SALES CENTER - PART 2

TELEMARKETER'S SKILLS

You might look toward four basic types of people when you're searching for prospective telemarketers:

• Your own administrative or service employees
• Professional salespeople
• Experienced telemarketers
• New employees who express an interest in telemarketing, but have little or no sales background

Surprisingly, most experts will tell you to choose the fourth type of person for a new telemarketing position. Here's why: Your own administrative people, Sales Center Assistants, or Customer Service Representatives are used to dealing with your insureds, but in a reactive, not proactive, manner. They respond to queries from clients and prospects and address their concerns, but it's very hard for a person who is in a stable, reactive position to become an assertive, proactive salesperson.

As mentioned previously, the CSR position may provide an excellent opportunity to X-date and cross-sell; if so, by all means, use it. But to require your CSRs to function as telemarketers may clash with the sense of loyalty they often feel to their clients, especially if they feel that "selling" is no longer "servicing." And of course, the salary structure and hours for the average telemarketing position will differ greatly from those of the average CSR or administrative assistant.

Professional salespeople generally don't make good telemarketers. Often they're stimulated by the personal freedom of an outside sales job, where they are "their own boss." An inside telemarketing job where they're simply calling for X-dates usually won't provide the freedom, challenge, or wages that a good salesperson would require. In some cases, telemarketing can be an effective first step for a young person who aspires to an eventual outside sales position. But experts warn that promising budding telemarketers a promotion to outside sales if they are good on the phone is a bad tactic- you're telling your people that if they do their job right, they'll be leaving it.

Professional telemarketers are not recommended by most telemarketing experts, simply because people are not as easily trainable when they've become used to a certain way of doing things. You may find some of your best prospective employees do have experience in this field; if so, be sure to get references, ascertain the reasons they left their former positions, and determine that they are the type of people who take directions well and learn quickly.

The inexperienced person, while highly recommended by most consultants, must be carefully evaluated for certain qualities. Telemarketers must have a flair for phone conversation and enjoy the work they do. People in certain types of situations will find the part-time, flexible hours and the on-the-phone selling situation to be ideal. These include students, parents of young children, writers, actors, and others who need jobs with flexible or "off" hours while they have other responsibilities. Another good resource: The low mobility of this type of job is often ideal for a physically handicapped person.

In short, your best bet is to look for personality traits and qualities- not an impressive sales history. Find candidates who are good communicators, sound good over the phone, and can appreciate the benefits that the position offers.

Conducting the Interview

Each of us has different personalities for face-to-face and telephone interaction. It's very important to conduct the first interview with applicants over the phone. The telephone personality is one-third of what you're looking for; the other two-thirds are communication skills and motivation.

Before you begin interviewing, you need a comprehensive job description of the position, so you can adequately communicate to prospective telemarketers their duties.

The "Telemarketing Candidate Evaluation Form" found below will help you conduct that initial telephone interview and determine whether the candidate is someone in whom you want to invest more interviewing time. If so, you should then schedule a face-to-face interview and obtain the necessary information to check job history, consult with references, and so on.

Likely Candidates: The Face-to-Face Interview

When it comes time to meet your telemarketing candidates in person, you should be certain of their skills. You've heard them on the phone, and evaluated their selling skills (as they tried to "sell you" themselves).

Now you need to obtain all the background information you would obtain on any job candidate and evaluate your candidates' personal appearance. Find information about past employment, references, and so on-and follow up. And take a look at whom you're hiring; even though these people will be working on the phone all day, they should still present a professional appearance.

Salary vs. Commission vs. Bonus: Which Is Best?

Generally, insurance agency telemarketers are paid an hourly salary (often minimum wage) and are paid a set fee, such as $1 to $3 for each X-date they obtain or appointment they make. (Most outside service bureaus will either charge one general fee per call or per hour.)

But because a telemarketer's job can be intense and narrow in scope, it's important to offer recognition for a job well done. One good method is to hold contests and give a bonus to the telemarketer who meets or exceeds production standards. The bonus should be monetary-but don't overlook the value of simple recognition of a job well done, and broadcast your congratulations throughout the agency.

