PROSPECTING AND DATA MINING STEPS FOR SUCCESS

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1 PROSPECTING AND DATA MINING STEPS FOR SUCCESS Selling life insurance doesn t have to be difficult. Follow these simple steps to learn how to prospect for success. Step one involves locating customers who have the ability, authority, and willingness to purchase insurance. In step two, through data gathering, identify any gaps in insurance coverage to find possible client needs that are not currently being met. This leads to step three, where you reach out to the client and begin building a relationship in this step it is essential to set up a meeting! Meeting the client is step four. Here you gather and analyze information on your client s financial situation to find out how can you help. After you ve had your initial meeting, you begin presenting solutions in step five. Once you and your client agree on a product solution, it is time to take the initial application. Once these five steps are completed successfully congratulations you have a sale! But remember your work is not done. The last step is where you work at maintaining a relationship with your clients, including setting expec-tations for future meetings and asking for referrals. Step 1: IDENTIFY MARKETS Where you identify groups of consumers who have the ability, need, and authority to purchase a product. Step 2: IDENTIFY CLIENTS Where you mine your current book of business to identify the gaps in coverage and find the needs of your clients that are not currently being addressed. Step 3: CONTACT THE CLIENT Where you establish a reach strategy that connects you with the markets to build relationships. Step 4: CONDUCT THE INITIAL MEETING Where you meet with the client and gather information on your client s needs and discuss how you can help. Step 5: PRESENT SOLUTIONS/TAKE THE APPLICATION Where you present the life solution(s) that meet your client s needs and complete an application. SALE: Step 6: SCHEDULE POST-SALE FOLLOW UP Where you work at keeping the relationship going. Make sure to set expectations for future contact (annual portfolio and policy reviews). Benefits of Data Mining 4Improve client retention 4Increase your sales 4Manage client risk more effectively 4Build long-lasting client relationships 4Boost referral rates Additional Benefit of Data Mining 4Insurance adds value to your overall business and can be an asset when you sell your book of business The Prudential Insurance Company of America 751 Broad Street, Newark, NJ Ed. 06/2010 Exp. 11/2011

2 Step 1: Identify Opportunities How to Locate Customers The first step in prospecting is identifying new potential customers who have the ability, authority, and willingness to purchase a product. Follow the steps below to reach new and existing clients and maximize the effectiveness of your data mining. 4When it comes to prospecting, you need to understand your target market a specific category of people who network and communicate together based on what they do for a profession, recreational activity, or special interest. Regardless of your target market, knowing what appeals to the members of each market will give you focus and increase your chances of success. 4There are two types of prospects new and existing clients. How to Reach New Clients 4Join associations related to target market and become active: Hold seminars Write articles in newsletters Send out mailings to other members 4Purchase a prospecting list from a vendor as an initial base of potential clients. 4Contact existing clients within your firm that are not currently assigned to you. 4Gather referrals from your existing client base. 4Create your own website. It is a great way to get your name out there and connect with the tech-savvy market. 4Recruit friends and family as initial resources; they can provide honest feedback as you practice your sales pitch to help refine your approach. How to Reach Existing Clients (Since existing clients account for a majority of total sales, your main focus should be on reaching these consumers, see next steps for details) 4Data mine mine your current book of business to find potential new sales. Look for life event changes such as marriage, new additions to a family, home purchase, etc. for sales opportunities. 4Query the data and look for signs that identify product gaps where there may be an opportunity for life insurance sales, no insurance information on file, no trust information on file, etc. 4Prioritize once you have identified opportunities, prioritize them according to probability of success to help you get off to a strong start, large gaps, better relationships, etc. 4Summarize techniques and outline best approaches to use when contacting consumers. 4Use best approach topics (hooks) Pru has created a number of sales idea flyers that can help match consumer profiles with the appropriate products to fit their specific needs, ROP and Divorce, Stretch IRAs, etc. 4Establish trust. Existing clients who trust your recommendations and expertise are more likely to purchase additional products from you, and recommend you to friends and family. page 2

