Digitalization has changed the way we buy and sell insurance products and services. Online channels are accessible to customers 24 hours a day. They are usually cheaper, and they provide an easy way to compare information between products, competitors and markets. In an increasingly digitalized world, companies and insurers are questioning what value personal sales consultations offer to the institution and its customers. It is easy to assume that personal selling can simply be transferred to online channels, or that customers are only interested in the transaction and find little value-add from an interaction with a sales consultant. |

The human touch

We have to be careful, however, not to underestimate the 'people factor,' as this still plays a very important role in the insurance business. In a recent survey of German insurance consumers, we found sales reps that work with their customers to configure products to their individual requirements manage to sell 79% more premium coverage policies. Customers often remain open to persuasion, even after they have spent time researching a product online. Today's sales representatives also have an opportunity to be domain experts, and most importantly, provide value beyond the product itself. Supported with the right digital tools, process and knowledge, sales representatives can facilitate decision-making, enhance the purchasing experience and help customers build a relationship with the brand. It is important to note that the traditional hard sales strategies that rely on pressure tactics to push customers into closing sales will no longer work in the digital age. A new approach to selling is needed; the sales interaction must add value from the perspective of the customer. Insurance market research bears it out: Sales reps whose interactions incorporate specific characteristics such as individualized product configuration, product knowledge, a systematic approach to sales talks, and measurement, are more successful at selling. They sell more high-priced premiums, are better at cross selling, have a higher chance of securing a sale, and have higher customer satisfaction scores. |

Configure products to individual requirements

Customers appreciate being able to adjust products to their own needs. While customers usually value the additional flexibility of being able to choose from a wide range of options, they can also be easily overwhelmed when presented with too many choices. The overwhelmed customer will quickly decide to not make any purchase at all. There is an opportunity for personal selling to reduce complexity and prevent choice overload. Customers are much more satisfied with sales talks when individualized product configurations are presented to them. In our experience and research we found that when it is possible to individualize product configuration during the sales talk, cross selling occurs more frequently (52 percent vs. 36 percent) and is more successful (relevant offers: 40 percent vs. 8 percent). Sales consultants can use digital tools to showcase individualized product configurations relevant to the customer's situation. |

Sales talk must add value

Agents must be able to present relevant and compelling content to the customer throughout the sales interaction. Product comparisons are a useful tool to generate value to the customers. Insurers must support their sales reps by providing them with all the materials they need to efficiently explain and compare product details and values to customers. Sales talk should also focus on product content and not price. For customers who are most concerned about price, sales consultants can offer strategic opportunities such as bundle discounts. The sales agent should also be able to defend the price and characteristics of products against those of the competition. |

Systematic approach to sales

A structured sales process with strategic elements, such as cross selling and "process guardrails," can keep sales reps on a path of success. Sales reps that employ an organized, professional sales approach with a specific sequence and steps through the selling process achieve better results in every area. In a our experience we found these sales reps have higher likelihood of a sale, sell more premium policies, have more relevant cross-selling conversations and more loyal customers. |

Measure the value of each step

It is also important to measure the value of each step in the sales process, not just the results of the process. This gives us the opportunity to re-engineering our sales interaction to identify best practices and areas for improvement. A lot of investment has been made to streamline and optimize sales operations with digital technologies, while the actual selling has largely been left to the talent and experience of individual sales reps. It is essential to rethink the sales interaction to identify what it is offering the customer. Insurers who can innovate and add value to their offline sales consultations beyond what is available online will realize its untapped potential to increase cross sales, premium policies sales and customers loyalty. Frank Gehrig is a partner at the insurance practice of the global pricing, marketing and sales consultancy Simon-Kucher & Partners. To reach this contributor, send email to Frank.Gehrig@simon-kucher.com. See also: 3 digital marketing hacks to drive more insurance leads in 2018 4 ways insurers can prepare for 'Digital Insurance 2.0' Customer expectations: 4 digital technology implications for insurers