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Capitalizing on “Considered Consumption” – Part 1

February 7, 2013

cost and value“Considered consumption” describes the growing trend for clients to take into account more than just the traditional benefits of a brand, which are derived from its functional attributes. Today’s clients expect “higher order” values – they are looking for insurance agencies and risk management consulting firms that embrace transparency, deliver quality, and harness the power of influence.

  • 91% are influenced by “how good” an organization is before making a  purchasing decision
  • 90% are influenced by how an organization behaves toward its current customers and local community
  • 79% only “buy products that appeal to their beliefs, values, or ideals.”[1]

In the past, business owners and consumers typically shopped around, seeking coverage for their specific type of business or need.  Premium prices and retention levels were major factors that drove their purchase decisions.  Today, every business decision says something about them as a Considered Consumer.

This gives you the opportunity to apply the Six Systems of Power and capitalize on this important societal trend.

Considered ConsumptionThe #1 trait Considered Consumers seek in placing their business with an agency is TRANSPARENCY.  They will thoroughly research the agency, you, your carriers, and your employees.  Then they’ll look at your competitors!  They use social media and search engines to dig deeply to uncover any bad practices and unethical or offensive behavior.

Considered Consumers blog, post to Facebook, and tweet regularly about bad practices they have uncovered. For example, they post about what they consider excessive expenditures or wastes of money for agency-wide retreats or carrier events.

Considered Consumers will choose to give their business to a firm with an excellent professional reputation in their community and in the industry.

bad social mediaA producer from a small local agency lost a long-time client when she saw that he was bad-mouthing one of the recent presidential candidates on his personal Twitter account.  In another situation, an agency owner was criticized and lost several large accounts for aggressively promoting his religion on his personal Facebook page.  Remember – Considered Consumers are researching more than just your business pages and website!

Striking the right balance and maintaining moderation on social media sites and community activities will keep you on good terms with Considered Consumers.

What other best practices can you implement to ensure your clients renew or prospects turn into clients?

Make sure that the social media site for your agency, your personal site, and your employees’ sites are community-focused, positive, and never controversial.  While consumers want to see that you and your agency are actively involved in the community, they make not feel the same way about your religious or political stance.

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[1] 2012 GfK Roper Consulting research report on Considered Consumption

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For more ideas on how to break the commodity trap connect with Beyond Insurance on:

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carolyn smithThe author, Carolyn Smith is the Director of Marketing and Innovation at Addis Intellectual Capital, LLC (AIC). AIC is a coaching and consulting company whose purpose is to transform the process that insurance agents, brokers and carriers use when working with clients.  Christin can be reached at csmith@beyondinsurance.com or 610-945-1021. The author’s opinions and posts in no way reflect the Beyond Insurance brand or any other affiliate within Addis Intellectual Capital.

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