The Ultimate Guide to Effective Cold Calling for Insurance Brokers and Agents
Cold-calling in insurance has long been a staple of marketing, even as the industry has leaned toward a digital-first approach. Without a doubt, online channels help generate interest, but nothing replaces a direct, personal conversation.
That’s why cold-calling remains a vital skill in insurance sales. Cold-calling isn’t for the faint of heart. It’s a daily grind of phone fatigue, compliance concerns, and lots of rejection.
Yet, if you can master it, you can have a great career in insurance.
The good news?
You don’t need to rely 100% on digital strategies or cold-calling to boost your sales numbers. Many brokers and agents find that cold-calling enhances their digital marketing strategies.
On that note, we’ll review the role of cold-calling in modern insurance sales, how to shift your mindset, and how to craft an effective cold-calling script. We’ll also outline how to establish rapport early, overcome challenges, get the timing right, and leverage technology.
Shortcuts:
The Role of Cold Calling in Modern Insurance Sales
Preparing for Success: Research and Mindset
Crafting an Effective Cold Call Script for Insurance Sales
Building Rapport and Trust Quickly
Overcoming Objections and Following Up
Final Tips on Warming Up Cold Calls in Insurance
The Role of Cold Calling in Modern Insurance Sales
Why waste time on cold calling when you already have a digital marketing plan? Many insurance salespeople have that mindset. What they may not know is that cold-calling worked for nearly a hundred years before digital marketing came into vogue. It still plays a viable role in modern insurance sales.
Why Does Cold Calling Work?
Cold calling works today for the same reasons it has always worked. It helps you make a personal connection with a stranger.
Speaking with someone by phone lets you hear what customers’ pain points are and what they’re looking for in an insurance policy. A back-and-forth conversation gives you the chance to answer their questions on the spot, instead of waiting for a return call or appointment.
Another reason cold calling is effective is that you’re more likely to reach prospects who don’t spend a lot of time online.
How Have Buyer Dynamics Changed?
Today’s consumers are more informed about their insurance policies than in the past. They’re used to having many choices. As a result, they’re selective about what they want.
If they don’t see the value in what you’re offering early in the conversation, buyers are likely to disengage. They expect you to ask questions about their needs and provide sound solutions. The last thing they want is a fantastical sales pitch.
To respond to the changing dynamics, you’ll need to take a consultative approach. Educate and inform them without pushing them into a decision before they’re ready.
Preparing for Success: Research and Mindset
Because insurance customers have changed their mindsets, you must also change yours. A new perspective requires you to understand your audience, build a new mindset, and get organized with the right tools and data.
Know Your Audience
Everyone needs insurance of some type, and on some level. In light of that, your job is to identify the demographics of your ideal customer. This is also called your target persona.
If you’re selling home and auto insurance, you’ll want to find out:
- Marital status
- Age
- If they own or rent a home
- How many drivers in the household
- How many cars they have
- Driving records and claims history
- Commute history
- Whether they have jewelry or other items to insure
- Net worth for a possible umbrella sale
For commercial customers, you’ll have many questions about the type of industry, number of employees, claims history, commercial property and vehicles, safety measures, and much more.
Regardless of which insurance products you sell, you need to learn more about the customers’ pain points, needs, and motivations.
Build the Right Mindset
Unless you have years of experience with cold calling, you may feel intimidated by it, especially in the beginning. It’s true that you will get a lot of rejections, but when a customer is ready to talk, you want to go into it with complete confidence.
What about the dozens of rejections that go along with cold calling? You’re bound to get them, so you need to learn to handle them professionally.
Be polite and ask if there’s a better time to talk about their insurance. You may be able to draw out their expiration date. If so, let them know when they can expect a call back.
If you get a hard no, the call won’t go anywhere for now. Accept their decision and move on to the next number on your list.
Building the right mindset means viewing cold calls as nothing more than a conversation. You might think of it in the same way you’d start a conversation with a stranger at a party. It’s not that comfortable in the beginning. As the conversation gets going, it starts to feel warmer.
Organize Your Tools and Data
Insurance salespeople sometimes lose a chance at a sale during a follow-up call, because they didn’t take good notes after the initial call. The most effective tools for cold calling can vastly improve your chance of sales success.
Every time you make a call, put a note in your CRM in the prospect’s record about how the call went. Also, make your best guess about when it might be a good time to recontact them. Set up a notification for a follow-up call. Review your notes before making the next call, so you’re prepared to reopen the conversation based on your last interaction.
Be sure to abide by the following CAN-SPAM rules as stated by the Federal Trade Commission (FTC):
- Be transparent that the message is coming from you.
- Use an accurate subject line.
- Identify the message as an ad if it is one.
- Disclose your location.
- Allow recipients to opt out of messages from you.
- Honor opt-out responses immediately.
You never know when a prospect will be ready to discuss their insurance needs. Considering that, make sure you have relevant policy options in mind and have your talking points ready.
