Fight back against bad insurance sales tactics now to take your career to new heights.
Your success in the industry depends largely on building strong, trusting relationships with your clients. There are some good ways to do that. And there are some not-so-great insurance sales tactics that are somehow still in use.
It takes a lot of hard work, patience, and effective habits to become a successful life insurance agent. And when you’re starting out or in a rut, it can be tempting to turn toward some of those sleazy insurance sales tactics from days gone by. They worked once, so why wouldn’t they work again?
Remember, best practices change over time. Gone are the days of aggressive hard-core selling to multiple clients. People are done with the pressure sale. Thanks to the internet, it’s easy for your prospect to figure out pretty quickly if you’re just trying to get a sale rather than do what’s right for them.
Today’s trends have moved toward a more personalized, consultative approach. The most successful insurance salespeople today are those who put the client first. So let’s take a look at some of the outdated sales tactics you need to drop right away.
Modern clients don’t have the patience for these sleazy insurance sales tactics
1. The pressure sale. The pressure sale can take on numerous forms. It might be delivered as a policy discount that’s only available “today,” or it could take the form of a guilt trip disguised as a plea for help. “I’ll level with you. I’m really low on my numbers this month, and if I don’t close this deal, I’ll lose my job.” Just don’t. Your prospects know you want to sell them a policy. That’s why you’re there. But there are better ways to do it.
In fact, you can do even better. Skip the pressure sale, and also don’t try to close a deal the first time you meet with someone. Of course, that comes with the caveat that sometimes it will be appropriate to sell right away. But your main goal early on should be to build rapport and show your prospects the value you can offer them. This process not only closes deals but also turns customers into loyal patrons.
2. Winging it. If you’ve been in the industry for a while, you might find yourself getting too comfortable in your approach, taking shortcuts now and then. However, every part of the sales process is as crucial as the next.
For instance, before meeting with a prospect, always do your homework, create a meeting agenda, and practice your script. Being too complacent can send even the most qualified leads running in the opposite direction. After all, if you can’t be serious and prepared for your conversation with a prospect, how can they be assured you’ll treat their policy needs with care?
3. Doing research for the wrong reasons. As an agent, you should do your research to learn about your prospects. This is not, however, a chance to show off your hard work.
For instance, bringing up a prospect’s alma mater, family life, or extracurricular activities will not dazzle them with your research skills. On the contrary, it might backfire on you. Honestly, it’s a little creepy to bring up that book they posted about on Twitter six months ago.
Keep in mind that your potential clients are not thinking about whether you did your homework or not. Instead, they’re checking if you offer a solution to their problem. Next time you find information on your clients, stick to what you need to enhance your insurance sales tactics, such as their age and occupation. For B2B prospects, research the business size and industry.
Don’t do it to showcase credibility. This won’t score you brownie points with your prospects.
4. Giving up too soon. According to the Marketing Rule of 7, it takes around seven interactions with a sales representative for a prospect to purchase products or services. Following up may seem overwhelming, but it proves your worth to potential clients and enhances their purchase journey.
Don’t give up after two or three meetings. Do NOT, however, make call after call after call, day after day after day. Do NOT call right back when they don’t answer. That’s either sleazy or creepy, although it’s probably both.
Give buyers a chance to absorb all the information they receive from you.
You can call it quits if someone isn’t a qualified buyer. However, if you find a hot lead who needs a bit more time, leave the door open for a future transaction.
5. The one-size-fits-all approach. This is one of those insurance sales tactics that’s not necessarily sleazy, but it is lazy. After rounding up a list of leads, it may be tempting to use the same sales pitch on them all. However, it’s best to classify the different lead types so you can personalize your approach and boost your closing percentage. Here’s a quick guide:
- Cold: These prospects don’t know who you are or what you offer, so a powerful first impression is a must.
- Warm: People and companies interested in your products fall under this category. With the right follow-up approach, you can turn them into clients.
- Hot: Also known as qualified leads, these prospects just need a little push in the right direction.
When dealing with cold, warm, or hot leads, there are different ways to strengthen your relationships at every sales funnel stage. Each lead type requires a unique communication plan.
Bonus tip: Don’t spend all your time prospecting.
Prospecting is a crucial part of sales, but so are nurturing leads, negotiating contracts, and filling out paperwork. If you haven’t mastered the art of lead generation yet, it’s time to work with a reliable insurance lead provider.
At HBW Leads, you get exclusive, double-verified prospects from top-notch specialists, keeping your pipeline full of hot and warm leads. Get in touch for your free, no-obligation quote.