Building Your Prospecting Reservoir. Agent Guide. National Life Insurance Company Experience Life MK1089(0213) TC72281(0213)3

Transcription

1 Building Your Prospecting Reservoir Agent Guide National Life Insurance Company Experience Life MK1089(0213) TC72281(0213)3

2 Building Your Prospecting Reservoir Contents Building Your Prospecting Reservoir Be Observant Keep Good Records Qualified Prospects Setting Prospecting Goals Prospecting Sources Source: Your Natural Market Source: Checkbook Prospecting Source: Centers of Influence Source: Prospect Nests Source: City Directories Source: Direct Mail/ Goals Lists Mailing Piece Follow-up Source: Advertising Source: Community Involvement Source: Publication Source: Newsletters Source: Public Speaking Source: Seminars, Trade Shows, and Association Marketing Prospecting Profitably Telephone Approach/Do Not Call Rules

3 Agent Guide Building Your Prospecting Reservoir Building Your Prospecting Reservoir The importance of prospecting and its contribution to your success cannot be over stated. Your goal is to develop qualified suspects who can be seen under favorable conditions. In order to be successful, you must develop good prospecting habits. Be Observant The first prospecting habit you should form is to be observant. Suspects (who will later become qualified prospects) are all around, so it is important to learn how to keep your eyes and ears open. Do more than just look see something. Do more than just listen hear something. Make notes. Develop an alert, probing, and inquisitive attitude. Learning how to pay attention will become one of the single most important factors in your career. In fact, your success in this business will ultimately depend on your developing the ability to evaluate the people and situations you encounter on a daily basis. Once you ve developed this ability, you will begin to notice people usually due to their changing situations who could become qualified prospects. In any random group of people you can almost be certain there is someone who has just experienced a change in their personal situation maybe a promotion, a new baby perhaps a new job or home. That occurrence makes that individual a better prospect for you. As you begin to notice people, you will see that there are five general types of changing situations that make potential customers for you: 1. Increased family responsibilities births, engagements, marriages, home purchases, real estate transactions, etc. 2. Increased business responsibilities businesses purchased or reorganized, incorporation notices, new key people in a business, new partnerships, etc. 3. Increased personal income new job, promotion, salary increases, inheritance, winning of lawsuits, new professional fees, etc. 4. Increased business income business expansion, contracts, building permits, prosperity in a particular industry (e.g. seasonal expansion), etc. 5. Increased receptiveness to life insurance death of a friend or relative, narrow escapes, personal or observed accidents, illnesses, etc. 3

4 Two Notes of Caution: First, supplement this list of changing situations as your prospecting and sales experience broadens and as you sharpen your personal observation skills. Second, remember that a changing situation doesn t always mean you should attempt to obtain an interview. Some situation changes are so obvious that they are worked to death, while others are so personal that a prospecting call could be inappropriate. Keep Good Records The second habit you will want to form right at the start is keeping an organized and up to date reservoir building file. This file will become your system for making sure the names of qualified suspects you ve gathered come to your attention when it is most appropriate to contact them. Qualified suspects are individuals who you believe will appreciate the kind of work you do, and the plans, products, and services you offer. An individual becomes a qualified suspect when you know the following information his or her: Full Name Nickname Company Name Title Date of birth Marital status Age of children Home address Business address Telephone numbers Income/Business sales volume Present insurance Present benefits packages Associations Motivations Qualified Prospects Before we move on to setting prospecting goals it is important to remember that a qualified suspect is not necessarily a qualified prospect. Your qualified suspect becomes a qualified prospect when you determine that he or she: Has a need for the products and services you offer, and recognizes it; Has the money to meet that need and is willing to commit it; Is insurable; Has expressed a hot button ; and Would be willing to do business with you During your first meeting with a qualified suspect, you should be able to determine whether you are dealing with a qualified prospect. Setting Prospecting Goals By this point in the Business Development Process, you have very likely set your production goals. You know how much money you need to earn on a monthly and annual basis, and you know that you only make money when you ve made a sale. In order to meet your production goals, you have to set prospecting goals and you have to stick with them. Generally speaking, you should plan on starting out with a minimum of 200 qualified suspects. You should try to add three suspects a day to that list during your first six months. After six months you should plan on adding two new suspects a day, and once you have 250 clients you should try to add one per day. By doing this, you will always have a reservoir of people to see, and you will steadily build your client base. Once you ve reached 500 clients, you will only need to add a couple new suspects a week. 4

