Gitomer's Perspective

[moonlightandmargaritas]

An interesting question from the latest issue of Jeffrey Gitomer's "Sales Caffeine". Whaddya think?

"I'm a brand new insurance broker (and by new I mean I graduated college six months ago). I read your Little Red Book of Selling (which was great), and I’ve tried to implement some of your tactics. I’m having trouble though. This industry, not just the products I sell, is entirely centered on cost. Every commercial you see for an insurer is, “customers who switched from so and so saved an average of $400.” The insurance industry as a whole has positioned itself on price. Every time I try to distinguish a product on value, the customer rolls their eyes and waits for me to move to the final cost. You said in your book that those are the customers to avoid because usually they’re the most effort and the least profitable. If I did that, I would be eliminating 99% of the people I talk to right from the start. Understanding that it’s hard to see the value in an invisible product, I have realized that my success depends entirely on me and my approach to the sale itself. Should I continue to try to sell on value and risk boring potential clients to death, or should I avoid it all together and talk about cost savings? If I should sell on value, how do I shift a client’s focus away from price? Do I talk about something other than insurance because I think everybody hates “buying” insurance?
Thanks,
Jonathan


Jonathan,
1. Insurance is the toughest sale in the world. Even though everybody needs it, everybody hates it.
2. Most people already have some form of insurance and some form of insurance carrier.
3. The turnover rate of insurance salespeople who are just starting is very high because they cannot get through the issues you have just discussed.
4. If your negativity is high, now would be a great time to exit and sell something you like, even if it’s ice cream cones.
5. Insurance sales, like cold calls, are a lousy place to make sales. But it’s a great place to learn how to make sales.
5.5 Stick with the value proposition. Even if you quit insurance, it’s the best way to sell.
Best regards,
Jeffrey"

 

[stormtracker]

I'd say that P&C and health are most cost conscious. But, most of what is said in the article is "paying one's dues..."

 

[bobson]

Do I talk about something other than insurance because I think everybody hates “buying” insurance?
Thanks,
Jonathan


Jonathan,
1. Insurance is the toughest sale in the world. Even though everybody needs it, everybody hates it.
2. Most people already have some form of insurance and some form of insurance carrier.

5.5 Stick with the value proposition. Even if you quit insurance, it’s the best way to sell.
Best regards,
Jeffrey"

This is great. Don't sell insurance. My AC guy doesn't sell air conditioners (this is his line though he picked it up somewhere) he sells cool air.

Don't sell insurance. Sell the benefits it provides. Protection from lawyers, money for your family to live on once you die, payment for chemotherapy, a new house if yours burns down.

Everybdoy needs it. Easy to find prospects. Everybody hates it. Yep, so do I. Let your prospects know that.

Improve their insurance program.

 

[Crabcake Johnny]

#4 stands out for me. There are far too many agents who simply don't like selling insurance but are trying to grind it out for whatever reason.

"Broke," "Can't find other work, or "Too hard to find another jobs" are not valid reasons to be in the insurance field. You have a passion for this or you don't.

 

[souldeux]

I am working with a small group right now that has been absolutely the most rewarding experience of my (short) career so far. I took this approach with them from the get-go:

"Guys, there are a thousand plans available for your company. Each one has its pros and cons. Let's look at the benefits and figure out what you want to provide for your employees, okay?"

They, of course, agreed. And they never mentioned the fact that I had the prices blacked out the entire time. I sold them 100% on keeping their best employees happy, on having 25/7 broker support, and on the companies they were looking at.

They didn't know the price until I sent enrollment forms and the boss asked offhand. When I quoted him a figure that was about 60% of what he had worked it up in his mind to be, he was absolutely thrilled.

Two lessons there:
1. Sell the value. Yes, it's not as easy as selling the price, but if this job were all about doing what's easy we would have the 90%+ failure rate.

