When you think about the competitive advantages your agency offers, there are really only three basic arenas of competition: price, product and service. While some things might fit into one or another of the categories (bonding, for example could be considered either a service or a product), it’s helpful to think about your value proposition in terms of these three arenas, and to match your strengths with the needs and values of the target businesses you’re going after.
Agencies and producers get into trouble when they heedlessly try to compete in all three arenas at the same time. Hence, it’s critical that you consider your core strengths and decide how you want to position yourself in the marketplace. Are you going to go pursue new accounts primarily on the basis of cutting costs and delivering the most competitive price quotes? If that’s the case, you should make sure your programs and carriers consistently offer the lowest premiums for particular business classes, and then focus on those classes aggressively. Continue reading →