Why Do People Buy?

This article was written by LifeAdmin, on March 14, 2016

Senior couple meeting financial adviser for investment

When it comes to making a sale, it’s important to understand your customer’s frame of mind. You don’t need to sell yourself on the product, you need to sell others! Understanding your customer’s motivation for buying is essential to making the sale. So how do you tap in to this knowledge? What’s the secret? How does this apply to insurance sales?

  1. See a need? Fill a need:

When it comes to selling insurance, many people don’t feel the gravity of its importance unless it’s the type of insurance required by law. For end-of-life insurance, the decision to buy is often put off indefinitely. It’s hard for a customer to feel the dire need to purchase a funeral when they feel so far away from death. Age plays a factor in the situation because as people age, the feeling of immortality begins to wear off. As people age, planning your funeral slowly becomes a need instead of a “want.”

So what does this mean for your sales? It means as a salesman, your job is to show why the customer needs the policy now. They need to understand the consequences associated with not buying a policy today, and all the benefits associated with making the decision today.

  1. Trust in the Brand:

When you go to the grocery store to pick up a few items, how often do you make your decision based on brand recognition? For some items you may feel comfortable going with the generic brand, while others you may require the brand name product. The same goes for insurance products.

If they don’t recognize your company, it’s your job to introduce them to your company and build trust in your brand. Speak of the advantages in buying a policy with your company. Build trust through your company’s history of success. If the contact was a referral, speak to their experience. It’s important to build your company up without slandering other companies. It can actually put your company in a negative light as it makes the company you represent look insecure.

  1. Cost Efficiency:

Why is your product worth the money? Is there a cheaper option? If yes, why shouldn’t the customer go that route? Customers want to know why the product costs as much as it does. If the reasoning isn’t explained properly, they will see your product as overpriced and they’ll see you as the “sleezy salesman” type. Explaining the cost goes behind the itemization of the receipt. Especially with insurance, there isn’t exactly a specific fee to cover their “peace of mind.” With the proper presentation, your customer should understand all the included benefits of the policy they’re buying, who it benefits, and how. We all know that an end-of-life insurance policy benefits far more people than just the policy owner. It protects their family too!

There are many reasons why people buy things beyond this list; however, understanding these reasons will allow you to tap into the mindset of your customer and more effectively sell your product to the right crowd.

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