insurance

I’ve always had a problem with buying or selling anything based solely, or primarily, on price. You want to know why? Because each of us places a different value on every product or service.

Note: For a more detailed version of this blog post, listen to Podcast Episode 1 (4/21/2020).

To be an effective and successful salesperson, you need to know how your clients and prospects value whatever it is they’re buying. Why are they buying it–because they have to, or because they want to? How well do they understand it–both in terms of what it does, and what it doesn’t do? What are their expectations–not only about the product they’re buying, but about how you’ll be providing service?

Tossing a dollar amount at someone means nothing in the absence of context.

Over the years, I came up with a really good way to gauge how people valued their insurance. I started with a story, then offered my absolute best, top-of-the line, super-duper insurance policy. It didn’t matter what type of insurance I was talking about.

If you use the same concept, it won’t matter what type of product or service you sell, either.

The most important thing is to tell a story about an individual (not your client or prospect) with the same product or service your client is thinking about buying. Illustrate the negative consequences that might result if the individual didn’t buy the RIGHT product or service, or the right options and features.

An insurance salesperson would provide a scenario involving a claim, such as an auto accident, a house fire, or an explosion in a manufacturing plant. A car salesperson might provide a scenario involving a car breaking down, or a truck that didn’t have all the features a buyer might need.

Then, after this unnamed individual (who is NOT your client) experiences the horrible scenario, you ask your client what he or she would want their product or service to perform if they WERE the individual starring in your story.

When I was actively selling insurance, I’d quote the most comprehensive insurance policy with the highest limits of coverage. Yes, my clients were shocked when they asked the price and I told them what it was. But I’d explain:

This  is the most comprehensive, top-of-the line insurance policy I can sell you. I certainly don’t want to offer you anything subpar. When I prepared the quote, I had no idea about what you wanted your insurance policy to do for you, or what YOU think is the best type of policy. Now that I do, all we need to discuss is what you DON’T want your policy to do and, together, we can design YOUR version of the “best” policy.

At this point in the negotiation, all I had to do was discuss the available policy features and options, and which ones the client/prospect felt were important and unimportant. Same thing with the amounts of coverage. Then, when we did start talking price, clients had a much better idea about what they were buying, what VALUE they placed on the product, and to what extent they were willing to pay out of their own pockets in the event of a claim.

When you mention price before your clients do, you’re handing them control of the conversation … and the interview. They choose the story they want to tell and, I guarantee you, they’re going to skip over the confusing chapters and get right to the one about “Price.” They’ll also skip the words they can’t pronounce, all the small print, and all the stuff that YOU know and they don’t. The framework of what gets discussed, and why, will be much narrower in scope than if you, the person with the knowledge and expertise about the product, tell the story

Clients seek the advice and services of insurance professionals because we have a whole lot more technical and hands-on experience about the subject of insurance than they do. If they think they can handle the purchase all by themselves, they buy online. So, when a client seeks you out, all you have to do is be a little creative to showcase that knowledge … and to provide the framework to ask them what they want, and tell them the whole story.