At recent sales meetings you’ve been discussing the pros and cons of using a telemarketing firm to generate more appointments and increase commercial lines revenue opportunities. Calls come into the agency from telemarketers pitching deals and promising all kinds of paybacks.
As a manager, you want to make an informed decision about whom you hire. But choosing a telemarketing firm based solely on the deal they offer or the promises they make is a bit like picking a dentist because they’re offering discount tickets, or a law firm just because they have the biggest ad in the phone book.
Rates and anticipated returns are two elements you’ll certainly want to evaluate. But what other considerations should your decision be based on? Here’s a list of key variables that should be useful in guiding your research: Personnel - Who will actually do the calling for your agency? Will there be consistency or will many different people be calling in a boiler-room environment? Is there a high caller turnover? What’s the average caller’s tenure? Is all calling done “on-site” or do they use unsupervised “tele-commuters”?
Training - Do they take the time to understand what may set you apart from other competing agencies? If you're targetting larger companies do they have the experience and skill to communicate with C Level decision-makers? How will the telemarketing firm go about conveying your agency’s competitive advantage?
Timing - When will calls be made so that they’re able to best reach busy decision-makers? Are they able to make early morning and early evening calls? Are they in a favorable time zone? Does their software enable them to set alarms and schedule calls most effectevly?
Experience - Do they understand the insurance sales process? Issues around workers comp; risk management; safety engineering? Do they have a good handle on realistic “hit ratios”, dials, completed contacts and appointments generated?
Who will own the data after the program is ended? - A wealth of details and intelligence can be gathered during the calling process: x-dates, current agents and carriers, decision-makers' names and titles, e-mail addresses, insurance concerns, and buying attitudes. When the program ends, will you get to keep this valuable intelligence or will the telemarketers retain that for possible use with other agencies?
How are leads qualified? Are the appointments that are set for you solid, reliable selling opportunities? How do they avoid situations where someone schedules a meeting just to get the caller off the phone? Are the callers speaking with actual decision-makers? Are x-dates and other data accurate?
How are you billed? Are you required to pay for a whole year up-front? Can payments be broken-up into installments? Can you pay by credit card?
Wednesday, September 2, 2009
Not all agencies are the same – Differentiating your agency and communicating its competitive advantages
If you’re like most successful agency owners and executives, you want your agency to stand out from the rank and file. To that end you first need to identify your competitive advantages – the special expertise, services, products and other factors that set you apart from the competition. Then you have to effectively communicate and promote those advantages so prospects know why it’s worth their time to meet with you - so they want to meet with you.
At PMA new teleprospecting clients fill-out an Agency Questionnaire from which we develop a tailored Phone Approach and Agency Fact Sheet so their Business Development caller has a good sense of their culture and strengths. Some agencies, particularly smaller ones, find it hard to come up with differentiators that will give them a marketing edge to magnetize prospects.
Larger agencies may have access to more markets, sophisticated on-line tools and other resources. But what can a ten-person agency do to establish themselves as “go-to” authorities and position themselves as the agency of choice? Quite a bit, actually.
Here are four examples of how smaller agencies can leverage resources and create strong, unique identities.
Collaborate, Educate, and Communicate
➢ When CSRs are knowledgeable about coverage issues, customers come away feeling assured and confident about the agency’s expertise. One well-trained CSR was able to show a customer that their umbrella policy did in fact cover a claim that another agent mistakenly thought wasn’t covered. Not only was the customer delighted with the reversal of fortune, but that whole family became staunch advocates, spreading the word about the agency’s competency.
➢ Another agency, in conjunction with a local hospital’s Travel Nurse offered a series of presentations with tips and caveats for vacation and business travel that helped establish a strong identity for the agency and gave them a meaningful competitive advantage.
➢ In collaboration with the local Chamber of Commerce and a Professor of Community Development at a local college, another agency co-sponsored a series of “Keep our Downtown Strong” meetings that examined successful business development tactics used by other communities. The information sparked initiatives that helped to strengthen the town’s economic base and the agency enjoyed considerable positive publicity and recognition.
