Value-based selling: 4 secrets for selling value over price in insurance
The insurance market was valued at a massive $1.28 trillion in 2022. With such an astounding figure, you can imagine just how “different” you have to be to catch your prospects’ attention and turn them into clients. The onus, it would appear, rests less on your proposal and more on you—the agent. The personable, customer-focused approach will help you understand the prospect’s problems and offer them solutions instead of simply selling your product.
What is value-based selling?
Value-based selling puts your product or service—in this case, insurance—in the spotlight. The sales pitch prioritizes the value it creates for customers and focuses on benefitting the client throughout the sales process.
Remember, customers always come first. You help the customer understand why your product is valuable to them, how it could solve their problem, or why it is an excellent investment. The focus is on the customer’s needs. This makes the client feel valued, which can help build an element of trust between the two parties.
As “value” is key here, you may be able to win a prospect without mentioning price, coverage, or types of service. Their focus is on how soon they can begin using this service or product rather than on the price. Everybody can apply the value-over-price strategy in their sales pitch but only some can actually win clients over with this strategy. What is their secret?
If you’re wondering how to sell insurance effectively, remember you are offering a necessity—a product that will come in handy at a sensitive time or a time of loss. Assure your prospects of a smooth and hassle-free process that will help get their life in motion again.
Here are tried-and-tested tips that may help.
4 secrets for selling value over price in insurance
1. Don’t be quick to jump the gun on your sales pitch
Value-based selling puts the needs of your prospect at the forefront. To target their pain point, however, you will first need to understand their needs and requirements. Without your homework to back you up, you can forget having a prospect, much less turning them into a paying client.
Ask yourself:
- What do they stand to gain by purchasing this insurance?
- Why should they purchase one insurance type and not the other?
Once you have your prospect on the line, you may be tempted to dive head straight into your sales pitch. Instead of getting straight to marketing, let the client share their pain point and what they’re looking for to improve their current situation. This will yield better results than a generic sales pitch will. It will also give you an insight on how to offer them your services in a way that benefits them and guarantees a purchase.
2. Adopt a conversational approach
Your prospect should feel like they’re receiving advice from someone that relates to them—someone they can trust. You can:
- Ask OPC (open-ended, probing, and confirming) questions that require more than one-worded answers. Refrain from asking questions that simply require a “yes” or “no”. Always aim for specifics and allow the customer to explain their requirements.
- Build trust by engaging in small talk. Take it a step ahead and talk to your prospect the same way you would talk to a friend. Keep the conversation light and easy.
Be mindful of your tone and focus more on building a relationship. That relationship will turn your prospect into a buyer without having to aggressively push your product.
3. Educate, don’t sell
While you must aim to keep the interaction conversational and engaging for your prospects, you should also focus on educating the prospect with your sales pitch instead of selling them a service.
Educating your prospects about the value of a certain insurance type makes you their go-to resource for information. It adds value and authenticity to your marketing capabilities. The next time they need an advisor to guide them through the buying process, they are likely to get in touch with you.
Avoid telling the prospect what to do. If, at any time, you feel that your client is veering toward an option that will cost them big money in the long run, become a storyteller. Sharing a real-life example can help your client weigh in the pros and cons and, thus, make a more informed purchase.
4. Add value to every interaction
When it comes to insurance, you’re likely making a client for life. To build a long-term relationship, your client must continually feel seen, heard, and supported by you. This is why you must focus on adding value to every interaction.
Answer your prospects’ questions and share your insights with them to help them make a more informed decision. Share feedback, trials, alternatives, and useful information that will benefit them. Educate your customers. Most importantly, let them talk without interrupting.
Don’t follow up for the sake of following up. If the interaction is anything but thoughtful or necessary, don’t hit send on the email or call them. Be respectful of your prospects’ time and ensure every conversation adds value.
Wrapping up
A business thrives when clients feel appreciated and heard. The value-based selling approach is one of the best customer-centric business practices. Engaging with prospects on a deeper level can help you generate more leads.
Know your audience, reinforce why what you offer can add value to them, respect their time, be attentive, and prioritize helping clients make more informed decisions. Be empathetic, share success stories, and stay on top of the market to successfully sell value over price in insurance.
