After two decades in the health insurance industry, I've seen every trick in the book. But there's one approach that consistently falls flat: feature and function selling. It's time we had a frank discussion about why this method is holding you back and what you should be doing instead.
Here's why feature and function selling doesn't work in B2B sales, particularly in our industry:
It's mind-numbingly boring. Let's be honest: rattling off a list of features is about as exciting as watching paint dry. Your prospects are busy people with real problems to solve. They don't have time for a lecture.
It gives the prospect nothing to sell. Every person you’re talking to has to resell your solution internally. Even CEOs have boards to answer to. Give them a great story, not a feature list!
It ignores the real issues. While you're busy talking about your new wellness program or claims processing system, you're missing the chance to address your prospect's actual pain points. What keeps them up at night? High employee healthcare costs? Poor utilization rates? That's what you need to focus on.
It's forgettable. In B2B sales, especially in insurance, the decision-making process can take months. If all you've done is list features, what will they remember about you down the line? Absolutely nothing.
It commoditizes your offering. When you focus solely on features, you're essentially saying, "Here's what our policy covers." Guess what? So does every other policy in your space. You've just turned yourself into a commodity that can be easily compared on a spreadsheet.
It fails to build relationships. Long-term success in B2B sales is built on relationships. Reciting specifications doesn't build trust or show that you understand and care about your prospect's business.
It doesn't address value. Features are not benefits, and benefits are not value. Your prospect doesn't care what your algorithm can do. They care about what it does for their business and their employees. If you can't articulate that, you're wasting everyone's time.
It's tone-deaf to context. A feature that's a game-changer for a small tech startup might be irrelevant to a large manufacturing company. If you're not tailoring your pitch to your prospect's specific situation, you're just making noise.
It overlooks the human element. B2B buying decisions aren't purely rational. There's emotion involved – fear of making the wrong choice, desire for recognition, need for security. Feature-focused selling completely ignores this human element.
So, what should you do instead? Here's your action plan:
Do your homework: Understand your prospect's business almost as well as they do. Know their industry, their challenges, and their goals.
Identify pain points: What problems are they trying to solve? High turnover due to poor benefits? Unpredictable healthcare costs? Inability to forecast risk? Focus on these issues.
Demonstrate value: Don't just tell them what your platform does. Show them what it means for their bottom line, their employees' satisfaction, and their competitive edge in the market.
Build relationships: Ask questions, listen actively, and show genuine interest in their success. Your goal should be to become a trusted advisor, not just a software peddler.
Tailor your approach: Every prospect is unique. Customize your presentation to address their specific needs and concerns.
Tell stories: Share real examples of how you've helped similar companies solve problems. Make it tangible and relatable.
Focus on outcomes: Paint a clear picture of what their world looks like with your solution in place. Make the value so vivid they can almost touch it.
Is this approach more challenging than reciting a feature list? Absolutely. But it's also far more effective and more likely to lead to a successful, long-term career in this industry.
Remember, in B2B sales, especially in insurance, you're not just selling a code. You're selling peace of mind, stability, and a competitive edge. Keep that in focus, and you'll be miles ahead of the feature-and-function crowd.
Share your horror stories in the comments or give me a call if we haven’t talked in a while. I’d love to hear about the features of your latest product… kidding!
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