As insurance producers, it may be frustrating to hear, but your sales could be dwindling because of jargon.
Every industry has its own set of a terms; a vocabulary that’s bandied about by insiders and sets the experts apart from the novices. However, while jargon can be a strength for you during industry events, it’s a weakness if you can’t step away from it with your clients.
Jargon creates confusion
Jargon, is by its very definition, a “language used for a particular activity or by a particular group of people,” according to Merriam-Webster. Your clients aren’t regular players in the insurance industry, which means they are hardly to blame if they don’t know or understand certain terms and phrases. If you stick to the same vocabulary with your clients as you use with your colleagues, don’t be surprised if your clients don’t understand or can’t see the value in your products and services.
According to LIMRA Strategic Research Director Scott Kallenbach, consumers may hear what providers are saying, but they don’t truly understand.
For example, a joint study by LIMRA and consulting firm Maddock Douglas performed last year found consumers aren’t sure how to define terms like “underwriting,” “permanent life insurance,” “annuity” and “rider.”
Confusion limits sales
A second joint study by LIMRA and Maddock Douglas found insurance-specific terminology is turning consumers off from the prospect of buying life insurance. In fact, through the research, they found 18.7 million Americans see life insurance as valuable, but don’t have it because of problems that arose while shopping for it.
The millions of Americans who have been unable to purchase a product they feel is useful to them is evidence of the very real and negative affect jargon can have on consumers. While certain vocabulary can create specificity and even enhance understanding within a professional setting, it makes consumers feel like outsiders and leads them to step away from a smart investment.
Shift your perspective and communication
As producers, you need to be able to convey the real-life value of your products and services to your clients. Without this communication, your clients can’t understand how certain products will best protect them and their families.
“The industry needs to communicate using authentic language and relatable imagery,” Kallenbach said, according to the LIMRA release. “Our goal here is to help financial services companies set the stage for wholesale, industry-wide changes in communications. When customers and would-be customers are able to see the value in companies’ products clearly, they’re much more likely to take an interest in them and make a purchase.”
To better impart your message, take a step away from your industry vocabulary and practice explaining the terms and benefits of your products in everyday terms. LIMRA recommends producers create authentic language by focusing on being easy to understand, realistic, positive, memorable, using trustworthy sources for your information and staying relevant to clients.
