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5 Common Mistakes Insurance Agents Make That Explain Sales Slumps

by Precise Leads

April 26, 2018

Every insurance agents makes mistakes, but if you’re making these five, you might be driving away business.

Whether you’re a newcomer to the industry or a seasoned veteran, every insurance agent suffers through a sales slump at one point or another. After all, it comes with the territory: in a business that runs on commission, there will be times when a healthy sales pipeline suddenly runs dry.

While it may be tempting to explain away a slow period on factors beyond your control — a lagging economy, for example — agents facing a sales slump should ask themselves what they may be doing that could be driving away business. To quickly get yourself out of a rut — or to prevent yourself from getting into a deeper one — make sure you’re not making these easily avoidable mistakes.

1. Focusing Only on Making a Sale

As counterintuitive as it may sound, focusing solely on closing the deal may explain your flagging business. If, insteading of striking up a conversation with a sales prospect about their insurance needs, you immediately launch into your sales pitch, you may be sending a message that you’re not interested in what that person has to say — only how much of a commission you can get off of them.

If you’re worried that you’re guilty of this, concentrate less on sealing a deal and more on listening to the client, asking the right questions, and, most of all, building relationships. Remember: insurance sales won’t happen until you gain a client’s trust.

2. Neglecting Your Digital Presence

When was the last time you updated your website or posted on social media? With 74% of buyers scouring the internet before they purchase insurance, a lackluster digital presence could be at the root of your problems.

While you shouldn’t ditch tried-and-true lead generation like networking (or even cold calling), selling in an increasingly connected economy calls for 21st century methods. For example, you could purchase leads online, revamp your website with new content, or fine tune your SEO strategy and social media campaigns to get your name out there. 

3. Failing to Ask for Referrals

Referrals are a great way to build business and increase sales, so why aren’t you asking clients for them?

After closing a deal, always ask satisfied clients if they know of anybody who could use your services. Set up a system where you send out an email asking for a referral anytime you close a sale. Don’t restrict yourself to your client roster. Anytime you’re in a social or professional setting, ask the people you meet if they need insurance. Even if they don’t, they may know someone who does.

4. Working with the Wrong Prospects

The most successful insurance agents know how to budget their time, and who to spend their time on. If you’re spreading yourself thin because you believe that you need to talk with each and every person that crosses your path in the hopes of closing a deal, you may be missing more promising prospects right under your nose.

Not every lead will yield a sale, and that’s okay. When it becomes apparent that a prospect isn’t ready to buy, move on and concentrate on people who express sincere interest in what you have to offer. You’ll close more sales when you work with the right prospects at the right time.

5. Falling into a Routine

We’re all creatures of habit, and there’s nothing wrong with that. However, agents who fall into a routine and don’t update their practices or product lines may be left behind in a fast-paced, ever-changing market.

Break out of the “same old, same old” by attending conferences and workshops to stay on top of the latest industry trends. To increase sales, consider diversifying the policies you offer to appeal to a wider audience. It may even be time to switch up your sales techniques with new tactics. Instead of seeking only fresh leads, for example, try reaching out to current clients for cross-selling opportunities.

The more honest you are with yourself about what might be contributing to a slump, the faster you can work on getting yourself out of it. Once you start the process of correcting these mistakes, you’ll be well on your way to breaking out of your rut and becoming a better salesperson and agent.

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