How to Scare Away Your Customers

I had to share this. It just happened and I thought, “That will be my next TMC.” Hopefully, we can all learn from it. Whether we are selling sponsorships, used cars, financial services, or men’s suits, we need to be transparent and working in the best interests of our client/partner versus just trying to “upsell” them.

When we moved to Nanaimo on Vancouver Island over nine years ago, we insured our cars and home through a local insurance broker. They were Island based. It was real people and real support. A few years ago, they were bought up by a larger organization from the lower mainland (Greater Vancouver Area), but the one on one service stayed great. When we call and speak to someone in the actual branch or go meet in person, they are fantastic. But our insurance brokerage has caught the “internet marketing – search out and close bots” approach to service. About six months ago, I got an email from them (Waypoint Insurance) saying the Lloyds of London policy on our home did not provide flood plain insurance, and “as our risk advisors,” they suggested we consider adding this coverage to our policy. Sure, we live on an island by the ocean, but we are up on a mountain and NOT on a flood plain. I was going in to renew our car insurance, so I brought the email with me and showed it to them. The advisor looked up our policy and advised us to disregard it. It was marketing, and all policies that did not have flood plain insurance were receiving this message. He advised against getting the additional insurance. (That is why I like using a broker I know, have a relationship with, and who cares about us.)

Then today, I received a similar email with an “Alert” on it advising I need to get flood plain insurance before it is too late. This time, there was a click-through box. They were making it so convenient for me (please note the huge tone of sarcasm). I didn’t have to talk to anyone—just click the box and the coverage would be added to my policy—no rates or costs—no transparency—just click here and we will let you sleep better at night. I couldn’t believe it.

I expect these tactics from the Norton’s and Microsoft’s of the world where they tell you that you need to upgrade your plan, policy, or software in order to be protected or whatever. Those are online purchases to begin with. They are transactional purchases which they are constantly upselling. I don’t expect this from my (as they referred to themselves in the letter) “risk advisor.” I expect a personalized email that offers me advice for things I need—not things I don’t. Those tactics are fine for non-relationship selling, but I don’t consider my home insurance to be transactional. Others may, and if they buy online with no human interaction, this approach is fine, but not when you are purchasing through a person.

So, remember the next time your property has decided they have excess assets or a deluge of new assets they need to sell, that the “bot” advertising approach should be avoided. Reach out to your partner directly, do an update meeting and tell them about the new or reduced-price inventory. Never assume they “won’t want it, that they spent their budget already, so I won’t waste their time.” Still let them know, but do it through a human channel versus an online blast that forces them to buy a product without transparency, or one that will not meet their marketing need. You built a personal/professional relationship with this partner for a reason. Follow through as a person—not a “bot!”

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