➢ One agency that we know of reaped lots of positive PR when they helped organize an innovative loss-prevention presentation for the local school district that involved a regional carrier with special expertise in school insurance and a number of vendor experts on topics like school violence and job applicant backgound checks. The program quite successfully raised awareness of their independent agency as risk management experts in the community.
At PMA new teleprospecting clients fill-out an Agency Questionnaire from which we develop a tailored Phone Approach and Agency Fact Sheet so their Business Development caller has a good sense of their culture and strengths. Some agencies, particularly smaller ones, find it hard to come up with differentiators that will give them a marketing edge to magnetize prospects.
Larger agencies may have access to more markets, sophisticated on-line tools and other resources. But what can a ten-person agency do to establish themselves as “go-to” authorities and position themselves as the agency of choice? Quite a bit, actually.
Here are four examples of how smaller agencies can leverage resources and create strong, unique identities.
Collaborate, Educate, and Communicate
➢ When CSRs are knowledgeable about coverage issues, customers come away feeling assured and confident about the agency’s expertise. One well-trained CSR was able to show a customer that their umbrella policy did in fact cover a claim that another agent mistakenly thought wasn’t covered. Not only was the customer delighted with the reversal of fortune, but that whole family became staunch advocates, spreading the word about the agency’s competency.
➢ Another agency, in conjunction with a local hospital’s Travel Nurse offered a series of presentations with tips and caveats for vacation and business travel that helped establish a strong identity for the agency and gave them a meaningful competitive advantage.
➢ In collaboration with the local Chamber of Commerce and a Professor of Community Development at a local college, another agency co-sponsored a series of “Keep our Downtown Strong” meetings that examined successful business development tactics used by other communities. The information sparked initiatives that helped to strengthen the town’s economic base and the agency enjoyed considerable positive publicity and recognition.
➢ One agency that we know of reaped lots of positive PR when they helped organize an innovative loss-prevention presentation for the local school district that involved a regional carrier with special expertise in school insurance and a number of vendor experts on topics like school violence and job applicant backgound checks. The program quite successfully raised awareness of their independent agency as risk management experts in the community.
Wednesday, July 29, 2009
Motivation is Like a Fire...
...Unless you continue to add fuel - it goes out
When a suspect’s motivation to review his insurance with an outside agent is weak and uncertainty about change holds him back, you’ve got to cut through this inertia and outweigh the hesitancy with positive inspiration. Beginning a call with a forceful Benefit Statement immediately grabs the suspect's attention and tells him what’s in it for him. For example, in talking with agencies on our own teleprospecting calls, we often begin by saying: “PMA helps agencies increase new account revenue….”, and then, if they want to learn more, we can discuss our process and talk about how we can be a resource for the producers. The Benefit Statement needs to be short (under 40 words ideally), accurate, and ideally something that will set you apart from competitors.
In the course of your initial prospecting call and in further follow-up calls, it’s important to add motivational fuel as needed. Do you detect hesitancy around changing agents? Be understanding and offer assurance that ‘others’ have had those same concerns and found your agency to be remarkably attentive and professional. Is the decision-maker preoccupied when you call back to schedule a meeting nearer to renewal time? Remind her that she wanted you to call back to schedule a competitive review, and reiterate the advantages you’re going to be able to deliver. There are a great many ways to motivate prospects, and the more consistently and creatively you inspire your prospects, the better your sales results.
When a suspect’s motivation to review his insurance with an outside agent is weak and uncertainty about change holds him back, you’ve got to cut through this inertia and outweigh the hesitancy with positive inspiration. Beginning a call with a forceful Benefit Statement immediately grabs the suspect's attention and tells him what’s in it for him. For example, in talking with agencies on our own teleprospecting calls, we often begin by saying: “PMA helps agencies increase new account revenue….”, and then, if they want to learn more, we can discuss our process and talk about how we can be a resource for the producers. The Benefit Statement needs to be short (under 40 words ideally), accurate, and ideally something that will set you apart from competitors.
