The Consultative Broker™ Briefing
Volume VII, Number 10
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

 

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The Pressure Points of the Deal

All successful Consultative Brokers have one thing in common.  They all understand the pressure points of a deal.  They know that any given transaction will have at least one and maybe several moments of truth.  This is the point at which a seasoned Consultative Broker understands the buttons that need to be pushed at precisely the right time.  It is what separates the amateurs from the pros.

You have heard this one before, “Work smarter, not harder”.  What does this mean?  In order to work smarter, you must make certain your best efforts get noticed and don’t go to waste.  You must be confident in what you do and do it at the right time with the right people.  You must be able to see the entire playing field and pick when to make the right moves.  In short, you must understand the pressure points of the deal.

There are many variables in any given deal.  The key is to take personalities and emotions out of the equation.  Frankly, that is why so many producers don’t get the outcome they desire.  They have based their production entirely on personality and the ability to overpower a prospect.  When they depend entirely on this strategy, they neglect the important pressure points of the deal.  Also, when a deal is based entirely on personalities it becomes unpredictable.

Successful Consultative Brokers use their personalities and ability to build relationships for one primary purpose - to keep the playing field level.   They know that at some point, they will probably test this relationship.  The tests will always come during one of the pressure points of the deal.

Consultative Brokers focus all their efforts on creating an environment inside the deal that is based upon leading the buyer to the right business decision.  That becomes the basis of a “Value Proposition”.  In order to create the intended outcome (Broker of Record) there are several things that must fall into place.  Each of these can become a “Pressure Point of the Deal”.

1. They prospect based upon value.  A successful Consultative Broker sees the prospecting process as a potential education exercise.  They know that in order to attract the right clients, they must first find the prospects that can appreciate value and understand their value proposition.  This is the first pressure point.  They will spend time creating a receptive audience.
2. They obtain all the information.   They know the true purpose of the information, which allows them to develop a strategy that does not revolve around underwriting submissions.  They will use this information later to show a prospect the “financial leakage” that currently exists on their balance sheets (i.e. hidden costs or indirect loss costs).  In the event they cannot obtain all of the information, they can’t differentiate themselves.  This is the second pressure point.
3. They create the level of competition.  After they have analyzed the information and data, they create and communicate the outline of their value proposition.  This is done through the utilization and deployment of resources.  The buyer must accept and acknowledge the value and impact of these resources.  This is the third pressure point.  They don’t go forward until this is accomplished.
4. They only compete conceptually.   If they have done the right things to this point, they will not allow it to become a marketplace selection process.  Why?  Because there are too many variables that can upset the apple cart.  Also, once it becomes about the carriers, their unique value proposition erodes and they have lost their competitive advantage.   This is the fourth pressure point.
5. They require a buyer to make a business decision.   A successful broker has made the entire process about demonstrating the impact they can make on a buyer’s business.  They have shown the buyer how they can reduce their costs and improve profitability.  This final pressure point is dependant upon the broker’s ability to constantly remind the buyer of this value.  It allows them to soothe a buyer’s remorse involved in changing programs to a new broker.  It becomes about business, not personalities.

These are the key pressure points of the deal.  A broker who intends to attract larger accounts must be prepared to deal with each of them.  The way in which they are handled is the difference between success and failure.

Best regards to all Consultative Brokers,

Rob Ekern
President
C.R. Ekern & Company

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Consultative Brokerage® Techniques are utilized by agents and brokers across North America in the development and retention of upper middle market revenues.  The Consultative Broker Briefing is delivered electronically free of charge to selected agents, brokers, and other insurance professionals across North America.  To subscribe to The Consultative Broker Briefing, please click here.

Copyright 2007 C.R. Ekern & Company