What do computers, monkeys, and my 3 year old daughter all have in common?
They can all sell insurance on price alone.
A professional insurance salesperson (like you) must be able to connect with prospects and help them understand and internalize the value of the insurance you’re selling.
If you only sell insurance on price, you will eventually be replaced because:
1. There will always be another company with lower rates.
2. When people buy from you just to save money, they’ll leave just as fast.
3. A call center employee can quote more people faster and cheaper than you.
4. A website can give millions of quotes per second even faster and cheaper.
I’m not an idiot. I know that price is the primary driver of insurance sales. But I also know that selling on price alone will be the downfall of you, your agency, and the entire agency sale model.
Here’s 14 tips you can implement today to sell insurance on value. Not one of these tips takes more than a little conscious effort.
14 sales tips on how to sell insurance on value instead of price
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2. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
1 | Talk About Claims
When shoppers come to you for a quote they’re only
focused on one thing – the price.
It’s your job to make them recognize and internalize the
fact that they’re making a decision about more than just
how large of a check they’re going to write every month.
Explain the claims process and how your agency helps
guide customers through it as smoothly as possible.
Use a specific example of how your process helped a
previous client have a better experience.
Find every way possible to talk about claims – it’s the
best way to get people thinking outside the price box.
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3. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
2 | Ask Why They Bought That
When you find out what kind of car, home, motorcycle, etc.
the prospect owns ask them: “What made you choose that
one?”
It’s very rare that someone responds with, “It was the
cheapest.” Instead, they’ll say, “It had the best crash test
ratings” or “It’s is in a really great neighborhood with
amazing schools” or “After all these years of working hard,
I deserve a few nice things”.
An expensive insurance policy is certainly not as cool as a
brand-new Harley but getting prospects to answer this
question aloud will remind them that they don’t make every
purchasing decision on price alone and you will activate
the part of their brain that makes more value-oriented
decisions.
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4. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
3 | Ask about the worst accident they’ve seen
What’s the worst car accident you’ve ever witnessed? Seriously… stop reading this article right now and think about
it in your head…
Got it? Have you re-lived it in your mind’s eye?
Now tell me you don’t care about anything but saving 15% off your car insurance.
Of course this example is geared toward auto insurance, but you could adjust the concept for property, life, disability
and just about any other type of insurance.
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5. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
4 | Ask About Communication Preferences
During your sales conversation, ask your prospect how they like to communicate with companies they do business with.
Do they prefer to use the phone, send emails, meet face-to-face, online accounts, text messages?
Once you understand how they like to communicate, it’ll be a lot easier to frame the benefits of your agency around that.
Make sure your prospect knows that you’ll be there to communicate with them in the way that fits their life.
Don’t brag about your iPhone app if the prospect doesn’t have a smartphone and don’t oversell the convenience of an
agency website with online customer service if your client prefers to
speak to a human on the phone. In either case they’ll perceive that
they’re paying extra for benefits they don’t value.
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6. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
5 | Educate Your Prospects
No matter what your prospects tell you, most of them don’t understand how insurance works. If you can explain it to
them in a way that makes sense without being condescending you’re already providing an incredible amount of
value!
When clients see how well you understand insurance they’ll feel more comfortable about the decisions you’re
guiding them to make and they’ll feel more confident you’ll be a positive resource in the event of a claim.
Experts don’t just spit out a bunch of terminology. The mark of a real expert is the ability to explain a subject to
anyone regardless of age, background, or
education. Don’t lecture; ask questions and
engage.
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7. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
6 | Explain The Discounts
When you identify discounts your prospect qualifies for, take time to explain how much money each discount saves,
why they qualify, and why the carriers offer that discount.
People love discounts, and when they see how well you
understand discounts they’ll trust that you’re getting them all
the discounts they’re entitled to and will see the value in buying
through an agent like you.
Explain to prospects that you regularly check their policy to
make sure they’re getting every discount they deserve.
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8. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
7 | Talk About Your Experience
If you’ve been in insurance for a while, find
ways to get this point across to every prospect.
