Yes.
Okay, that may be a little short of a blog and is way oversimplifying the issue. The real question should be “What are the benefits to quoting over the phone?” I’ve heard a lot of different reasons why people don’t like to quote over the phone so let’s take a look at those before jumping into the benefits.
Comfort Zone
Comfort zone is probably the largest reason why people like to use a quote sheet. We like to be exact and accurate in our quotes and need to make sure that every I is dotted and T is crossed before presenting the quote. A lot of insurance people aren’t comfortable asking for the business so jumping from an initial call through the quote process to a decision with a person you’ve never talked to can be a little daunting at first. There is a major component of that is how it was always done in the past and people are afraid to change. This may involve spending time and energy on training. It certainly involves going outside of your comfort zone to try to expand it.
Fast Seems Cheap
Some of the excuses are a little more specific. Many people want to create a sense that the effort that goes into a quote is more than can be done in one call (to offset the “15 minute message” from that little green lizard). While we cannot properly provide protection in 15 minutes, we have to roll a little bit with the message that is out there that insurance can be simplified. Other people want the dec page. In some cases this is so we can provide an “apples-to-apples” comparison (my most hated phrase in sales) or it is to weed out the price shoppers and focus only on the serious prospects. I say that there is no need for a dec page. I don’t really care what coverage they currently have; I am here to provide my advice, not just copy someone else’s work. Even if I’m prepared to show a second quote with my improved limits, I’m basically showing them how much more they are going to be spending. Take premium off the table by only talking about the proper protection. If they tell you that you are too high, that is when you can discuss the differences in the coverages. On working with only serious prospects, see the next paragraph…
For those that have a high close rates, I would focus on two things as you read the rest of this blog. First, read through the below items that talk more about efficiency than effectiveness. If you can produce the same amount of business with less effort, would you be interested? Second, identify other lead sources from where you can start to generate leads. In our AppX Sales training program, we talk about how hard it is to fail at something you are good at. Basically, if you are always succeeding, you need to expand to new lead generation techniques. Most people that have a high close rate are dealing mostly with referrals. While referrals are great, there are other ways to drive leads. Different lead sources require a different approach.
Assumption of The Lead’s Time
The last excuse is an assumption that people don’t want to spend 30-40 minutes on the phone dealing with their insurance. However, a customer experience will also be more positive with the once and done approach. The worst kept secret in our industry is that no one wants to deal with their insurance. The last thing they want to do is have a 20 minute conversation that leads to an “okay, I’ll call you back and we can spend another undefined amount of time discussing a topic you don’t want to deal with anyway”. Of course no one wants to spend 40 minutes talking about insurance, but even worse is having the issue take up hours or days of your thought process. Help them check something off their list. Do it in one shot.
Now that we have looked at some of the excuses why we don’t quote on the phone, let’s focus on the benefits. And let’s start with the client as most people that don’t like to quote on the phone cite the client experience as their number one reason.
Benefits of Quoting Insurance Over the Phone
However, the client experience is actually significantly better. As mentioned above, it’s once and done for them. They also get to participate in the process which helps them better understand what they are purchasing and gets some buy-in when it comes to closing the sale. They also get to know the agent better and have the opportunity to build rapport more quickly. All of these areas of improved client experience also improves the chance of binding the coverage and increases retention.
A close second to being concerned about the client experience is the effect that quoting on the phone has on their own day. We have created a chicken and egg scenario in many agencies where people tell me they can’t quote on the phone because they have other quotes lined up they have to get to first. However, if they had quoted all of those on the phone, they wouldn’t have this issue. Once you start to quote on the phone, there are numerous benefits. You reduce follow up efforts significantly because you have the person on the phone right then to make a decision. This also eliminates the piles of quotes so that you are able to hit more deadlines with your other clients. You avoid interruptions as other clients and your co-workers understand that you are on the phone and will wait until you have finished. You also reduce multi-tasking which allows you to complete more items; instead of being partially done with 20 items, you complete them one at a time and actually finish.
From the agency perspective, there are numerous benefits to quoting on the phone. Many of these overlap with the benefits to the agent. Overall, this helps the agency be more effective by increasing sales (and revenue) through the agent being able to build rapport, show expertise, and handle concerns in real time. The client is also focused at this time so you have their attention. Once you hang up the phone they may lose interest overall and just stick with their renewal or be frustrated that they didn’t get a resolution and contact someone else; this process allows you to have more control.
This process is also more efficient for the agency and the agent. By focusing on the once and done process we are shortening the overall effort that goes into quoting the new business, opening up capacity for other tasks. Finally, this approach helps not only with retention overall but especially through that first renewal where the client is less likely to shop because he or she had that good experience. For those that do shop, it’s going to be tough to top the experience that they had with you reducing the odds of them moving the policy.
I hope you will give this a shot! You can do this around 80% of the time in personal lines and small commercial. It will be a little bit of a struggle to start, but after a little practice and after you allow the benefits of the reduced effort to hit, you will find that you are being more effective and making your life easier!
Also this is how it may feel the first time you quote over the phone….
