Last Updated on 28/06/2020 by NM Staff
We believe that insurance and advisory services are going to enter the age of new opportunities. Are you ready to seize them to transform the way your business provides products and services?
Here’s how you can grow your insurance and advisory businesses in 2020 to get it to the next level of impact.
Tip #1 Increase the number of clients or customers you have
This is the most expensive way of growing your business. Many insurance companies actually fail because they invest too much money in getting a new client. Not only is it five times more expensive to acquire a new customer than to keep an existing one, but it is also an increasingly competitive environment where customers have plenty of options to choose from.
To increase the customer base, consider finding your unique value proposition first. Why should a prospect choose you but not your competitor? What unique value can you deliver them through your product or service? Once you identify the answers to these questions, it will be much easier to reach out to new customers.
To reach out more effectively, level up your cold-calling skills. Keep in mind that the ﬁrst 10 seconds of the conversation can make or break the call. Do not start with ‘How are you?’ if talking to a stranger. Give respect to the person you are calling and avoid asking a question that is intrusive and too personal. Your opening line should sound clear, positive, and confident.
Never say, ‘Is this a good time to talk?’ as generally, the prospect will say ‘No’ and you lose the opportunity to have a conversation. Practice saying who you are and be confident about the reason you reach out to a person.
You should also improve personal skills like empathy and curiosity. To close a successful deal, you need to understand your prospect’s needs very clearly. To achieve this, you should be able to put yourself in a prospect’s shoes. Do you listen? Do you ask questions? This means never multitasking during a client call.
Start with the “Why”. Good salespeople don’t sell products or services. They ask questions and listen to the answers carefully. For instance, you can start with a question that helps clarify the situation — what has happened in the life that made you feel you need life insurance right now? When you understand the ‘why’, you can present an appropriate solution.
Schedule your ‘sales time’ and do not spend on running errands, completing other business tasks, or sneaking in a few minutes of downtime. If you need to, use a calendar or app to do that. Your smartphone can remind you when it’s time to start or stop. It may sound obvious, but making this habit automatic and inviolable is one of the best ways to make more sales.
And the last one. Develop a referral system if you haven’t done so yet. If you build solid, credible, and faithful relationships with your clients, they’ll be glad to recommend you to their friends, family members, colleagues, or neighbours.
First, identify the portrait of the client you want to attract. Are they business owners? Do they have a certain minimum income? Next, identify the clients you can ask for referrals. Then prepare a guide or document that explains what you’re asking them to do. It could be a paper document with the instructions, a PDF, or a page on your website. Finally, have a special way to welcome these referrals. You could offer them a free first consultation, a book, or a welcome kit.
Read More: Top 10 Health Insurance Companies in India
Tip #2 Increase the average price per sale
This can be an advantageous strategy if you understand the key metrics and success factors of your business. What do clients value most about your company? Are you able to add additional products or services that can help your firm grow? Is your insurance business able to cross-sell other products and services?
If you want to leverage this, you need to understand your clients’ current and future pain points and needs. Some entrepreneurs try to increase the price of their products or services without increasing the value of the purchase. This is the wrong way. Your clients and customers need to understand a direct correlation between the value of your proposition and its price. The price should be primarily based on a consumer’s perceived value of products or services.
So, to increase the average price per sale, you need to understand your unique value proposition and key metrics in order to put together a more complete solution for your clients.
Tip #3 Upgrade your operations technology
To thrive in today’s hyper-competitive space, insurance companies cannot help but access technologies. Before implementing any technology solutions, you need to acknowledge the weak points of your business that may be strengthened with the help of innovations available in the insurance market.
To stay in touch with your prospects, you can use marketing automation software such as Get Drip, Contactually, and AgileCRM. These solutions allow you to engage with customers and provide them value in a personalized way. For example, customers and prospects can get scores for their activity, enabling you to know when a prospect is sales-ready.
You can also consider implementing a lead management system that helps to boost conversion rates.
Sales automation software can help you boost your revenue by automating routine tasks and freeing up more time to close more deals.
These days customers prefer transparency in their interactions with all types of organizations including insurance companies. That’s why it makes sense to invest in technology tools that serve customer preferences and offer experiences that are faster, more engaging, and intuitive.
Running a successful insurance agency is obviously not that easy. It requires being adaptive and pivoting the direction when necessary. Chances are that implementing all of the tips listed are not possible for you — not all at once. And that’s totally fine. Instead, focus on finding the weak spots of your insurance business and resolve them in your own unique way.