Marketing your insurance products may usually center on prices, but we recommend placing the emphasis on value instead. It could be a game-changer in increasing your insurance sales.
A television show played a prank on customers of a supposedly high-end restaurant selling luxurious bottled water. The waiter presented and explained to the customers the different brands of water written in the restaurant’s menu.
They were purportedly imported from streams in some of the most exotic locations in the planet. As such, customers were charged $8 a bottle which surprisingly, many agreed to pay.
Of course, the joke was on these customers, as the expensive water actually came from the regular household tap. But the message on the selling vantage point is clear: buyers are willing to pay more for a product they believe to be of value.
Applying that as a lesson in selling insurance policies, it can be said that it is highly important for a professional insurance salesperson to connect with potential clients and convince them to buy the insurance for the value it brings, not simply because it costs less than other policies.
The insurance pitch should help the buyer understand the value of the policy you are selling. Selling based on the value of the insurance policy, instead of its face value, requires a balance of confidence, personal rapport and clear knowledge of the product being sold.
A focus and heavy reliance on the policy’s price in selling insurance may not be the best approach. There will always be competitors that offer lower rates. You will also lose your edge as an insurance salesperson with your dependence on price, as various websites and outsourced customer support agents can do a cheaper job in making insurance quotations.
Here are some steps that you can undertake to sell insurance on value, instead or price, to wit:
Discuss the Claims
When buyers inquire about insurance products, their concern is usually focused on one thing—price. The decision of getting insurance is usually heavily dependent on the capacity to write a check monthly to pay for the premiums.
It is the duty of the agent to discuss with the potential buyer the claims and make them recognize that the decision should be more than the cost. It could be helpful to provide concrete experience and examples of past clients to make potential customers think outside of the price.
Talk About the Importance of the Property Being Insured
Remind the buyer how important the property or asset being insured is to him or her.
The buyer may realize the importance of buying a policy beyond the price consideration when the underlying motivation is to protect the property, which is an important investment. This is an effective way of pushing clients to make value-oriented decisions.
Educate the Insurance Buyer
No matter how comprehensive your discussion will be about value, it will be useless if the potential buyer doesn’t understand how insurance works. Thus, it is important that while you convince them to buy insurance policies, you also make sense of the concept of insurance for them.
But educating the buyer does not mean that you would just discuss randomly foreign and unfathomable terminologies. It must be explained to the buyer thoroughly using simple terms that any layman can easily understand.
Explain the Discounts
People love discounts, especially if they understand why and how discounts are given. It builds trust and confidence between the insurance firm and the client. By allowing them to understand the discounts, you are adding value to the business by showing that you have reliable insurance agents.
The buyer should be assured that your agents will regularly check the policy to see to it that they will be getting the value and worth of the discount.
Compare Cost of Insurance to Cost of Not Having Insurance
To convince the buyer further, you need to illustrate a scenario where the cost savings from not purchasing insurance are rendered worthless by the enormous costs that they may incur should contingencies covered by the insurance would occur.
When you make the comparison, it should be in a manner which makes your buyer think. It must be phrased in a manner that allows the buyer to internalize the points of the comparison.
Ask Questions and Listen Attentively
It is very hard to sell the value of the insurance products when you have no idea what is the most important to the client.
What you perceive to be the most appealing feature may not necessarily appeal to clients. This can lead to emphasizing the wrong value to appeal to the client.
So to survive the growing competition among insurance firms, start selling more value today and see your business grow. We can help—learn more about joining ASNOA today.