TELEMARKETING CANDIDATE EVALUATION FORM

NAME ________________________________________________________________________

TELEPHONE NUMBER _________________________________________________________

PHONE INTERVIEWER _________________________________ DATE __________________

1. Do you have any experience with telephone sales or customer service? [ ] Yes [ ] No

2. Are you currently employed? [ ] Yes [ ] No

In what position? ___________________________

What is your current salary? __________________

Why are you leaving? ________________________

3. Why are you interested in this job?

4. What are the most important attributes or personality characteristics a successful telemarketer possesses?

5. What do you see as the drawbacks of working as a telemarketer?

6. Please detail for me your telephone sales or marketing skills and experience:

 

INTERVIEW IMPACT

On a scale of one to ten, how does this candidate impress you?

	POOR	AVERAGE	EXCELLENT
Intelligence
Voice
Sales Skills
Communication Skills
Overall Impact

 

IN-PERSON INTERVIEW?

Use the space below to record any additional comments.

 

 

TRAINING: SUCCESSFUL SALES TECHNIQUES

Sales work is intensive, and none more so than telephone sales work. We recommend that your Sales Center staff spend no more than six hours each day on the phone; you may find that four hours is enough. While exciting and challenging, making calls to X-date and cross-sell can be very demanding, and maximum results will not be obtained if your Sales Center staff becomes burned out.

First of all, where does your Sales Center Coordinator find prospects to call? As we've mentioned, you'll probably first want him or her to focus the Center's efforts on existing customers who could buy additional coverages from your agency. But in addition, agencies have had great success with the following:

1. Referred leads from existing customers or other staff members (such as your Life department)

2. Deed lists from county courthouses, which provide the value of a home; the owner's name, address, and phone number; and the date the deed was filed

3. Lead-generation programs from your carriers

4. Referrals from real estate brokers

5. Mailing lists from list brokers (see the section on "Expanding Your Marketing Efforts")

6. Criss-crossed directories

ABOUT SCRIPTS AND ROLE-PLAYING

The sample phone scripts below provide you with a number of different methods of obtaining an X-date. You might think it's an elementary approach, but many agencies have had great success in providing their Sales Center staff with scripts such as these to study. Once the Sales Center Assistant or telemarketer is familiar with the script, then role-playing comes into focus.

Not enough can be said about the importance of role-playing in sales training. By the time your people hit the phones, they should have already encountered most of the objections they'll hear in role-playing situations within the agency, and they should be experienced at overcoming those objections.

Your sales staff should be provided with a script that gives them a framework for each X-dating or telemarketing call. But even the best script is no substitute for role-playing. Your employees must not sound like they're reading. The script must sound natural, and they must be able to "improvise" to react to any situation they encounter.

At some point, set aside some time to focus in on sales skills for X-dates and appointments. The more experience you can give your staff in overcoming objections, the more successful they'll be. So, making sure the other members of your staff understands this point, the next step is to have your telemarketers or Sales Center assistants do some role-playing with your CSRs, your producers-anyone who's encountered your client/prospects' objections in the past and can offer creative solutions and constructive criticism.

Below, you'll find a list of common objections and responses for each.

GUIDELINES FOR TELEPHONE PRESENTATION

Keep these tips in mind when reviewing the skills of your telemarketers or Sales Center Assistants:

1. SMILE. Their voices will take on a more pleasant and courteous tone.

2. CONCENTRATE ON USING A CONVERSATIONAL RATE OF SPEECH. Speech should be distinct, but not as though the script is being read; imagine that the prospect is right there, and you are conversing with him or her.

3. PRONOUNCE NAMES CLEARLY AND CORRECTLY, and if they're unsure of the pronunciation, they should ask.

4. IT'S EFFECTIVE TO SPEAK ONLY TO THE DECISION-MAKER. If they're not speaking to the right party, tell them not to leave a message-call back.

5. AIM FOR ONE OBJECTIVE PER CALL: an X-date or an appointment.

6. CALL DURING CONVENIENT HOURS: early evening or Saturday morning are best for Personal Lines prospects.

7. BEFORE CALLING, LIST ALL NAMES AND PHONE NUMBERS. The telemarketers will be able to make more calls and have records of their results.

8. PRACTICE READING THE SCRIPT, and role-play with each other, producers, CSRs, and anyone who has contact with clients/prospects and is familiar with common responses.

9. WHEN TRYING TO REACH A DECISION-MAKER, use only first names, give only the information that is requested, and try to avoid mentioning the word "insurance."