In the course of your initial prospecting call and in further follow-up calls, it’s important to add motivational fuel as needed. Do you detect hesitancy around changing agents? Be understanding and offer assurance that ‘others’ have had those same concerns and found your agency to be remarkably attentive and professional. Is the decision-maker preoccupied when you call back to schedule a meeting nearer to renewal time? Remind her that she wanted you to call back to schedule a competitive review, and reiterate the advantages you’re going to be able to deliver. There are a great many ways to motivate prospects, and the more consistently and creatively you inspire your prospects, the better your sales results.
Conflicting Motivations
People often have conflicting motivations. Sometimes this is known as "approach-avoidance conflict". The closer you get to a particular positive goal, the stronger you feel the accompanying negative aspects. On the one hand a prospect wants to reduce insurance costs. On the other hand, he worries that spending less money could mean the coverage or service won’t be as good. Switching insurance agents or carriers (or making any kind of business decision, really) involves change, and anticipating change often brings anxiety that unexpected complications or “problems” may ensue. Decision-makers are apt to feel, “The devil I know is better than the devil I don’t know.”
Often suspects aren’t even aware of their conflicted feelings and hesitancy. Instead of talking about their underlying concerns, they might say they’re “all set”, or procrastinate about scheduling a time for a meeting. Skillful producers and teleprospectors need to anticipate and recognize the real issues behind a suspect’s hesitation and offset them with reassurance and encouragement.
The importance of dealing with suspects’ unstated reservations can’t be underestimated. It’s worth noting that doctors who are regarded as caring, attentive, and understanding are less frequently the subjects of medical malpractice suits. When it comes to offsetting prospects’ hesitancy and approach-avoidance conflicts, satisfying their emotional needs (by being patient, showing empathy, etc.) is, initially at least, more important than the technical solutions and expertise a skilled agent might later bring to the table.
Often suspects aren’t even aware of their conflicted feelings and hesitancy. Instead of talking about their underlying concerns, they might say they’re “all set”, or procrastinate about scheduling a time for a meeting. Skillful producers and teleprospectors need to anticipate and recognize the real issues behind a suspect’s hesitation and offset them with reassurance and encouragement.
The importance of dealing with suspects’ unstated reservations can’t be underestimated. It’s worth noting that doctors who are regarded as caring, attentive, and understanding are less frequently the subjects of medical malpractice suits. When it comes to offsetting prospects’ hesitancy and approach-avoidance conflicts, satisfying their emotional needs (by being patient, showing empathy, etc.) is, initially at least, more important than the technical solutions and expertise a skilled agent might later bring to the table.
Qualified Appointments
Speaking with agents around the country we hear a lot of ‘war stories’ about their teleprospecting experience. Frustrations with telemarketing firms often come down to appointments that were just not qualified. Scheduling an unqualified appointment is like hiring someone to do a job for which they’re not capable. No one would intentionally hire incompetent workers, yet every year, countless inappropriate sales meetings are scheduled, and enormous time and resources are wasted in the process.
You might be able to schedule a meeting with someone, but is that prospect at all likely to become a new agency account? More to the point, do they meet these three criteria:
Are they motivated to make a change?
Are they able to make a change?
Are they ready to make a change?
If you can answer, “yes” to all three then you’ve got a legitimate new business opportunity. If you can’t, then it’s probably not worth your time to meet – at least not now. This issue of MARKETPULSE is all about motivation and the role it plays in identifying and influencing prospects.
You might be able to schedule a meeting with someone, but is that prospect at all likely to become a new agency account? More to the point, do they meet these three criteria:
Are they motivated to make a change?
Are they able to make a change?
Are they ready to make a change?
If you can answer, “yes” to all three then you’ve got a legitimate new business opportunity. If you can’t, then it’s probably not worth your time to meet – at least not now. This issue of MARKETPULSE is all about motivation and the role it plays in identifying and influencing prospects.