3 Step 2: Identify clients with potential insurance issues and planning gaps The second step in prospecting is locating available insurance opportunities and zeroing in on clients that offer potential sales opportunities. Use the following potential opportunities to discover what solutions and tools you can use with each target market opportunity. Identify insurance opportunities by mining your current book of business: 4No insurance information on file. 4No estate and/or trust on file. 4The trust and/or insurance policy either does not cover new life events (new child, new job, new house, new spouse, etc.), and/or is over five years old and has not been reviewed for two years Target Market Opportunities Client is years old and has not set up a trust, or trust has not been reviewed on a timely basis Clients with policies over 10 years with an age range between years old and insurance needs have changed Divorce/Saving for College Education Please note: the use of policy cash values to fund education cannot be promoted in Nevada. Estate Tax Planning No trust or comprehensive plan in place (huge tax liabilities on the horizon) Business Planning No Buy/Sell Agreement in place. Potential buy/sell candidates are often in the Retirement Red Zone the 5 years before or after retirement; and consumers who are and have had policies for over 10 years Consumers with over $100,000 in their IRA Coverage less than 10x times annual income and appropriate types of insurance Solution/Benefits Having a trust in place can help let your clients avoid unnecessary estate taxes, and document decisions involving estate plans such as: guardianship, beneficiaries, trustees, etc. Learning how to properly fund a trust can help mean the difference between a trust that will be there for your client s beneficiaries, and one that is inadequate. A new policy may still be affordable (if health has not declined) and may offer additional useful features and benefits. Purchasing a Return of Premium term product can help your clients meet their short term insurance needs today with a term policy, plus it offers the ability to have all paid premiums returned (provided there are no outstanding loans) at the end of their level term period. This is a perfect solution for the client who doesn t like term and/or can t afford perm. Proper estate planning will help your clients and their beneficiaries avoid paying unnecessary estate taxes. A life insurance policy is an essential part of an estate planning strategy. Buy-Sell arrangements enable businesses to be transferred after death in an orderly fashion while also helping to avoid any future disputes between heirs and survivors. Protect the long term mobility of your business through key man insurance. Examine if the IRA account is still the right financial vehicle and discuss the potential positives of a Stretch IRA strategy. Make the right decision for your clients based on their current and long-term insurance need. Knowing how much and what type of insurance coverage they will need will help them plan accordingly and purchase a new (or update their current) policy. Tools (Included in Data Mining Kit) Trust Funding Sales Ideas ( Ed. 12/09) Estate Planning (IFS-A Ed. 08/08) Annual Client Review Meeting (IFS-A Ed. 02/09) Annual Meeting Tips (IFS-A Ed. 01/09) Annual Client Review Meeting (IFS-A Ed. 02/09) Annual Planning Meeting Tips (IFS-A Ed. 1/2009) Sales Ideas ROP Term Divorce Ed. 10/09 College Funding Ed. 05/09) Estate Tax Planning Tools (IFS-A Ed. 08/08) Buy/Sell Agreement Sales Ideas (IFS-A Ed. 10/08) Taking Care of Business Key Person Coverage ( Ed. 5/2009) Stretch IRA Planning (Brainshark IFS-A Ed. 03/09) Roth Conversion and IRA Distribution ( Ed. 12/2009) Life Insurance Quick Estimator (IFS-A Ed. 03/09) Life Insurance Made Simple ( ) Clients should consult their attorney, accountant, or tax advisor regarding their particular situation. page 3

