https://completemarkets.com/Article/article-post/2562/14-TIPS-FOR-SELLING-IN-A-HARD-MARKET/
14 TIPS FOR SELLING IN A HARD MARKET
Historically, a hard market is part of the cyclical nature of the insurance industry. At one time, these cycles occurred fairly consistently at about seven year intervals. However, the last significant hard market came in the mid-80s.
A hard market is characterized by increasing rates and/or reduced industry capacity, which leads to affordability and/or availability problems. In addition, both underwriting and claims adjusting usually become more stringent. In the current marketplace, these conditions are exacerbated by increased uncertainty about such loss exposures as terrorism, mold, etc., and by a reinsurance market significantly strained by the events of September 11.
Looking specifically at the E&O marketplace, we can expect increasing rates/premiums and more stringent underwriting. This presents problems and opportunities. The bad news is that competition could lead to lost accounts. The good news is that competition could lead to lost accounts — because it’s probably not desirable to retain all your existing accounts.
There’s more potentially good news: since many carriers are in the same boat, the hard market could lead to new business — and increased premiums mean higher commissions (until or unless carriers start reducing them again). You can use this increased revenue to improve and expand services in a way that differentiates you from the competition.
Let’s take a look at 14 tips you can use to improve your sales performance during the hard market (or, for that matter, any market):
Sales Tip #1: Know your buyer
Whether you’re selling BOPs or Tupperware, you can only sell three things: (1) price, (2) product, and (3) relationship. When it comes to insurance, about 50% of customers are relationship buyers, 25% are price buyers, and 25% buy on the basis of product (10%) or value (15%). If you know where your prospect/insured falls along this spectrum, you can tailor your proposal to them.
Sales Tip #2: Really know your buyer
Develop a client profile/rating sheet that includes everything you know about the buyer down to their favorite TV show.
Identify the real decision makers. You can’t sell insurance if you’re going through a gatekeeper.
Learn all you can about the buyer. Talk to employees, business associates and others to learn what makes this person "tick."
Stay in frequent contact. Communicate with VIP, at-risk, and high-potential customers frequently. Very few of these contacts should be insurance related.
Pay attention to the details. Joe Girard, listed by the Guinness Book of World Records as the best car salesman in the world, said his secret was sending birthday, holiday, and other greeting cards. Throughout the year, keep in contact and do little things for clients (such as sending a magazinearticle on a subject that interests them). Then, shortly before renewal time, do something really memorable that’s unrelated to their insurance.
Sales Tip #3: Don’t give up
According to Guerilla Prospecting, many contacts with fewer customers are far more effective than fewer contacts with many customers:
1 sales contact = 2% of sales closed
2 sales contacts = 3% of sales closed
3 sales contacts = 4% of sales closed
4 sales contacts = 10% of sales closed
5 sales contacts = 81% of sales closed
Sales Tip #4: Don’t ever give up
According to the Darnell Corporation, 20% of salespeople make 80% of sales. More than 50% of all of Avon’s sales come from 17% of their sales reps — who produce 10 times the revenue of the other 83%. The reason: most salespeople quit after one or two initial contacts:
48% quit after the first contact
25% quit after the second contact
12% quit after the third contact
5% quit after the fourth contact
10% quit after the fifth contact
As you can see from the Guerilla Prospecting statistics, 80% of sales require at least five contacts.
Sales Tip #5: Don’t recognize "no"
The following statements all mean "No." However, don’t take "No" for an answer. It might take four or five "Nos" until you get a "Yes."
"I’ll think it over."
"We’ll discuss it and let you know."
"I’m just looking at all my options."
"The price is just too high."
"I’ll have to get back to you."
"Let me see how this fits our budget."
(Source: "Six Rules of Salesmanship to Clinch the Deal," HOC, August 1995)
Sales Tip #6: Use solution-oriented selling
If I said I could come into your agency or company and show you how to close more than 90% of your sales leads, increase your retention rate to 99.9%, and more than double your book of business in less than a year, would you hire me as a sales consultant? You would? That’s odd, because I haven’t mentioned price! When you offer solutions — to create opportunities, solve problems, reduce risk, etc. — price is the last thing that will come up during the negotiations.
Let’s face it. In the minds of the prospects, most insurance is sold using similar approaches, similar coverages, similar proposals, claims, promises, etc. Because prospects perceive all of these elements as equal, price becomes the only variable — which means you need to define the "unique selling proposition" that differentiates you from the competition.
Consider offering a package of solutions unlike anything your competitors offer. For example, provide free or discounted in-house seminars, loss control services, or other perks. Remember, increased commissions might allow you to offer these benefits at little or no cost.
Sales Tip #7: Offer painless selling
In a hardening market, accounts experiencing problems with their current insurance program are your best prospects — because you can relieve their pain. If the person is a "product buyer," you can also create pain by showing coverage gaps compared with your product. Be sure to use vivid examples. Demonstrate how your proposal will boost their bottom line by reducing risk.
Sales Tip #8: Strengthen relationship selling
I’ve had my Personal Lines account with the same agency for 29 years. They don’t offer the best products and I can get far better prices elsewhere. It’s our relationship that keeps me doing business with them.
My mother worked for this agency for a number of years until she became terminally ill and passed away more than two decades ago. During her final year, she was only able to work for a few weeks. At best, one could expect a decent insurance package to provide 60% pay under a salary continuance or LTD program. However, the agency owner continued to issue her full paycheck every two weeks whether she was able to work or not.
