Overcoming Objections in Insurance Sales
How can your insurance agency increase its insurance sales? By understanding clients' objections, you can better sell to those clients. As a business that's customer-oriented, you need to not only understand how to engage in positive insurance marketing: you also need to know why people don't work with you.
How can you effectively address client objections and enjoy more sales success?
They Don't Want to Change
Often, your clients are satisfied with what they have. However, as an insurance agency, you might know that additional or different insurance could be more suitable to their particular situation. As you work with clients to renew or add new insurance, know that inertia is powerful. Be ready with information about how the situation has changed and how that situation could impact your clients. Know the costs of these changes for your clients so that you're ready to address this in further conversation.
There is a Price Difference
If there's a price difference between your insurance agency and the competition, it's part of your insurance marketing for you to know and articulate why this difference exists, if you are asked.
According to The Balance, "If a client already has the lowest price they believe they can get, you need to help them justify the difference in cost." The insurance that you offer might be different even if it seems the same to the client. You might offer higher-quality customer service or education. Whatever the reason for the difference, make sure that you are able to justify this to the client should they ask about the difference in price.
The Cost is Too High
If people are worried about the annual cost of insurance, be sure to show them the smaller monthly payments as well. For individuals and businesses that are struggling, it can feel quite overwhelming to see the annual cost, while the monthly costs seem more reasonable and possible.
There Are Gatekeepers
If someone wants to work with you but they need to check with someone else first, this can slow down or stall the process. Offer to be available so that the other person can ask questions, or see if you can arrange for a joint meeting. Be upfront and ask if anyone else needs to be at the initial meeting or discussion.
Listen to client objections and be prepared to summarize those objections to show understanding.
They Want to Negotiate
Unfortunately, as a storefront insurance agency, you don't set all of the costs for your client's insurance. This means that negotiation is largely off the table unless they want to change the insurance that they are getting. In this case, be sure to listen to your clients' needs and strive to understand what they are telling you. They could be telling you about something that you can manage, such as the fact that they wanted slightly different insurance coverage.
In any case, echoing what they say means that they will understand that you are listening, Customer Experience Insight recommends asking questions and summarizing to ensure that you understand customer concerns and objections.
At the American Agents Alliance, we're here to provide your insurance agency with the information, training, and networking opportunities that you need to succeed. Contact us to explore our membership benefits, and take advantage of our sales training opportunities.