a much better chance of wining the business because you are offering value....if you can't do that...find a minimum wage job and get out of the insurance business because you are giving the rest of us a bad name.

Okay, off my band wagon but come on....they can't compete with YOU, not the other way around!

 

[nightmareonelmst]

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[Guest]

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thank you for your brialliant insights................cant wait to read your next comment

 

[fcorcoran]

You can always say " I will work to get you a better value". That doent mean better rate. That way they buy in bulk, not price. Give the customer the price per thousand. You may be able to get them 5 times the coverage for $20 more a month. Your still higher, but your getting them more for the money. People will spend more if they are getting more. Just like Costco, or Sams club. Its better face to face though. Its harder to do that over the phone. Gotta be different than Geico or they will leave y0u on price if you got them on price.

 

[Biggdogg]

The Geico's of the world have their place, and I think those that go that direction belong there. They don't really care what the coverage is, just what it costs.

I have always said "I am an insurance professional, I have studied and worked in this industry for 20+ years. I will always suggest what is in the client's best interest. Sometimes that level of attention costs a few dollars more."