4 Reasons Persistence Pays Off for Insurance Agents
The hard truth of the matter is, in this job you hear no more often than you hear yes. And it’s not an easy thing to get used to if you’re just starting your career as an insurance agent. But you’ll find sooner rather than later that persistence is your ally in being able to grow business from the ground up. Take, for example, these telling statistics from Insurance Pro Shop.
- 80% of all sales are made after 5 or more client contacts
- 48% of all producers give up after the initial sales call
- 25% more give up after the 2nd sales call
- 12% more give up after the 3rd sales call
- 5% more give up after the 4th sales call
Bottom line: most sales happen after the fifth contact. That means the longer that you stay at it, the more likely you are to see results. Here are some reasons why.
1. Less Competition
Those statistics above are telling. Most insurance agents just don’t have the patience for dealing with no. By mentally preparing yourself for it and realizing the odds, you can motivate yourself to stay persistent and to not take no for an answer. By developing a systematic approach to outreach, the frequent contacts don’t have to take the mental toll that they take on your competition. That means when you do get to contact number five (and beyond), you’ll have way less competition to worry about.
2. Refined Approach
Think you’re not a good enough salesperson? You’re not alone. Most insurance agents have a certain degree of trepidation when it comes to “selling.” But fret not. Customers do not buy when you’re ready to sell. They buy when they’re ready. That means persistence will allow you to be ready and in front of them whenever that moment arrives. And as you stay at it, something wonderful will occur. You will actually get more comfortable in your own skin as an agent, and you’ll feel less like a newbie on subsequent sales calls.
3. New Opportunities
Something else that happens with persistence is that you will find yourself more and more in the right place at the right time when it comes to discovering new opportunities. For example, maybe a customer is looking to buy auto insurance, but they are still looking at the cheapest price instead of the overall value. By staying consistent with your contact attempts, you can learn more about the prospect and maybe even win their business in another area — something like life or renters insurance, for instance. Once you win a piece of their business, it becomes easier to win all of their business by showing them the discount opportunities that they could have by stacking coverages with your company.
4. Lead Generation
The longer that you stay after a prospect and win their business, the more opportunities you will have to generate viable leads. Just take each piece of business that you win. If you can deliver value to those new clients, they are going to be much more likely to recommend you to friends and family, who may be in the same situation they’re in. If social media has taught us anything, it’s that we tend to travel in the same packs, breaking bread with people in similar situations to our own. One good endorsement can lead to five or 10 pieces of new business.
It isn’t always easy being persistent. The statistics we’ve presented here prove that. But if you are among the agents, who can play the long game, you’re going to find a lot more success than your peers. In short, hang in there, and try to systemize your outreach efforts so you’re not letting insurance leads slip through the cracks.