Transactional Selling vs. Solution-Based Selling

Presented by David Corwin

My money (pardon the pun), is on solution-based selling; the difference being that transactional-based selling is too much related to the product itself. In other words, it means suggesting or pushing a particular product to your client before even learning that it might not benefit them. Imagine going to a car lot wanting to buy a pickup only to find out that the salesman seems to want you to take ownership of this great, totally awesome four door sedan. I find that many insurance professionals operate exactly in that manner.

Solution-based selling can be defined as the process of developing an understanding of the customer’s needs and objectives, and then offering solutions that will help the customer address their unique objectives. Fact finding will not only uncover issues, but you’ll also learn things that you might not have, had you just tried to sell them a product. Here are some other benefits to adopting a solutions-based sales practice:

• Cross-sales opportunities – you’ll uncover other areas where you can provide a service and/or product that will meet their needs.
• Referrals, referrals, referrals – use any method you can as a reminder to always ask; you’ll get more introductions to other people. If it’s on the fact finder as a reminder, then it’s only natural that you’ll ask.
• You’ll also know what other advisors and/or attorneys they have.
• Wills and trusts – you will know that they have a trust or a will.
• Permanent record – it’s a permanent record of your meeting documenting everything that you talked about allowing you to revisit missed items.

These ideas aren’t meant to pass judgment on your sales system that you are currently using – and if it works, that’s great. The more successful long-term agents use solution-based selling and I truly believe that is the only way that an insurance professional should operate.

Posted in Annuities, Life Insurance, Long Term Care and Disability Insurance, Sales & Marketing and tagged , , , , , , , .

Leave a Reply