Paul offers tips on how to sell a better solution than the buyer is accustomed to.
Predispose the buyer to your message of value.
Ask questions that cast doubt on the solution they are currently using.
Present the impact of a more comprehensive plan or solution. Conversely, make the buyer aware of the potential consequences of staying with a less comprehensive policy or solution.
“The impact is what compels a buyer to act.”
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How do I sell to an underinsured prospect?
(Transcribed from podcast)
On today’s show, we have a question coming from the website. This is from Janelle and Mark. So we’ve got a dynamic duo asking a question. Well, we’re going to answer it for you.
So, I read through this scenario, and this is an insurance-industry scenario. That’s what we’re going to be talking through. But even if you’re not in the insurance world, you’re going to be able to relate to this scenario.
So, here’s the basic deal. They’re going after a new client, and the problem is, their client that they’re going after is underinsured, meaning they just don’t have enough insurance. And here’s the situation. They’re trying to offer something comparative, but they just don’t have anything with that bare bones of coverage, and so, obviously, the price that they’re coming in with is going to be higher—significantly higher—than what they’re currently using. So, the prospective client is underinsured. This group is going in there with a better, more comprehensive package, but the pricing of it—the premium—is going to be much higher. So we’re going to talk about how to handle this situation today. I’m going to give you four tips to do that.
Before we answer that question, I wanted to give a shout-out to Andrea over at The Creative Impostor Studios. With podcasting—it is a wonderful way to connect with your audience and to build an audience. And if you’re thinking of creating a podcast, I would reach out to Andrea and her team. They make it super easy. They walk you through the process and give you advice on helping it grow. So reach out to Andrea and her team. They do a wonderful job. We are going to have a link over to her website on this episode’s webpage.
Also, wow. As this episode launches, it’s going to be the eve of the launch of my new book, Selling Through Tough Times. You don’t need to wait, though, to order it. You can order it right now. You can pre-order the book and it will ship directly to your house, your office, wherever you need it to be. Selling Through Tough Times is going to be your go-to guide for building mental resilience over the next several months. So make sure you check it out. We’re going to have a link to Amazon or Barnes & Noble on this episode’s webpage.
Let’s get back to answering that question. So I’m going to give you four tips today to help with this scenario. Again, the challenge you’re dealing with is that your prospective client is underinsured. You’re going to offer something that’s more comprehensive, but it’s going to be more expensive. Think about how we could broaden this to not just insurance, but other industries. You’re going to meet with a customer and that customer is buying a product or service that is not 100%, it’s not adequate. It’s missing something, and you’re trying to sell a better overall solution and it’s going to be more expensive. That’s the reality of it. And not only that, that’s a good thing because price is an indicator of quality. So, if you’re going to sell something that is better, obviously it’s going to be a little more expensive.
First tip: I would encourage you to predispose the buyer to your message of value. I say predisposed because you’re going to do this before you present the more comprehensive alternative. So, Mark and Janelle, what I want you to do is highlight some of the value-added extras with your more comprehensive policy: what’s going to be covered and what the benefit is. Put together almost like an email or a marketing document, or a marketing one sheet that you can send to the client before you actually meet with them and talk through this policy change.
There’s a reason we want to do that. If you send them the marketing information beforehand and you highlight a few key points and ideas, you’re predisposing them to receive your message of value. And you’re starting to set a new benchmark. What we’re trying to do is, we’re trying to get this buyer to think different. We want them to think bigger and broader about their needs. And if you can send them some marketing information that highlights the extra value they’re going to get with your solution, you’re going to put them in a position where they start to expand their expectation beyond what they currently have. So we want to predispose this buyer to your message of value.
Next thing we want to do—tip number two: when you’re meeting with your prospective client, you want to ask questions that will call attention to the weakness of their current policy. It’s an indirect way to highlight what’s missing. So let’s say the current policy lacks coverage in one area, or in a certain scenario. You want to paint that scenario and ask your prospective client, “How is the coverage for this type of scenario?” and be able to spell it out. And by doing that, you’re calling attention to what’s missing—that gap and that pain that they’re feeling. That’s important because that’s going to help them open up to change. So, again, I would come up with maybe two or three scenarios that are, you know, fairly common that you can call attention to, and just ask questions about it. And then that’s going to create a gap.
Now let’s get over to tip number three. Once you ask questions and cast a little doubt and you gain a full understanding of their needs, the next thing you want to do is present the impact of a more comprehensive plan. So you present your more comprehensive plan and identify other areas where you are offering coverage, where the other policy may not, and you want to present the impact of that. And when I say impact, it’s not just the day you offer this type of coverage or you have, you know, gap-payment coverage or whatever you want to call it. I don’t know. Pick any feature or benefit. You want to ask yourself, ‘Okay, what are they really going to gain by experiencing this?’ And that’s what we call almost like the so-what question:
“So, you offer gap coverage. Great. So what does that mean?”
“Well, that gives you peace of mind knowing that you recovered in the event that you have a los that exceeds the replacement cost (or whatever the gap piece is.)”
The reason we want to do that, we want to present the impact. The impact is what compels a buyer to act. So make sure you’re presenting that impact of what they’re going to gain from experiencing your solution.
Now tip number four is along the same lines only you are not presenting the impact of what they gained; you’re presenting the impact of the less comprehensive policy. And here’s how that may work. Let’s say you’re talking to the customer or the client or whatever, and you say to that client, “Have you ever considered what would happen if you continue with the same level of coverage? For example, Mr. Client, you may go through this, and this scenario may happen. What would the impact be if you weren’t covered? What if that was not covered? What would happen then? How much would that cost you? What would it mean to you? How would that affect you?” What you’re doing is, you’re asking about the impact of the less comprehensive coverage. And not only that, what this is doing, it’s revealing the true pain if they choose to stick with what they already have already.
So, those are the four tips. Mark, Janelle, that’s what I’d recommend doing. Number one: predispose the buyer to your message of value. Number two: ask questions to cast doubt. And numbers three and four: present the impact of your solution and also present the impact of sticking with the less comprehensive plan.
Make it a big day.