Acquiring the knack of calling prospects for appointments

Now all the producer has to do is pick up the phone and start making calls–and this is also where the sales process most often breaks down. How often? I'd say only about 100% of the time. So in this month's article, I will elaborate on the contact process, point out some common breakdowns and offer suggestions for fixing them.

The mission of the phone call is to get an appointment. True, one can use telemarketing services to obtain appointments, and they even qualify prospects to a degree and obtain X-dates. But when I was a broker, I always made the appointment calls myself, so I could qualify prospects to the best of my ability prior to meeting them face-to-face.

When is the best time to make calls? In seminars I've conducted, some producers have said, "You never call on Mondays." Others in the same class have countered: "No. You never call on Fridays." In reality, both statements and others like it are little more than expressions of call reluctance. So when IS the best time to make calls? When you're conscious.

How often should you call prospects? Until they surrender. Have you ever read "Green Eggs and Ham," by Dr. Seuss? Several years ago, a producer told me I should throw away all the books and tapes I had on selling and just read "Green Eggs and Ham," because that book said it all.

For those who have forgotten the tale or never read it, a character named Sam-I-am tries to get his friend to try green eggs and ham. The friend refuses, but Sam-I-am is relentless. He asks his friend if he will try green eggs and ham under a seemingly endless number of scenarios. Finally, the friend surrenders, tries green eggs and ham–and loves them! Now there's a testament to persistency–and to having a sense of humor.

Repeated calling is particularly necessary for larger accounts, where it can take six or seven calls just to get to a "wrong" person capable of pointing to you to the right one. I've had producers tell me they called a prospect three or four times and weren't called back. I told them to keep calling in a professional manner until the prospect surrenders or tells them, "Don't ever call me again."

When I was a broker, I once made 44 calls over 18 months to the risk manager of a large company in Manhattan. I never spoke with him, although I got to know all the gatekeepers and other people who worked around him. When my colleagues asked why I kept calling, I gave two reasons. First, it wasn't that big an investment of time. Here's a statistic you can take to the bank: Completing a call–from the moment you dial a number to the instant you finish leaving your voice-mail message–takes one minute and 51 seconds on average. So my 44 calls worked out to less than an hour and 20 minutes over an 18-month period. I think it's worth spending that amount of time for a shot at a really large account. I also kept calling to find out who this risk manager's replacement was going to be. I knew at some point something would change that could give me an opening. Sure enough, one day I called and was told the risk manager was no longer with the company. I succeeded in getting in touch with his replacement–and got an appointment after two calls.

I'm often asked whether the National Do Not Call Registry law prohibits this sort of thing. It certainly is an obstacle in personal lines, but the law does not apply to businesses. You can look it up at the Federal Trade Commission's Web site.

(Editor's note: We looked up a number of state "do not call" laws, as well. None barred telemarketing or sales calls to businesses. We'd advise agents and brokers to verify that such calls are permitted under the laws of their own states, however, which easily can be done via a search engine.)

How long should you wait before making a repeat call to a prospect? Everyone has a rhythm, and you'll establish yours. If I called a prospect on Monday, I might call again on Friday, depending on circumstances. I certainly would call by the middle of the following week.

When I can't reach a prospect, I leave a voice-mail message, which I end by stating my phone number–slowly. But I realize–and so should you–that prospects almost never call back. We actually did a study of this issue. Of 100 calls made, guess how many prospects called back? Two. So you have to assume that prospects will never call you back, which means you have to keep calling them. Indeed, those few who do call back are not always such great prospects. "I've been canceled for nonpayment," you might hear on a returned call. "Do you have liberal payment terms?"

Calling prospects can be draining–mentally and physically. There's not only the task of making the calls, but also entering follow-up notes, tracking your numbers, etc. Some days, you arrive at the office and say to yourself, "Wow. I'm ready to go, I'm in the zone." Other days, you ask yourself when you want to make that first call, and you reply, "How's never?"

Tongue firmly in cheek, I often tell younger producers that when they feel this way that they should call 10 prospects they don't want to write. Since they don't have major expectations, they usually relax when making these calls, which mentally prepares them to start calling on more promising prospects. And since they are relaxed on the "practice calls," they often are more effective than they realize and actually may get an appointment or two. That really energizes them. That's what a sales manager wants–to have producers feel momentum kicking in, so they'll increase their call volume and start filling that appointment book. Another tip for conserving mental energy is to try not to become emotionally invested in prospects. Once a prospect becomes a client, that's fine. Before then, it's a mistake, because even a promising prospect eventually might not pan out, and you'll feel let down and disappointed.

Again, the mission of the call is to make an appointment. There's a company called DEI-sales.com in Manhattan from which I got the following idea for doing just that: When you're calling a prospect, have in mind a date and time for an appointment. "How's Tuesday at 10?" you ask the prospect. Say it literally like that. If the prospect replies, "No, that doesn't work for me," then you know you have an appointment. It's just a matter of asking for the right date and time.

I also believe in confirming the appointment. Many producers are reluctant to do this, fearing the prospect will take the opportunity to cancel the appointment. Sales managers often discourage the practice too. But if a prospect is going to cancel, I want to know about it, because being stood up for an appointment is a serious waste of time. So I call a day or two in advance to confirm. If I get voice mail, I leave a message along the following lines: "Hi. This is Tom. I'm just calling to confirm our Friday appointment. See you at noon. No need to call back, unless you have to make a change."

So I'm making my calls and filling my appointment book. Now it's time to meet the prospect. And after all the work I've done, I want to maximize the odds that I'm going to get the information I need to evaluate the opportunity and, if I decided to proceed, to get the information I need make a proposal. To achieve this goal, I break out my "high-tech" equipment: a pad of paper and a pencil. I write down my objectives for the meeting and at least seven open-ended questions that I think will get the prospect talking about his business, exposures and other information I need.

For example, a good question is, "Where do you see your company in 2010?" It's unexpected and likely to get the prospect talking. Another, depending on the nature of the business, is: "Tell me how you generate revenue around here. How do you make sales happen?" The response could tell you more than just what the property, BI, liability and other exposures are. If you learn how prospects sell to their clients, you may gain insights into how they will buy from you.

You should rehearse your appointment. Go over it with another producer or someone else in the agency–or even with the mirror, if necessary. Try to rehearse some scenarios, such as having the prospect ask you a question that you can't answer, or telling you something that could present an obstacle to a carrier's underwriting guidelines.

During the appointment, you should determine whether or not there is a real opportunity for you to get the business at this time. If not–and there can be a zillion reasons it might not be the right time–the prospect goes into your inactive file, as I discussed in last month's article, for regular follow-up and relationship building until an opportunity does arise.

If there is an opportunity right now, then you need to be sure the account is qualified, which is often where you find another major breakdown in the sales process. But that's the topic for another article–which was published in the March issue of AA&B.

(Editor's note: Both "Putting and End to Practice Quoting," Mr. Redmond's article in the March issue, and his article in last month's issue can be viewed in the article archive at this web site.)

Thomas Redmond is co-founder of Redmond Group Inc., a consulting firm that works with clients with commercial-lines, personal-lines, accident and insurance, and risk- management practices. Mr. Redmond can be reached at (732) 224-9444 or, via e-mail, at tom@redmondgroupinc.com.