10. MEET OBJECTIONS POSITIVELY. They should never attempt to tell prospects that their objections are unwarranted. They should acknowledge the objection's merit, then overcome it with another benefit.

11. INVOLVE THE LISTENER AS SOON AS POSSIBLE. For example, begin the conversation by saying, "How are you this evening? Is this a good time for you to talk?"

These tips should help your staff to develop an open, friendly, communicative manner on the phone.

SOURCES OF FURTHER TRAINING

Telemarketing consulting firms are springing up across the country. They offer a wide variety of products and services that may fit your needs. More often than not, their wares are geared to companies that do more than set appointments; their training teaches telemarketers "harder-sell" tactics designed to get orders for products over the telephone. But check what's available in your area. A good bet is one of the programs that the various phone companies offer.

SAMPLE PERSONAL LINES X-DATING SCRIPT-PROSPECT

The following script is designed to help the telemarketer obtain Auto and Homeowners X-dates from prospective clients.

Hello, [PROSPECT NAME], this is [NAME] calling from [AGENCY NAME].

[PROSPECT NAME], is this a convenient time for you to talk?

[PROSPECT NAME], I'm calling you today because we find that, in today's insurance market, most consumers can benefit from comparing their policies from time to time. You might not plan to change your Auto or Homeowners insurance, but you have a lot to gain by double checking to make sure you've got the coverage you need at the best price available.

I'd like to have the opportunity to contact you a few weeks before your Auto policy expires so that one of our producers can tell you what we can offer.

Of course, there's no obligation-and we feel that comparing benefits can only be to your advantage. May I ask, when does your current Auto insurance expire?

And when does your Homeowners premium come due?

Great, [PROSPECT NAME]. I'll be calling you around [DATE] to make an appointment with you, so you can find out what we have to offer.

SAMPLE PERSONAL LINES X-DATING SCRIPT-CLIENT

The following script is designed to help the telemarketer obtain Homeowners X-dates from the agency's existing Auto clients. With a few changes, you may easily use this script to obtain Auto X-dates from existing Homeowners clients.

Hello, [CLIENT NAME], this is [NAME] calling from [AGENCY NAME].

[CLIENT NAME], is this a convenient time for you to talk?

[CLIENT NAME], you've been a valuable client to us-we've appreciated your trust in our handling of your Auto insurance.

Did you know that we also handle Homeowners insurance? We find that many of our clients find it much easier to deal with one insurance agency for all their needs. And in some cases, the costs are more reasonable if we handle all your policies.

I'd like to offer you a no-obligation quote on your Homeowners insurance when it comes due for renewal. Can you tell me when your premium is due?

Great, [CLIENT NAME]. I'll be calling you around [DATE] to make an appointment with you so we can review your current program and show you what we have to offer.

SAMPLE PERSONAL LINES APPOINTMENT-SETTING SCRIPT-PROSPECT

Once your telemarketers have obtained X-dates, they can use this script to call prospects 60 days before their premiums are due.

Hello, [PROSPECT NAME]. This is [NAME] calling from [AGENCY NAME]. Is this a convenient time for you to talk?

[PROSPECT NAME], you may remember that we spoke briefly about your insurance plan in [MONTH], and you indicated that your Auto coverage expires on [DATE].

I'm calling today to arrange a convenient time for one of our producers to get together with you. [PRODUCER'S NAME] can review your coverage, explain what we can offer, and provide you with a comparative quote.

We'd like to arrange a meeting this week. Which would be more convenient for you, morning or afternoon?

If not convenient, proceed as follows:

[PROSPECT NAME], what time do you get home from work? [PRODUCER'S NAME] could see you on [DAY] at [TIME] or [DAY] at [TIME]. Which would be better?

SAMPLE COMMERCIAL LINES X-DATING SCRIPT-PROSPECT

Have your telemarketers use this script to solicit X-dates from Commercial Lines prospects.

[PROSPECT NAME], this is [NAME] calling from [AGENCY NAME]. We specialize in business insurance such as Fire, Liability, and Workers Compensation. Is this a convenient time for you to talk?

[PROSPECT NAME], I have no reason to believe you are in the market for business insurance at this time. But I would like to call you back for an appointment when your present policies are due for renewal. Many businessowners such as yourself have found that our [TYPE] policy offers the same or better coverage as they currently have, for a very attractive premium.

