Nothing happens until somebody sells something. To make sales happen, IMMS.com Key Sales Consultant Randy Schwantz has created a comprehensive series of 43 Producer Success Lessons. Used singly or in combination, these powerful tools can help your producers build their skills - and grow their sales.
In the early 20th century, massive ocean liners ruled the seas. They were powered by steam - a fairly new technology. Sometimes the new technology was plagued with incomprehensible difficulties, just as computers are today.
Cunnard Lines operated more luxury liners than any steamship company, and the only man trusted to fix the really tough problems on Cunnard vessels was known as the Plumber. So when a Cunnard ship was stranded in New York Harbor with a boiler problem, the Plumber was brought in.
After spending no more than five minutes examining the maze of pipes and valves in the engine room, the Plumber called for a hammer. He lightly tapped three times on a tiny yellow valve deep in the heart of the enormous engine room. As if on cue, the mighty vessel's boilers roared to life!
Two days later, Cunnard's president received a bill for $1,000 (the equivalent of about $15,000 at the end of the 20th century). The president was furious! The Plumber was informed, 'We must have an itemization of this ridiculous bill. Forward it immediately, please.'
The Plumber did indeed immediately forward an itemized bill. It read:
Tapping valve (three @ $1) $ 3
Knowing where to tap $ 997
TOTAL $1,000
Then, as now, expert knowledge was what set the professional apart from the others in the same business. And such knowledge commanded a respectable premium in price and respect. It was the Plumber's commitment to professionalism that made him worth more than his competitors.
McDonald's Insurance
Do you ever go to McDonald's? They have a special called the Real Meal Deal. For a moderate price you get a burger, fries, and a drink. The Real Meal Deal is the same at any McDonald's you visit - same burger, same fries, same price. So why would you go to one McDonald's rather than another? Location? Maybe. But the reason is more likely to be something such as faster service, a smile from the counter person, or cleanliness. The people who run your McDonald's have figured out how someone competes when they're selling a commodity, such as hamburgers: service.
The Service Edge
Service is the biggest difference between you and the other guy. You have a number of weapons in your service arsenal, such as the reputation of your agency and the value it brings to its clients.
Another big gun is your expertise. Does the client really understand all their options? Do they know enough about Homeowner's coverage to make a good decision about limits? Is their home insured for replacement cost? Are all their assets adequately protected?
Your best shot with clients is your ability to communicate with them. Notice that I didn't say sell to them, I said communicate with them. Other agents sell to clients. Professionals from your agency communicate with clients, uncovering pain and adapting solutions.
Expertise
There are many facets to professional expertise, including market knowledge, competitive knowledge, product knowledge, and technical knowledge, and they all fit together.
Market Knowledge
You've finally made it to the big interview. You've worked with the Commercial producer and the Risk Manager, and now it's show time. You settle into a chair in the executive's office, and the first thing they ask is how the budget bill the Senate passed Monday will affect the taxability of money they receive for claims. You've never heard of this provision in the law. What do you do?
Paying attention to such changes is part of being a professional. It's one of the many ways you bring more value to the relationship than your competition. The good thing is that it's easy to acquire this knowledge. Read industry publications, attend trade shows, and network.
Competitive Knowledge
Suppose a prospect asks you why your company is superior to the others. What would you be able to say? You could cover each aspect of your agency, but suppose you're asked specific questions about your competition? You could suggest that the prospect call them. Or you could have that information right there. Which do you think is more professional?
You can acquire competitive information in a number of ways. Reading competitors' literature is a great method. Another is to ask the competition for a quote. You can develop and maintain good relationships with agents who work with competitors.
Product Knowledge
Do you remember the last time a client asked you a question about a product that you couldn't answer? It wasn't a good feeling, was it? How could you have avoided that situation? Suppose you were called into your regional manger's office and told that your job depended on correctly answering a number of random questions about any of the products your agency writes. What would you do?
Now imagine that you were sent home to study the product information for 48 hours until you knew it cold before being called back into your regional manager's office - no second chances. Do you think you'd go home and study? (If the thought makes you nervous, don't worry. Your regional manager probably won't do that to you.)
Of course, your customers do it to you every day. And they don't give you second chances; they just take their business to the other guy.
Technical Knowledge
Knowing how to create solutions using your agency's products is technical knowledge. Imagine having all the parts to a car, any tools you need, a helper to assist you - but no directions. You could spend hours trying to assemble the car and make it run. Imagine the frustration and effort wasted because you didn't have the instructions. That's what it's like to have all the facets of expertise except the technical knowledge.
Luckily, there are plenty of places to learn technical knowledge. Most seminars and trade shows offer classes; books and articles about new ideas and methods abound. All you have to do is seek them out.
Communicating
Communication is what this course is all about. You can have all the expertise in the world, but it's worthless if you can't communicate it to clients. That's why the ability to communicate is the No. 1 requirement for sales success.
Let's review the three steps of persuasive communication:
Rapport
Before a sale happens, clients must be comfortable with you. They need to trust and like you. Remember, people like people who are like them, so building rapport is probably the most important thing you can do.
Discovery
Remember when we said 'telling isn't selling'? Your prospects and clients need to feel pain before they want your help. You can't create that pain for them, but you can help them discover the pain. You're unlikely to meet many executives who spontaneously offer to raise all their limits and place all their business with you. They're already in pain - you have to help them discover that their current situation is harmful. Usually the best way to do this is by asking focused questions and storytelling.
Commitment
Once your client feels pain, it's up to you to offer the solution. If they're truly in pain and if you have rapport with them, you can expect a commitment from them. Establish a verbal contract with each client. Get them commit to telling you either, 'No, your solution doesn't work' or 'Yes, let's get started.' No 'I'll think about it' or 'We'll get back with you.' Just a simple yes or no.
EXERCISE
Imagine that your job depends on your expertise. The biggest client you've ever approached has asked you to come by next week. This is a very sophisticated client, one who has talked with every other insurance firm in town. Now it's your turn. Do well, and the sale is yours. Do poorly, and you'll never get another chance. Make a list of all the areas you may be weak in - technical knowledge, product knowledge, communication skills, whatever. Design an action plan to shore up these weaknesses.
Now, take action. This isn't hypothetical - this situation happens every week. Are you prepared?