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Here we take a look at how to increase your sales conversion rate in this class of insurance.
The conversion rates between brokers vary wildly from under 35% to over 75%. In our direct channel, our sales conversion rate is 9 out of every 10 cases we see.
It’s easy to be glib about these figures but our intention is to improve your success ratio using our experience and product knowledge, such that you naturally choose us for your clients in the future.
The central point to remember here is that you are the broker and your responsibilities revolve around making sure your client has the best advice before any considerations regarding price come into play. There is not a single client who, post loss, would not have bought a better product had they known it was available, so don’t be drawn into making a decision for clients on price.
John Ruskin once said
‘Quality is never an accident; it is always the result of intelligent effort.’
and followed it with
‘ It's unwise to pay too much, but it's worse to pay too little. When you pay too much, you lose a little money - that's all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot - it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.’
So in our business, once armed with the right information, your clients are more likely to come to the right decision on their project insurance, even if it means they have paid slightly more for a better product.
Understand your client
Get to know your client – and show that you’re interested in their project
Tap into your client’s emotional connection with the project and position insurance cover as a valuable part of it
Prepare your client – don’t surprise them
Remember the true function of an insurance broker
Make cover comparisons between providers to bring the reality of a loss to light
Encourage your client to control their insurance to avoid a serious disconnect in coverage between works and the existing structure