Strictly Sales" is written by the faculty of the Dynamics of Selling program. This month's column is from David L. Rice Jr.
It's long been a challenge for agencies nationwide–how to transform new producers into successful, profitable agents. There is no right or wrong way to accomplish this task, and strategies for doing for developing new producers abound. Let's explore some factors you should consider when undertaking such an assignment.
Every new producer is different; their needs and circumstances vary. You may wish you could follow some magical formula when mentoring producers but, unfortunately, that's not possible. A new producer not only embarks on a new career, he or she joins the agency's team and must learn its sales culture. Keep this in mind when creating a plan of attack.
When mentoring a producer, begin by explaining your training plan and providing a timeline so the person knows what to expect and what you expect of him or her during the training period. Brief your existing staff as well, so everyone involved knows your expectations. Producer training should include, at a minimum, licensing school, regular in-house training sessions with each department, training sessions on each aspect of day-to-day operations, and outside sales training classes.
Depending on the new producer's experience level, you may feel that he or she does not need in-depth sales training. However, the insurance industry is a complex business that changes every day, so enroll even sales-savvy trainees in a "producer school." Give them as many tools as possible.
Every agency's training regimen varies according to the products and services the agency offers and its management's philosophy. Customize your training schedule to fit both your agency's and new producers' needs, but make certain the producers understand the agency's operations, which individuals/departments are responsible for daily tasks, and how producers fit into the workflow.
Once producers have completed their training, obtained their sales licenses and become familiar with all aspects of the agency's operations, they are ready to start selling. So, what's the next step?
Many agencies make the mistake of telling their new producers, "You can start by handling all the new-business call-ins," which many agents consider a standard new-producer task. But let's evaluate that practice for a moment. Who are typical commercial-lines call-in clients? Businesses. All businesses need insurance, and some (particularly start-ups) may simply call your agency for help. However, to be frank, most of the commercial clients we target don't call around for random quotes.
Commercial insureds calling agencies for competitive quotes represent all types of industries and have various reasons for taking a shotgun approach. They may have unfavorable claim histories or financial problems, or maybe they shop around for the cheapest price every year. If a prospect cold-calls your agency, you can bet they're calling others as well. To ask inexperienced producers to deal with such prospects right off the bat is to set them up for failure.
The most effective way for new producers to market to potential clients is to specifically target those who fit your agency's expertise and carriers' appetites. Find out which industries your key carriers want to write and direct new producers to a few select classes of business within those industries. When choosing niches on which to focus, ask producers if they are already familiar with certain industries, what their hobbies are, and, if applicable, what they previously did for a living. By targeting only industries in which they have knowledge or interest, they will become experts on those classes and gain confidence.
Once producers complete their training and select a few classes of business to target, it's time to start marketing. Marketing is an ongoing process that includes cold-calling, gathering expiration dates, mailing letters and making appointments. One of the most important aspects of the mentoring process is holding new producers accountable for the marketing plan you've designed. Establish a weekly activity report that includes a minimum of five categories: suspects, prospects, working business, sold business and unsold business. "Suspects" are businesses to pursue. "Prospects" are pre-qualified businesses with which the producer will try to make an appointment. The "working business" category consists of prospects the producer has met and qualified and plans to quote this year. Accounts the producer wrote go in the "sold" category, and, obviously, those accounts he or she quoted but did not write fall under "unsold." In all categories, the producer should include each prospect's or client's expiration date, estimated premium and lead source. For each piece of unsold business, also include the reason for not closing the account.
Good activity reports show exactly how new producers are doing–what accounts they are working on and in what stage of the sales process each account currently resides. Producers must update their activity reports weekly and provide them to their mentors for discussion. Meet with producers one-on-one to review their progress, answer questions and provide further guidance when it's warranted. Discuss each category in detail and compare achievements (or lack thereof) with established goals. Recognize producer's accomplishments and hold them accountable if necessary.
I've outlined a few of the basic steps you can take to effectively mentor new producers. I hope they provide a framework that will help you feel more comfortable when embarking on this difficult but important and rewarding mission.
Good luck!!
David L. Rice Jr. is vice president-sales for the Michigan-based Craft Agency Inc. He specializes in both property-casualty insurance and employee benefits, manages his own book of business and heads up producer development for the agency. David also serves as an instructor for the Dynamics of Selling program. For more information on Dynamics of Selling, call (800) 633-2165 or visit www.TheNational-Alliance.com.
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