5 Tips for Better Understanding Your Customers

Your customers are what keep you in business, and the key to getting as many as possible — and maximizing revenue on each one — is understanding what makes them tick.

As an insurance agent, you likely have a leg up on other industries when it comes to understanding exactly what your customers are going through.

But how can you dig deeper and find a way to capitalize? Here are some tips for pulling off just that!

1. Start with what you know

When an insurance customer buys from you, they provide reams of data that you can use to determine where they are in their lives. Do they have children? Are they looking at buying a home? Perhaps they have just bought a new car?

2. Extrapolate

Think of “extrapolating” like you’re wringing out a wet washcloth. You can squeeze that cloth as hard as you can once, but no matter how hard you do it, it’s likely that you can give it two or three more squeezes and the water will keep pouring out of it.

The data you already have is the wet washcloth. Now think about that first squeeze.

For auto, are they upgrading or downgrading vehicles? This could symbolize a financial change in their lives for better or worse. Staying in the same price range? Maybe they are saving up for a home purchase.

For a homeowners policy, where are they buying? What part of town? What’s the size of the home? What is the motivation for purchasing? Are they trying to take advantage of low interest rates, or perhaps starting a family and are in need of more room?

Each of these scenarios will tell you something more about your customers and what they are going through. The more you understand, the easier it is to deliver the solutions they are looking for.

3. Hold a brainstorming session with your agents

Make the time to communicate with your agents. Ask them to reveal specific details regarding what they know about their customers.

List everything on a whiteboard. See what’s related and what isn’t. Collective groupthink can give one a better idea of any topic and insurance customers are no exception.

4. Think about yourself, your family, and others in your immediate circle of influence

One advantage insurance agents have over other businesses — at some point, EVERYONE is an insurance customer.

That means there is quite a bit that you can learn from your own experiences as well as those of your friends and family.

And if there are any points of clarification you’re in need of, there is a lot less pressure and a greater response rate by approaching the people you already know and like.

5. Eavesdrop

When you hear the word “eavesdrop,” you may associate it with snooping, but that’s not what I’m encouraging you to do here. Instead, you should consider eavesdropping in safe locations online.

Just go to where your customers are most likely to be whenever they have a question or concern about something and “listen” to their problems.

Sites like reddit and specialty online forums have made it super-simple to track down valuable research at a granular level. Take advantage of it!

In Summary

As you explore ways of better connecting with your customers, consider putting some of the tips recommended above to use. These and other resources can help you develop a better understanding of your customers, and it can help you realize what turns a customer off or motivates them to forgo an agent in the buying process. By understanding such obstacles, you have the inside track on how to overcome them.

Share this Article
Farmers - The Hartford - State Farm - Kemper Direct - Nationwide - Allstate - New York Life