When the call came from the hospital that she had only hours to live, I raced there at 2:00 a.m., just before she passed away. At 3:00 a.m., the agency owner and his wife showed up at the hospital to offer any help they could. I’ve never forgotten what they did for my family and, for that reason, I’ve never considered moving my account to save a few bucks.
Relationships build loyalty. Strong relationships based on genuine interest, empathy, and compassion create fierce, almost fanatical, loyalty. If you treat your customers like family and go beyond the call of duty when needed, no coverage perks or pricing discounts can approach the effectiveness of such relationships.
Sales Tip #9: Use testimonials
Include testimonials of long-term clients in your marketing materials. Every time you’re involved in a claim "victory" for an insured, ask for a testimonial. Every time you exceed the service expectations of a customer, seek a testimonial. If possible, target these statements so that recipients of your materials know the claimants. Flaunt the fact that so-and-so chose your agency or company rather than a competitor. If needed, ask a respected client to make a personal visit to a customer on the fence. Prospects will appreciate your personal interest and value the opinions of a peer.
Sales Tip #10: Utilize multiple closes
An effective sales training program can teach dozens of proven techniques that you can use to close the account. For example:
Direct close. Simply ask for the check.
Time-driven close. "Because rates are going up next week, buy now"
Relationship close. If applicable, this is a foolproof method.
Deal/concession close. If the prospect balks, up the ante by adding such benefits as discounted seminars or loss control services.
Sales Tip #11: Provide world class service
Offer consistent, personalized, responsive, reliable, accurate, and professional customer service. Do the unexpected to dazzle customers with your commitment to service excellence.
Sales Tip #12: Overcome objections
Entire books and seminars have been devoted to this subject. Some objections are real and must be addressed, while others mask hidden agendas. Objections aren’t bad, in and of themselves. According to Learning International, a salesperson is 20% more likely to close a sale that includes objections than if the prospect raised none at all.
To minimize objections, sell the benefits, not the product. Focus on emotional (e.g., security/risk) concerns. Stress why the prospect should buy, rather than their objections. Anticipate and be prepared for objections. Avoid bringing up those that the prospect wouldn’t have raised. Don’t talk price until you’ve demonstrated the superiority of your proposal — and never make excuses!
The Alcoholics Anonymous Prayer says, "Lord, give me the courage to change the things I can change, the serenity to accept those that I can’t change, and the wisdom to know the difference." This prayer applies to three major types of objections:
Sincere objections. Negotiate around these.
Hopeless objections. You have to know when to hold ‘em, and when to fold ‘em.
"Smokescreen" objections that have nothing to do with the product, but mask a hidden agenda. Fix the problem, and you’ve made the sale.
Bear in mind that you’ll often be selling to a salesperson who might well know all the canned sales tactics.
Sales Tip #13: Counter price
If you’re selling relationship-based solutions and the product has been fairly priced, the premium should rarely be an issue. However, if your prospect asks for a lower quote and you have to address it, use these "last resort" responses:
"It’s only that much cheaper?!" Imply that the competition’s product or service offers even lower value.
Minimize the cost differential. Put the price difference in daily terms and, by compare it with something tangible: "That’s like giving up a (pack of cigarettes, couple of doughnuts, and so forth) a day."
Make a "premium sandwich." "You get this for $, and this for $, and this for $, and this for $ ...." Constantly repeat the premium difference after you spell out each of the superior benefits your product provides.
Use The Ben Franklin approach. "When confronted with two courses of action, I jot down on a piece of paper all the arguments in favor of each one — then on the opposite side, I write down the arguments against each one. Then, by weighing the arguments pro and con and canceling them out, one against the other, I take the course indicated by what remains." Make sure that the "pros" of your product outweigh those of the competition.
Sales Tip #14: Try the Saturn Approach
Don’t undermine product, service, and relationships by cutting price. Underwrite and price the account accurately using appropriate debits and credits, then stick with it. This will build credibility in the eyes of your client.
Too often, we don’t think of margins or profits when we discount premiums. Assuming that a product has been accurately priced to generate a profit, if the product costs $1,000 includes a 20% gross profit ($200), and the customer is given a 10% ($100) credit/discount, that represents a 50% decrease in margin!
As an alternative to discounting, add value by stressing your product’s superiority or unique benefits. You might also offer premiums by including free or discounted products or services. Create an entire package of value-added services as part of your overall marketing plan — you do have a hard market sales plan, don’t you?...
https://completemarkets.com/Article/article-post/864/The-High-Cost-Of-Failing-To-Market/
The High Cost Of Failing To Market
In spite of those who claim that “marketing costs too much,” John Graham provides four major reasons why just the opposite holds true.
“We had to stop the mailings to our hospitality database,” says Tom Helbach, president of Mosinee Insurance Agency in Wisconsin. “We were getting so many calls that we couldn’t process the work efficiently until we made some internal changes.”
Marketing gives Mosinee Insurance a statewide reach and allows it to compete successfully against an association-endorsed insurance program. The next step is to begin marketing in neighboring states. But this isn’t all. This marketing strategy demolishes the myth that companies only want to do business locally.
It’s true that this marketing initiative as well as others costs money. But business is coming to Mosinee Insurance without face-to-face calls. It costs money, but it’s also efficient and effective. What Mosinee Insurance is doing offers a perfect example of the benefits provided by a marketing-driven strategy vs. one that’s sales driven.
