There's a hard way and much easier way to sell life insurance: Part 2Article added by Lew Nason RFC, LUTCF on February 25, 2016
Lew Nason

Lew Nason RFC, LUTCF

Dallas, GA

Joined: October 13, 2006

My Company

We previously wrote an article "There's a hard way and much easier way to sell life insurance." The hardest, most time consuming and expensive way to sell life insurance is to try to find the few people who need life insurance and actually want to buy it right now! But the easier, less time consuming and less expensive way, is to find the people in your community, who need life insurance ... and then help them to want it right now!

The problem with this easier approach is that most agents have not taken the time to learn what to say or what questions to ask to get people to want to set an appointment with them, and then take actions on their recommendations aka consultative selling. They are strictly focused on just selling a product aka the transactional sale.

A transactional sale is a simple, quick sale where the customer already knows what he needs so there is little to no product knowledge required to make a sale. The buying criteria usually hinges on price or ease of acquisition. Transactional selling is just about the product. In a transactional sale, value lies within the product and price becomes the primary selection criteria. Any time a salesperson hears price as an objection, they are selling transactionally.

Consultative selling is a more complex, long-term process involving collaboration of both the buyer and seller. Consultative selling is about first developing an understanding of the client's needs and then crafting a solution to help the client achieve their objectives (wants).

Consultative selling is about attracting long-term clients and not just customers. It's about building a long-term client relationships, with the aim of acquiring future sales.

Note: Customers are generally people who come to you mainly to buy a product or service. Clients come to you mainly for your advice and solutions based on their particular needs.
The focus of consultative selling is on value. It has less to do with what the customer is buying and more to do with the why. The consultative sales process, places more responsibility on the salesperson than simply discussing the product and its price. It requires the salesperson to know more about the customer, their goals, the changes they want to make and the results they hope to achieve. It requires the salesperson to make connections between the product and the value it creates. It also requires the salesperson to make a compelling case for how he or she can create real value and do so more effectively and efficiently than the competition.

Consultative selling is extremely powerful when the client does not know what their goals are, or how to achieve them. In this situation, the salesperson is more of a coach, who guides their clients toward establishing their goals and objectives and then helps them create action plans that deliver results.

Consultative selling is about you asking questions and then really listening to the client. It is about having a real conversation with the client. And it is not that difficult to learn, it just takes practice.

The benefits of learning consultative selling are outstanding. You will soon be able to make more appointments, more sales, much larger sales, repeat sales and get more referrals. And, you'll save lots of time and money because you will need fewer prospects. How's that for an easier way to sell life insurance?
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