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February 5, 2015

How The Power of 3 Increases Sales

2 min read

Topic: Insurance Sales Insurance Agency Management Insurance Agency Growth Strategies Start an Agency Grow an Agency

A recent conversation with one of our members revealed a powerful reason behind the doubling of his book of business in a single year.  Interested?

Randy has discovered the power of three.

It’s About Choice

There is a large body of scientific evidence that proves that human beings like choices. In fact, it has been conclusively demonstrated that males are adept at choosing provided that they are given no more than three choices. Females, who my wife assures me are smarter, can handle five or more!

What’s particularly interesting is that when given three choices people tend to pick the middle choice about 80% of the time. This is incredibly important.

The average agent (who is an endangered species now that Google and Walmart are stealing their business) sells price. In their presentation they don’t give a lot of choices. They give one – “this is the cheapest price”. And when you have the cheapest price, and the consumer has one option, that is what they will pick.IMG_1319

It’s Also About Value

BUT, my colleague Randy gives 3 choices. Like Sears he offers Good, Better AND Best. See, he quotes more coverage sometimes, adds umbrellas or other options that fit the customer.

He explains why the second and third options are better, cost more but give greater value. His customers, just like those in the research studies, pick the middle option most of the time!

And, it’s About Higher Sales and Retention

Randy’s retention is far better than average because he is an advisor not a commodity seller. His customer’s have better coverage. And they spend more. Randy’s average sale is higher and his commission per account is higher. He doesn’t have to work as hard to make a dollar. So, his efforts in a typical day produce more dollars.

This is one of the reasons he is growing so rapidly!

Oh, and by the way, I GUARANTEE YOU that his loss ratios will be lower than average and his profit sharing checks will be higher than average.  When the nut cutting comes and carriers fire agents – he won’t be one who loses his contracts.

Offer three choices. It’s powerful!

Tony Caldwell is a modern “renaissance man,” who is not only immensely successful in the field of insurance, but is also a writer, children’s advocate, mentor and even a licensed pilot.

Always keen on helping others make their dreams come true, Tony and his team have helped independent agents grow into more than 250 independent agencies. This has made OAA the number one ranked Strategic Master Agency of SIAA for the last 5 years, and one of Oklahoma's 25 Best Companies to Work for.

Tony loves to share his knowledge, insight and wisdom through his bestselling books as well as in free mediums including podcasts and blogs.

Tony and his family are members of Crossings Community Church, and he is very active in community initiatives: he’s chairman of It’s My Community Initiative, Inc., a nonprofit working with disadvantaged people in Oklahoma City; and chairman of the Oklahoma Board of Juvenile Affairs., and he has served through many other organizations including the Salvation Army, Last Frontier Council of the Boy Scouts of America, and the Rotary Club.

In his spare time, Tony enjoys time with his family. He’s also an active outdoorsman and instrument-rated commercial pilot.