To provide a satisfying purchasing experience, many solution providers must prioritize understanding the needs of insurers. Unfortunately, instead of taking the time to truly grasp these needs, they often overwhelm interested buyers with excessive information about their products or services.
This outdated sales approach reflects a time when customers had no choice but to rely solely on salespeople for information about a company and what it offered.
Four Common Mistakes Legacy Salespeople Are Making Today
In today's market, buyers have become more knowledgeable than ever before. Solution providers have recognized this and have taken steps to provide buyers with a wealth of information and resources on their websites. This allows buyers to easily educate themselves about the various products and services offered.
Additionally, buyers have access to valuable content such as product reviews, industry reports, surveys, and insights from industry experts, media outlets, and consultants. This abundance of information empowers buyers to make well-informed decisions and enhances their understanding of the offerings provided by solution providers.
As buyers become increasingly knowledgeable about products and solutions, the role of the salesperson has shifted to the bottom of the sales funnel, where the buyer is at the decision stage. At this point, the buyer has already educated themselves on the product or solution they desire.
However, they still need to connect with someone who possesses deep knowledge in the insurance industry and can provide insights on how the product or solution specifically caters to their needs and maximizes opportunities.
Here are some common mistakes that companies using outdated sales strategies often make.
Mistake #1: Listen to our generic sales pitch
In many instances, salespeople are handed a promising lead, and instead of taking the time to truly understand the buyer's needs, they immediately jump into presentation mode. They hastily schedule a conference call and proceed to deliver a generic presentation and demo.
Here's what the salesperson is truly communicating to the buyer:
"Let's schedule a time when I can give you a presentation and demo of our company, products, and services. I will tell you everything about our company, products, and services; then, you can figure out what you need."
The sales presentation often covers the same information that can easily be found on the solution provider's website, which can be repetitive for the buyer. It is essential to provide new and unique information that adds value to the buyer's understanding.
A more effective approach to utilize this time with a potential customer is to engage in an exploratory conversation to gain a deeper understanding of their needs. This not only helps to build trust with the buyer but also allows you to uncover additional goals and objectives they may have.
After the exploratory call, the salesperson can provide a personalized presentation based on the insights gained. This demonstrates an understanding of the buyer's needs and showcases how their product can address those needs.
It builds trust and allows for further exploration of goals and objectives. The salesperson can then demonstrate how their company can cater to the buyer's unique requirements and help them achieve their desired outcomes.
"Let's schedule a meeting where I can provide you with a personalized presentation and demo that focuses specifically on your needs. Together, we can explore how our company, products, and services can address your unique requirements and help you achieve your goals."
Mistake #2: Watch our generic demo
Another common mistake is providing a demo that does not align with the buyer's specific needs. Buyers are usually eager to see a demonstration of your system, but the last thing they want is a scripted or generic demo.
What the salesperson is really saying to the buyer:
"Next, I'm going to give you a scripted demo of our system that isn't relevant to your business. You can figure out how this would apply to your line of business."
When it comes to demos, the most effective approach is to customize them. There are various ways to create a custom demo, such as incorporating customer data or focusing on specific roles or lines of business. By tailoring the demo to the buyer's needs and preferences, you can provide a more relevant and engaging experience.
When presenting a demo of your system to a personal lines claims buyer, it is crucial to tailor the demo to their specific needs. Avoid showing them a generic commercial line claims demo and instead focus on making the demo as relevant as possible to your buyer.
One effective approach is to create role-based demos that cater to your audience. For instance, if your buyer is a claims manager, demonstrate how the system can be used by both the claims manager and the adjusters they oversee. This personalized approach will leave a lasting impression and showcase the value of your product.
A personalized demonstration and a tailored presentation, as discussed earlier, will greatly benefit your buyer and make a lasting impact.
Mistake #3: Let's do a POC, test drive or trial
After an extensive presentation and demo, the salesperson eagerly awaits any questions from the buyer. Whether there are inquiries or not, the salesperson, fearing the possibility of a delayed response, quickly proposes, "Would you be interested in signing up for a POC?"
With no immediate response from the buyer following the generic presentation and demo, the salesperson is left hoping that simply exposing the buyer to the solution will somehow lead to a purchasing decision.
For many insurers, committing to a POC, test drive, or trial means allocating valuable time and resources from both their business and IT departments. If the buyer doesn't grasp how your product or solution can effectively address their specific challenges, they will hesitate to invest.
Offering a proof of concept (POC), test drive, or trial for your solution can be a valuable option for buyers once you have effectively educated them on how your solution can address their specific problem. However, avoiding jumping into these options prematurely with your prospect is important.
Mistake #4: Trying to be all things to all people
Insurance executives and decision-makers have emphasized time and time again that they don't expect any single vendor to meet all their needs. Instead, they prefer to collaborate with salespeople who possess deep knowledge of the insurance industry and can clearly communicate the capabilities and limitations of their product or service. Many of these executives have had negative experiences in the past with salespeople who overpromised and underdelivered.
Establishing trust and cultivating a strong relationship is crucial to effectively selling to the insurance industry. When you gain the trust of an insurer, they will become more open to sharing valuable information that can assist in addressing their challenges or pursuing opportunities on their agenda.
Conclusion
The biggest mistake salespeople can make when dealing with insurers is failing to fully comprehend their needs. Instead of assuming you understand what insurance carriers, MGAs, TPAs, or self-insured organizations require, take the time to truly understand how you can assist them. Salespeople must offer value beyond the information buyers can find online themselves.
Standardized presentations and demonstrations are remnants of an antiquated sales approach. They not only put you at a disadvantage compared to competitors who invest time in creating personalized presentations and demos, but they also fail to effectively educate your prospects on how your solution can truly benefit them. Jumping straight into a proof of concept, test drive, or trial is not a substitute for providing valuable insights and information to your potential customers.
You will understand what insurance carriers truly need by steering clear of these four common errors. This will enable you to effectively communicate how your product can meet their specific requirements and solve their problems.
Discover how implementing an Inbound Sales Approach can revolutionize your sales team's ability to understand the needs of insurers and significantly enhance your closing rates.
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