Learn how to pivot seamlessly into salvage mode when overcoming price objections, and close that deal.
You’ve spent eight phone calls with your customer. This includes two games of phone tag, not to mention several awkward conversations with your underwriter. But it’s all worth it because you believe you have an iron-clad insurance quote. You share the quote information with your customer and their first response is, “Oh that’s way too much money! I’m going to have to look elsewhere.” Don’t panic. Overcoming price objections is the price of admission as an insurance agent. You can do this!
Just because your customer has reservations over the price tag of their insurance quote, doesn’t mean the deal is dead in the water. There are several strategies for overcoming price objections that may end up making your deal even stronger. Review these seven strategies and try to incorporate them into your next objection.
1. Give it a beat
It’s tempting to rush into salvage mode when a customer balks at their insurance quote. Instead of talking a mile-a-minute in defense of the quote you worked so hard to put together, take a beat. Let your customer know that you heard them. “I understand,” and “I hear you,” are great phrases to include in an initial response. Taking a moment also allows you to collect your thoughts and pivot to the best strategy for overcoming price objections.
2. Figure out the real cause
Use this time to find out what the real cause for the pushback is. Is it really about the dollar amount? Ask clarifying questions to better understand your customer’s hesitation. Use open-ended questions like “Besides the dollar amount, what else is preventing you from moving forward today?”
3. Reiterate the ROI
If after your initial conversation, the issue of pricing remains, identify what the customer is getting for that dollar amount. Illustrate the impact of their purchase. What protections will they now have that they previously did not? How will this insurance purchase benefit their whole family? Highlight any exclusive features or benefits that are not available anywhere else.
4. Clarify the costs
This is a good time in the conversation to clarify any fees and specific line-item costs. It may shed light on an additional service or benefit the customer didn’t know they were getting. Ask your customer what elements of the pricing they’d like you to explain in greater detail. All of this is an opportunity for you to highlight how wonderful and comprehensive their insurance will be.
5. Offer to remove services
If, after you’ve clarified the pricing structure, your customer is still hesitating, offer to remove services or benefits from their insurance package. This is more of a psychological tactic since you don’t actually want them to remove elements from their quote. When overcoming price objections, you will need to illustrate how valuable your insurance coverage is. What better way than by reminding your customer what they will miss out on if you remove an element from their insurance package.
6. Find out what they need to close today
If you’re still getting push back and the conversation seems to be going in circles, ask your customer what they need. Ask them directly what they’ll need in order to close the deal today. You might be surprised at what they ask for. Maybe they’re willing to pay the quoted amount but are looking for a simple add-on service. You may learn that your customer does, in fact, want you to remove a line-item benefit from the policy in order to reduce the cost. Whatever it is, there’s a good chance you can still make that sale happen.
7. Practice with role-playing
Practice makes perfect. You won’t always be able to turn around an objection, but it’s always good practice for the next time. Get even more comfortable with overcoming price objections by role-playing with your colleagues. Half the battle is building up the confidence to take on these sometimes challenging conversations.
Overcoming price objections can take a lot of time and energy. Carve out time in your schedule by letting HBW Leads tackle your lead generation. Their insurance and technology experts will deliver double-verified and exclusive leads to you and your agency.