Let's face it—nobody wakes up excited to talk about insurance. People generally don't want to chat with salespeople, and they're not eager to part with their hard-earned money. Yet, despite these realities, every lead we send your way has agreed to speak with you and give you the chance to sell them insurance.
Why is that?
Understanding the answer to this question is crucial for your success. Prospects are open to talking because they have unmet needs or unresolved issues with their current insurance provider. To convert these opportunities into sales, you must uncover these needs through effective questioning and active listening.
The 5 Common Issues Clients Have with Their Current Providers
We discussed in a previous article that clients often consider switching insurance providers due to one or more of the following reasons:
Poor Communication
Lack of Expertise
Inadequate Coverage
High Premiums Without Action
Not Adding Value
These are the pain points that motivate prospects to explore other options. Your job is to identify which of these issues they're experiencing.
You Have to Ask!
To uncover these underlying problems, you need to ask the right questions. Luckily, you have a couple of different types of questions in your arsenal, depending on the effect you're looking for.
Open-Ended Discovery Questions
These questions encourage prospects to share their thoughts and feelings openly, providing you with valuable insights into their priorities.
Example:
"I know that we reached out to you because we thought we could get you a better rate. Other than rate, was there something else concerning you about your current coverage that you'd like to address?"
Even if they respond with, "No, it's just the rate," you've gained clarity on their primary concern. Open-ended questions are excellent for getting honest responses about the client's priorities.
Accusatory Discovery Questions
While the term "accusatory" might sound negative, these questions are designed to highlight potential gaps in the client's current coverage by assuming they have certain protections in place.
Example:
"You mentioned that you have partners. Surely, you have key man or buy-sell agreements?"
Often, they'll reply with, "We have a key what now?" because they likely don't have such agreements. These types of questions are great for identifying and highlighting areas where you can offer additional value.
You Can’t Solve Problems Until You Understand Them
Consider these scenarios:
The Uninformed Plumber: You call a plumber, and they show up with a quote, immediately starting to fix your sink—but that's not why you called them.
The Presumptuous Restaurant: You reserve a table at a restaurant, and when you arrive, they've already served their most popular dishes without asking what you want.
The Misaligned Marketing Agency: You hire a marketing agency to generate leads, but instead of targeting your ideal customers, they send you anyone with a problem.
In each case, the service provider failed because they didn't take the time to discover what you actually needed. The same principle applies to insurance sales. You can't effectively solve your client's problems until you fully understand them.
Clients Want Someone Who Understands Their Problems
Clients aren't necessarily looking for the best agent in the world; they're seeking someone who:
Understands their problems
Knows how to solve them
Cares enough about their business to follow through
This brings us to one of your most powerful tools: the question that proves you're an expert.
The Question That Proves You're an Expert
Which of the following approaches better communicates expertise to a restaurant owner?
Option 1:
"I am an expert at insuring restaurants. I work with 100 restaurants, and restaurant owners like me because I'm the best. I know everything there is to know about getting the best rate for restaurants."
Option 2:
"Alright, so your grease hoods—how often are you scrubbing these? Did your current agent tell you how this impacts your rate? Is your delivery in-house or through apps? Fees on those are insane, right?"
The second approach demonstrates expertise by addressing specific issues that restaurant owners face. It shows that you understand their underlying problems, which is far more convincing than simply telling them you're an expert.
Communicating That You Understand Their Underlying Problem
Communicating that you understand their problem is almost as important as actually understanding it. Most prospects assume that any agent can handle their insurance needs; they don't necessarily believe they need the best agent in the world. What they want is assurance that you comprehend their specific issues and are qualified to solve them.
They're essentially checking boxes:
Understands my business? ✔️
Knows my problems? ✔️
Can solve them? ✔️
By demonstrating your understanding, you build trust and make it easier for them to choose you over competitors.
Example of Effective Communication
When wrapping up the call, you might say:
"Okay, just to make sure we're on the same page, I'll start working on your workers' comp quote, and then we'll look at your commercial auto coverage. The goal is, of course, to get you the best rate, but we also need to solve [specific problem they mentioned]. Was there anything else you wanted to ask or something you wish I had asked?"
This recap confirms that you understand their needs and are taking actionable steps to address them. The purpose of this statement is to reinforce to the customer that you understand what their concerns are and know the next steps to solve them.
Goals for the Call
To maximize the effectiveness of your discovery calls, focus on these objectives:
Figure Out Why the Prospect Agreed to Talk
Use open-ended questions to uncover their motivations.
Listen attentively to their responses.
Communicate That You Understand and Can Address Their "Why"
Summarize their concerns to confirm understanding.
Offer insights or solutions that directly relate to their issues.
Set Next Steps
Clearly outline what will happen next.
Schedule follow-up meetings or calls.
Ensure they know how and when you'll be in touch.
Conclusion
Mastering the art of the discovery call is essential for success in insurance sales. By asking the right questions and actively listening, you can uncover the real reasons why prospects are open to switching providers. Remember, it's not about showcasing that you're the best agent in the world; it's about demonstrating that you understand their problems and are committed to solving them.
By focusing on understanding and communicating effectively, you build trust and establish yourself as a valuable partner in their business's success. So, embrace these harsh truths, ask those valuable questions, and watch your client relationships—and your sales—thrive.