Training: Module Iii-C

TRAINING: MODULE III-C

The following section covers both producer and CSR training. By going through this section, you will be able to take an inexperienced producer or CSR and turn him or her into a capable Life department staff member. It is very important that you have every newly hired Life employee read this section, no matter what his or her experience level. This section gives the new employee a good overview of what is expected of the position.

We have developed a sales procedure for you to use that comprises the entire 'Sales and Marketing' section of this Guide. This process is used to turn a prospect into a satisfied client and requires seven totally independent action steps, performed step by step. Both producers and CSRs will need to know what these steps are and how to perform those expected of them.

The seven action steps are:

Action Step 1: Prospecting

• building a reservoir of prospects

Action Step 2: Pre-Approach

• sending letters to prospects to prepare them for appointment setting

Action Step 3: Setting the Appointment

• making contact to sell the agency's concept and set the time and date of the initial appointment

Action Step 4: Qualifying Interview

• face-to-face meeting where you probe to find out needs, desires, and buying motives, and where you conduct an extensive fact-find to gather necessary information

Action Step 5: Presentation/Close

• the buying interview during which you present your insurance proposal and sell the prospect on the program

Action Step 6: Policy Delivery/Client Building

• the process of turning the new customer into a loyal and long-time client, beginning with a personal delivery of the policy

Action Step 7: Obtaining Referred Leads

• getting qualified leads from clients that you can feed back into your prospect reservoir to begin the process over again

Action Step 7 generates referred lead introductions, which go into the prospecting (Action Step 1) reservoir, and the process starts over again.

It is possible for a producer to handle all the action steps. It is also possible for a CSR, if properly licensed, to handle them all. However, from our research we have determined an effective mix for people, which we'd like to share.

The CSR can be responsible for handling the preapproach, getting the profile sheet completed (see the 'Lead Form' and 'Life Prospect Profile Sheet' at the end of this section), and setting the appointment. Action Step 3--Setting the Appointment, can generally be done over the phone by the CSR. In an ideal setting, the CSR would handle the preapproach by sending out customized copies of boilerplate letters, then would follow up by calling to set the appointment for the producer. Copies of pre-approach letters can be found in the 'Sales and Marketing' section, as can the language recommended for use when attempting to set an appointment. The CSR can also be responsible for part of Action Step 6-Client Building-by sending letters and/or making follow-up calls.

The producer should come in on Action Step 4-Qualifying Interview. Action Step 5 is handled during a second interview, although in certain dominant-need situations, Action Steps 4 and 5 can be handled effectively in one interview. (Such dominant-needs sales are discussed in more depth in the 'Sales and Marketing' section, but they are generally simple package plans, such as Mortgage Cancellation, Term conversions, pension maximization, and so on.) Action Steps 6 and 7 take place when the producer delivers the contract to the insured and asks for referrals. (Note that the producer can also ask for referrals-Action Step 7-as soon as he or she has secured the application for insurance.)

The producer is responsible for what occurs at the interviews, writing the case, delivering the policy, and getting referrals. He or she is also partly responsible for the client-building process, making sure that regular contact with the client is maintained and that policy reviews are conducted.

See the 'Sales and Marketing' section for complete information and language for these action steps.

In starting up your Life department, you may be hiring experienced Life insurance producers who do not require a lot of training. Or, you may be hiring people who don't know much about selling Life insurance. This section will allow you to train everyone-from the most experienced to the least. Even if the producer has been selling Life insurance for many years, it's a good idea to have him or her review this section as a refresher course.

Years ago, people believed that salespeople were born, not made. However, research conducted by the Million Dollar Round Table, an organization of the most successful Life insurance salespeople in the world, shows that its members don't fit any pattern. In almost every case, a good salesperson is created through training and a willingness to do what's required to be successful.

Life insurance selling is unique. Life insurance is the only way people can create an estate instantly and guarantee money for their family if they die prematurely. But people seldom buy Life insurance on their own initiative. Most people don't think about their death, old age, or disability. The Life insurance salesperson must help them recognize that death and old age are inevitable, and show them how to plan for it. Clearly this is not a simple task.

