The Annuity Buyer's Conundrum: Tangibility

Since the majority of independent financial pros live off of commissions, it can be very difficult to remain patient and wait for the prospect to make a decision about acquiring an annuity.  This is especially true if the prospect needs to wait 2-3 months before they can even move the money… like they are waiting to retire. However, it’s important to remember, buying an annuity is a VERY BIG decision that has a long-lasting effect on their retirement lifestyle. 

Just think about it from the prospect’s position, purchasing an annuity just as big, if not bigger, of a financial decision as buying a house or new car. People spend countless hours researching the benefits of a new car, reading car reviews, comparing brands, scouring the internet for the best deal, and want to buy that car from a credible dealership. The same goes for purchasing a house… people look at countless homes on Zillow, check out the school district’s rating, spend hours looking at interior room photos hoping to find that dream kitchen, and speak with several realtors and mortgage companies to find a good fit. 

Annuities have a much bigger challenge to overcome… they are not a tangible asset. 

Pre-retirees and retirees are using their life’s savings and purchasing an invisible product they cannot see or touch. The psychology behind this concept is powerful and can lead to buying hesitation due to the fear of losing everything they’ve worked so hard for over decades.

People can see and touch a new house or a car, which in return gives them a positive emotional response. It’s that “new car smell” kind of thing or cooking in your dream kitchen for the first time… who doesn’t like those experiences? With an annuity, you don’t really get that same kind of emotional reaction… there’s simply not as much excitement with something that’s invisible. 

So, how do we overcome this psychological warfare of the annuity buyer’s mindset? The answer is… building trust and credibility by demonstrating knowledge. 

Demonstrating knowledge combines various methods, tools, and resources. Obviously getting the prospect on the phone is priority #1, as speaking with the prospect directly allows you to directly demonstrate your knowledge about financial services. However, reaching people on the phone is getting harder and harder every year. 

This leads us to one of the most common challenges financial pros ask themselves, “What should I do if I don’t reach the prospects over the phone?” The answer is digital marketing. Digital marketing is one of the best ways to build trust and credibility while demonstrating knowledge through content marketing. 

First off, you need to have a professional looking website filled with educational content.

If you don’t have one, you need one or risk losing credibility by making a bad first impression online. Plus, your website functions as a “digital home” of your business and features educational content your prospects need, want, and expect to find. The Ohlson Group can assist you and even provide you with a free website. Learn more about our free website services.

The second thing that you should do is step up your email game.

While the phone still remains superior to making the sale, email marketing is often overlooked and undervalued by a lot of financial pros. Email marketing is a very powerful marketing tool and has demonstrated results time and time again. With a combination of sending direct emails manually and automated email workflows, you can effectively nurture your prospects. Email drips are the perfect vehicle for content marketing and allow you to share a library of videos, articles, and resources that help move the prospect further down the sales funnel. Content marketing is a great way to build trust, demonstrate knowledge about the products and services you offer, and show your prospects why and how you can help them.

If you would like help with stepping up your website or email marketing game, please click here to book a quick digital marketing help session.

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Until next time… good selling!
​
Jason Garriott
​Digital Marketing Manager
Ohlson Group
​1-877-844-0900