Over the past decade or so, I've had the opportunity to execute many major campaigns in demand generation, data building, and appointment setting with level one and two decision makers.

During that time, we've worked with over 40 clients across a wide variety of industries. Whenever we are lucky enough to work with people in the insurance industry, I am inevitably astounded by the breadth and depth of knowledge the agents possess about the details of the insurance packages they are selling.

And yet, despite this expertise, we are usually called in because, for one reason or another, the pipeline is not robust enough and sales opportunities are failing to materialize. This makes the issue one of two things: people or process. This attrition clearly isn't due to a lack of knowledge about the product. So, why, we asked ourselves, aren't these sales being closed?

Instead of guessing, we did what most smart people do these days and turned to the numbers. Applying an analytic framework to what was happening with the sales funnel enabled us to uncover some strategic insights about why good opportunities don't always results in a sale.

We then took that analysis one step further and came up with a six-step methodology to accelerate the sales cycle and help insurance agents achieve their business goals. This approach stems directly from analysis of real statistical data about what has worked best in the field, and has proven to increase sales by approximately 25 percent.

So here, briefly, are our six recommended steps to accelerate the sales cycle:

1. Predictable processes yields predictable results.

The key is not only product knowledge, but to also have a key understanding, and buy-in, of the sales process. The hardest thing we train salespeople on is winning the first meeting, which is time off someone's calendar. That's the first yes. And many times, the industry doesn't understand that there is not an apparent need. We must create an opportunity where one did not exist. Without following a predictable process, the rest of the recommendations will not affect your end result.

2. Keep your data clean.

According to Gartner, the amount of corporate data is growing 40 percent year over year. While that information can be very valuable, it has an expiration date. Recent studies show that data goes bad at a rate of 1 percent weekly, and Salesforce.com says that the average sales rep spends 30 percent of his or her time searching for the right data. To compound the issue, last year, 20 percent of corporate email marketing in North America did not end up reaching its desired inbox. Bad data can end up costing your organization up to 10 percent of its annual revenue, due to wasted time.

3. Timing matters.

We're all familiar with the old adage “the early bird catches the worm,” but most of us have probably questioned at some point whether it's really true. According to our data, it definitely holds up when it comes to demand generation. The most effective method of prospecting still relies very heavily on a tried and true communications platform — the telephone.

We took a look at the outcomes of 46,716 calls made in a 90-day period, in order to determine the most effective times to call prospects. We found that if you are trying to reach a decision maker, it is much easier to make contact in the morning or the very late afternoon. On average, the ratio of dials to contacts in the morning is 22:1, versus 26:1 in the afternoon, with peak times at 9:00 a.m. and 11:00 a.m. and 5:00 p.m.

What's more, prospects tend to be easier to reach in the Eastern Standard Time zone, with a 19:1 ratio of dials to contacts, in comparison with 27:1 for Central Standard Time, and 26:1 for the Mountain and Pacific zones. So, regardless of where you are based, set your clock on ET and work your way across the country to catch people during peak morning hours.

What's the best time to get the attention of decision makers and increase the rate of follow-up meetings after the initial contact has been made? According to our data, it's immediately after the contact has been made. Our data shows that your chances of closing business increase by 350 percent when you make contact within 24 minutes of a prospect becoming a lead. That makes a pretty strong argument in favor of an automated CRM system that loops salespeople in to the very front end of the sales cycle, so that they can create continuity earlier in the process.

After proper follow-up has been completed, it's equally important to send a same day thank you email including key takeaways, and move the conversation toward next steps. On average, 53 percent of first meetings turn into second meetings. The key to closing often depends upon how quickly and effectively the lead moves through the earliest steps.

4. Track results on a weekly basis.

Let's face it, no one loves reporting, but without metrics, how do you know where you are with respect to your goals, and how can you identify and resolve potential issues before they become huge problems? Trying to sell without analytics is like trying to ski downhill with a blindfold on. Make sure that you have the information you need to quickly and easily monitor your performance, presented in a format that allows you to make the raw data actionable.

5. Prepare to navigate potential obstacles.

Most insurance salespeople are very competent at solving problems for prospects, but less skilled at encouraging prospects to be candid about their businesses. As a result, theystruggle with “capability” calls, or the kinds of introductory conversations where the prospect does not acknowledge that there is an obvious need for a new package.

In our experience, those kinds of conversations go much better if the professional is equipped with a few tools to help navigate some of the most common objections. We train salespeople to use “cushions” to create a two-way dialogue with the prospects, and to listen carefully for the real meaning behind stated objections. In many cases, the objections raised do not reflect the real reason that the prospect doesn't want to buy, but with skilled listening, the agent can assess when it is appropriate to address them head on.

6. Diagnose the process.

If you are attending carefully to the first five steps, and still find that opportunities aren't materializing at the rate you'd like them to, it's probably time for a formal diagnosis of where things are breaking down. The problem usually lies in one of four areas:

The absolutes. Every successful sale is based on the ability to fulfill the absolutes — the basic requirements necessary to make the sale. If you do not meet the minimums, the sale cannot advance.
The wants. This is rarely what we sell, but keep in mind that what buyers really want is usually a solution to a problem or to create new opportunities.
The desirables. These are the areas of interest that influence the buyer's decision. They are not typically requirements of the sale, but they do have some sway.
The why. This is the compelling emotional reason for the buyer to make the decision to purchase from us, or from somewhere else.

People lose sales for a lot of reasons. It's important to be aware of the chief obstacles in your path, because they will have a direct impact on your sales results. Knowing where the landmines are buried can help you to stay one step ahead. Sales training, process consultation and sales management coaching can help to identify some of your obstacles at a more granular level, so that you can learn to navigate them and move more of your opportunities toward closure.

Special Reports /

6 steps to accelerate the sales cycle

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