Closing insurance deals becomes much easier when you add some simple sales psychology techniques to your pitch
Salespeople use psychology in a lot of different ways to close deals. It can be a very effective tool when used correctly. This applies to closing insurance deals, too. The best part is that these techniques are simple to learn. But before we get into the four psychology methods that can help you close insurance deals, there’s one technique that comes first.
The most important psychological technique you use in sales is self-confidence. If you don’t believe in yourself, you’ll never convince anyone to buy from you. Confidence is fundamental to all sales. One of the best ways to get self-confidence in insurance sales is to understand the entire sales process and the types of policies your agency offers. This will become the bedrock you build from.
4 Techniques for closing insurance deals more successfully
1. Foot-in-the-Door Cross-Selling Technique
Cross-selling, also known as selling other types of insurance to your customer, is as old as time. It’s always easier to close a deal with someone when they’ve already bought from you. In addition, most agencies offer product bundles, so your customer has the incentive to purchase other types of insurance from you.
Pro tip: When dealing with a new customer, rushing in and talking about the other types of insurance your agency offers might be tempting. Why not see if they want life or auto insurance to accompany that new home policy? Resist the urge! Take a deep breath. Cross-selling isn’t anything to rush into. Instead, plant seeds for future conversations.
2. Social Proof
Social proof is a potent psychological tool for closing insurance deals. Social proof typically involves using other people’s endorsements to convince someone to buy a product or service. Referrals are the most common form of social proof. “My friend recommended I buy life insurance from you,” in this case. The friend has vouched or given social proof that you’re an excellent person to work with to set up life insurance. Social proof can also be more nebulous such as the clubs, groups, or the boards you sit on. People can see that you are active in your community, which also gives you social proof. One similar tool is authority bias. This involves using experts’ endorsements to convince someone to buy a product or service. For example, top financial advisors recommend that you purchase life insurance.
Pro tip: Be organic with social proof. Build your relationships, and your referral will grow naturally. You never want to come off as desperate or phony.
3. Price Anchoring
Price anchoring is a psychological tactic that involves promoting large numbers first and then moving to less expensive figures. By displaying what your prospects could be spending, they’re more likely to react positively to discounts. Many insurance companies “anchor” their prices, giving discounts to loyal customers and those associated with large groups. It helps solidify the relationship with the organization and makes their members happy with the generous discount.
Pro tip: If you’re new to insurance sales, stick to a plan with pricing anchoring. You don’t want to show your prospect some astronomical price followed by an insane discount. This could backfire on you, and your prospect may question the quality of the coverage they are getting.
4. Use Discomfort to Your Advantage
If you’re selling life insurance, position your agency as a trustworthy source by using the discomfort that comes with clients’ not knowing what will happen to them in the future. Most people dislike feeling uncertain, which creates an uncomfortable pain point for your prospect. By emphasizing how disruptive life events can be, you can push this pain point in your prospect’s mind and give them a reason to trust you with their insurance needs. Finding and making the right buttons is how you close more insurance sales.
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