Eight Tips for Explaining Risk to Existing and Potential Customers
Risk is one way that a potential customer can compare opportunities, as it is tangible and quantifiable information about how much uncertainty there will be with a potential situation. A critical data piece needed to make decisions is the level and type of risk associated with not getting or maintaining a quality insurance policy. Agents can discuss these tips for how to explain risk to existing and potential customers with the management to ensure they agree on terms.
Avoid Risk Scenarios That Repel Prospects
An individual looking to buy insurance will most likely be someone with a need; maybe they just bought a new house or car and are looking for coverage. When speaking to a potential customer, you need to focus on their needs, not yours. Start by explaining your products and services, then explain how they will benefit them. For example, if you discuss coverage on a car, you need to talk about how their insurance will protect them in an event of an accident.
Be Specific
When speaking with a potential customer, make sure you are as specific as possible when describing this involved with a particular insurance policy. Use examples to help back up your points. For example, if you are talking about a homeowner policy, say things like, if there is a fire in your home and the structure is deemed unsafe, you will not lose out on your investment. Furthermore, if you have someone living with you who is not on the policy and they are injured in an accident, they may be able to sue you for medical expenses.
Use Specificity and Pictures to Distill Your Explanation
Humans tend to remember things that are related to the real world. When teaching insurance consumers how important it is to have adequate coverage, use examples that relate to them. If you are speaking with a potential customer, talk about a situation where they know someone who has been involved in an accident. This shall also include sales conversations that will help in determining premiums. Next, discuss what would happen if they were on the policy and were injured due to someone else’s carelessness.
Pay Attention to Details
Paying attention to details is essential in life, especially when explaining risk. When speaking with a customer, you need to explain all the different types of coverage they have or are going to have. For example, suppose an individual just bought a new car and has liability coverage. In that case, you need to outline all of the things covered under their policy and then list any other types of Insurance that they may need.
Discuss the Details of Your Insurance Policy
Make sure you explain the details of your insurance policy first before you discuss other factors. If you do it the other way around, potential customers will not have a proper understanding of how your product or service can benefit them. Your policy details are what your customers will be paying for, so you need to make sure they know what they are getting.
Connect with Your Customer
When speaking with prospective customers, it is essential to connect with them. Doing this will help them feel more comfortable, and they will be more likely to want to do business with you.
Use a Professional Tone
Another thing that will make a difference when speaking with a potential customer is using the proper tone. It would help if you were professional when communicating with your customers and respectful of their time. Be sure to be on time for your meetings and never get off-topic.
Make Your Customers Feel at Ease
Lastly, when talking with customers always strive to make them feel comfortable doing business with you. You can do things to make your customers feel more at ease, like providing them with snacks or beverages or even asking their opinion on something.
You can do several things to help when trying to explain your risk analysis to a customer. Avoiding scenarios that repel prospects, be specific, use pictures to distill your explanation, and many more listed above. The most important thing when making customers feel comfortable is to thoroughly explain the potential risks around not getting and maintaining a strong insurance policy.
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