The Smell of Desperation

Hey, benefits advisors, tell me how familiar the following story sounds:

Once upon a time, three advisors were competing for the same client.

They were all responding to the same project and had identified the same problem. Not surprisingly, they all offered the same solution. In fact, aside from a different logo, their presentations were virtually identical.

Even their language and talking points were the same. They claimed they would be a “trusted advisor.” Everyone talked about how many years their agency had been in business, bragged about the strong relationships they have with carriers, and explained how their biggest strength was the service they deliver.

One even made an uncomfortable joke, more than half serious, I think, that the others were “basically doing it wrong.”

None of them were chosen.

They lost because they were indistinguishable; none of them stood out from the others.

Despite being identical during their sales effort, they all had different excuses for losing. One blamed price, another blamed relationships, and the third blamed timing.

The irony of the story is that they all presented the same price, were potential new relationships to the buyer, and, of course, showed up at the same time.

No one recognized the real issue.

The three competing advisors filled the room with the smell of desperation, and the client could smell it.

Desperation stinks

Desperation stinks, literally and figuratively. It can’t be denied, and buyers sense it immediately. It’s evident in the language, positioning, and the way an industry talks about itself when it’s under pressure.

Right now, there is a smell of desperation in our industry air.

However, the source of the desperation may not be what you would think. It isn’t the result of competition, disruption, or changing client demands.

The real source is that we’ve started fighting each other rather than the real problem.

Our industry is threatened in multiple ways. But potential irrelevance as an industry, not day-to-day competition, is the common enemy.

The only way to defeat that enemy is to fight it together.

Fight a common fight

Industries collapse. Not because of competition, but because, when threatened, competitors turn on each other rather than the real problem. If infighting is the norm, individual competitors can’t help but become desperate.

That desperation is evident to buyers; they retract, and the original threat becomes even bigger, infighting increases, and the industry’s death spiral has begun.

Identify and name your enemy. Just know it’s not the firm down the street.

Our industry is threatened, and, in turn, so is your agency. We need to rally together to fight the problem, not each other. Potential irrelevance, not competition, is the real threat.

When weak and vulnerable industries are threatened, they turn on themselves. Contrast this to strong industries that collaborate and support one another when under pressure.

Separation and distance may feel safe, but it is collaboration, community, and connections that will save you.

Build up your competition

We are all painfully aware that our industry suffers from negative stereotypes and a poor reputation. Those things happen for a reason. They are our reality because (just being honest here), there are so few strong and impactful agencies.

Rather than feeding our reputational reality by further tearing one another down to the point of elimination, we must contribute to rebuilding our industry. Admittedly, this “new industry” version of ourselves will be significantly smaller than the industry we think of now.

If we don’t make this commitment, there will be no competition left. Without competition, there is no industry, new innovation, and eventually no you.

Here’s a challenge for you. And, yes, I’m entirely serious.

• Pick up the phone and call a competitor (Better yet, meet in person).

• Share an idea you believe will help them.

• Challenge one another to repeat this call/idea exchange with others

We all need strong competitors. Healthy competition is the fuel for collective growth. It forces clarity, differentiation, and raises standards.

Not having strong competitors leaves you exposed, not dominant.

Evidence of a vulnerable industry: “Trusted Advisor Theater”

If you doubt the vulnerability of our industry, consider how often you see or maybe even make the following statements.

A vulnerable and threatened industry turns on itself, and each member measures itself against its competitors. A strong industry measures itself and articulates its value based on the measurable impact it has on its clients.

Survival is not about being better

Why do agencies obsess over being a better version of their competitors? When you’re part of a threatened industry, even when you aren’t currently threatened, buyers don’t switch for a better version of what they already have.

No one switches for:

• Slightly better service

• Marginally lower cost

• A nicer version of what they already tolerate

Markets move as someone creates a new category. If your business plan is based on competing on incremental improvements, you’re too late. This is where most agencies stall and hide behind excuses.

If not now, when?

Some of you remember the lyrics, “If you choose not to decide, you still have made a choice.” Now is the time to choose to protect yourself from irrelevance. Waiting is an active decision to leave yourself exposed.

Rethink what you will be as an agency in terms of the impact you will have on your clients. Redesign processes, adopt the right systems/technology, and invest in training your team.

Most importantly, align yourself with other like-minded agencies. Weak industries eat their own while pretending nothing is wrong. Strong ones thrive because their leaders collaborate, innovate, and take control.

Don’t wait for someone else to go first; be a leader in the movement.

The question isn’t whether the industry is under threat. The question is whether you’ll fight the problem or keep fighting one another.

Content originally published by Q4intelligence

Photo by Feodora