The Life producer plays a vital role in marketing Life insurance. The Life Insurance Marketing and Research Association (LIMRA) conducted a survey to determine the value and use of Life insurance proceeds. After the study was done, LIMRA asked the 28 interviewers their opinion on what married couples should do to prepare for the possibility of premature death. All 28 agreed insurance was important, yet when asked if they had bought Life insurance as a result of what they learned in the study, only one said yes. This illustrates that people will buy Life insurance, but generally only when convinced by an agent to act immediately.

The first step in training is licensing. If the person does not have a license, then he or she must prepare for and pass the state licensing exam. If the producer will be selling in several states, make sure licensing is adequate for all states in which the producer will be working. Other parts of the training process may be completed concurrently with the licensing process.

Trainees must know the basic sales presentation, develop their own sales skills, and practice these presentations through role-playing with a supervisor until ready to enter the field. The trainee must learn:

• how to allocate time between sales calls and office procedures
• how to develop new markets
• how to use rate manuals and other basic tools of the insurance agency
• how to keep records
• how to use those records to improve effectiveness

In addition to the above, the trainee must have a working knowledge of the products. Have the person study Life and Health manuals and any company materials available to thoroughly understand the important competitive advantages of the companies represented. The trainee should be able to translate this knowledge into benefits that the prospect will buy.

Attitude is important. The trainee must believe in the concept of Life insurance before he or she can convince others to buy it. This confidence must be so strong as to be able to withstand even the most negative and skeptical attitudes. With this type of selling, the producer will encounter a lot of negatives. This means he or she must be equipped to handle any situation.

A Life producer's success is directly proportionate to fact-finding and presentation interview skills. The producer must uncover the prospect's problems and present readily accepted solutions. A good sales presentation will help the producer take the prospect through a chain of ideas and thoughts that will impact the prospect's thinking and attitude toward Life insurance.

A sales activity system is designed to generate a pool of prospects and also systematically provide sales and service activity. For the most part, this system will be initiated by the CSR. Every month a list of names should be maintained that have been obtained through the normal prospecting activities of the agency. (See the 'Sales and Marketing' section under 'Action Step 1:

Prospecting' for information on prospecting sources and methods.) This list is of those prospects to be called on this month. Referrals will be added later on, as the sales process begins. The objective is to have as many leads as necessary flow to the producer (see the information on the Rule of Fifty in the 'Marketing Plan' section to know how many leads your producer will need.) After these leads have been contacted and appointments have been set, the CSR should record the date either on a sheet or on a computerized diary slip. You'll read more about this under 'Supervision' in this 'Life Personnel' section.

Producers have a number of fears, probably the greatest of which is cold-call reluctance. Some producers always have it, others overcome it to a certain degree. Whatever the case, you have the answer. Bring it to the producer's attention that this is not going to be a problem in your agency. You have the ability to generate qualified leads on a consistent basis.

However, even with qualified leads, the Life producer is not guaranteed success. To maximize potential, have producers try the following:

• Never stop studying. Selling insurance is similar to practicing law or medicine in that it's a constantly changing field. In order to keep current, producers need to study constantly. This knowledge improves confidence and helps overcome call reluctance.
• Know the prospect. The producer becomes prepared by getting all the facts and learning as much as possible about the prospect. By doing this before the interview, producers can help overcome call reluctance.
• Find a comfortable style. Have producers develop their own style in working with prospects. Also, preparing an outline for the presentation makes the call easier. Producers can use the selling processes found in the 'Sales and Marketing' section. It was created and field tested to give producers a track on which to run.
• Warm up the prospect ahead of time. Entering a sales situation without rapport is very hard. If the producer has never met the prospect before, have him or her start off the interview by exchanging pleasantries and thanking the prospect for agreeing to meet. The producer should send the prospect a confirmation note before the appointment to show professionalism. Anything that can be done to show interest in the prospect will help the meeting.
• Look and sound good. The first impression is the most important. The producer should be on time, neat, and concise. Don't try a spur-of-the-moment presentation. Plan ahead.
• Have the producer put him or herself in the prospect's place. Empathy is helpful in dealing with prospects. Understand how the prospect feels and what he or she wants to do to solve financial responsibilities.
• Sincerely believe in the product being sold, and that feeling will come across to the prospect.