2. People naturally assume that this stuff is expensive. If you present it to them in such a way that the potential benefits outweigh the probable costs, then they'll bite.

And, to reference the last line of the letter: everyone hates buying insurance, yes. But people love:

-Knocking a tedious item off of their to-do list
-Feeling like they're protecting their family
-Balancing the family or workplace budget
-Being able to get decent treatment at a hospital instead of using the ER as a charity clinic

 

[Crabcake Johnny]

There's a lot of lines is the sales industry but none more true than "They don't buy the product, they buy you."

If this was about price and product:

A) Almost everyone would be successful
B) The first agent to call a highly interested prospect would get their business

Obviously, both A and B are false.

This is true in any transaction where a salesman is involved. It doesn't matter if you're selling over the phone or in person. They either click with you - deem you as an expert who is on their side or they don't.

One thing is for sure, if you sell on price you may win a few battles but you're gonna lose the war.

 

[souldeux]

Thank God I'm charming, sexy, and humble.

 

[insuranceexec]

I am working with a small group right now that has been absolutely the most rewarding experience of my (short) career so far. I took this approach with them from the get-go:

"Guys, there are a thousand plans available for your company. Each one has its pros and cons. Let's look at the benefits and figure out what you want to provide for your employees, okay?"

They, of course, agreed. And they never mentioned the fact that I had the prices blacked out the entire time. I sold them 100% on keeping their best employees happy, on having 25/7 broker support, and on the companies they were looking at.

They didn't know the price until I sent enrollment forms and the boss asked offhand. When I quoted him a figure that was about 60% of what he had worked it up in his mind to be, he was absolutely thrilled.

Two lessons there:
1. Sell the value. Yes, it's not as easy as selling the price, but if this job were all about doing what's easy we would have the 90%+ failure rate.

2. People naturally assume that this stuff is expensive. If you present it to them in such a way that the potential benefits outweigh the probable costs, then they'll bite.

And, to reference the last line of the letter: everyone hates buying insurance, yes. But people love:

-Knocking a tedious item off of their to-do list
-Feeling like they're protecting their family
-Balancing the family or workplace budget
-Being able to get decent treatment at a hospital instead of using the ER as a charity clinic

Nick,



That is a very good synopsis, and many agents can learn a lot from this piece.

Keep up the great work, and I assure you that as long as you keep your current attitude and drive you will make it just fine in this business.

 

[Phillip Arnn]

My favorite line from a prospect is this, "I don't need that much coverage. I'm healthy. I need something that is cheap."

I need something that is cheap too. I would rather use that money for other things than insurance.
What I don't mind is that I had that insurance when I had my first heart attack and the final bill was $90,000. I am glad I had it when my second heart attack cost $40,000. I am glad I had it when I had a benign lump removed from my chest at $12,000. And I was glad I had it when they put the defibrilator in my chest at $24,000. And every month when I go to the pharmacy to pick up my $600 in prescriptions I don't feel so bad about the reasonable $900 my wife and I pay every month in premiums. Her prescriptions are about $1,000 a month.
You buy insurance to take care of the expenses of serious illness or accident that comes at you out of nowhere. Oh yeah, and it took care of us when a lady ran a light and t-boned us. The ambulance, emergency room, x-rays, cat scans, physician fees, radiologist fees and physical therapy were about $15,000.
Let me show you a plan like mine, that's a lot cheaper.

 

[souldeux]

Nick,



That is a very good synopsis, and many agents can learn a lot from this piece.

Keep up the great work, and I assure you that as long as you keep your current attitude and drive you will make it just fine in this business.

Aw honey, you know just how to make a man feel good.

And a line I FINALLY got to use this past weekend while pitching a HDHP:

Client: "You mean if I have to go to the hospital and have, like, open heart surgery, it's going to cost me $5000??"

Me: "Nope. Right now, if you have a heart attack and have to have open heart surgery, it's going to cost you $200,000. Sign there, and it costs you $5000."

Value!