In spite of those who claim that “marketing costs too much,” here are four major reasons why just the opposite holds true:
1. Marketing bulletproofs your business against competitive attack. Most companies don’t give marketing serious attention until something goes wrong. It might be the activity of an aggressive competitor, falling sales, or some internal crisis. Then everyone expects marketing to kick in instantly and solve the problem.
Companies all companies are vulnerable to competitive attack when they fail to create a legacy of marketplace credibility. This means projecting and protecting the company image and constantly caring for the way the brand is perceived and appreciated. This takes time, effort, and money. But when a problem arises (and it always does) there’s a reservoir of goodwill, knowledge, and value that offers protection against the attack.
The hundreds of millions of dollars that tobacco companies are committing to smoking education aren’t at cross-purposes with selling cigarettes. Those sales are far less important than having the public view these corporations as responsive and responsible, thus helping mitigate possible legal, legislative, and regulatory action.
2. Marketing creates your company’s future. When someone calls and says, “I’ve known about you for years,” you know that marketing has been at work doing its most important job. Here’s what effective marketing contributes to a company’s success: Before customers make the decision to buy, they must make the decision to go to you. The objective of marketing is to help customers form a picture in their minds that you’re the right company with which to do business. Behind all this stands a carefully designed and thoughtfully implemented marketing program with one aim: At the moment of need, the customer either seeks you out or welcomes your call.
Today, we’re seeing many companies that have been in business for a long time, but are now in decline. Why? In some cases, their customers have closed their doors, merged, or been acquired; or new competitors have entered the market and grabbed their accounts. And quite possibly, the “inside” customers who knew them so well buyers, purchasing agents, and managers have gone elsewhere or retired.
Unless your company is actively prospecting two to 10 years in advance, you’ll always find yourself pushing for sales!
3. Marketing makes selling easier.If customers have a predisposition toward doing business with your company, product, or service, making the sale becomes far easier. This empowers salespeople to become consultants (and not just to call themselves one). Such common selling problems as overcoming objections and closing techniques become irrelevant. In fact, relying on “selling skills” to get the order is an indication that a company has no marketing.
Everyone in business receives calls that start out something like this: “A couple of weeks ago, I sent you information about our company ” This is a call that goes nowhere today. Of course, salespeople (very good ones, too) run from such antiquated and stifling working conditions.
Trying to make the sale when prospects lack a clear understanding of why it’s in their best interest to talk to you wastes your company’s time, personnel, and money. Jacking up commissions or lowering the price only drives up the cost even higher.
The role of marketing is to create the right environment for selling to be successful. Without marketing, the cost of doing business becomes too high.
4. Marketing extends your reach. Whether it’s drilling down into existing companies to find new opportunities, further penetrating a market or market area, or opening the door to new markets and new territories, marketing is the engine that drives the effort.
To grow your business today, the task is one of going from “nobody knows us” to “everybody knows us.” Few companies are willing to acknowledge the height of the wall that this creates for anyone in sales. Firms enter a new market where they’re not known and then wonder why sales lag. More often than not, it’s the sales force that gets the blame for the debacle, even though the fault was a lack of marketing.
Onstar offers a perfect example of a company that literally drove customers to GM dealers by creating demand for their product. Motion pictures are pitched the same way: “Coming in October.”
CONCLUSION
Here’s the message: It’s failing to market that’s too costly. The bottom-line value of marketing becomes clear when you take into account these three factors: Sales that are going to a better-known (but not necessarily more competent) competitor, sales opportunities that are missed because you’re unaware that they even exist, and thin-margin sales that are being made to save accounts or “get in the door.”
That money is going out the door now. The goal of marketing is to keep it where it belongs on your books.
...
https://completemarkets.com/Article/article-post/1623/INDOOR-AIR-QUALITY-AND-HOW-TO-IMPROVE-IT/
Indoor Air Quality - And How To Improve It
INDOOR AIR QUALITY - AND HOW TO IMPROVE IT (This article contains material that may be of interest to your customers. Use it to distribute as a value-added item, or to inform risk-management consultations.) Modern office building are generally considered safe and healthful working environments. However, energy conservation measures instituted during the early 1970s have minimized the infiltration of outside air and contributed to the buildup of indoor air contaminants. Investigations of indoor air quality (IAQ) often fail to identify any harmful levels of specific toxic substances. Often employee complaints result from 'comfort' items such as cigarette smoke, odors, low-level contaminants, poor air circulation, thermal gradients, humidity, job pressures, lighting, work station design, or noise. The range of OSHA investigations of indoor air quality problems encompasses everything from complaints by one or two employees to episodes in which entire facilities are shut down and evacuated until the events are investigated and problems corrected. Complaints are often of a subjective, non-specific nature and are associated with periods of occupancy. These symptoms often disappear when the employee leaves the workplace. They include headache, dizziness, nausea, tiredness, lack of concentration, and eye, nose, and throat irritation. In approximately 500 indoor air quality