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Knowing About The Laws of Persuasion For Your Insurance Leads

 

Whether you’re selling health insurance or dental insurance, always the most important thing is to do is closing a lot of sales, because it is the bottomline in sales.

Many salespeople spend a lot of their time trying to find out how they can possibly close more sales. They read books and learn from the top sellers, but the only fundamental truth there is to know about sales is that nobody will ever buy from you if you are not persuasive enough. The art of persuasion, thankfully, is not that difficult to master if you only know the laws governing it.

There’s a science behind these laws – the psychologist Robert Cialdini wrote about the laws of persuasion in his book Influence: The Psychology Of Persuasion.

Law of Reciprocation

This law is another way to state the law of karma. It states that if we give something to a person, that person will feel indebted to us and, in return, will give something in return.

The Law of Reciprocation is always at work in business – salespeople give gifts to their clients, while power-dressed sales executives treat their clients to lunch. Somehow, giving creates an obligation in another person to give something back. All of these “free” things are setting up an obligation. Using this approach, salespeople will make you feel obligated to give something back by buying their product or service.

Insurance websites too apply the Law of Reciprocation by giving out free health insurance leads to freelance agents with the end of mind of generating more sales.

Law of Contrast

This law indicates that whatever information is volunteered to us, we always tend to compare it with similar information that we already know or that is presented to us at a given time.

If we track this in insurance sales, it really doesn’t matter if someone is selling you the cheapest no-exam life insurance program, if you are presented with an exam-required life insurance program that is priced lower, you will only be looking at the price. A very good insurance agent will point out to you that no-exam life insurance and exam-required life insurance are apples and oranges in comparison.

Law of Social Proof

This law states that humans are basically no different from sheep. They tend to follow each other. This law becomes very apparent in two conditions:
(a) Uncertainty or when a person does not know what to do or even sure what he or she wants. In this case, a person becomes easily influenced by people surrounding him or her.
(b) Similarity or when people identify with a person. This situation can be effectively seen in a testimonial – housewives are more easily influenced by a testimonial featuring a housewife.

You read in Part 1 of this write-up that there are three underlying principles of the art of persuasion: (a) you only get what you give in the Law of Reciprocation, (b) price comparisons in the Law of Contrast, and (c) group influence on the undecided in the Law of Social Proof. There are, however, other laws governing persuasion.

Law Of Commitment And Consistency

This law indicates that people are conditioned to be consistent with themselves. In a sales setting, it’s easier to convince someone to buy from you if that person is already drawn to you. By making that progress from liking you to actually buying from you, that person is telling you that he is just being consistent with himself.

If you can’t seem to convince your customer to buy a whole life insurance policy from you, try changing your approach so that the customer will begin to like you. Or you can use the “yes said” technique. This is where you get people to say “yes” to what you say about your product for a number of times. From there, you can make them say “yes” to buy your product. For example, you can ask you client, “Do you see how this product can be useful to many people?” The first question is too broad, it’s very easy to say yes to it. Then you can the more pointed question, “Do you agree that you can benefit from this product?”

Law of Scarcity

This law highlights the very real tendency of humans to want something rare and to pay a high price for it. Among some of the rare items that are expensive are diamonds, collectors’ items and limousines.

It is not at all surprising why people are not willing to a lot at all for insurance. The market is just too competitive – there are too many insurance products that offer more or less of the same thing. As an insurance agent, it will be nearly impossible to create a sense of scarcity for your product. You really are just better off signing up with insurance sites that offer free health insurance leads to insurance agents. The leads are already pre-qualified. In some cases, the leads may already be old clients, and you only have to sell a new product.

Law of Authority

This law indicates that people are inclined to follow the recommendation of someone who they perceive to be a figure of authority. One very good example of this phenomenon is toothpaste – now we all know that the leading brands are those recommended by dentists’ groups.

In selling insurance, your authority figure could be an insurance expert who recommends a “BUY” on an insurance product. But really, insurance agents themselves can become their own authority figures. They only need to create an air of authority around themselves. Some people are already very good at this, while others find it an effort. It is always worth anyone’s time to set yourself up as an authority figure –it cuts by half the time to influence another person.

The laws of persuasion are not cast in stone – they’re basically observations by psychologist Robert Cialdini. Whether they are true actually depends on your own selling experience. The more important thing to do is finding out how you can apply these laws to your own experience.