In addition, when you're working with P/C leads, there will be a certain amount of recognition of the agency name. Build on the connection by having the CSR use agency letterhead on the preapproach letters (sample pre-approach letters are found in the 'Sales and Marketing' section). When practical, have a CSR or P/C producer introduce the Life producer to prospects.

It's essential that you train your Life producer to account for every lead received. The 'lead Disposition' form found under 'Supervision' in this 'Life Personnel' section lends itself to quick and easy tabulation. The lead originator may number each lead or use the origination date together with the client's initial. Note that since it's easy for the Life producer to check the appropriate date for each lead while the activity is current, keeping track of lead disposition only takes a few seconds for each lead. The form was created for a two-call sales presentation, but it can be used for a one-call (dominant-needs) sale. More information about the functions and uses of this form can be found under 'Supervision.'

To complete producers' training, have them read through the 'Sales and Marketing' section. In addition, they should read through the individual 'Sales Campaigns' for more information on specific products. To further enhance producers' training, spend some time role-playing sales situations with them. Start off with a simple sale, such as a Term conversion, and gradually build up to needs selling and the two-call approach we've suggested in this 'Training' section, and which we've outlined in the 'Sales and Marketing' section.

Your CSRs will play a vital role in your Life operation, whether or not they are in a separate Life department. The CSR will probably be the first person to contact Life prospects (especially among your client base) and will be responsible for servicing their business. Depending on your situation, you may wish to use your CSRs to produce Life business. Make sure they are licensed before letting them sell. The following are some responsibilities you may set for your CSRs:

• Generating Leads: You should set the Rule of Fifty (50 qualified Life leads in the first week and 25 qualified leads a week after that for each Life producer-see your 'Marketing Plan' section for more information) as your standard. For more information on where to obtain these leads, see the information on lead generation under 'Action Step 1: Prospecting' in the 'Sales and Marketing' section of this Agent's Guide.
• Making Appointments: We suggest that you use the materials under 'Action Step 2: Pre-Approach' and 'Action Step 3: Setting the Appointment' in your 'Sales and Marketing' section to train CSRs.
• Learning the Products: General information on a variety of basic Life products can be found at the beginning of each 'Sales Campaign' in this Agent's Guide. This knowledge will help the CSR in obtaining appointments-and in selling, if he or she is acting as a producer. Of course, CSRs should also be familiar with your Life carrier's products. Make literature available for them.
• Making the Sale: If CSRs will actually be selling, they can learn the techniques necessary by reviewing materials in your 'Sales and Marketing' section. We recommend that CSRs make only the more simple types of dominant needs sales, such as Term conversions. A combination of sales skills and product knowledge will help the CSR sell. For example, with knowledge of your agency's policies and the knowledge of proper language to use, the CSR can conduct a Term conversion sale to an existing policyholder in the office. Starting with this product allows CSRs to approach someone they already know. Show them how to 'sell the appointment' by stressing the benefit to the policyholder of long-term savings on his or her Life insurance program. Begin by making the first few sales yourself (or having your Life producer make them) in the CSRs' presence. Gradually get them more involved in the sale until they have built up their skill and confidence level.

• Obtaining Referred Leads: The CSR/producer can be trained to get referrals using the material under 'Action Step 7: Obtaining Referred Leads' in the 'Sales and Marketing' section.

More information on training CSRs on some of these functions follows.

Service is making sure clients are properly protected. This is as much a job for CSRs as for producers. If you have a P/C CSR handle your Life business, he or she will need training in Life insurance products, fact-finding interviews, and what the needs of Life clients are. You should have the CSR review the 'Producer Training' section, in addition to this section, for a complete Life insurance picture. Also, if you secure general agent contracts, most companies will train your clerical and support people in handling computer illustrations, applications processing, procedures, and so on.

