3 Tips To Overcome Price When Selling Insurance
If you’ve been following us for some time, you’ll know we’re big advocates of selling insurance on value rather than price. As Joseph Puckett of Craig Wiggin’s Coaching tells us in his video guide on rejection, “when somebody needs their insurance, it’s not about price… so why in the world do we make it all about price? Because, that’s what people want to talk about, that’s what they know.” It’s your job as an insurance guru to lead the conversation away from price. These three topics will prove significantly more effective than trying to sell on the one factor you can’t change.
The Power of “This or That”
This tip is driven by a neat bit of psychology. Asking prospects to make a choice between two policies is a much stronger sell than asking if they are or are not interested in a single policy. When asking a prospect to compare and choose between two policies, you are not offering them an option to say no. Mind you, customers may still say neither, but you will find that more often than not, customers bypass the question of whether they need a policy to answer which policy will better fit their needs. It’s important to note that adding too many options can be even worse than simply offering one choice. If a prospect is confused by a large number of options, they will likely ask for time to think about the decision, and you’ll lose your opportunity to secure the sale.
Stick to Relatable Examples
One of the most powerful things an insurance agent can do is listen. Not only will listening help you narrow down the best policies for a prospect, but you can also pick up on small personal details that will help you secure a sale. Say a prospect mentions offhand having several young children. A keen eared agent can use this to their advantage, creating an emotional tug with questions such as, “Do you have a plan for where your children would stay if a fire left your family out in the cold?” Another less drastic example may be a new smart TV that a prospect mentions they recently installed. Now you can keep going back to that TV as an example of the sorts of personal belongings a prospect may want to ensure they have covered. It’s one thing to talk about protection and possessions as abstract concepts, it’s a whole different game when you start using real concrete examples.
Balance Risk and Reward
Asking tough questions can be effective for instilling a sense of urgency in prospects, but be careful not to cross into the realm of fear mongering. Relying too heavily on extreme “what-ifs” can quickly turn off prospects who will see right through you. It’s important to balance risk and reward. For each warning you give about a natural disaster or break in, add another simple example such as how a hailstorm could damage their new pickup. Finding this balance between urgency and value will help explain the importance of a policy without chasing prospects away.