I know you're interested in getting the best insurance for the most reasonable price. May I call you for an appointment when your policies are due? Great-what month are your premiums due?

[CLIENT NAME], you've been a valuable client to us. We've appreciated your trust in our handling of your Auto insurance.

Did you know that we also handle Homeowners insurance? We find that many of our clients find it much easier to deal with one insurance agency for all their needs. And in some cases, the costs are more reasonable if we handle all your policies.

I'd like to offer you a no-obligation quote on your Homeowners insurance when it comes due for renewal. Can you tell me when your premium is due?

Great, [CLIENT NAME]. I'll be calling you around [DATE] to make an appointment with you so we can review your present program and show you what we have to offer.

SAMPLE PERSONAL LINES APPOINTMENT-SETTING SCRIPT-PROSPECT

Once your telemarketers have obtained X-dates, they can use this script to call prospects 60 days before their premiums are due.

Hello, [PROSPECT NAME]. This is [NAME] calling from [AGENCY NAME]. Is this a convenient time for you to talk?

[PROSPECT NAME], you may remember that we spoke briefly about your insurance plan in [MONTH], and you indicated that your Auto coverage expires on [DATE].

I'm calling today to arrange a convenient time for one of our producers to get together with you. [PRODUCER'S NAME] can review your coverage, explain what we can offer, and provide you with a comparative quote.

We'd like to arrange a meeting this week. Which would be more convenient for you, morning or afternoon?

If not convenient, proceed as follows:

[PROSPECT NAME], what time do you get home from work? [PRODUCER'S NAME] could see you on [DAY] at [TIME] or [DAY] at [TIME]. Which would be better?

SAMPLE COMMERCIAL LINES X-DATING SCRIPT-PROSPECT

Have your telemarketers use this script to solicit X-dates from Commercial Lines prospects.

[PROSPECT NAME], this is [NAME] calling from [AGENCY NAME]. We specialize in business insurance such as Fire, Liability, and Workers Compensation. Is this a convenient time for you to talk?

[PROSPECT NAME], I have no reason to believe you are in the market for business insurance at this time. But I would like to call you back for an appointment when your present policies are due for renewal. Many business owners such as yourself have found that our [TYPE] policy offers the same or better coverage as they presently have, for a very attractive premium.

I know you're interested in getting the best insurance for the most reasonable price. May I call you for an appointment when your policies are due? Great-what month are your premiums due?

Rather than take up any more of your time, I'll call you sixty to seventy-five days before your due date. Then, we'll make an appointment for you to meet with one of producers.

OVERCOMING OBJECTIONS

How do you "not take 'no' for an answer"? Here are some ways your Sales Center staff can handle objections and keep appointment books full.

NOT INTERESTED. I can understand your not being interested in something you haven't had a chance to see. But once you've judged what we have to offer, I'm sure you'll be interested in getting the most for your insurance dollar.

TOO BUSY. I certainly don't want to take any more of your time than necessary. I'd be happy to set up an appointment at your convenience to show you how we can help you get real value for your money.

ALREADY HAVE INSURANCE. I'm certain you do have insurance; you're a successful business owner, and I'm sure you've periodically looked into your insurance needs. But we've learned that businesses such as yours can really benefit from an annual checkup such as the one we offer. It gives you a chance to make sure your program is the best one around.

SEND ME THE DETAILS/ QUOTE ME OVER THE PHONE. I understand your concern with looking things over, but that's exactly what I don't want to do. Our experts assess your specific needs and give you tailor-made recommendations that just can't be gotten through the mail or over the phone. Once our people have reviewed your present insurance, you'll have all the time you'd like to review their advice.

CAN'T AFFORD ANY MORE INSURANCE. I certainly don't want to sell you something you don't need, such as duplicate or unnecessary coverage. But we'd like to offer you a no obligation review of your present policies, to see if we can offer you something to replace them that gives you better protection or saves you money.

YOU'RE WASTING YOUR TIME. I'm sure this idea will be of value to you, so I don't mind spending the time. I know your time is valuable, so let's make an appointment that's convenient for you. I think you'll find that a review of your current insurance and the proposal we offer you will be well worth your time.

