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... engaged the prospect in the process - he told the salesperson exactly where it hurt. Finally, the salesperson asked the prospect to put a value on solving the problem ( 'How much would it be worth .. ? ') . By asking focused questions and listening closely to the responses, this salesperson turned intellectual pain into the more intense emotional pain that's necessary for a sale to happen. EXERCISE List likely areas of client dissatisfaction for each line of business you write. For example: Auto - poor service, slow claims, price. Next to each area, write two or three other things that area is likely to affect. For example: Slow claims on auto - other areas affected are rental car costs, inconvenience, missed connections. Using the items affected by each area of ... ? Prospect: Not always. Last year, it took them two weeks to process a claim. I was driving a rental car around. I sure would have paid more for insurance that would have covered the car. Salesperson: Your current coverage doesn't pay for a rental car? Prospect: It does, but only for a subcompact. I can't drive a car like that to the country club. So I had to pay the extra cost of a luxury model out of pocket. Salesperson: So the extra cost for the rental car was sort of like an extra insurance premium? Prospect: You could look at it like that. Salesperson: Wow. So poor service from ABC cost you two weeks of time and an upgrade to a luxury rental car How much are you saving ...

... to let people know who you are. EXERCISE Create a plan of action for writing ...

...n agent, every transaction is an exercise in process and balancing is not even...

... your agency stands. It's a good exercise for any agency at any time. It's esp...

... have $1 of commission minus the cost of operating the agency. A big percentage of that commission income usually goes to expenses other than production. Knowing where the money goes is essential for agencies trying to figure out how much they can afford to pay producers. The worksheet at the end of this article is an easy way to get a snapshot of where your agency stands. It's a good exercise for any agency at any time. It's especially helpful for an agency looking to bring in a new producer, turn around a dwindling profit picture, or boost its value as a going concern. Let's walk through the worksheet. ADMINISTRATIVE EXPENSE Add up the cost of office payroll, rent, light, heat, bad debts, dues, and subscriptions-every agencywide operating expense. Include advertising because the ... figure out how much to pay your producers by asking, What's the agency down the street paying? ' Beware! Pegging compensation to what the competition is doing can be a costly mistake. Your competitors may be paying too much and headed for bankruptcy-or paying too little and riding a merry-go-round in turnover. Every agency is different. Some provide their producers with leads, expense accounts, auto allowances, club memberships, sales management, and other costly direct-sales support. Others don't. Most agencies provide service support and invest in other retention-building tools. Some agencies are highly efficient and have low operating expenses. Others have very high overhead. Most are somewhere in between. A few agencies make the fatal mistake of thinking they have $1 of commission to split with producers. They don't. They have ...

... remark made by the insurance agent, Dick. We may have taken a year to decide (compared to their one-day impulse), but I can assure you it will take them more than a year to implement the plan. As a bank, we handle hundreds, if not thousands, of transactions every day and balance at 5:00 p.m. With an agent, every transaction is an exercise in process and balancing is not even a possibility. Everything is a challenge for them. If we can't handle transactions better than agents, I'm not Anne L. Retentive! Then there is the issue of image and compensation. Bankers are about prestige, security, and seniority. These agents-you know, the used-car types-are so aggressive! They want us to turn over our customers so they can ... and happy. But it's over-you're not in control anymore. Get over it! Where's the Banker? Get up here. Don't keep me waiting like I'm in the teller's line! ' Banker: Your honor, I'm Anne L. Retentive, a lobbyist and attorney representing the banking industry. I'm .. Judge Judy: Wait a minute, do my eyes deceive me? Did the ultimate Boy's Club send a lady to represent themselves? I bet there are more women in this courtroom today than there are on the boards of all the banks in America. Another observation: I don't see any old white guys in this room. I guess that's because they're all at bank board meetings. Let me guess-your notes start with your expressing concern about the burden of regulation. Save your breath. ...

... improved? All elements of the program need to be tracked so lead generation and management effectiveness can be measured accurately. An objective evaluation performed by the agency on the quality of leads, sales results, and other elements of the direct-marketing effort is essential. Costs should be determined as to cost per sale' and related to the lifetime value of that customer/sale. DISCIPLINE A successful lead-management system exercises discipline daily. Replies are quickly acted on, producer activity closely monitored, and prospect files followed up on a timely basis. All elements, from the time a lead is received to the time the customer receives the insurance policy, are conducted in an orderly manner. When considering direct marketing programs, managers must evaluate markets, products, sales force, internal strengths, and resources. Get ... can be selected from special directories. Telemarketing has been used by direct writers for many years. It is especially helpful as a follow-up to direct mail. MAIL: The audience of a direct-mail campaign is selected by use of a particular mailing list - current customers, residents of a certain ZIP code, and customers or members of another organ- ization (such as credit unions, banks, auto clubs, etc.) . The sales message can be as simple as a one-page letter or an elaborate package of sales material. Cooperative mailing, a low-cost form of direct mail, includes a sales piece in a package of materials from several noncompeting companies. There are four components of successful insurance direct marketing: a value-added product at a competitive price. a message presented to an appropriate audience. ...

...uccessful lead-management system exercises discipline daily. Replies are quick...