investigations in the last decade, the National Institute for Occupational Safety and Health (NIOSH) found that the primary sources of indoor air quality problems are: inadequate ventilation, 52%; contamination from inside the building, 16%; contamination from outside the building, 10%; microbial contamination,...m building fabric, 4%; and unknown sources, 13%. TYPES OF BUILDING PROBLEMS Employee complaints can be caused by two types of building problems: sick or tight building syndrome and building-related illnesses. Sick Building Syndrome is a condition associated with complaints of discomfort including headache; nausea; dizziness; dermatitis; eye, nose, throat, and respiratory irritation; coughing; difficulty concentrating; sensitivity to odors; muscle pain; and fatigue. The specific causes of the symptoms are often not known but sometimes are attributed to the effects of a combination of substances or individual susceptibility to low concentrations of contaminants. The symptoms are associated with periods of occupancy and often disappear after the worker leaves the worksite. Building-Related Illnesses are those for which there is a clinically defined illness of known etiology. They include infections such as legionellosis and allergic reactions such as hypersensitivity diseases and are often documented by physical signs and laboratory findings. TOBACCO SMOKE Tobacco smoke can irritate the respiratory system. In allergic or asthmatic persons, it often results in eye and nasal irritation, coughing, wheezing, sneezing, headache, and related sinus problems. People who wear contact lenses often complain of burning, itching, and tearing eyes when exposed to cigarette smoke. Tobacco smoke is a major contributor to indoor air-quality problems. Tobacco smoke contains several hundred toxic substances. MICROORGANISMS Microorganisms and other biological contaminants (microbials) include viruses, fungi, mold, bacteria, nematodes, amoebae, pollen, dander, and mites. Sources: water-damaged materials, high-humidity indoor areas, damp organic material and porous wet surfaces, humidifiers, hot-water systems, outdoor excavations, plants, animal excreta, animals, insects, food, and food products. Acute health effects: Allergic reactions such as hypersensitivity diseases (hypersensitivity pneumonitis, humidifier fever, allergic rhinitis, etc.) and infections such as legionellosis are seen. Symptoms include chills, fever, muscle ache, chest tightness, headache, cough, sore throat, diarrhea, and nausea. MAJOR INDOOR AIR CONTAMINANTS Acetic acid Sources: X-ray development equipment, silicone caulking compounds. Acute health effects: eye, respiratory and mucous membrane irritation. Carbon dioxide Sources: unvented gas and kerosene appliances, improperly vented devices, processes or operations which produce combustion products, human respiration. Acute health effects: difficulty concentrating, drowsiness, increased respiration rate. Carbon monoxide Sources: tobacco smoke, fossil fuel engine exhausts, improperly vented fossil fuel appliances. Acute health effects: dizziness, headache, nausea, cyanosis, cardiovascular effects, and death. Formaldehyde Sources: off-gassing from urea formaldehyde foam insulation, plywood, particle board, and paneling; carpeting and fabric; glues and adhesives; and combustion products including tobacco smoke. Acute health effects: hypersensitive or allergic reactions; skin rashes; eye, respiratory and mucous membrane irritation; odor annoyance. Man-made fibers Sources: fibrous glass and mineral wool. Acute health effects: irritation to the eyes, skin and lungs; dermatitis. Miscellaneous gases This includes ammonia, hydrogen sulfide, sulfur dioxide, etc. Sources: microfilm equipment, window cleaners, acid drain cleaners, combustion products, tobacco smoke, blue-print equipment. Acute health effects: eye, respiratory tract, mucous membrane irritation; aggravation of chronic respiratory diseases. Nitrogen oxides Sources: combustion products from gas furnaces and appliances; tobacco smoke, welding, and gas and diesel engine exhausts. Acute health effects: eye, respiratory and mucous membrane irritation. Ozone Sources: copy machines, electrostatic air cleaners, electrical arcing, smog. Acute health effects: eye, respiratory tract, mucous membrane irritation; aggravation of chronic respiratory diseases. Volatile organic compounds (VOCs) VOCs include trichloroethylene, benzene, toluene, methyl ethyl ketone, alcohols, methacrylates, acrolein, polycyclic aromatic hydrocarbons, pesticides. Sources: paints, cleaning compounds, mothballs, glues, photocopiers, 'spirit' duplicators, signature machines, silicone caulking materials, insecticides, herbicides, combustion products, asphalt, gasoline vapors, tobacco smoke, dried-out floor drains, cosmetics and other personal products. Acute health effects: nausea; dizziness; eye, respiratory tract, and mucous membrane irritation; headache; fatigue. IMPROVING INDOOR AIR QUALITY Indoor air quality can be improved by engineering changes such as source controls, air treatment, and ventilation. A second approach is preventive maintenance. Finally, administrative changes can be made to reduce risk of employee illness or injury due to indoor air quality. ENGINEERING CONTROLS Engineering controls include source control, air treatment, and ventilation. SOURCE CONTROLS Source control includes substitution, removal, encapsulation, local exhaust ventilation, and use of physical barriers. Adjust combustion sources such as furnaces or water heaters to ensure proper burning and exhaust to an area where re-entrainment will not occur. AIR TREATMENT (the removal of air contaminants and/or the control of room temperature and humidity) 1) the use of filtration, electronic cleaners, chemical treatment with activated charcoal or other sorbents 2) humidity control in range of 20%-60% 3) temperature control in the range of 68-76 degrees F VENTILATION Ventilation includes the use of natural, dilution, local exhaust, or increased ventilation efficiency. The most effective engineering control for prevention of indoor air quality problems is ensuring an adequate supply of fresh outdoor air through natural or mechanical ventilation. Outside air intakes should not be located in close proximity to potential sources of contamination (automobile garages, cooling towers, building exhausts, roadways). The