ALL OCCASIONS. I understand that you're not in the market for insurance at this time; I would have been surprised if you had said you were. But during [MONTH], when your current policy is due to be renewed, is the perfect time to examine it, to make sure you're not throwing your money away on inadequate protection. And I'm sure you're always in the market to get your money's worth from the products you purchase. May I call you then for an appointment for a no-obligation review of your insurance?

Of course, we can't address every obligation your staff will receive. This is where role-playing comes in. Encourage your staff to share the responses they encounter over the phone at department meetings, and get your staff to work up answers for new objections that work for them.

WHAT ABOUT "BURNOUT"?

Making as many as 5O calls every day is very demanding work. Being turned down time and time again can be very discouraging, leading to burnout and high turnover.

Often, burnout doesn't come from making the calls, but rather from a feeling of lack of support. Calling is a solitary task, and your people will face a lot of rejection. At first, there may be resistance from your sales staff to this project, because the Sales Center will place a certain amount of control on their performance. This negative attitude may be directed toward the Sales Center Coordinator and staff.

If the Coordinator does not have management's support from the outset and constant feedback concerning his or her performance, he or she will soon become discouraged. And if he or she doesn't regularly convey that support to the Sales Center staff, it's unlikely your results will be what you'd hoped. It's very important that you stand behind your Coordinator and convey your commitment to the staff-the influx of new business that will result from these efforts will raise the staff's morale-and positive results will create a positive attitude.

MONITORING THE SALES CENTER

Six forms are available to you for the successful monitoring of your Sales Center efforts. You will find sample copies of them on the following pages.

The PROSPECT LOG is to be filled out by the Sales Center Coordinator as the planning tool for the day's calling. The Coordinator fills out the name or company name and telephone number, then "fleshes out" the entry in the course of calling with such items as contact person, appointment date, and so on. This may be used as a manual suspense system or as a reminder to enter this prospect into your computer database.

The DAILY CALL SHEET provides a summary of the actual telephone activity of the Coordinator, either for the day, the week, or both. One of the major reasons for a simple daily summary is to provide some indication of the times of day when calling seems most effective.

The WEEKLY TOTALS LOG is the most essential of the forms that the Coordinator will use. It's used to evaluate the overall effectiveness of the Sales Center operation.

The EXPIRATION TICKET FORM is used by the Coordinator to suspense prospects until 60 or 75 days prior to their X-dates. If you do not already have an effective system for suspensing X-dates, refer to the 'Procedures" section in Agency Management. Again, this form may be used as a manual suspense system or as a reminder to enter this information into your computer database.

The NEW BUSINESS MONTHLY REPORT is to be turned in by the producer immediately following each expiration month. It will help you evaluate each producer's results with the prospects he or she contacts through the Sales Center's efforts.

The X-DATE BANK RESULTS is used to keep track of suspensed prospects (including those who are not interested in a quote at the time of their X-date).

PROSPECT LOG

Page _______ of _______

Program/ Product	Account Name/ Street or Mailing Address	Contact Person/ Phone Number	Date and Time of Call	Appointment Date	Activity/ Result (Including X-Date)

 

DAILY CALL SHEET

 

Submit to Sales Manager

NAME____________________________________________ DATE_____________________

Hours	Dials	% Connects/ Connects	Sales Per Hour	Appts	X-Dates	Objections*	Discards
7 - 8
8 - 9
9 - 10
10 - 11
11 - 12
12 - 1
1 - 2
2 - 3
3 - 4
4 - 5
TOTALS

* OBJECTIONS:

A = Doesn't Know

B = Insured by Relative

C = Satisfied with Agent

D = We have enough insurance

E = Agent/Prospect do reciprocal business

F = Don't have time to talk

For OTHER, fill it in

Submit to Sales Manager

WEEKLY TOTALS

Sales Secretary's Name__________________________________________

Week Starting ____________________ Ending _____________________

Day of Week	Connects	Non-Connects	Discards	Suspends	Connects/Total Dials %	Total Hours	Conn. Hour	Connect Sale
								Appt	X-Date
Monday
Tuesday
Wed
Thursday
Friday
Weekly Totals

 

