How’s your Wedge?

Traditional sales methods yield traditional results. For many brokers in the Canadian market, these methods – which many of us have heard as “identifying prospects, communicating effectively and building customer relationships” – are important. They may even create satisfactory growth and decent retention figures.

But something is missing. This “something” typically manifests itself in stalled business growth and a nagging frustration with proposals that hit the proverbial dead-end. These old methods of selling business ignore a crucial factor in the sales process.

The fundamental truth about selling is that most of the time someone must lose for you to win. Other sales techniques and coaching methods typically ignore this reality and concentrate squarely on the dynamics between the buyer and the seller. They ignore a critical part of the equation – the incumbent provider. And this is what The Wedge is all about.

WHY YOU NEED THE WEDGE

First, an illustration: let’s look at how a typical broker – we’ll call him “Bill” – makes his traditional sales pitch to a prospective client, “Carol,” the controller of a mid-sized business. Bill has already taken the first step in the selling process: he has identified a prospect based on niche account research, telemarketing lead generation or just plain old cold calling. Bill’s initial contact involves creating a friendly rapport with Carol. He gives a well-rehearsed corporate spiel about his brokerage’s history, strength and service. If he has done his research, Bill can identify insurance coverage, inquire about any current problems and ask Carol if she is interested in a proposal. In this case, Carol agrees to a proposal, noting her company has been frustrated with the price on its CGL policy.

Full of enthusiasm, Bill goes back to the office and checks out his markets of choice for this particular client. He is even more encouraged that he can find some savings for the company on its CGL policy, with a few enhanced product options. After completing the proposal in a slick packaged presentation, he sets up an appointment with Carol. At the meeting, Bill eagerly shows Carol how his proposal provides the same or better coverage at a more competitive price. The meeting seems to go well, and Carol promises to review the proposal with the management team. Bill agrees to follow up in two days.

The next stage is often overlooked, but it is a critical part of the equation. Carol goes back to her incumbent broker and sees if the carrier can match the new proposal. In a competitive market, she is able to successfully negotiate a matching deal with the current provider and decides to stay put based on the longevity of their 10-year insurance relationship. Bill follows up in two days, but gets voicemail for the rest of the week. Early the next week, Carol calls back and informs him that the company has decided to stick with its current provider. Disappointed, Bill tries to re-emphasize the price savings, but Carol is firm. Bill promises to call back close to next year’s expiry date.

This scenario plays itself out daily in sales proposals across Canada. What happened? Like many who rely on traditional selling methods, Bill got “rolled.” It happens especially to salespeople who go in slinging their sales pitch and quickly offer a quote to save the prospect money. The real problem is that Bill had a weak sales strategy.

ENTER THE WEDGE

This is where The Wedge comes in. The Wedge is a sales strategy that I developed more than 10 years ago based on one simple principle: there are three people in most sales engagements – you, the prospect, and the current vendor. To win the business, you have to be able to break the relationship between the vendor and the prospect. If not, you will lose. The Wedge is a simple concept, but many underlying layers will determine how successful a broker is in adopting it.

For example, let’s look specifically at why Bill’s presentation failed. Although he made an effort to find out about any problems or frustrations the prospect might be having, he did not discover any that would make a big enough difference. Nor did he take into account that Carol’s company already had a relationship with another provider – one that would allow the current provider to match any price savings or product options and explain its own advantages. In short, Bill failed to differentiate his brokerage from the incumbent and offer a compelling reason to switch. And that’s a big oversight.

A salesperson that currently has an account is in the driver’s seat. He or she already has the relationship with the prospect and is going to do everything possible to keep the business. You must therefore drive a wedge between your prospect and the provider. Your job is to dislodge that relationship. In other words, you have to get your competition fired.

How? You can’t go in and trash-talk your competitors and list all the bad things they have done in the past year or so. That route will most likely get you fired! The challenge is to help your prospect see they are being under-served by your rivals, without criticizing your competition, and leading your prospect to decide on their own to switch their business to you. The quicker brokers learn how to do that, the sooner they can start winning larger more profitable accounts.

BREAKING ESTABLISHED TIES

Selling is a contact sport. For you to win, someone else has to lose. That may sound Darwinian and even ruthless, but there is nothing unethical or indecent about it.

Most companies are being under-served in some way. Many of them are in business relations that, for various reasons, they lack the incentive to change. Some are in the market looking for what you offer, but they have a provider in place that has been able to persuade them not to switch.

If you are not successful at getting buyers out of inferior relationships and into better ones, you are leaving those prospects stuck with mediocre service. If you truly believe you can do a better job than your rival in offering truly proactive service, then you owe it to yourself to get your competition fired. That is what The Wedge is all about.

THE WEDGE WORKS

And now for the really big question: Does it work? After conducting sales sessions for thousands of insurance and financial services sales professionals across North America – including an exclusive relationship with Lombard Canada – I would say it does. But it is likely better to let others who are directly involved in the insurance sales and servicing business speak for themselves.

“Our Wedge-trained producers experienced growth rates for the last two years of 80% versus our overall premium growth of 30%,” Dean Morrissey, vice president of commercial lines for Lombard Canada, says. “The Wedge Group is the only (sales training) program that we endorse.”

Garth Lane, account executive of Lloyd Sadd Insurance Brokers in Calgary, says: “I wrote a $1-million account and my use, understanding and application of The Wedge was the key factor. This was a three-year process and my growth in using Wedge patterned this time period. …(The) Wedge has really made a difference for me.”

For those brokers who are frustrated by seemingly solid proposals that find their way in the recycling bin, The Wedge may be a good place to start rethinking their approach to sales. And that approach has to take into account you, the client – and the current provider.