There’s an old saying amongst insurance sales people: customers vote out of hope, but buy out of fear. This may not be the best car insurance sales tactic, despite what many insurance professionals might claim. Instead, consider using various types of psychology when developing new car insurance sales techniques.
Noted psychologist, author, and lecturer, Dr. John Gray, suggests that men value trust above all other interpersonal emotions. Astute car insurance salespeople can put this psychological principle to work for them by appealing to the male’s paternal/husbandly obligations to ensure that their family is provided for in the event that something terrible were to happen. Instead of simply suggesting that the insurance company would provide a new car if the family car were stolen or damaged, leverage the emotion of trust. Here’s an example:
We here at ABC insurance know that your family depends on its car to get children to school, groceries from the store, and people to work. With that being said, the family trusts you to keep the vehicle working. Obviously that may not be possible if the car were stolen or damaged, which is where our insurance policy comes into play by helping you ensure that the trust your family has in the vehicle is not going to be gone the second an accident occurs or thief decides that it is time for a joy ride.
Another famous author and lecturer, Dale Carnegie, would suggest that one of the most valuable sales techniques of all is to listen. Instead of hearing what sounds like a pain point for a customer and jumping on it immediately, ask more about that potential pain point. Is the customer afraid that their vehicle is too old to insure? Instead of jumping on that problem immediately to close the deal, ask why they think that. Asking exploratory questions can help uncover facts that may be useful, but the main point of exploratory questions is to make sure that customers feel that they are being listened to.
Listening is always important, but it is extremely important with female customers according to Dr. Gray. Therefore, one of the best car insurance sales tips might be to constantly counsel patience during a call. If this means keeping a form, that needs to be filled out, or trying to learn as much about a customer as possible, then do just that. Ask questions such as:
If you don’t mind me asking, why does…interest you so much?
Is there a reason that you need this?
Is there anything else that you might see yourself needing in the event of an accident?
Another tip for being a successful car insurance salesperson is to learn how to plant seeds of ideas. Instead of telling customers that they should really think about a lower deductible or glass coverage, walk them through the logic in a way that illustrates the problem with a policy they are considering. For example, if a customer has a 1996 Geo Tracker and wants a $1000 deductible that is worth nearly the price of the vehicle itself, then they may not understand how useless the policy is to them until they are walked through what will happen when they file a $350 claim. Selling a useless policy is not likely to build goodwill, and explaining how a few dollars more a month on extra coverage and/or lower deductibles could make the up sell much easier.
At the very least, it will certainly help customers understand how insurance works and they will probably no longer look at the bottom line without understanding the dynamics behind it. They may then reject other offers and go with an insurance salesperson that they view as more honest and open. Honesty comes in many forms and being genuine is important when selling car insurance policies over the phone or in person. This is a hard lesson to learn for those that spend their time buttering clients up before pitching a policy. One of the best pieces of advice for anyone selling car insurance is limit the buttering up unless it is truly warranted as it puts the customer in defense mode and they are just waiting for the sales pitch.
Another valuable tip for selling automobile insurance is to always remember that every potential customer is a valuable sales tool. Redefine ‘win-win’ to be something other than every call being a sale, or hitting a quota. Make it a personal goal to turn every caller into someone who would refer friends and family regardless of whether or not they themselves signed up for an auto insurance policy. Do this by being personable, and remembering that no insurance company will have the best deals 100% of the time. If this is the case, come clean and tell the potential customer that no insurer is innately cheaper all the time, and if they know anyone looking for a quote that the business or appreciation would certainly be appreciated. Trying to persuade a customer who sees a potentially better deal elsewhere and cannot be convinced of the merits of a policy is not good for business.
The last piece of auto insurance sales advice is simple: remember that customers truly do need and want automobile insurance because only a very narrow portion of the general populace can have even a relatively minor accident without serious financial repercussions. Few people have enough money in the bank and an income substantial enough to shrug off even a basic hospital bill, or handle repairs. These are simple facts, but they mean that the goals of the consumer and the person selling car insurance are actually aligned far more than they differ. Do not view the auto sales jobs as an exercise in willpower, but one of working together with the customer to find the policy that is best for them.
Tags: car insurance, insurance professionals, insurance sales, insurance salespeople, psychological principle
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