Customers don’t buy products; however, they invest in value. What represents value to every customer is different and no matter what the cost, if value is presented, they will buy. The question is this, “are we always providing our customers with value by explaining the true benefit?” Payment Protection has many benefits; but if we don’t present what is most important to each customer and their individual needs, we may lose opportunities.
Traditionally, when we think of Payment Protection, we tend to focus on the product features; such as, pays the outstanding balance in the event of the borrower(s) death; assist in making the payment in the event they are off work and under the care of a licensed physician. Then we add a “generic” benefit. Protects their credit, helps their other income go for medical expenses, keep life insurance for what it was intended for.
We need to step back for a moment and consider the needs of each customer. They vary and therefore if we give a “generic” benefit it may not represent value for them. How do we know what is important for the financial needs of each member? Simply by having a conversation.
- Listen: We often times get too involved “telling” our customers how valuable Payment Protection is and we miss clues. What is really important to them; family, security, flexibility, etc. We need to stop telling our customers how great Payment Protection is and listen to what is important to them.
- Observe: Use the tools you have available. Products your customers may not have with you; other protected loans, customer information screen, other product relationships, who they bring into the branch, etc.
- Ask Questions: These open-end questions need to help you identify what is financially important to them. These questions also take place during the application process, not at the time of your Payment Protection presentation.
Once we have confirmed their financial needs, we can select the appropriate Payment Protection feature what will provide them will value and a reason to invest. Let’s see how this works:
Credit Life/Disability Features Benefit True Benefit
Pays the outstanding balance Eliminates debt Allows family to use other life insurance for other needs
Makes monthly payment Protects credit Allows them to have future financing opportunities
Conveniently included in payment No need to pay separate Allows them not to worry when they do need to use; it will be there
Group rated Affordable Allows coverage that may be less expensive than traditional insurance
Build value, provide the “True Benefit” when you discuss Payment Protection; remember, it has to be
specific for them. Once they see the value, cost becomes a number and the benefit becomes their investment.