You Have Nothing to Sell But Fear Itself

Promoting Fear and Insurance in Troubled Times

What do P/C producers really sell? Is it insurance policies, protection, or peace of mind? The answer is none of the above. What is actually sold is “fear reduction.” Insurance policies are simply the means to contractualize and finance it. Fear is what built this industry from the early days of Lloyd’s London coffee house. Bad stuff happens. Ships sink, fires burn, property is stolen, accidents occur, etc. To grow in this frightful economy, agencies should embrace their ability to skillfully manage the many fears associated with everyday life — and promote that — rather than just scramble to find the lowest price.

Fear is a Strong Emotion
Fear reduction is what distinguishes good doctors, attorneys, CPAs, and other professionals from rank and file service providers. They calm their patients and clients with sage advice and they are respected and well compensated for it. Cost is important too of course, especially in a recession. Law and accounting firms are seeing their fees negotiated downward. But even so, money is not as strong a motivator as fear. And we’re in the fear business, so it’s fair game to build this emotion into your agency’s marketing and sales efforts.

Fear is Big Business
Fear sells. Note for example the endless parade of books, movies, and TV shows featuring vampires. They each target fictional phobias, but still the audience for them is huge. Now, I’m not suggesting that you wear a cape and fangs to your next sales appointment, but you are doing yourself a disservice if you don’t use fear to your advantage.

Fear is a Door Opener
One way to capitalize on this powerful emotion is to focus your agency’s marketing efforts on it, rather than just obliquely alluding to it. If you elect to offer what every other agent does, to search for premium savings, you’ll open fewer doors. Why should a prospect meet with you when every other insurance seller makes the identical overture? Distinguish your agency. Offer to find out what’s wrong with a prospect’s existing policy or account. Promote this investigatory service in your marketing. It helps prospects to recognize that there may be serious weaknesses in their current insurance program. And they can find out what exactly is wrong simply by meeting with you.

Fear is a Marketing Bonanza
There are myriad ways to promote your fearful message. You can play it straight, sort of how the life insurance industry handles death. For the most part, they treat the end of life with respect and focus on the family rather than the grim reaper. Another approach is to cite recent increases in local and national crime rates. Alarming examples might include home invasions for individuals and employee dishonesty for businesses. You can also aim your marketing at the unknown incumbent. For instance, note that the recession is a game changer and rhetorically ask “Has your [personal or business] insurance agent protected you against today’s most frightening risks?”

Then again, there is humor. Although it may seem out of place in this economy, it actually isn’t. Gallows humor has been around as long as the hangman and it helps people to cope during hard times. One way to do this is to post an entertaining multiple choice “test” on your Web site, Facebook wall, and in print. Title it: “What do you fear the most about your [homeowners] insurance?” List choices such as not having enough coverage to rebuild your mother-in-law’s room, finding out that your home’s replacement cost is seven times its market value, not receiving a calendar with next year’s renewal, etc. Invite completers to contact you for the “right answer” and the right quote. Select the marketing approach that’s best suited to your agency’s personality and to the prospects that you are targeting. Experiment with multiple solicitations to find the best mix. Establish the winner as your control offer and endeavor to beat it with future efforts.

Fear is Concluded
Selling fear reduction and touting potential premium reductions are not mutually exclusive. To close the sale, you may have to do both, but no insurance sale is possible if you can’t get in the door. So, expand your marketing message beyond simple cash savings. Otherwise, you’ll waste days competing with endless other agents who are offering the exact same thing.