Selling

It's a world in which insurance is converging with financial services, virtual companies are challenging traditional suppliers for market space, and agencies and brokerages are feeling the competition from new distribution channels.

With summer approaching, the lull in autumn's new business results can't be far behind. September, October, and November are the weakest months for revenue and sales for a majority of agencies. Theories abound as to the reason, but probably it's because too many producers take the summer off from new account prospecting, or they spend their time continuing to round existing accounts. Sunshine, golf courses, and family take priority, and little new business is set up to be written in the fall.

In a recent edition of The National Underwriter, Editor Sam Friedman recommended that risk managers begin to explore the capabilities of sophisticated regional and local brokerages. This recommendation was based on recent broker megamergers and the growing lack of choice available to buyers.

For an independent agency or brokerage to take advantage of this opportunity, it should adopt the consultative brokerage style. In particular, its managers must learn the techniques that these sophisticated buyers have come to expect. The stewardship report and the executive summary are two techniques that firms must master to be successful in large accounts.

The virtual office concept, also known as telecommuting or a mobile office, emerged as the American work force shifted from physical labor to knowledge-based work. Workers who create or manipulate information can generally perform anywhere there is a telephone, desk, chair, and computer. Technology enables the knowledge-based worker's office to be portable.

In this document, Jack Fries excerpts questions from the Sales Success Profile, a sales skill test developed by Lousig-Nont and Associates (Las Vegas). The Sales Success Profile is the only sales test on the market based on assessing actual selling skills, not personality.

When it comes to marketing, the insurance industry can face a lot of challenges. The landscape of the insurance business has undergone several changes in the past couple of decades. These changes are mostly due to the rise in internet startups selling insurance.

There are days when working in the insurance industry can feel a bit overwhelming, to say the least. This is especially true when insurance buyers that ultimately become your clients are applying for coverage that they are not necessarily a good fit for, yet believe they are.

The old marketplace selection process is futile. There simply aren’t enough carriers to go around, it’s not in the client’s best interests, and it doesn’t allow a firm to differentiate itself. To make matters worse, the average hit ratio is a whopping 15%! Rob Ekern recommends (and explains) the Brokerage Selection Process for developing and retaining revenue.

We all know the value that cross-selling brings to agencies. According to industry statistics, profit margins on the second sale are two to three times higher than the first and retention is 60% higher. Yet the average independent agency’s number of policies per customer hasn’t changed in 20 years. How can such a vital, well-publicized goal remain so elusive for so long? It’s as if we all know how to become millionaires but ignore the facts. The truth is that cross-selling is a complex process that can fail for a number of reasons.

Many marketing managers and representatives may ask: "Why is a sales center important to me? Isn't it designed for niche- or target-marketing? How would this fit into my company, that wants Main Street business?"

Having a marketing-representative background provides me with a unique perspective on sales centers. I know that the marketing representative is much more than a "go-for" problem-solver, running down endorsements, acting as portable shrink between underwriters and agents, or being "the official news agency TAS," spouting party line. I know that marketing is the precursor to selling.