Thursday, May 28, 2009
Increase Your New Opportunities - Reduce Your Cost of Sales
Waiting around for the right opportunities costs money. Missing good opportunities costs money. Not having enough time to prospect for new accounts costs money too.
As businesses contract and revenues decline, the clear solution is to expand new business activity. But when producers are busy with renewals, serving clients and networking for referrals, they don't always have the time and flexibility to be generating the appointments they need to grow enough new accounts.
A smart solution is to put PMA's teleprospecting expertise to work for your agency. PMA's dedicated, experienced Call Team will develop well-qualified appointments and gather valuable sales intelligence to provide producers with a pipeline of targeted, well-qualified new business opportunities.
Bringing PMA on board for a Pilot Program is easy and cost-effective. Find out more now by clicking here or call us at 800-783-2303 to get all the details.
Increased sales productivity for our clients, coupled with strong, highly reliable support and service are what has made PMA successful for over two decades.
Client Profile
"We're fairly pleased", says Bill Harris, Principal of a venerable agency in the Midwest. "We'd be ecstatic if we'd written a couple of accounts from your leads - but that will come later. We don't expect to recoup our investment in the first two months", Bill says confidently.
"They've been quality appointments - your people know what they're doing. I especially like the documentation you provide. We've used two or three telemarketing firms in the past and PMA is head and shoulders above the others - no question."
Bill's agency contracted with PMA when their in-house telemarketer was promoted to full-time producer. In first two months, PMA Account Executive callers have been leveraging the P&C appointments they make to cultivate additional opportunities on the Employee Benefit side - and vice-versa.
The agency sees the teleprospecting objective as twofold: get the producers in the door, and ascertain the level of interest and any specific insurance concerns at the target businesses.
"PMA is putting our producers in the right places", says Bill.
"We're talking to people who have an interest. In some way they are unhappy with their broker -- unhappy with the services they get for the premiums being charged. That pain isn't always so apparent, but our producers know how to find ways we can distinguish ourselves and make a difference. If we don't have a business referral, getting in the door, in the first place is often the hardest part. That's why we like what PMA is doing."
"They've been quality appointments - your people know what they're doing. I especially like the documentation you provide. We've used two or three telemarketing firms in the past and PMA is head and shoulders above the others - no question."
Bill's agency contracted with PMA when their in-house telemarketer was promoted to full-time producer. In first two months, PMA Account Executive callers have been leveraging the P&C appointments they make to cultivate additional opportunities on the Employee Benefit side - and vice-versa.
The agency sees the teleprospecting objective as twofold: get the producers in the door, and ascertain the level of interest and any specific insurance concerns at the target businesses.
"PMA is putting our producers in the right places", says Bill.
"We're talking to people who have an interest. In some way they are unhappy with their broker -- unhappy with the services they get for the premiums being charged. That pain isn't always so apparent, but our producers know how to find ways we can distinguish ourselves and make a difference. If we don't have a business referral, getting in the door, in the first place is often the hardest part. That's why we like what PMA is doing."
Drip on Them
One of the common precepts in sales training is that it often takes seven or eight contacts before a prospect is ready to buy from you. The value of repeated exposure and consistent perseverance can't be overestimated. There's a certain level of comfort that develops with time and familiarity. Over time buyers' guards are lowered, trust and interest increases and the ground becomes fertile for new relationships to take root.
The problem though, is that sometimes the pressures of production and a business climate too focused on short term revenue goals distracts us from appreciating and pursuing long term strategies for cultivating new business.
Many seasoned producers tell stories about the great client relationships they've built after considerable courting. Sometimes these clients came aboard when their incumbent agent reached his level of incompetence or moved on to another organization. There's no question that some of the best and most enduring client relationships only begin well after the initial sales appointment.
So if your sales process doesn't include strategies for cultivating prospects over time you're probably going to miss out on a very meaningful segment of potential business. Occasional phone calls, email reminders and even electronic newsletters (like this one) are all good ways to stay connected with prospects. And when that steady 'drip' of interest and attention eventually pays off, the resulting relationship has a firmer foundation and stronger likelihood to endure.