One way to do this is by identifying something
that your prospect is very experienced in to
make a comparison.
If you’re brand-new, that’s okay too. You can reference the combined experience of all your coworkers. “In our
agency, we have over 30 years combined experience in insurance.”
If you’re inexperienced and so is everyone else, well… I guess you can just skip this one.
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9. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
8 | Explain That Having an Agent Doesn’t Raise The Price
Okay, so YOU know it’s not more expensive to have an agent but everyone else doesn’t.
In fact a lot of people assume buying through an agent is more expensive.
(Of course, it doesn’t help that some rotten insurance companies have
developed marketing plans around this lie)
Explain to prospects that agents are field underwriters who allow carriers to
provide more accurate rates for every risk. There’s a lot more room for fraud
when people get insurance through a website and that makes the honest
people pay more.
A good agent who understands rating criteria and discounts can be a real
asset when it comes to getting the cheapest price. Make sure your prospects
know this.
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10. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
9 | Explain Your Licenses and Certifications
Most people have no idea how hard it is just to get licensed to sell insurance. They also have no idea how many
hours of continuing education you’re required to keep up with and some of the advanced designations have taken
you years to achieve!
Don’t be afraid to toot your own horn. Just find a way to work it into the
conversation naturally.
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11. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
10 | Ask About Their Last Claim Experience
It’s probably already part of your quoting process to find out about the last insurance claim. Ask a follow-up question
like, “How did your claim experience go?”
Sometimes you’ll get lucky and stumble into someone who had a bad experience and your claims handling
processes might offer clear advantages. But even if they had a wonderful experience, forcing your prospect to
mentally “re-live” the claim experience will pull them further from the “only price matters” mindset.
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12. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
11 | Ask About the Potential Cost of Not Buying
Compare how much money someone could save by not buying your insurance policy with the potential cost of not
buying it.
“If you don’t buy this life insurance policy you’ll save $25 a month… But what’s the
potential cost of being diagnosed with cancer after making that decision?
“If you don’t purchase higher coverage limits you’ll save $10 a month…
But what’s the potential cost of becoming disabled in a major
accident after making that decision?
When you pose questions like this, make sure you let the
prospect think through and answer themselves before
stepping in. It’s important for them to internalize the point
of the question.
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13. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
12 | Ask Questions and Listen
It’s hard to sell the value of your products and agency when you don’t know what’s most important to the client.
We’re inclined to believe everyone else thinks just like we do. Most salespeople mistakenly believe the product
features and benefits most appealing to them will also appeal
to our clients and this can lead to selling the WRONG value.
To find out what product values to focus on ask more questions.
Here’s an example: “What’s the second most important thing to
you about insurance? I’ll assume price is number one…”
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14. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
13 | Help Clients Earn More Discounts
I’m not talking about identifying new discounts or educating clients about discounts (I mentioned those both earlier). I
mean actually helping them get discounts that they don’t currently qualify for.
Will an online defensive driver class save your clients some money? Email them a link to a website where they can
earn it online.
Client can’t afford life insurance at the smoker rate? Connect them
with a local or online program that can help them quit.
Can a home security system drive down the price of their policy?
Refer them to a local security company.
BONUS TIP: try to get your clients a discount with the other
service to deepen your value even more.
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15. 14 Sales Tips on how to Sell Insurance On Value Instead of Price
14 | Don’t Apologize For Your Price
I get it. I know everyone wants to save money on insurance – me too. I also know most of your sales happen
because of saving people money. But guess what:
Sometimes nice things cost more.
Does the Mercedes salesperson apologize because you can’t get an S-Class for the same price as an Kia Forte? Of
course not, he believes it’s a better car and it’s worth the extra price.
If you don’t believe your product is better than everyone else’s and worth the price either convince yourself otherwise
or don’t expect long-term success.
I’m confident that local insurance agents will survive against threats like online direct writers and call centers but it
will not happen unless you can sell value.
Start selling more VALUE today, or we’ll all face the
consequences tomorrow!
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