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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? ... 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. Email this article to a Friend