The problem though, is that sometimes the pressures of production and a business climate too focused on short term revenue goals distracts us from appreciating and pursuing long term strategies for cultivating new business.
Many seasoned producers tell stories about the great client relationships they've built after considerable courting. Sometimes these clients came aboard when their incumbent agent reached his level of incompetence or moved on to another organization. There's no question that some of the best and most enduring client relationships only begin well after the initial sales appointment.
So if your sales process doesn't include strategies for cultivating prospects over time you're probably going to miss out on a very meaningful segment of potential business. Occasional phone calls, email reminders and even electronic newsletters (like this one) are all good ways to stay connected with prospects. And when that steady 'drip' of interest and attention eventually pays off, the resulting relationship has a firmer foundation and stronger likelihood to endure.
Buying Signals
On the phone, a potential prospect will tell you, "We compared insurance programs last year and found no improvement. We don't want to spend time doing that again." Or you might hear, "Our agent shops the markets for us so we don't need you to review our insurance." On the surface these responses seem to be saying they don't want to buy from you but they are also telling you something enormously valuable. These businesses have recently attempted to improve their insurance situations!
Instead of regarding these negative responses as disappointing dead ends, you can see them instead as promising opportunities. You've found the right door with an interested buyer behind it. All you need do now is find out how and when to open it - and their business can be yours. One way to uncover those keys is to ask simple questions: "When your agent shops the market, how many different carriers is he able to access?", or "I'm curious, what specific kinds of coverage or service improvements would make a difference to you?"
Seeing the buying signals within an apparent negative statement isn't that difficult if you're listening actively to what a prospect says. And turning a seemingly closed door into an open one can be simple and straightforward when you're not hampered by negative preconception.
Here's another example of how to welcome a seeming roadblock as a door-opening opportunity: On a cold call, a prospect says that your office is too far away. They want to deal with an agent that's closer to them. They might be saying that because they're looking for an excuse to end the call; on the other hand, they might not be getting the attention they need and want from their current agent - wherever they're located. What if you say, "I hear you. Getting the right attention and service from your agent is very important. Does your current agent meet with you there at least twice a year? Does the agency have a service time line? Do they do annual workers comp audits? These are all part of the way we work with manufacturers. And since I'm frequently up in your area seeing other clients near you, I'm able to make sure you get all the attention you need. Can I sit down with you next week and show you the check list of services we deliver for manufacturing clients?"
Our point is that seeming "road blocks" can often be bridges to communicate further with a prospect and to building solid client relationships.
Instead of regarding these negative responses as disappointing dead ends, you can see them instead as promising opportunities. You've found the right door with an interested buyer behind it. All you need do now is find out how and when to open it - and their business can be yours. One way to uncover those keys is to ask simple questions: "When your agent shops the market, how many different carriers is he able to access?", or "I'm curious, what specific kinds of coverage or service improvements would make a difference to you?"
Seeing the buying signals within an apparent negative statement isn't that difficult if you're listening actively to what a prospect says. And turning a seemingly closed door into an open one can be simple and straightforward when you're not hampered by negative preconception.
Here's another example of how to welcome a seeming roadblock as a door-opening opportunity: On a cold call, a prospect says that your office is too far away. They want to deal with an agent that's closer to them. They might be saying that because they're looking for an excuse to end the call; on the other hand, they might not be getting the attention they need and want from their current agent - wherever they're located. What if you say, "I hear you. Getting the right attention and service from your agent is very important. Does your current agent meet with you there at least twice a year? Does the agency have a service time line? Do they do annual workers comp audits? These are all part of the way we work with manufacturers. And since I'm frequently up in your area seeing other clients near you, I'm able to make sure you get all the attention you need. Can I sit down with you next week and show you the check list of services we deliver for manufacturing clients?"
Our point is that seeming "road blocks" can often be bridges to communicate further with a prospect and to building solid client relationships.
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