As an insurance agent, it is a delicate balancing act between providing your clients with the appropriate coverage and insurance affordability. When it comes to insurance, many agents mistakenly believe the price is the most critical factor for customers. And while this is true for many, it is not the case for every consumer.
Here is how agents can determine what their client is looking for and balance both affordability and coverage.
Insurance Affordability or Coverage?
Working in sales, you may have heard the phrase, “Don’t spend your customer’s money for them.” This pithy statement is essentially a warning to agents not to automatically assume price is the most important consideration in their customer’s insurance decision.
To help and guide your prospects through insurance affordability and coverage, you must first help them discern what they value more. Many insurers have focused their marketing efforts on price alone. Still, a recent study by Mckinsey, a management consulting firm, found that 70% of all insurance customers were unresponsive to marketing efforts focused solely on price. This means that consumers were motivated by other factors, such as brand or agency loyalty, ease of purchase, or coverage.
Knowing what prompted your prospect to shop is a significant first step in determining what they value. Once you have this information, you can then move forward with what you quote and how you present it to them. You may also utilize this information to leverage your marketing efforts. A digital marketing partner with lead generation capability is a great tool to help you obtain more of your target customers.
How to Balance Insurance Affordability and Coverage
Just because the price of a policy is not the most crucial factor for some clients, it does not mean it is not a factor at all. As such, agents still have to be mindful of their client’s budgets when they are determining the appropriate coverage. You can do this in a few ways.
First, communicate with your prospect. Get an idea of what their budget is and what they are paying now. But keep in mind that many consumers will think any insurance quote is too expensive. This will lead you to discuss the next point with your clients.
Set Realistic Expectations
All insurance policies are not created equal. One cannot expect to have a multi-car policy with inexperienced drivers and pay the same as an experienced driver with one car, for example. It is important to set these realistic expectations with your customers. If you are able, quoting your prospect with a few different companies with the same coverage on each will give them an idea of what they can expect to pay.
From there, you can move on to explaining coverages. Unfortunately, many consumers are not aware of what coverages they need until they have a loss, and by then, it is too late. The best way to explain price versus value is to break down each coverage and how it can affect them.
As the insurance expert, your prospects look to you to educate them on what they need, and this is the best time to do that. Explaining the financial ramifications of not having the appropriate coverage can go a long way in your prospect understanding the value it can provide.
A good agent knows how to balance their prospective customer’s desire for insurance affordability and the coverage they need. A great agent has a digital marketing partner in spreading the word about both. Easy Insurance Pro is experienced in the insurance industry and can help you with all your agency’s prospecting needs.
Contact us today to start the conversation on how they can help take your marketing to the next level!