EXPIRATION TICKET

For X-Date Bank

Client Name 1________________________________________ Source________________

Client Name 2______________________________________________________________

Address 1__________________________________________________________________

Address 2__________________________________________________________________

City/State/ZIP______________________________________________________________

Phone (_________)____________________________________

Contact Name_________________________________________

Birthdate____________________________________________

 

Policy Type	P/C	X-Date	Carrier	Producer	CSR	Suspense Date

Comments:

 

 

 

 

 

 

 

 

 

 

 

X-DATE BANK RESULTS

X-Date Month ______________________

Prospect Name	S	Contact Date	Change In X-Date	Premium	Commission	R/D	C	Results	Agent/Date

R/D - Re_entered/Deleted

S - Source:

A - Account Development

D - Deed List

R - Referral

C - Company Lead

C - Coverage Code:

H - Homeowners

A - Auto

L - Life

M - Misc.

 

EXPANDING YOUR MARKETING EFFORTS

Most insurance agencies initially contact their clients for cross-selling purposes. However, now or in the future, you might find that you'd like your Sales Center staff or telemarketers to contact a larger portion of your market. If so, how do you go about getting prospects?

You might use the phone book or a directory from the phone company that lists people in your community by street addresses. Or you might look toward a prepared prospect list for a more sophisticated marketing effort. In this section, we'll discuss prospect list selection and evaluation.

CRITERIA FOR LIST SELECTION

The goal when selecting a prospect list is to find a list that reflects your theoretical "ideal market " as closely as possible. If you have identified your market correctly, this will mean fewer calls per successful contact. The fewer calls per contact, the more cost-effective your program will be and the better your chances for great success.

A good deal of work goes into developing your ideal market. You need to ascertain which demographic traits identify prospects to whom you wish to sell, and for whom you can market attractive products.

Once you've determined which products you want to sell and who your ideal buyers are, you can look into obtaining prospect lists. List compilation and updating is an ongoing process. Lists are compiled in a number of ways:

• Company records, such as past customer files or telephone inquiries. The best prospects are clients who are already insured with you, which is the reason most agencies begin their telemarketing with their client lists.
• Respondents to any promotion, invitation, survey, direct mailing, or catalog offer, as well as seminar attendees
• Phone directories
• Business directories
• Magazine subscribers
• Members of various organizations
• Government and Commercial records, surveys, research, and statistics

You can compile the first two types of lists yourself, from your own files or promotional pieces, or you can fax a list broker to obtain a list from an outside source. Later in this section you'll read more about "List Sources."

Most lists are not qualified beyond several demographic facts, so you need to decide which traits are most important for you to determine, and limit your criteria to these traits. The more specialized the traits, the harder it is to find a prospect list that will meet your specifications (and the more expensive the list).

RENTING VS. OWNING A LIST

There are five options for obtaining a prospect list:

• Compile it yourself
• Pay a vendor to compile it for you
• Buy a list that someone else owns
• Barter or trade for a list that someone else owns
• Rent a list that someone else owns

If you choose to own a list, you can use it as often as you wish for any purpose, including renting it to others. But if you rent a list, you are usually subject to certain limitations that you should be fully aware of before you rent. If you're using the list for direct mail, you "own" a name on the list when a prospect indicates interest by responding to you. (Otherwise, if you mail to the prospect again, you may be charged a second rental fee.) But for telemarketing purposes, once the telephone contact is made, the list broker usually acknowledges that you "own" the name and may continue to contact that individual as you wish.

Renting a list may provide you with a wider selection of names and sources, and it can be less expensive than having a list compiled for y you. But be sure to inquire about usage rights before you decide to own or rent a prospect list.

List Format and Delivery

While many prospect lists are designed for direct-mail solicitation, and don't come with phone numbers, some list brokers will look up numbers for an additional fee or recommend a "look up " service for this task. Keep in mind when figuring costs that it takes about one hour for one person to look up between 40 and 50 numbers.

Prospect lists generally come in one of the following formats:

pressure-sensitive mailing labels, address plates for mailing machines, index cards, computer printouts, computer tape or disk, or on-line computer database. While mailing labels and plates are good for mailings, obviously if you've got the right hardware, you'll prefer computerized lists. Some list suppliers will allow you to call their computer via a modem for direct access to their lists.

List Accuracy and Effectiveness

It 's important to determine the age of any list before you rent or buy. Also ask about guarantees concerning phone numbers you can't find or businesses you can't reach if the list isn't up to date.

