What is an example of need-based selling?

Need-based selling focuses on understanding and addressing the specific needs and circumstances of the customer before recommending products or solutions. Asking about current insurance coverage is a prime example of this approach, as it allows the salesperson to gather essential information about the customer's existing situation. This dialogue helps identify any gaps in coverage or opportunities for additional products that may benefit the customer.

By engaging in this type of inquiry, the salesperson demonstrates a commitment to providing tailored solutions rather than pushing a one-size-fits-all product. This method fosters trust and builds a stronger relationship with the customer, which is crucial in the insurance industry, where personal and tailored service is valued.

In contrast, offering discounted rates, using aggressive sales tactics, or focusing on profit margins do not prioritize the customer's specific needs. Instead, they might prioritize immediate sales or the company's bottom line over the long-term satisfaction and well-being of the customer.