"Strictly Sales" is written by the faculty of the Dynamics of Selling program. This month's column is from Jerome P. McAndrews.
THE INSURANCE industry is full of agents who are less than satisfied with their daily activities and results. They complain that their commissions are too low, the job is too stressful, and customers are too demanding. These agents are typically in the bottom 75% of the industry. We all have bad years and can drop into this category temporarily. However, if you are consistently in the bottom 75% of the industry and you are unhappy with your work, you need to take a hard look at yourself and make changes today.
The difference between the top 25% and the rest of the industry can be summarized in three words: passion, purpose and process. When you have passion for your profession, your enthusiasm and confidence is evident. The purpose of your daily activity must be to satisfy your customers' needs. The process by which you deliver your services must be efficient and effective.
I met a young, energetic new agent who wanted some advice on getting started. He was searching for a market niche on which to focus his activities. We talked for a long time to determine his range of interests. He had run in marathons, and he indicated he would be happy if he could run in certain events and attend the "Iron Man" race in Hawaii.
We had finally hit on his passion. He had sponsor lists for almost every event in the U.S., as well as for some foreign races. He knew how they were organized, dates, distances, concerns, number of participants, typical crowds and many other details. We realized that someone wrote the insurance for these races. In this niche, his expertise about marathons and his insurance knowledge could be impressive to insureds and underwriters. There are a million stories with similar beginnings. They include interests such as boating, rodeos, horses, schools, golf courses, cars, motorcycles, lake property and your neighborhood.
The purpose of your business endeavor must always be to address your customers' needs and exceed their expectations. The only way to find out what your customers want is to ask them. Start with four easy questions that many agents use:
o What am I doing right?
o What am I doing wrong?
o What is my competitor doing that you like?
o What do you want that you are not receiving?
The answers to these questions will involve price, service, coverage and relationships. Change your daily activity in light of the answers to become better at carrying out your purpose. You will not need to satisfy all of these needs, but you will need to satisfy the customers' most important ones to write the account.
To integrate your passion into your business, first obtain a market for the type of business you want to develop. There is an insurance company writing the business now. Evaluate the program's strengths and weaknesses, competition, and size of the market. Second, obtain a prospect list from Dun & Bradstreet or from a carrier. Create a database for your market.
Third, establish a territory that provides enough customers to make a good living. If the niche involves small premiums, you may need to use the Internet and obtain non-resident licenses. Fourth, develop a marketing campaign based on your strengths, passion and unique experience. This may be in the form of direct mail, telemarketing, E-commerce, seminars and cold calls.
Next, create sales tools, including a game book with applications, business cards, advertising, Web sites, brochures, etc. You can create a Web site with such features as online applications and voice-activated advertising to enhance your agency's image.
Next, develop a three-step sales process.
1. Schedule a diagnostic appointment to build rapport and determine the buyer's needs.
2. Hold a protection review to evaluate the risk and find coverage gaps and pains.
3. Present your solutions and overcome any objections to close the sale. This can be done in one visit or phone call or several visits with a large account. In either case, the process should be well-planned.
Next, establish procedures to ensure you and your staff can exceed the expectations of the customer. Make sure customer education issues are handled before you leave the premises, especially how customers can ask follow-up questions and how you will meet billing, claims and policy delivery expectations.
Last, you should estimate the financial results of your plan. What are the costs? Estimate the activity, hit ratios and anticipated commissions over the next three years. This information will allow you to estimate the amount of daily activity required to achieve your yearly income goal. Have a precise vision of your plan and understand the financial rewards and risks. Set a deadline with realistic numbers for determining the plan's success, failure or need for adjustment.
When you bring passion, purpose and process into your business, you will become one of those top 25% producers you always knew you were. Unless you change your behavior and take action based on this article within 10 days, however, you likely will not change. So take time immediately to write your action plan.
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