In our last couple blogs, we talked about how individual internal biases can negatively impact sales performance, and how behavioral economics can impact your insurance sales process on a larger scale.
As a quick reminder, each individual is shaped by their past experiences, which results in internal biases that often dictate future behavior. Essentially, behavioral economics examines why people often make emotional decisions, rather than ones based on logic or objective standards.
In this blog, we’ll look at how you can apply these important concepts to individual sales performance, and improve your insurance sales process as a whole.
1. Have a consistent insurance sales process
This process starts by having a well-defined, consistent sales process that everyone follows. It’s likely your agency already has a sales process, but it’s worth examining as part of this exercise. Ensure each step is specific, including what defined each stage, and the criteria for advancing the opportunity to the next stage. Your insurance sales process should represent a consistent, repeatable process for producers to follow.
2. Define risk and momentum in each stage
Next, you want to determine the finer points of each stage, specifically what represents momentum and risk in your sales cycle. Each producer likely gravitates to a few of those points based on their experience, but the goal here is to create objective standards to improve decision making for everyone.
With input from producers, create a checklist for each stage, with factors that indicate risk or momentum in a deal. The goal is to have a concise by comprehensive list that producers can quickly look through when evaluating a current deal or moving an opportunity to the next stage.
3. Consider the biases of your buyers
Most discussion thus far has centered around the biases of individual producers. It’s important to remember that your buyers have biases too, which influence their purchasing and decision making behavior.
Think about buyer behaviors producers have encountered that caught them off guard or threatened a deal. It may be helpful to browse this list of cognitive biases and identify the top ones you see in prospects. Once you have common buyer biases identified, talk about sales strategies to overcome or avoid those potential biases. This may involve updating your checklists for each stage of the sales process, particularly what indicates risk at each stage.
4. Implement your new sales process
Finally, you want to implement the new insurance sales process and strategies that you have created. Print out copies of your sales process checklists for each producer to keep at their desk for reference. Follow your new process and criteria when evaluating deals as a sales manager. Producers should focus on selling using the new process, and work to break bad habits they may have had in the past. In addition, your agency will be able to better forecast revenue and evaluate your pipeline, with the objective standards everyone is following.
Want to learn more about behavioral economics and how it impacts your insurance sales process and individual producer success? Be sure to check out this infographic on the topic. You may also be interested in this ebook, which explains the four steps discussed here in more detail.