If you’re new to the sales world, or you’ll thinking about getting into health insurance sales, it can be a rewarding career. Working as a health insurance broker, you have the opportunity to help people protect their future health – and their finances. You can work on your own terms where and when you want. And, you can make good money.
You may be thinking it could take you a while to learn all of the sales-related terms you’re likely to encounter. Sales is, after all, like any specialized field; it has unique terms that it would benefit you to know.
With that in mind, we’ve put together a sales terminology primer. Get to know these terms and you may find your new sales career a little less challenging, and a little more rewarding. This is part one of two Sales Term Glossaries; in this section, we focus on A through G.
ABC – Always Be Closing
This is an approach that some suggest is out of date; however, it’s probably good to know anyway. The premise is that everything you do in the sales process is in pursuit of the single goal of closing the deal. A better approach in today’s changing marketplace – at least according to the folks at HubSpot – is Always Be Connecting.
AIDA – Awareness (or Attention), Interest, Desire, and Action
These are the four main stages that involve the buying process (also referred to as the purchase funnel).
Average Dollar Sale
This is the average amount each of your client spends with you. As it relates to insurance sales, your client’s average dollar sales will be affected by the scope of your service – whether you focus on individuals, small businesses, larger businesses, and the products you offer. Information about your average dollar sale can help you analyze your success and, perhaps, drive you to change your approach or market niche.
B2B – Business to Business
The exchange or sale of products and services between two companies (in contrast to an exchange between a business and a consumer/individual).
B2C – Business to Customer/Consumer
The exchange or sale of products and services between a company and a customer (individual client).
The value offered by a product or service to the buyer; this is distinct from the features of a product or service. Ideally, in your sales approach, you should sell based on benefits supported by features.
BANT – Budget, Authority, Need, and Timeline
BANT is a well-known method used for lead qualification. It looks at Budget and whether your prospective client has a budget for what you’re selling; Authority and whether he or she has the authority to make a purchasing decision; Need and whether there’s a business need by your prospect for what you’re selling; and Timeline, the time frame for a decision and implementation.
Your contact at a business/prospective client. He or she could own the company, manage employee benefits, or have a role in the final decision about funding the purchase.
This is a broad term used by marketers to describe the ways a customer identifies, considers, and selects products and services. It is influenced by the consumer’s needs, budget, desires, inhibitions, role, and his or her social and cultural environment.
This is another term used by marketers that looks at characteristics of your ideal customer based on market research and real data about your current customers. It can help you qualify your leads based on your past success.
This includes all of the information a prospect or client needs before making his or her decision to buy. It can include a written checklist or a series of questions about cost, benefits, features, need, etc.
Also referred to as “churn rate,” this is a measurement of your customers’ non-renewals, cancellations, and discontinued payments for previously agreed-to services or products. It’s important to know your churn rate to understand your buyers’ behaviors and identify shortcomings in your sales approach or service that might otherwise keep your customers on the books.
To calculate your churn, take the number of customers lost during a specific period and divide it by the total number of customers you had at the start of that time period. (Don’t include new sales during that period.) As an example, if you had 50 customers at the beginning of September and you had 45 customers at the beginning of October, your churn rate would be 10 percent (50 – 45 = 5 / 50 = 10%).
CRM – Customer Relationship Management
Customer Relationship Management and most often involves using CRM software to analyze customer interaction data to help business relationships grow. Also, CRM software helps businesses improve relationships and retain customers. There are several tools that can be used to improve CRM and make it practical.
The process of approaching prospective customers either by telephone or face-to-face “cold,” without introduction or prior contact.
These are leads that are less likely to become customers, although it’s important to recognize that some cold leads could be turned into warm leads with your renewed outreach.
The people with whom you talk and meet who make the ultimate buying decision. It’s important to get to the decision-maker, so you don’t waste time with someone unable to make the purchase decision.
The study of individuals’ lifestyle, age, buying habits, etc. Knowing this information can help you understand (and better serve) the needs of your customers.
Moral principles governing a person’s behavior or the conducti of business. Unethical behavior will undermine your reputation – and your success as an insurance professional.
Field sales representatives are those individuals who work “in the field” as the face of their employer company in an assigned region or territory.
Estimating sales to predict the long- or short-term performance of an organization; forecasting helps in making informed business decisions.
A process that follows customers through their purchase decision; a sales funnel is divided into stages that follow a customer from awareness to action (purchase).
An individual who attempts to screen your efforts to approach a decision maker (see above).
Related: Sales Term Glossary: H-W
Health Insurance Broker
2018 Salary Guide
For a sneak peek at what you can expect to earn as an insurance agent, get a copy of our “Insurance Broker Salary Guide.”