How to increase insurance sales
How to Increase Your Insurance Sales:
I still see many Business Managers selling less than 10% of their qualifying finance or lease customers with a Creditor Insurance policy. While most Business Managers may never enjoy the same type of penetration levels that extended warranties or vehicle protection products yield, adopting some different strategies will dramatically improve results. Here are some examples:
- One of the primary reasons that prevent more Creditor Insurance sales in Business Offices today is simply because they are not presented to customers or they are only presented to select customers. Introducing a waiver acknowledgement form that must be signed by the customer is an easy way to ensure that your all of your customers have been presented with loan or lease protection plans. It is after all, your ethical if not legal obligation to do so.
- Many Business Managers still close their Creditor Insurance presentations with a “yes” or “no” strategy. Consider closing with options. For example, “The coverage is available with a 7, 14 or 30 day retroactive plan. Which one will work best for you?” or “You can get life, disability, unemployment, critical illness coverage or complete coverage. What would work best for you?”
- Consider changing the name of your Creditor Insurance products.
> Life Insurance to ‘Asset Management Plan’ or ‘Estate Management Plan’
> Accident and Health Insurance or Disability Insurance to ‘Payment Protection Plan’ Many Business Managers still ‘Step-Sell’ their products. Consider switching to a ‘Menu’ strategy. There are various ‘Menu’ strategies available today that also include software applications. Many Business Managers improvise a ‘Menu-Selling’ strategy and fail miserably simply because they set them up incorrectly or still lack the basic presentation techniques and skills to effectively create the need to buy Business Office products. Investing in training on the art of ‘Menu-Selling’ will yield immediate and positive results in all product areas. There are some manufacturers and independent used vehicle operators that attract a high percentage of payment buyers with lower incomes and payment sensitivity may be at the root of poor Creditor Insurance penetration levels. If this is the case, many Creditor Insurance carriers offer lower premiums for your customers at reduced commission levels. Consider switching your rate factors when payment sensitivity is an objection to increase your penetration levels. There are Creditor Insurance products now available in the marketplace that offers customers partial protection for a disability or an unemployment event. The premiums for these plans are much more affordable as they do not offer complete payment
coverage but have limitations to the number of payment benefits. (i.e. 3 to 8 months of payment relief) Offering this type of coverage should be a compliment to your current Creditor Insurance offerings allowing your customers with a choice of coverage that suits their needs and budget. Consider presenting Creditor Insurance products at the time of delivery instead of at the time of sale. This is a growing trend in the industry that you may wish to experiment with. It does require two turn-overs but the initial turn-over is much shorter. Busy dealerships have had to move to this strategy to improve customer satisfaction — their customers were waiting too long to get into the Business Office at the time of sale. Consider changing the order of how you present Creditor Insurance products in your turn-over. Some Business Managers will present just one Creditor Insurance product early in the turn-over and then present the other or others at the end. Some present Creditor Insurances first claiming that they have better success with the first product they present to a customer. Some prefer to present Creditor Insurances at the end of the turn-over as a natural segue to submitting the loan or lease application. Investing in quality training or consulting is be the quickest way to improve performance. The top reasons perhaps for poor Creditor Insurance performance is a Business Manager’s lack of belief in the value of coverage, poorly creating the need for the coverage, a weak presentation or not being able to overcome the simplest of objections like: “I have plenty of life insurance already.” or “I’m covered through work.” If you have difficulty in handling those two simple objections, it is likely that adopting any different strategy will not make an impact on sales — you need to get some training.
With increasing competition today, the need to improve Business Office performance should be a top priority. In most dealerships, the sales’ departments would operate at a loss! Focusing on improving extended warranty sales will also improve your absorption rate and increase customer loyalty. Investing in training will always provide the best return on investment.
Hector Bosotti is the President of F-I Resource and a National Trainer and Consultant with Wye Management. Hector has over 28 years of retail automotive experience whose success has been founded on 3 key elements: People, Process & Training.
Wye Management offers in-dealership training and consulting and hosts workshops from coast to coast. For more information or a proposal, visit wyemanagement.com or contact their toll-free number 1(888) 993-6468.
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