American Society of Heating Refrigerating and Air-conditioning Engineers (ASHRAE) in its 62-1989 standard recommends 20 cubic feet per minute (CFM) of outdoor air per occupant for offices. For smoking lounges, up to 60 CFM of outdoor air per occupant should be provided. When possible, use local exhaust ventilation and enclosure to capture and remove contaminants generated by specific processes. Room air in which contaminants are generated should be discharged directly outdoors rather than recirculated. Ventilation efficiency can be improved by: a) ensuring that outdoor air supply dampers and room air vents are open. b) removing or modifying partitions or obstructions which block fresh air flow. c) rebalancing the system to prevent inflow or outflow of contaminated air due to pressure differentials between rooms. d) preventing poor distribution of make-up air by proper placement of air inlets and exhausts. e) using room fans to improve mixing and dilution of pollutants. PREVENTIVE MAINTENANCE (P.M.) PM plans for humidifiers, water spray and other HVAC system components should include: a) checking damper positions and functioning belts, baffles, ductwork, and system balance. b) measuring airflow and performing necessary adjustment if necessary to meet ASHRAE recommendations. c) replacing filters on air-handling units at regular intervals. d) cleaning air-distribution ducts and dampers. e) replacing damaged insulation. ELIMINATING MICROBIAL CONTAMINATION Eliminate or control all known and potential sources of microbial contaminants by prompt cleanup and repair of all areas where water collection and leakage has occurred including floors, roofs, HVAC cooling coils, drain pans, humidifiers containing reservoirs of stagnant water, air washers, fan coil units, and filters. a) Remove and discard porous organic materials that are contaminated (e.g., damp insulation in ventilation system, moldy ceiling tiles, and mildewed carpets). b) Clean and disinfect non-porous surfaces where microbial growth has occurred with detergents, chlorine-generating slimicides, or other biocides and ensuring that these cleaners have been removed before air-handling units are turned on. c) Maintain indoor air relative humidity below 60% (50% where cold surfaces are in contact with room air). d) Adjust intake of outdoor air to avoid contamination from nearby soil, vegetable debris, cooling towers, or sanitary stacks unless air is adequately conditioned. ASBESTOS AND RADON Although acute health effects are not associated with asbestos and radon, we mention them due to recent concerns about their health effects. Asbestos may be found in: insulation and other building materials such as floor tiles, dry wall compounds, reinforced plaster. During renovation or maintenance operations, asbestos may be dislodged and become airborne. Evaluation of employee exposure to asbestos will normally be covered under the OSHA Asbestos standard. Radon may occur in the ground beneath buildings, building materials, and groundwater. Chronic exposure may lead to increased risk of lung cancer from alpha radiation. ADMINISTRATIVE IAQ CONTROLS Administrative control practices including programs that change the behavioral patterns of occupants. Minimize Exposure. Exposure should be minimized by limiting occupancy of contaminated airspace, limiting use of offending sources to specific areas or times, or evacuating contaminated areas until they can be ventilated adequately. 1) Isolate, if feasible, areas of renovation, painting, carpet laying, pesticide application, etc., from occupied areas that are not under construction. 2) If possible, perform this work during evenings and weekends. If ventilation is turned off during weekends or other periods, ensure that the system is on so that contaminant concentrations are sufficiently diluted prior to occupancy. 3) Supply adequate ventilation during and after completion of work to assist in diluting the contaminant levels. 4) Personnel affected with hypersensitivity should be thoroughly evaluated and the problem identified and corrected before returning them to the workplace. If, after the remedial action, the illness persists in the workplace, the affected personnel should be considered for permanent reassignment to another area. Eliminate or reduce contamination of the air supply. This includes contaminants such as cigarette smoke. Ban smoking or restrict it to designated areas that have their air discharged directly to the outdoors rather than recirculated. Excerpted with permission from SIC Safety Information Currents, Volume III, Number 6, June 1994.
https://completemarkets.com/Article/article-post/2584/How-to-Change-a-Dissatisfied-Customer-in-an-Angry-One/
How to Change a Dissatisfied Customer in an Angry One
PERSONAL PRESENTATION
One of the things that can irritate an already upset person is your personal presentation. If they feel that your grooming and dress are unprofessional or inappropriate, they're more likely to hassle you. Some areas of personal presentation, if not seen to, might have a negative influence on an upset person. Check to make sure that your:
Hair is clean, brushed or combed, and well kept.
Clothing is pressed, neat, clean, and in good repair.
Breath is fresh.
Hands and fingernails are clean, with no chipped polish.
Face is shaved, or mustache/beard is neatly trimmed.
Makeup is applied neatly, moderately, and appropriately.
Stockings are run-free.
We all make initial assessments of others based mainly on personal presentation. According to some experts, we make decisions about people within the first four seconds of our meeting them. Says Bay Alexander, President of Professional Impact (Santa Cruz, CA):
“If you're in a position where you're likely to interact with angry customers, you have a chance to use your image as one of your more effective tools to signal your power, control, knowledge, and composure. If you're dressed inappropriately or too casually for your position and business, customers are more likely to push to get their way, and call for a higher authority if they don't like your response.”
You might have experienced the power of your appearance when you are a customer. Have you noticed how much easier it is to return an item to a store when you're neatly dressed than when you wear torn jeans and a dirty tee shirt? You never get a second chance to make a first impression.
