Over the last couple of months, we’ve provided some tips to help sell against ADP TotalSource and TriNet. This month, we’ll be covering Insperity. Insperity was established in 1986, and has grown to be one of the largest, and most recognized names in the PEO space, and for good reason. They offer a full suite of HR services and technology. From your standard payroll, benefits, and workers comp to expense management, recruiting services, and organizational planning.
Pricing Model
Insperity’s pricing model will be your greatest tool in positioning yourself against them. Insperity services are priced as a percentage of payroll, which isn’t unheard of in the PEO industry, but what makes Insperity’s model unique is that the percentage also includes the medical premiums. By including the medical premiums in the service fee percentage, it makes it incredibly difficult for a client to figure out what dollars are going where. Again, this is a point of frustration for many Insperity clients, moreso if you’re talking to a CFO.
Now, during their sales process, Insperity will break apart their medical premiums, and oftentimes Insperity clients or prospects are impressed with the low medical rates that Insperity is able to present. What they don’t realize is that, once all bundled together on the invoice, Insperity subsidizes the low medical rates with higher administrative fees. Unless an Insperity client or prospect looks at the overall picture (which many of them don’t), they really don’t have a clear picture of what they’re paying. Breaking apart the Insperity invoice is difficult, but taking the time to dive into what an Insperity client is paying can be worth it in many cases. Often, you’ll discover that the client is paying more than $200 per employee per month in admin fees. Once you uncover that, and show a prospect how you came to that figure, it can be a no-brainer for them to switch. Even the benefit savings don’t compensate for the higher administrative fees.
If you’d like some additional guidance on breaking apart an Insperity invoice, you can book some time for sales support here.
Location-Based Service
The service that Insperity clients receive can be pretty inconsistent depending on their market location. Insperity’s customer service is much more hands-on in markets where they have a physical support location. If there is local support, then Insperity clients are generally happy. They see their support team regularly, and receive high-touch service. However, if there is no local support, the level of client service is generally much lower and it’s easier to uncover areas of frustration for the client. These clients have to use a general support number for assistance. It’s often difficult for these clients to resolve their issues, and they’re often more than happy to share their experiences with you. Keep in mind that just because an Insperity client saw a sales person, does not necessarily mean that their is a support team located in that market. Insperity has numerous markets in which they employ sales people, but no support staff. If you’re in doubt, just ask the client.
Rolling Renewals
One last thing to keep in mind is that Insperity does not have a set renewal time. All of their clients renew on their anniversary of signing with Insperity. It certainly makes figuring out the buying cycle of an Insperity client a bit more difficult, but remember, that with just a bit of profiling, you can very easily align your sales efforts with the prospect’s trigger events.
Tying it all Together
Overall, Insperity does a great job servicing its clients, and if a client has local support present, you may have a hard time surfacing frustration with their customer service. They also offer a robust technology platform that is user-friendly and intuitive, so you won’t get much leverage there either. Once again, your greatest opportunity to uncover pain is to go with the pricing model. With one of the following approaches you can open a conversation where you’ll be able to create a lot more value than if you try to uncover service or technology shortcomings.
“Many Insperity clients have shared with me that they wish they could break apart their service fee so they can more effectively allocate costs to specific departments. Do you feel the same way?”
or
“I spoke to one Insperity client who was shocked by what his administrative fee was once he took the time to break apart his invoice. Have you ever tried to break it out?”
What are some tips and tactics you’ve had success with? Let us know in the comments below.