A good guide: A list that hasn't been updated in over a year is almost certainly obsolete. Even with an "updated" list, you can plan on as many as 30% of prospects not having correct phone numbers. Many list vendors will reimburse you for this.

Some lists are compilations of several market segments-especially lists of Commercial prospects. Make sure to have the list separated by market segment.

Ask who the current and previous owners of the list are, to make sure you're not competing with the agency down the street for these prospects' attention. Another good rule: The more a list is used, the less effective it is likely to be. Try to get lists that have been relatively unexploited in the last six months. Also, confirm how the list was compiled and what sources were used to try and determine the prospects' interest in your products and services.

Test Sampling

Before you rent or buy a large prospect list, see if the owner will allow you to test a sample. The sample should be random, and a separate fee will probably be charged for this procedure. If you want the full list after sampling, you'll pay the regular price.

Prices/Rates

Most lists are priced or rented for a set fee per 1,000 names. Sometimes, lists are priced or rented for a flat fee, depending on the source.

You can sometimes rent portions of a larger list or just specific subsections, such as all names within a certain geographic area, or all names under a certain SIC code.

LIST SOURCES

As mentioned previously, there are several basic sources of prospect lists.

Here we'll outline the advantages and drawbacks backs of each.

YOUR OWN COMPANY RECORDS: The best source of future clients is past clients, either those who used to be insured with your agency or those to whom you can sell more than you currently have sold. The advantages of using your company records is that they are highly effective and inexpensive, contain a lot of information on each prospect, are usually accurate and up to date, and there is no question about list source, previous usage, or ownership.

Of course, there is one major disadvantage: These lists don't include markets you may wish to enter or new clients you may wish to contact.

PHONE DIRECTORIES AND YELLOW PAGES: Through these sources, you can qualify prospects by location, and almost everyone in a chosen location is listed, with phone numbers. Also, these directories are easy to obtain and inexpensive.

But you'll have little luck marketing to a specific category of people, and the names are poorly qualified, so you'll have a high call-per-sale ratio.

BUSINESS AND CITY DIRECTORIES: There are several publishers that compile consumer and business lists into books called directories. Generally, you'll find that these directories are inexpensive per name, provide fairly detailed information, and sometimes identify phone numbers not found in a telephone book.

However, you might have to search to find one that's been recently updated, and you can't target very specific markets through such a directory, which means you'll have a high call-per-sale ratio.

LIST BROKERS, MANAGERS, AND COMPILERS: You can usually find such brokers in your local Yellow Pages under "Mailing Lists." Most list managers handle several lists at once and can accommodate many different needs. They usually receive a 20% commission on a rented list. You may find a list manager who will provide demographic summaries of various areas or markets, breaking down family incomes, education, occupations, or so on. These can help you pinpoint the best list for your marketing efforts. By using a list broker, you'll usually have a wide selection of lists from which to choose, and assistance in targeting markets, planning, and preparing lists. Also, you can often obtain highly specialized lists.

However, most lists can only be rented, not purchased, and some lists will not contain phone numbers. Also, you might find that names are duplicated between a number of lists, that list accuracy and quality is somewhat uncertain, or that the list has been rented by several companies and "overused."

MAGAZINES AND OTHER PERIODICALS: Some publications will rent you a list of their subscribers directly or through a broker. Periodical lists can represent either very broad markets (such as Newsweek or the Los Angeles Times) or much more specialized ones (such as the Southern Missouri Journal of Publishers or The Journal of Pediatric Rheumatology). Many smaller publications provide you with a specialized and unexploited list of people in a certain profession or with certain interests-all the more valuable if you locate a list that you can prospect for Commercial and Personal Lines sales.

The advantages to obtaining a list from a publisher are: Such lists are available for a wide variety of professions and industries, allow you to target market with ease, and are usually little known and unexploited. Also, these lists tend to be accurate; people tend to keep their subscriptions up to date. And the history of the list's use and compilation is well known.

However, keep in mind that these lists must be rented, not purchased, and some publishers are reluctant to rent lists for telemarketing purposes. Also, these lists frequently do not include phone numbers.

