In our last blog, we talked about the importance of behavioral economics and how that theory relates to the insurance sales process. As a quick review, each person is influenced by their past experiences and so has subconcious internal biases that affect their decision making. By understanding behavioral economics and how it affects decision making in sales, we can greatly increase sales effectiveness and revenue predictability at your insurance agency.
In this blog, we’ll discuss how to practically apply the theory to your insurance sales process, so that you can help each producer be more successful, while having a better big-picture view of your sales pipeline.
Step 1: Have a well-defined insurance sales process
Likely your agency already has a sales process in place, but often they are somewhat broad. Specificity in your sales process will help everyone be on the same page when discussing an opportunity, to give you a better view into each specific deal, as well as your overall pipeline. This will benefit individual producers and the agency as a whole.
Helpful elements to consider include: a consistent, repeatable process, criteria for what defines each stage and the criteria for advancing the opportunity to its next stage.
Step 2: Create a checklist for each stage of the process
Next you want to delve even deeper into each stage of your sales process and determine what represents risk and momentum in each stage. What does each stage look and feel like? How is the buyer behaving? What are your internal processes for this stage?
Gather a diverse group of producers and managers, and brainstorm for each stage of your sales process. Each person will likely have a slightly different list and that’s okay—that’s what you want. Your goal is to standardize a checklist for each producer to quickly glance through during the sales process, bringing more objectivity to the process and helping make better decisions.
Step 3: Think about your buyers
Your buyers, of course, have their own set of biases. Spend some time thinking about potential biases of your buyers (HR, CFO, CEO, etc.) and how to strategically overcome them during a sale. Brainstorm the buyer behaviors that typically catch you off guard, and then discuss the best way to handle them.
Now you’re ready to get started revamping your insurance sales process using behavioral economic concepts. If you’d like to read more in-depth on the topic, be sure to check out this ebook, Boost sales & increase revenue predictability.