NONVERBAL COMMUNICATION
Here are some ways that your body language and voice tone might affect an upset person:
Facial Expression. When people complain, do you ever roll your eyes, scowl, or have an inappropriate smile? Be aware of your facial expression when you communicate. Ask friends, coworkers, and your supervisor whether you have facial expressions that could be annoying, especially to upset customers. Keep a calm, concerned, sincere, and interested facial expression that shows the customer you care. Some people smile when they're tense, but you don't want to smile while a customer is expressing anger. If you do, the customer might feel that you're not taking them seriously.
Body Posture. Do you tend to loll or slouch at your workstation? Show that you're attentive to your customer by standing and sitting up straight. When you loll or slouch, you might seem inattentive or disinterested. Maintain a nonthreatening, open body posture. Stand far enough away to give the customer room; crowding them might increase their irritation.
Movement. Upset customers want to see you respond to their needs speedily. This doesn't mean you have to sprint to help, but don't mosey, either.
Gestures. Do you stand or sit with your arms crossed? Do you hold your head up with your hands? The most common interpretation of the arms-crossed gesture is that the person is closed and unwilling to listen. When communicating with an upset customer, uncross your arms to show that you're listening and have an open mind.
Smoking. Don't smoke in front of customers, even if your employer allows you to smoke in your work area. Put that cigarette out, even if your customer is smoking.
Chewing Gum or Eating. Don't chew gum or eat when you're on the phone or in the public eye. Even if your employer allows it, these acts can be annoying and can escalate an upset customer into an irate one.
Touching. Avoid touching an upset person, especially if they appear potentially violent. This could set off violence.
Voice Tone. Do you sound annoyed? Does your voice go up at the end of a statement? You project your attitude through your voice as well as your body language.
Remember, helping customers is your job. If you can't stand to help upset people, get transferred to another job. Make sure your attitude is always “I'm here to help as best I can.” People respond more to how you say something than to what you say. When your voice is annoyed, impatient, or condescending, the customer will become angrier.
When your voice sounds confident, they'll believe you know what you're talking about and it will be easier to calm them. When your voice goes up at the end of a sentence, it sounds as if you're asking a question. Listen to yourself in a tape recorder; if your voice goes up at the end, practice keeping an even tone, or one that ends on a lower note. You'll sound confident and competent. Speak with a calm, firm, caring, soothing tone.
Sighing. Sighing often suggests annoyance or impatience. Don't sigh in front of an upset customer.
Cursing. Even if the customer curses, there's never an excuse for you to curse. No matter how many insults they shout at you, remember that you're a professional. Compose yourself as best you can, and avoid responding to abuse. It's a sign of strength, not weakness, to stay calm and respond with patience when someone is cursing and insulting you.
WORDS THAT MAKE A DIFFERENCE
The words that you use with customers can help communications — or they can start a fight. Here are some common Fight Starters and suggestions on replacing them with Communication Helpers.
Keep It Impersonal
Fight Starter: “You didn't do this right.”
Communication Helper: “There are a few areas on this form that we need to complete.”
If the customer did something wrong, point out the mistake indirectly. They will often be embarrassed at their mistake, get angry because of this embarrassment, and try to blame you. Avoid sarcastic, blaming, or condescending statements. Even if the customer is wrong, the time to make it known is notduring a rage.
Use ‘I' Instead of ‘You'
Fight Starter: “You're wrong.”
Communication Helper: “I can see there's been a miscommunication (or misunderstanding).”
Fight Starter: “You're confusing me.”
Communication Helper: “I'm confused.”
Don't blame the customer. When explaining what went wrong, use either the indirect approach or “I” statements as much as possible.
Avoid Giving Orders
Fight Starter: “You have to ... “
Communication Helper: “Will you please … ?”
Fight Starter: “It would be best if you ... “
Communication Helper: “It might be best if we ... “
People don't like to be given no choice. Ask them pleasantly to do something or explain how it will be to their benefit. People don't like to be given orders. Rephrase your statement more politely as a question.
Fight Starter: “You should have done ... ”
Communication Helper: “We want your next visit to go as smoothly as possible. This will assist you.”
Fight Starter: “Wait here.”
Communication Helper: “Would you mind waiting while I speak to my supervisor?”
When people hear “should,” they often think of their parents or some other authority figure telling them what they did wrong. Instead of telling them what they should've done last time, tell them what will be helpful for next time. The past is past and there's nothing anyone can do about it. Focus on the future — the next time — instead.
Take Responsibility
Fight Starter: “I can't ... ”
Communication Helper: “I don't have the authority. However, Mary should be able to help you. Let me get her.” If you can't help, connect the customer with someone who can.
Fight Starter: “It's not my job.”
Communication Helper: “Let me see what I can do to help. John is the specialist in that area. Let me get him for you.”
Even if what the customer needs isn't within your job responsibility, instead of telling them this, tell them how you can help.
Avoid Causing Defensiveness
If people think they're being criticized, they'll react defensively — that is, angrily.
Fight Starter: “You never do it right.”
Communication Helper: “This is often not done correctly.”
Fight Starter: “You're always late.”
Communication Helper: “This payment is often late.” Always” and “never” sound critical and uncompromising; use “often” instead .
Fight Starter: “You filled this out okay, but ... ”
Communication Helper: “You filled this out well, and ... ”
People don't listen to what you say before the “but.” They concentrate on what follows. Use “and” instead, so they'll listen to the whole sentence.
Fight Starter: “It will cost you ... ”
Communication Helper: “The rate is ... ”
“Cost” sounds negative, and costs can imply time, aggravation, and other things in addition to money.
