As you know, most customers cite price as their primary concern - but if price is their priority, why should you focus on delivering a value based proposition?
The problem when selling on price is that there will always be someone offering lower rates, and the price-driven customer is usually both expensive to recruit and difficult to keep. Plus although price is commonly stated as priority No.1, for the majority it isn’t, or at least isn’t once they’ve realised just how important your customer service is to their peace of mind.
In contrast, brokers who focus on value typically gain a much more loyal customer - and loyalty is good for business. Higher loyalty means lower churn, reduced costs and increased margins. Loyal customers stay longer, buy more products and are much more likely to recommend you to their friends and colleagues. Many may also consolidate their insurance with you, which can dramatically increase their potential lifetime value.
Some useful reminders on how to sell insurance on value
- Focus on being price competitive - plus with added customer benefits
Make sure that your sales team are crystal clear on why using a broker won’t necessarily be any more expensive for the customer than going direct.
Emphasise that you are accessible, accurate, fair, fast, supportive, cost effective and reliable.
- Ask insightful questions
Find out what their real priorities are, for example: “If we assume that price is your number one priority, what’s next most important?”
Ask about their claim experience; about what went right and wrong. Tell them how you would have supported them under those circumstances.
- Reinforce just how important your customer service is to them
Remind them that you’re almost always available if they need some help or advice. Almost everyone prefers to speak to someone when they need questions answered or they want something sorted out.
- Work out where you could save them more money
Talk about possible ways to reduce the cost of their policy. And if, for example, you are regularly referring clients to a local security company that installs burglar alarms, negotiate a discount for your customers. Also make sure that you have an agreement in place so that your referrals policy is reciprocated.
- Build a rapport and create trust
Talk about the value of your experience and how long you’ve worked in the business. People like to buy from experts.