Why do people buy insurance? Simple. Because they have to.
It’s a requirement of local, state, or federal governments. It’s also required by an employer if contracted work takes place. Most importantly, it’s required to have peace of mind.
But just because it's required, doesn't mean they have to get insurance from *you*.
Why should someone get insurance from you? Simple. Because you understand their needs.
Understanding their needs isn't simple, but it can be if you ask a simple question: “Why?”
Here are four “Why” questions to better understand your prospect’s insurance needs.
First, why do they need insurance?
This question requires you to look beyond the underwriting parameters. It helps you look at what triggered the purchase. If they're currently insured, then this question is “Why are they shopping?”
Maybe the current agency didn't provide enough coverage for a loss. Maybe they’re trying to secure a contract for a job. Discovering why they need insurance will help you tailor the quote and explain why the coverages you selected best fit their needs.
So, you give them a quote and they think the premium is high. What next?
Second question: “Why is the price too high?”
Is it high compared to what they’re currently paying? Higher than other quotes they've received? Higher than what they’ve budgeted for insurance? The price is never too high. The price is relative. It's your job to figure out relative to what.
When it comes to insurance, price is what they pay at the point of sale. If they feel the price is high, then they aren't seeing the value. And the true cost will be seen over time. It’s your job to help them see the value regardless of the cost.
Third question to ask yourself: Why should they buy from you?
According to the 2018 U.S. Auto Insurance Study from JD Power, the cost is not the sole indicator of customer satisfaction in the auto insurance industry. To gain lasting, profitable clients, help the prospect see the value in working with you. They need to understand why you are better than the agency across the street.
The final question: Sometimes, you’ll need to ask yourself why they didn't buy from you.
This question isn't about the markets you’re missing or something out of your control. It’s about you. It's important to look at your performance. Determine if you could have qualified the prospect better, or improved your execution. Did you provide a quote on time? Did you show value in working with your agency?
Asking the prospect “Why” increases your chances of closing the sale. Asking yourself why increases your chances of closing every sale. If you aren't asking why with every prospect, I ask you: Why not?