X-Dating Another Approach

In Canada, they call them "expiry dates." In the U.S., they are called "expiration dates."

No matter what name they are given-"renewal dates," "anniversary dates," or any other name-one point is abundantly clear: People are more willing to change their agent or broker at renewal time than at any other time of year.

That is the way it has been in the past, particularly in Personal Lines, and surely that is the way it is going to be in the future.

Many direct writers have learned that calling prospects at their most vulnerable time-i.e. renewal-gives agents a leg up on the competition: the prospect's present agent, broker, or insurer. Of all the Personal Lines sales programs IMMS has seen throughout the years, the most successful have been based on an active x-date solicitation program.

State Farm's basic training program evolves around x-dating. Some State Farm trainers won't put prospective agents on the payroll until they have developed their own lists of x-dates.

One former Allstate agent, now an independent agent, said this about company programs:

"As an agency, we decided that we wanted producers selling from a reservoir of pre-established x-dates, not spending a great deal of time playing the numbers game on the telephone generating the x-date. We used our office personnel on a rotating basis, 15 to 20 hours a week, calling for the x-date."

Whether it is done by office personnel or producers in the normal course of work (i.e. a process, not a project), x-dating Personal Lines seems to be the most viable, positive, pro-active way to set up a successful, ongoing sales program.

COMMERCIAL LINES

When sales centers or telemarketing centers were new, prospecting for x-dates of Commercial Lines proved a bonanza. The system was very simple . . . and it hasn't gotten more complex since then. One agent talks about his procedure:

"The telephone dialogue is candid and straightforward by identifying who the caller is, and why he or she is calling: 'My name is Sally Doe of the XYZ Insurance Agency. I am calling to see if you would be open to a competitive bid for your firm's Commercial insurance when it comes up for renewal.' The response is either 'yes' or 'no.' If it is 'no,' the prospect is thanked kindly, and the caller hangs up. If the response is 'yes,' the caller requests the expiration date, documents the file, and then sets up a procedure of contact 60 days prior to the renewal date."

This procedure is still used in some locations that have not been inundated by telemarketers or sales-center employees.

But there may be too much of a good thing in some locations. Many agents tell IMMS that when they use their sales center to contact Commercial Lines prospects, they get responses like, "You are the fifth person to call this week." Everyone is saying, "We can save you money on your Commercial insurance."

Consequently, some agents no longer try to get the expiration date. They simply use the telemarketing facilities to open the door, introduce the agency, identify the decision maker, and then set up an ongoing communication system.

ONE APPROACH

One agency, Midwest Commerce Insurance in Elkhart, Indiana, believes that Commercial Lines x-dating is passe, particularly for larger accounts. This organization's telemarketing sales center uses a much more involved procedure. Just look at its sales-call approach:

• Identify the prospect.
• Verify the name.
• Introduce in four steps:
  • Invite prospect to learn more about agency.
  • State agency philosophy.
  • Send regular business letter and brochure.
  • Send cartoon showing a king about to lead his troops into battle with swords and lances. The king is telling a salesman, "I have no time to see you now. I have to fight a battle." The salesman has a machine gun that he wants to demonstrate.
• Call for the appointment.
• Show the agency's 18-minute videotape.
• Send a confirmation calling card.
• Make the actual sales call itself.
• Write follow-up thank-you letter.

Nowhere does this agency mention the x-date. The agency principals know that simply having an expiration date is no longer enough for larger Commercial accounts in an extremely competitive marketplace.

WHAT IT MEANS TO YOU

• If you are not x-dating for Personal Lines, you probably should be.
• When selling Commercial Lines, remember that the larger the business, the less important the expiration date is.
• In any case, an agent without an ongoing marketing program of some kind is an agent without a future . . . expiration dates not withstanding.