The CSR is generally in contact with the policyholder several times a year and knows that client better than anyone in the agency. CSRs develop good working relationships with their clients, which makes CSRs ideal for selling some types of Life insurance.

Make sure the CSR sees a sale made from beginning to end. The CSR should join the producer on calls both in the field and in the office. It's a good idea to start the CSR off with a simple sale-Term insurance-and then move up to the more complicated products, such as Single-Premium Whole Life and Group sales. If the CSRs are selling, they will require much of the same monitoring and motivating as producers. (See the 'Supervision' and 'Motivation' sections that follow.)

CSRs should be responsible for a certain amount of prospecting within the Life department. Calls should be turned into a total account selling situation. The objective is to get the client to come into the agency to review the P/C coverage that is not written by your agency. The CSR can then make a transition into the completion of a Life insurance profile sheet (you can use the 'Life Prospect Profile Sheet' at the end of this section).

Before the interview, have the CSR review the client's file. Have the CSR look for:

• Special notations regarding the client and his or her coverages: See if other lines of coverage were proposed and what happened.
• Complete information on the client: If there's information missing, fill in the blanks before the interview.
• Coverages with the agency that were cancelled.

During the interview, the CSR needs to do four things:

1. Attempt to sell the P/C product the client is coming in to discuss.
2. Fill in any missing pieces in the information base.
3. Explain to the policyholder that your agency also offers Life and Health insurance. You would like the opportunity to quote on it. At that time, the CSR should complete a fact-find or at least a profile sheet with the client.
4. If time runs short, make another appointment to complete the fact-find.

The CSR can also inquire about a policyholder's Life insurance needs after some service has been performed. After the service has been completed, the CSR should say:

'By the way, [PROSPECT NAME], I noticed we don't write your Life or Health insurance. We have excellent products that I think would appeal to you.'

To get the appointment, the CSR could say:

'We have been able to show many of our clients how to better organize their insurance and financial affairs by having all of their policies with one agency. When would be a convenient time for you to stop by our agency so that we may review these coverages? Are mornings or afternoons better for you?'

Term insurance conversions are the simplest sale a CSR can make. Industry statistics say only 1% of Term insurance policies result in a death claim. The other 99% are either dropped or converted to permanent Life insurance. The CSR's objective is to convert the Term insurance to a permanent Life policy. In order to do this, CSRs must be licensed, trained in the basics of Term and permanent Life insurance.

Hand-held computers help CSRs in making conversions. These can be purchased at a discount by many companies with which you will write Life insurance. You should create several hypothetical cases for Term insurance and, using the instruction manual accompanying the computer, work with the CSR on inputting the data and producing the printout. Have the CSR produce both level Term and reducing Term illustrations on the computer. Also, make sure the CSR understands the inputting and generation of the printout before you continue. Have the CSR focus on the computer's ability to generate many different types of proposals for these types of policies.

Now work with the CSR on inputting data and producing printouts for basic Whole Life and Universal Life proposals. In the next phase, use the various options available with Universal and ordinary Life policies. You may create such hypothetical situations as: initial lump-sum deposits, varying deposits throughout the policy year, use of dividend options, and so on. By going slowly and moving from easiest to hardest, the CSR should be able to follow the training. The last phase of training on the hand-held computer should be in the field.

Many times, situations that a CSR encounters in dealing with Personal Lines clients will lead to a Life sale. Here are some examples:

Auto Change: A client calls to add a second auto to his or her policy, or to report a change of auto. The CSR would check the appropriate box on the lead form (see the 'Life Prospect Profile Sheet' at the end of this section), then say:

'While we're making this change, there are several other items we ought to check for you. Our specialist, [PRODUCER NAME], will be happy to review all policies not written through the agency here, including Medical and Life insurance, to make sure there aren't any coverage gaps or overlapping policies. Then we'd like to see how we can save you money on your insurance premiums. No obligation, of course. Would that be all right with you?'

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