4 Ideas To Turn Your Insurance Business From Startup Level To Success
If you’re an insurance agent looking to thrive in the next 10 years, then you need to immediately get out of the startup mindset, which we’ll define here as a desperate “how will I put food on the table” approach that too often leads to you wasting your energy on the least productive things. When selling insurance, this could be best characterized as selling on price and price alone. If all you have to top your competitors is a cheaper premium, then you may win in the short-term but you’ll lose down the road. That’s because actuarial data changes so frequently that you may not be able to always win on price, and that will likely send your prospect looking elsewhere the moment they can.
Rather than play that game, think of ways you can create value and, more importantly, ways that you can convince your customers of that value. Here are some recommendations.
Learn the reasons behind their buying decisions.
You should be getting personal with your customers in any way that’s appropriate because it will teach you things about their wants and desires and how those will play in to what you’re selling. This is especially true of learning about their buying decisions. If you know why they bought the house or car or boat or motorcycle that they did, then you will probably unlock a part of the customer’s brain that isn’t connected so heavily to cheapness. As a result they will be revealing the emotional aspect of buying as it relates to them personally, and that’s something you can not only use to sell them on the products they need, but it’s also a way that you can subtly remind them that they should be buying insurance based on more than price alone. With that reminder, they’ll be less likely to leave your company in hopes of landing a cheaper premium, provided you’re giving them value in other areas.
Walk them through what happens if they have a car accident or a claim on their home insurance.
This is important to do at the point-of-sale because, once again, it gets the customer out of the pricing mindset and it opens their thoughts to what will happen if they actually have to utilize the insurance product they’re buying. By showing a prospect how the claims process works to make their experience a smooth and reassuring one, you will once again remove them from that “thrift store” mentality and create additional value. This is particularly effective if you have another client, who had to file a claim and ended up satisfied with the way your company handled it. By drawing from a real-world experience instead of a hypothetical, the prospect will take his insurance buying decisions more seriously both now and in the future.
Know how your client prefers to be reached, and open that door to them.
Agents who don’t want to be bothered by their clients aren’t likely to find long-term success. That’s because clients prefer having agents for the comfort, convenience, and peace of mind. In other words, you’re more than just a corporate shill to them. You’re someone who will help them and their family work through whatever struggles await. In order to become more effective at what you do, try to get a sense of how your customer prefers to be contacted, and then make sure that they can reach you in that way whenever they need you. Very few insurance customers want to spend all day on the phone with their agents, so the chances of this being abused aren’t likely.
Show clients how you’re saving them money and providing more coverage.
When someone shops online for insurance, they’re usually looking at one product. They might be able to find something cheap, but when adding additional policies, buying separately can quickly escalate those costs and cause them to miss out on some much-needed savings. When you have an insurance lead become a customer, take time to learn what lies ahead for them and how your other insurance products can serve their needs. Then show them how discounts work when they purchase multiple policies. These second and third sales are often what create lifelong customers.
While it can be tempting to chase after any business you can in the early days of your business, you’ll find much more success thinking five, 10, and 20 years down the road. And not just thinking about the long term but behaving in a way that embraces those goals. Use the four ideas listed above for your business. Focus on quality business, not quantity. Always strive to over-deliver on value. And the rest will take care of itself.