Insurance Sales Tips: Value Selling
Sell the benefit of your product to your customer, not how much it costs
People don’t buy a product; they purchase the results it will give them. This concept is called Value Selling, which means that customers buy what you are offering them because they anticipate benefiting from a value that they would not have without your product or service. The best part is that this is something you can actually control.
So, how is the value defined? According to sales trainer Brian Tracy, the value is the difference between the price you charge and the benefits the customer perceives they will get. If a lot of benefits and enjoyment are apparent, then the value perception is very high.
3 Steps for Applying Value Selling to Insurance Sales
Besides incorporating your personal experience with your products to your insurance sales tactics, the more you explain to your clients all of the things that a particular policy or insurance product can do for them and the benefits they can receive from it, the less important the price becomes and the more desirable the product gets.
1) Identify your target clientele
Create a client profile based on age, gender, level of education, income, whether or not they have a family, etc. It is vital to the success of your business to identify clearly your target customers for each product you offer.
2) Identify Your Customer’s Need
What do your clients need that you can provide? When it comes to insurance, it boils down to safety, protection, and a sense of security. If you can provide these benefits and values, then they will pay for it, but if a need or problem doesn’t exist, people won’t buy your product.
3) List all the product or insurance benefits
It’s easier for people to analyze what they can gain by seeing it on a list, so go ahead and create it. The more solutions you can explicitly provide to your customers, the less they will be able to object.
Succeeding as an independent insurance agent
At Affordable American Insurance (AAI), we help captive, currently independent agents, and first-time agents succeed as independent agents. We provide business development courses, a turnkey business model, and a large network of insurance peers to help guide and mentor new independent agents.