Fight Starter: “What's your problem?”
Communication Helper: “Please tell me what happened.”
People don't like to have problems, and they don't like others to know they have problems. Use the inquiry instead. There's plenty to work with here. Practice even with customers who aren't upset. Also, engage a co-worker or your supervisor in helping you become aware of any habits you have that might make a customer more upset. Then work on eliminating these annoyances.
This article is reproduced, with permission, from the VuPoint Newsletter of the IIABA Virtual University. Rebecca L. Morgan, CSP, CMC, is a professional speaker and seminarist. She is the author of four books, TurboTime: Maximizing Your Results Through Technology, Calming Upset Customers, Life's Lessons: Insights and Information for a Richer Life, and Professional Selling. For information on her speaking services, books, and tapes, contact her at 1440 Newport Ave., San Jose, CA 95125, (408) 998-7977, (800) 247-9662, fax (408) 998-1742, e-mail rebecca@RebeccaMorgan.com, or Web site www.RebeccaMorgan.com...
https://completemarkets.com/Article/article-post/911/Employee-Motivation/
Employee Motivation
EMPLOYEE MOTIVATION
Most workplace accidents occur in 'safe' workplaces. Why? Employee error.
What can you do? Employee motivation.
This article tells you to develop and implement an employee motivation program. If you do this and eliminate even one accident, this may be the most important article you read this year.
Nobody wants to get hurt on the job. The purpose of a safety program is to realize the goal of an injury-free workplace. Still, people get hurt at work. Sometimes, injuries are due to lack of appropriate safety equipment or unsafe processes and procedures. Workplace safety laws have been established to correct these types of problems, but possibly the most pervasive cause of workplace injury is employee error.
The employee may take unnecessary risks without even thinking about it. An employee may suffer a back injury despite having been trained in back safety, having a safety belt available, and knowing that there is a risk.
Why don't employees minimize their risks? There may be several reasons, both related to and independent of the job. Job-related excuses might be:
'I've picked up bigger boxes than this before without hurting myself.'
'Back belts are for sissies.'
'I'm too busy to stop and get a belt.'
In these cases, the employee at least thought about possible danger in lifting and alternatives.
Non-job-related reasons for ignoring safety procedures might be:
'I'm mad at my spouse. My kids are a pain.'
'How am I going to get my car fixed? Where will the money come from?'
'What should I wear tonight? Do the Joneses like asparagus?'
'I sure need a cigarette. When's my break?'
In plain words, the employee is distracted from possible risks. The solution to this cavalier attitude toward safety is to develop an employee motivation program.
Employee Motivation Programs
The first step in an effective safety motivation program is marketing. You must instill the value of safety, communicate a commitment to safety, and motivate supervisors and employees to think and act safely. Rather than emphasizing management and control of responses to injury or illness, businesses should work toward preventing them and promoting safety. Such efforts could pay big dividends.
Management must support your motivation program. They must commit to costs, promotions, and the total employee-motivation effort. While employee motivation programs have been shown to provide a terrific savings-to-cost ratio, there are costs. If you save $25,000 on Workers Compensation, you won't automatically get some of this money to spend on safety. The rate of return on an effective safety program can be $4 to $10 for every dollar invested. You need to sell management on the idea and get a commitment.
Promote and maintain safety awareness. You need to set goals, reward success, and acknowledge failures. The employee motivation job isn't complete till the paperwork is finished. Training must include program evaluation and trainee feedback. Both supervisors and employees must be trained.
A variety of motivation programs are based on rewards, contests, premiums, etc. The key is to publicize rewards. Lottery tickets, selected gifts, savings bonds, and cash have all been used as effective rewards. But none, of these will be effective without the basic structure of a workplace safety program.
Reprinted with permission from Safety Information Currents, Volume V Number 3....
https://completemarkets.com/Article/article-post/2205/Guidelines-For-Firing-Employees/
Guidelines For Firing Employees
GUIDELINES FOR FIRING EMPLOYEES
by Don Phin
When employers ask if they can terminate employees, they’re really asking, “If I fire them, can they sue me?”
Before you fire an employee, I’d recommend taking these steps:
Be aware that you might easily face litigation. For a filing fee of about $150, anybody can sue you!
Ask if the firing will surprise the employee. The answer says a lot about your performance management. If the employee has been performing poorly, to what degree have they addressed this challenge? Have you provided disciplinary notices or performance plans?
Check to see if the employee falls into any protected categories. Although employment is “at-will,” the exceptions have, in a sense, swallowed the rule. If an employee fits within a protected category (such as race, religion, age, gender, etc.), they might claim that the real motivation behind their termination has nothing to do with performance. Bear in mind that courts will usually uphold “mixed motivation” cases in which a poorly performing employee faced discrimination. In other words, the employer treated them differently than other employees who have performed poorly. Determine whether discrimination played any role in the termination decision. Give the employee a way to complain if they feel that discrimination played any part in their poor performance reviews or termination decision.
Review employee complaints. Employees who complain about health or safety issues and other concerns regulated by state or federal laws often file whistleblower and retaliation cases. If these people have also complained about discrimination or harassment, you might well face a claim of retaliation. As a loose rule of thumb, most attorneys and judges will consider any adverse action taken within three months of a complaint as “retaliatory” which means you’ll have to prove that it wasn’t. Good luck!
