10 Psychological Hacks to Close More Insurance Sales
To know sales is to know human psychology. After all, it’s our brains that make us buy the things we want and need. Insurance of any kind is no different. If you know how your prospects think, you are going to sell more insurance. This blog will shed some light on how you can incorporate psychology into your insurance agency sales campaigns.
Here are 10 psychological hacks that you can use to close more insurance sales for your agency today.
Pain Sells
Use the pain that comes from the uncertainty of life to position your agency and services into the spotlight. We fear what we don’t know and dislike that feeling of uncertainty. This in turn makes an uncomfortable pain point for your prospect. By using a little bit of truth about how destructive life events can be, you can push this pain point in your prospects mind and give them a reason to trust you with their insurance needs. Finding and pushing the pain points of your prospects is how you close more insurance sales.
Speak to the Potential Loss
The second psychological hack to increase your insurance sales is to directly link it with how much money can be lost. Your prospect needs to realize that they are making an investment in your agency. The more value you can bring to their lives through your insurance, the better your chances are of closing a deal.
FOMO
Have you ever purchased anything at the last minute? Our fear of losing out on something outweighs any hesitation once we feel that there is a limited amount of time to take action. Suddenly the price isn’t as big a deal and we have full trust in what we’re buying because there’s a sense of urgency. This feeling is what will push your prospect to take action and give you a chance to close the deal. This concept has entered the mainstream within the past few years under the acronym FOMO (Fear of Missing Out) and using FOMO is an excellent insurance selling strategy.
Exclusivity
Use scarcity to promote exclusivity. Scarcity makes us want what we cannot have and humans hate not getting exactly what they want when they first set their eyes on it! If you’re looking to increase your insurance agency sales, scarcity can be used to your benefit.
Establish Authority
Establish authority to create trust and build respect. People automatically look for experts when they are in need of assistance or advice about a topic that they don’t fully understand. By positioning yourself as an authority figure, you will likely come across as more trustworthy and increase your chances of closing more insurance sales.
Social Proof
Try social proof by offering testimonials and endorsements to your prospects. Social proof is the psychological phenomenon where people assume and mimic the actions of others in certain situations because those actions are assumed to be correct by others around them. Basically, if others speak highly of your insurance agency, your prospects will view buying your services as the correct thing to do. You can use social proof during your sales engagements by giving prospects examples of how other clients have used your agency services successfully. Social proof is one of the most effective insurance selling strategies.
Use Logic
Emotions often trigger buying decisions, but logic and reason are how rational buyers make informed decisions. You want to engage with your prospects on an emotional level while presenting your case in a logical and rational way by laying out exactly what your insurance services cost and how this investment will benefit your prospect. Logic and reason, combined with an emotional connection is how you sell more insurance.
Empathy
Empathy is how you put yourself in the shoes of a customer. This is a great way to boost your insurance agency sales because doing so gives you valuable insight into what others may be thinking when considering making a purchase with you. You’ll become an expert at reading buyer behavior and knowing exactly what they want or need. Empathy is an excellent insurance selling strategy which is why it’s one of the top 10 psychological hacks you can use to sell more insurance.
Price Anchoring
Use price anchoring before giving discounts. Price anchoring is the psychological tactic of promoting large numbers first (price anchoring) and then moving to smaller figures (discounts). By first showing your prospects what they could be spending, they are more likely to respond positively when you offer them something at a lower cost. Price anchoring is a great way to close insurance sales and it’s used by all major insurance carriers through relationship discounts like multiple cars, homes, or drivers and through organization discounts like alumni associations which give you more exclusive access to a large group of prospects.
Keep it Simple
Don’t over-complicate the insurance agency sales process with too many options. More options can actually equate to fewer insurance agency sales. Many prospects become overwhelmed when presented with too many choices and either make no choice or choose the first option presented to them. By having fewer choices, you can help prospects make faster decisions without becoming stressed out. Keeping it simple is how you sell more insurance in a saturated industry.
Psychology and Tech – a Winning Insurance Selling Strategy
Now that you know how your prospects think and how to close more insurance sales by playing to this knowledge – the next step is to combine this psychology with the right technology for your insurance agency sales campaigns. When it comes to CRM platforms, InsuredMine is that right technology. Combining InsuredMine CRM with these psychological hacks is a winning insurance selling strategy. Schedule your demo below and try InsuredMine for free today!
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