In the sales world, it’s common advice to understand the needs and pains of your buyer. And it’s common advice for a reason; it’s an essential part of the sales process. In order to successfully sell anything, including insurance, you need to appeal to your buyer. The most effective salespeople connect deeply with their buyer, understanding their pains and solving a problem rather than simply selling.
There are many angles you can approach the topic of understanding your buyers better, from creating buyer personas to doing market research, and much more. In this blog, we’re going to focus on one specific way you can get to know your buyers a little better, using behavioral economics, and develop strategies for overcoming objections and satisfying their needs.
Step 1: Identify your buyer(s)
To conduct this exercise, start by getting a group together at your agency, including producers and managers with a range of experiences. Set aside a few hours for this meeting.
As an insurance broker, this first step should be pretty straightforward. You’re often working with the same people: HR, Benefits Manager, CFO, perhaps even the CEO. Make a list of your typical buyers, so you have people to visualize as you move on to the next step.
Step 2: Talk about their behaviors
Behavioral economics is premised on the fact that every person has their own set of experiences which influences how they make decisions. In our last blog, we talked about how examining those biases within insurance producers can help improve sales. Here, we want to examine potential biases informing the decisions of your buyers.
- First simply brainstorm the types of behaviors you run into. Focus especially on anything that holds up a deal, or catches a producer off-guard. Simply make a list for now.
- Look at the full list of decision-making cognitive biases and determine the most common ones you see from your buyers. For instance, you likely run into status quo bias and loss aversion bias.
Step 3: Create sales strategies
Once you have a list of buyer behaviors and biases that your producers typically encounter, the next step is to think about strategies to handle or overcome those situations. Go down the list systematically and talk about the best way to handle each scenario. Veteran producers may have great insight here, and you also may want to research some of the specific biases you identified.
Once you’ve developed strategies for each scenario, consider doing some mock demonstrations to help your producers practice the most common ones they will encounter. At the very least, fold this knowledge into your new producer training and mentoring program. Also make sure it is talked about during opportunity review meetings, to see if there is a need to change strategy or if a producer is struggling overcoming a particular bias or objection.
Want to learn more about how behavioral economics influences the sales process, and how you can use the concepts to improve sales at your agency? Be sure to check out this ebook, Boost sales & increase revenue predictability.