ASSOCIATIONS AND CLUBS: Another good source, these organizations offer unexploited lists that are usually very accurate. In most areas, there are a number of organizations serving every kind of profession, interest, and hobby, and their lists can help you to contact a very specific market.

However, it may be time-consuming to use these lists, as prospects are not well qualified and your results may be unpredictable.

NON-COMPETITORS IN A RELATED INDUSTRY: Some of the best lists, if you can get them, are records of companies related to yours, such as realtors. The drawback is that most companies are reluctant to provide this information, fearing it will get into the hands of competitors. Nevertheless, it has been done-with a lot of negotiation, you might be able to arrange some kind of barter system.

MISCELLANEOUS SOURCES: These include local Chambers of Commerce, schools,

registered driver lists of licensed professionals, and credit card and utility company lists. The secret is to keep your eyes open and keep looking mindful of the drawbacks of spending too much time on a list that has no phone numbers or few qualifying characteristics.

List Contracts

Whether you decide to rent or purchase a list, make certain the following is addressed in any list contract you sign:

• List title, quantity, and description
• Information to be furnished for each entry
• Total price, or rate per number of names
• Future availability of list
• List history (date the list last updated, previous owners, users, and so on)
• Guarantees for unreachable listings
• Sorting, segmentation, and delivery specifications
• Test sample size, price, and selection method

As with any other contract, you need to be certain of exactly what arrangement you're getting into. Analyzing these factors will help ensure that you get a list that will give you results.

BUILDING A DATABASE

Once you've selected and secured a list, you need to make it easy for your sales staff to use. Here are some of the things you might want to do:

ADD INFORMATION: Of course, phone numbers are a must if they're not already included. If you can, also include data about past buying patterns (what policies you already write, what kind of house/car the prospect has, and so on).

RE-SORT NAMES: You may want to group names into different market segments, so that each can be approach scheduled by different people at different times. (Conversely, some agencies call Personal Lines prospects in the same area at the same times, hoping to "create a buzz" about the agency in the neighborhood.)

COMPARE AND COMPILE: It's very important that your clients/prospects don't receive duplicate calls from your agency. Eliminate this possibility by compiling all the names on a master list before you give them out.

RE-FORMAT LISTS: You may need to take lists from a computer screen or printout and put them on 3 x 5 cards or vice versa, depending upon your automation capabilities and the computer skills of your telemarketers.

DISTRIBUTE LISTS: There are several ways you can divide lists into manageable portions: If different marketing segments lend themselves to different sales presentations, it's wise to limit one segment to a telemarketer or Sales Center Assistant (and thus, one style of presentation). You'll want to allow new staff members to handle a different kind of call than experienced ones. Also, in some cases, you'll have people working different shifts; consider which prospects your night shift is more likely to reach than your daytime staff.

ASSIGN LISTS: This can be done one of two ways. If you're planning a one-time contact merely to generate interest in the agency or a product, keep the list with a certain phone. This way, lists are not moving around, getting lost, generating duplicate calls, and so on. And a salesperson on a second shift can pick up where the first one left off.

But your Sales Center staff or telemarketers are generating account development, then you plan to make scheduled or repeated contact with your prospects. In this case, you should assign each individual a certain list of accounts. Repeated contact with the same person guarantees a certain feeling of rapport, and increases your chances of turning prospects into clients.

DATABASE DEVELOPMENT

Successful telemarketing depends on the gathering of information-and there's no better place to store the wealth of information you've gathered than in a computer database. Most independent agencies now have hardware and software capable of storing and maintaining such a prospect database. If you don't have these capabilities yet, your database could exist as folders of prospect information stored in a filing cabinet.

You'll want to use telemarketing to build your database in a number of ways. For example, try to collect, verify, and keep track of the following information on each Commercial prospect:

• Company name, address, and phone number
• Key decision-maker's name, title, and function
• SIC classification, company's market segment classification
• Annual revenue, number of employees
• Purchasing and payment history
• Marketing exposure
• Date and purpose of the last contact and the next expected contact

Your database doesn't have to be elaborate to start out. In fact, it's wise not to add a name into your prospect database until that person has been verified as a prospect; he or she should have been contacted at least once or have shown some interest in your products and services.

Your potential for telemarketing success is determined largely by your database; your list is your market. Define the criteria you feel is needed in the list, then seek to obtain the appropriate information nation and keep your list constantly updated.

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