4 Step 3: Contact the Client The third prospecting step involves reaching out to consumers who offer the potential for an insurance sale. Call or these consumers to set up an initial meeting. Be sure to use the following phone script tips (below) when making your call to maximize its effectiveness. 4Phone scripts/planning for objections (based on potential insurance and planning gaps) 4Sell the appointment! Make sure your clients know how important a short meeting to discuss their financial plans can be for their future. Phone Script Tips: When you make the call, remember to sound sincere and confident without sounding pushy. If at any time the contact wants the phone call to end, be sure to end the call immediately. If the contact states an objection, follow these steps: Ask one or more thought-provoking questions, listen to their concerns, and respond accordingly. Strive to create value with each response. Remember: You are selling yourself as a financial expert on insurance and financial products focus on securing an appointment and DO NOT SELL over the phone. Tips: You may even want to practice completing a policy review prior to the initial meeting. Be sure not to rush the process take the time to be prepared before you meet with a client. Good candidates for a lifelong client relationship take time to cultivate. Step 4: The Initial Meeting Make the most of your time with the client to compile the necessary information to understand their financial goals and realities. Be thorough, but concise, when you walk your clients through their needs. Be sure to show them all they need to know, and help them reach informed decisions about their insurance needs. Remember: while you may successfully make a sale at the initial meeting, it often takes two or more meetings with a client before you get to the taking the application stage. 4Go on a fact-finding mission to learn about a client s financial goals and dreams. This will help you understand what the client wants, and how insurance can help. 4Conduct a policy review and disturbing interview with client (See policy review questionnaire included in kit). 4Provide the client with brochures for reference start with information about yourself and your firm. When appropriate, Pru offers consumer-approved material for every insurance product we sell, plus additional pieces on general insurance needs and benefits. 4Use the Life Insurance Quick Estimator to estimate how much and type of insurance your clients will need (included in kit). 4Provide preliminary solutions (if appropriate) products, riders, advanced concepts and solutions, etc. 4Secure premium commitment when the meeting is over, make sure your clients are committed to purchasing a certain amount of insurance coverage. Tips: Don t forget to have your clients bring their 401(k) statements, insurance policies, Social Security income statement, annuities policies, and long term care policies for the Policy Review. This will let you complete an accurate insurance and retirement needs analysis. Plus, don t forget to bring a second application for the spouse! You need to make sure the scope does include a portfolio review of all assets, risks, etc. that includes insurance. Reminder: Prudential associates are to adhere to all Company policies when engaging in marketing activities. page 4

5 Step 5: Present Solutions / Take the Application In the fifth prospecting step, you take all the information you have learned from the previous four steps, analyze it, and then present insurance solutions that will meet your clients needs. Don t forget to use Pru s marketing material to its full effectiveness. Also: 4Bring in the experts if needed use a point-of-sale general agent, wholesaler, or underwriting support to help. 4Resell the need for insurance review the needs analysis completed in the previous step. 4Offer product solutions that meet the client s need (based on product suitability, advanced or general sales solution, medical underwriting suitability, budget, etc.). 4Seal the sale with: Illustrations Product brochures Recommended alternatives Applications Step 6: Follow-up Congratulations! You have helped your client take a significant step towards achieving their financial goals and you have given them the key protection for their loved ones that only life insurance offers. But, remember that after a successful sale, your job is not over! The sixth prospecting step is the longest but most important step following up with your client. Creating a lasting relationship with clients can lead to future sales opportunities and additional prospects through positive word-of-mouth. 4Set expectations for future contact (including annual reviews). 4Ask for introductions and the names of 5-10 people they know. Note: Before seeking referrals, make sure you have your client s trust. Frame these referrals as your client doing a good deed to help friends and family get the protection they need. 4Don t forget: Sending birthday, anniversary, and holiday cards helps build and solidify relationships! Life insurance is issued by The Prudential Insurance Company of America, and its affiliates, located in Newark, NJ. Securities and Insurance Products: This material is designed to provide general information in regard to the subject matter covered. It should be used Not Insured by FDIC or Any Federal Government Agency. with the understanding that we are not rendering legal, accounting or tax advice. Such services should be provided May Lose Value. by the client s own advisor. Accordingly, any information in this document cannot be used by any taxpayer for Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate. purposes of avoiding penalties under the Internal Revenue Code. This marketing material is subject to an expiration date, and use of this material must be discontinued as of the expiration date The Prudential Insurance Company of America 751 Broad Street, Newark, NJ Ed. 06/2010 Exp. 11/2011