Make sure your documentation is in place. Do you have performance evaluations which show the deficiency for which you’re firing the employee? What about their disciplinary notices or performance plans? What benchmarks apply to determining the employee’s performance? Did they sign an employee handbook acknowledgement identifying the impropriety of the conduct at issue? Although it’s always easy to say that you’re firing someone for poor performance, every employer faces this challenge: If you’re going to claim that the poor performance was going on for a while and you didn’t already fire the employee, they might allege that the situation couldn’t have been that bad which means that something unique was involved such as discrimination or retaliation. That’s just one trap employers face when they don’t discipline and document in a timely fashion.
Be careful in terminating “damaged goods” employees. An employer might be concerned that the employee is sick, in failing health, or addicted to drugs or alcohol. They could have also been injured in a Work Comp claim. In a sense, they’re “damaged goods.” If this is the case, be aware of your obligations under the ADA (15 employees or more) and FMLA statutes (50 or more employees). The advice is always the same: Don’t play lawyer, doctor, or psychologist -- unless you are one. Treat the employee as you would a loved one. Focus on their performance and what reasonable accommodations, including leave, might help them to meet legitimate performance standards. Do this regardless of whether the employee is sick, inured, disabled, or otherwise limited in their ability to perform.
Don’t forget the possibility of human error. We all make mistakes. In one case, a CEO asked if he should fire one of his warehousemen for throwing a cigarette into a tire pile, which then ignited and burned down the warehouse. If you face a similar situation, consider signing a “do one more stupid thing and you’re out of here” agreement with the offending employee.
As a last-ditch effort to defuse a possible claim, consider doing an exit interview.
Following these guidelines should go far to reduce your exposure to employee lawsuits.
...
https://completemarkets.com/company/CompleteMarkets/Articles/content-package/IMMS-Library/TabCategory/article-post/911/Employee-Motivation/
... get a belt. In these cases, the employee at least thought about possible danger in lifting and alternatives. Non-job-related reasons for ignoring safety procedures might be: I'm mad at my spouse. My kids are a pain. How am I going to get my car fixed? Where will the money come from? ' What should I wear tonight? Do the Joneses like asparagus? ' I sure need a cigarette. When's my break? ' In plain words, the employee is distracted from possible risks. The solution to this cavalier attitude toward safety is to develop an employee motivation program. Employee Motivation Programs The first step in an effective safety motivation program is marketing. You must instill the value of safety, communicate a commitment to safety, and motivate supervisors and employees to think and act safely. ... . Lottery tickets, selected gifts, savings bonds, and cash have all been used as effective rewards. But none, of these will be effective without the basic structure of a workplace safety program. Reprinted with permission from Safety Information Currents, Volume V Number 3. Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join? Need insurance for you, your business or your family? Get quality appointments - Save yourself a whole lot of time & money when you use our directory of carriers, wholesalers and service providers. Negotiate lucrative contracts with carriers and wholesalers. Net result. More revenue for your agency! Clients & Prospects will research you, your co-workers and your agency here. The most comprehensive online insurance industry reference library ...
https://completemarkets.com/company/rodgers-associates-insurance-inc/Articles/content-package/Member-Content/TabCategory/article-post/2562/14-TIPS-FOR-SELLING-IN-A-HARD-MARKET/
... , if your prospect asks for a lower quote and you have to address it, use these "last resort" responses: "It's only that much cheaper?!" Imply that the competition's product or service offers even lower value. Minimize the cost differential. Put the price difference in daily terms and, by compare it with something tangible: "That's like giving up a (pack of cigarettes, couple of doughnuts, and so forth) a day." Make a "premium sandwich." "You get this for $, and this for $, and this for $, and this for $ .." Constantly repeat the premium difference after you spell out each of the superior benefits your product provides. Use The Ben Franklin approach. "When confronted with two courses of ... x No Thanks Loading.. x No Thanks Loading.. x No Thanks Loading.. x No Thanks Loading.. Rodgers & Associates Insurance, Inc. 1 2 3 4 5 Rating history (0 Reviews - 0 of 5.0) Shows who have rated the content, and the rating score. Write your review here. (Required) Please consider the following: 1. Would you recommend this company? 2. What about this company do you like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Products/Services News Jobs Team Articles Blog Group Followers Photos Reviews Newsletters x No Thanks ...
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... , if your prospect asks for a lower quote and you have to address it, use these "last resort" responses: "It's only that much cheaper?!" Imply that the competition's product or service offers even lower value. Minimize the cost differential. Put the price difference in daily terms and, by compare it with something tangible: "That's like giving up a (pack of cigarettes, couple of doughnuts, and so forth) a day." Make a "premium sandwich." "You get this for $, and this for $, and this for $, and this for $ .." Constantly repeat the premium difference after you spell out each of the superior benefits your product provides. Use The Ben Franklin approach. "When confronted with two courses of ... x No Thanks Loading.. x No Thanks Loading.. x No Thanks Loading.. x No Thanks Loading.. Marindependent Insurance Services LLC 1 2 3 4 5 Rating history (0 Reviews - 0 of 5.0) Shows who have rated the content, and the rating score. Write your review here. (Required) Please consider the following: 1. Would you recommend this company? 2. What about this company do you like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Products/Services News Jobs Team Articles Blog Group Followers Photos Reviews Newsletters x No Thanks Loading.. x ...
https://completemarkets.com/Article/article-post/2038/WHEN-YOUR-CUSTOMERS-COME-CALLING-TELEPHONE-RULES-FOR-EVERYONE-IN-THE-AGENCY/