Crafting an Effective Cold Call Script for Insurance Sales
A challenging aspect of any sales job is coming up with an effective cold call script. How do you get someone’s attention quickly before they’re ready to hang up on another annoying sales call?
Your goal is to guide the conversation forward without feeling forced or unnatural.
We’ll break down the structure of a successful sales call and share additional valuable tips.
Structure of a Successful Call
A strong sales script consists of four main parts – the opening, engagement, a value pitch, and a call to action.
- Opening: Give a brief, confident introduction and state why you’re calling. Be clear. Avoid salesy language and purposeless chitchat.
- Engagement: Ask a question or make a relevant statement to spark their interest. You could relate something to their current coverage, an insurance trend, or a common pain point with similar customers.
- Value pitch: Highlight a benefit tailored to their situation. Talk more about how your solution can fit their needs better or solve a problem.
- Call to action: Suggest a meeting, quote, or follow-up. Make it easy for them to say yes. If they won’t commit, ask when a more convenient time would work for them.
As for the fourth point, ask for a specific day to follow up with them. For example, you could say, “Which day is better for you next week? Tuesday or Thursday?” You could also ask about their month or next month.
Your sales script is not a monologue. It’s not something to rattle off without letting the listener get a word in edgewise. Aim to get a back-and-forth conversation going.
Tone and Pacing
Pay attention to your tone of voice and the speed of your delivery for the most natural-sounding script.
Rehearse your script until it sounds fluid. Recite for others and ask for feedback. Your tone should be natural, friendly, and confident.
Annunciate your words and speak clearly. Take pauses in your script where they occur naturally. Anticipate moments where the listener may want to interject with a question or comment. That’s your cue to ask a few more questions and nudge the conversation along.
Building Rapport and Trust Quickly
Try to put yourself in the listener’s headspace. Most people who answer your call will be skeptical at first. They’ll scan to see if you’re legitimate and whether they need what you have to offer.
You don’t have much time to build rapport or trust in a cold call. You can make some headway if you can start building trust within the first couple of minutes of the call.
Do your best to sound authentic. People receive enough sales calls that they can sense if you’re being insincere. Whether your hook is to save them money or help them understand their options, be transparent about why you’re calling them from the start.
Be empathetic. You may have caught them in the middle of something, or they may be on their way out the door. Apologize sincerely, and ask when they may have more time.
Personalize Each Script
Personalizing the call is a way to stand out and build trust, as it lets the caller know that you know something about them. When you use their name or speak to their situation, they start to suspect that they’re not just a name on your list.
Some things you can mention, depending on the type of insurance you’re selling, are:
- Their name
- Their age group
- Their types of cars
- Common insurance challenges
Mentioning the smallest detail about someone could capture the listener’s attention and keep them engaged a bit longer.
Mirroring and Active Listening
Ironically, some of the best salespeople are good listeners rather than good talkers. They notice subtle details in the way customers talk. They’re good at picking up on the customer’s pace, pitch, tone, and rate of speech. Good salespeople also know how to match their rhythm and energy. This is called active listening and mirroring.
By using this approach, you subconsciously start building rapport. The more comfortable the customer feels, the more willing they’ll be to open up and continue the conversation.
Empathy, personalization, and attentive listening all play a role in building sufficient trust to make a cold call warmer.
Overcoming Objections and Following Up
While you may occasionally close a sale on a cold call, it’s more likely you’ll need to call a prospect back.
Common objections you may hear are:
- “I’m not interested.”
- “I already have coverage.”
- “I don’t have time right now.”
The best strategy for overcoming objections is to be respectful and stay calm. Be empathetic and have a few comebacks for common objections.
If they say they’re not interested or it’s not a good time, ask when a better time might be. If they say they already have coverage, ask when they’ll review it again. Follow up with a personalized email or voicemail summarizing what you have to offer. Set reminders on your schedule or CRM to check in at a better time for the customer.
Not every customer will be a good fit. When you encounter a “hard no”, it’s time to move on.
Final Tips on Warming Up Cold Calls in Insurance
Whether a lead is cold or warm, view it as an opportunity to build a relationship. Successful insurance salespeople never throw out a lead. With persistent follow-up, a sale may come in several months or years, if it doesn’t come right away.
An opportunity for a sale could come at any time. Be prepared to make a presentation and close the sale if it happens during a cold call. With CrankWheel, you can send the customer a link to your presentation immediately. Screen-sharing lets them see your screen, so they can follow along visually. They won’t even have to download software. You can rearrange your slides and videos according to how the discussion unfolds.
Remember to make your script sound natural and not overly rehearsed. Listen more and mirror the customer’s tone, pitch, and pace. Abide by CAN-SPAM laws and insurance marketing regulations. Don’t give up too quickly when getting rejected. A prospect may be more receptive if you can catch them at the right time.
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