Try selling insurance like it’s overpriced spaghetti

Developing an insurance proposal for a prospective insured is a costly endeavor. Even a liability-only auto quote requires a major pre-investment in advertising, automation, carrier relations, education, licensing, office space, phones, staff, supplies, and more. Everyone in the office must recognize the economic significance of each quote that they deliver, to maximize the agency’s return on investment. Yet, this column isn’t about the physical proposal. It’s about the act of presenting to a prospective policyholder.

Regardless of how attractively-priced or packaged a proposal is, it can still miss its mark if it doesn’t engender confidence as it is revealed.

Furthermore, a marginal presentation, whether for an auto policy or an auto dealership, can leave long-term money on the table; even if it is good enough to close the sale. That’s because new, but unfulfilled, customers sometimes buy to satisfy an immediate need, or as a result of insurance shopping fatigue — much like a hungry person grabs a quick sandwich at a fast food stand. But they rarely buy there again.

Be the bistro

Consider that one restaurant gets away with charging $30 for a plate of pasta while the corner diner only gets a few dollars for a bowl of spaghetti. The difference is the style in which the meal is presented. Even though you may think of your agency as a sophisticated bistro, you may discover that it is not.

For instance, if a producer or CSR exposes their rates too early in the sales process, they are essentially displaying their prices just like a drive-up window. Professionals never disclose the premium and then work backwards to what it buys because the shopper will still be focused on the cost while you are discussing coverages.

Or if an agent fails to personalize a boilerplate proposal, even just a little, then the prospect ends up feeling like someone who is eating at the lunch counter instead of dining in a private booth.

Effective presentations don’t have to be lengthy or slick. They simply have to begin well, make the key sales points, and clearly reveal the reasoning behind the numbers.

Serve the positive

Many likely insurance buyers silently grit their teeth expecting to hear bad news presented poorly. Who can blame them? There’s so much negativity associated with this industry. That’s why it’s wise to be genuinely positive from the outset, whether presenting in person, over the phone, or even online.

Sure, soon every agency will have to deal with the unpleasant stuff like uncovered exposures and the bottom line premium, but it’s a major mistake to lead off that way.

Instead, initiate the protection proposition by telling the consumer or business executive what’s right about their current insurance program. Spend some time talking about the smart decisions they (not their agent) made by selecting a particular coverage, policy limit, deductible, etc. Discuss the areas of protection that do not need to be changed. Such reassurance has a calming effect.

Then once everyone has relaxed a bit, segue into “a few areas that you might want to enhance.” This is the time to reveal the problems and discuss recommended offsetting solutions — presented in the same positive manner. Otherwise, downshifting hard into the negative may make the prospect feel that he’s been set up.

Turn the corner

Fear is one of the primary reasonspeople and businesses buy insurance. But it’s not always wise to commence a presentation by playing on this eternal concern. A wound-up prospect isn’t easy to calm down and convince when it’s time for the close. Instead, start with the good and slide into the bad. If this is done correctly, the prospect won’t notice the turn until the presentation is around the corner.

Skillful deliveries motivate buyers to change agents, open up their checkbooks, and to purchase needed coverages. They distinguish the presenter from less talented incumbents and rival agents.

Positive differentiation is the primary pathway to successful sales and marketing, even when it comes to something as homogeneous as an insurance policy or a heaping bowl of spaghetti.