According to the U.S. Small Business Administration, there were approximately 28.2 million small businesses operating in the United States in 2011, and this number likely has grown since that time. This market presents an incredible opportunity for insurance companies, and you may be looking for a way to tap into that market. After all, while the initial payout on a large account may be lucrative, it may be easier for you to develop long-lasting relationships with small businesses, and there may be more opportunities to cross-sell and to gain referrals from them.
Build Consultative Relationships
Selling insurance is about relationships, and agents that focus on building relationships and helping their clients do well in this market. With a consultation with a small business owner, insurance agents may provide customers with assistance on valuing their business and different options for safeguarding their business. The agent essentially can be an educational resource to the business owner before attempting to sell insurance. Once the business owner understands the need for and benefits of insurance, the business owner sees the agent as being a trusted, helpful partner rather than a salesperson. Keep in mind that even with a small account, there is always opportunity for the business to grow or for the business owner to provide referral business.
Building a book of small business owners may be easier than you might think. You simply have to attend networking events, charitable organization fundraisers and other community events. Actively listen to their needs, and honestly attempt to help them. Sincerity and authenticity will help you to get appointments and build a relationship. You will also position yourself as someone they feel confident referring to others. Because relationships are so important with small business clients, you might keep use of technology at a minimum in this case. Phone calls and on-site visits may be better options. Nonetheless, emails, online marketing and more can be used to stay in touch in between meetings and to keep the relationship established.
Small businesses can be a lucrative market to target. With the right understanding of what it takes to make money by targeting this group and how important relationships are, you may position yourself for success.