MARKETING
SELLING TELEMATICS : A LITTLE PSYCHOLOGY GOES A LONG WAY
Telematics , the technology that allows for collecting personal driving data from customers , can be a tough sale if it ’ s not approached correctly .
By : Brian Ahearn
The benefit of telematics is the technology allows for personalized auto insurance rates based on individual driving habits . That should be great news for most drivers . However , the downside is customers ’ fear of being tracked . I ’ ve often heard agents say , “ My customers don ’ t want big brother tracking them .” How can you deal with this objection ?
If Big Brother wanted to track you , do you think “ he ” would wait for you to buy auto insurance with telematics ? Wouldn ’ t it just be easier to track your cell phone ? Whenever I brought this up in agency meetings , I ’ d see people tilt their heads and start looking up as if they were thinking , “ Hmm , I never looked at it that way .”
One other observation – don ’ t use the words “ track ” or “ tracking .” Instead , use “ monitor ” or “ observe .” You may think this small change won ’ t make a difference , but it will just like using the word “ inexpensive ” instead of “ cheap .” Most people don ’ t want to buy cheap items , but they love inexpensive purchases .
SELLING TELEMATICS To sell telematics more effectively , start with the following pre-suasive question , “ Do you consider yourself to be a good driver , at least better than average ?” This question is important for two reasons .
1 . Studies show that most people believe they are better than average when it comes to looks , intelligence , kindness , and just about any other positive trait you can think of , including driving . We all believe we are better than average drivers even though statistically , half of us must be below average .
2 . And , who will admit to being a bad driver when they ’ re hoping to save a few dollars on their auto insurance ? Humans are good at justification , so if someone has a few tickets ( it was a speed trap !) or accidents ( it was the other person ’ s fault !), you can be sure there ’ s a “ good reason .”
APPROACHING THE CONVERSATION When someone affirms they ’ re better than the average driver , it will put them in a pre-suasive mindset , opening them up to ideas for good drivers , people just like them . Don ’ t talk about new technology because that ’ s scary for some people . As noted earlier , don ’ t use the word “ tracking ” because nobody wants to be tracked . Instead , say something along these lines :
“ Pat , if you ’ re a better than average driver , you ’ re probably PAYING MORE ( scarcity ) than you should for your car insurance because insurance rates are based on averages . What I mean is this : too often good drivers PAY TOO MUCH ( scarcity ), and poor drivers don ’ t pay enough . But , that ’ s starting to change with technology . There ’ s a device you can put in your car to monitor your driving and give you the better than the average price you deserve . ALMOST EVERYONE ( social proof ) who ’ s used the technology has saved money . 80 % ( social proof )
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