5 Agent Guide Building Your Prospecting Reservoir By now you may be thinking: Those are pretty big numbers. On what are they based? That s a good question. The numbers are based on the assumption that you are arranging two brand new interviews every day, for a total of 10 per week. With an 80 percent kept ratio that is, assuming eight of the ten keep their appointments you should be conducting eight opening interviews a week. Those interviews, in turn, should result in four qualified prospects. Four qualified prospects should produce two paid cases per week (or three, once you re experienced). By constantly adding new suspects to your reservoir, you ll always have people to see and you ll slowly but steadily - build a solid base of clients. This solid base of clients, over time, will generate referrals to new prospects, which will, also over time, reduce the hours you ll need to spend prospecting. Prospecting Sources People you know people they know By consistently using a combination of warm and cold prospect sources, you can maintain the activity levels you need to meet your sales goals. Focus initially on warmer sources such as natural market contacts and referrals because these are the most productive. Over time, however, try a combination of sources it will help you discover which sources work best in your markets. Understanding how your money flows will help you become a stronger business person. Remember - your income must be sufficient to support your expenses. Source: Your Natural Market To determine your natural market, think of people you know, who know you, and with whom you have some leverage or third-party influence. If you are new to the business, you should contact these prospects first. Using the prospecting primer, write the names and other qualifying information of: Family members; Friends and social acquaintances; Former business associates; School contacts; Business owners; Professionals and business people whose products and services you use; and People whom your spouse and children know well. Source: Checkbook Prospecting Another excellent source of prospects and one that is right at your fingertips is your checkbook. Take out your check register and make a list of everyone with whom you have done business in the past 12 to 18 months. You know these people and they know you, and if they are business owners or professionals, they very likely want your continued business. This gives you leverage. The next time you give them your business, ask for theirs. Source: Centers of influence Centers are influential men and women in your community who are not necessarily prospects for you, but who may be willing and able to help you develop your business. Their third-party influence, through personal introductions or referrals, can help open doors that you might not be able to open on your own. From your original list of qualified suspects, select those who would be natural centers of influence. A person doesn t have to be an intimate friend to qualify as a center of influence, but he or she should have these basic qualifications: The center should know you personally and be willing to help you. The center should have contacts with the type of people that you want to serve. The center should have confidence in your integrity and ability. The center should be the kind of person whose judgment and opinions are sought after. 5

6 Bankers, doctors, attorneys, school teachers, real estate agents, building contractors, manufacturers agents, etc. make excellent centers of influence. As well, (and ironically), people who are no longer insurable make excellent centers of influence. Once you ve identified between four and six centers of influence, contact them and explain how you are trying to build your business. Ask if they d be willing to meet with you periodically as part of your unofficial board of directors and suggest the names of people you should contact. Try to meet with one center of influence per week. Your initial approach to a prospective center of influence will depend upon how well you know the person. Note: One strategy for getting referred leads from centers of influence is to give them the gift of praise. In talking with a banker, for example, you might say something like this: [Name], you re very highly spoken of in the community and your opinion seems to count for a great deal. As you may know, my business is focused on serving people of substance young business owners with a future and frankly, I need your help to expand my market in the right way. Who, in your opinion, are among the most promising young business owners in town? Finally, always show your appreciation of the assistance given you by a center of influence. When you have received one or more names, report back the results and remember to say thank you. If you have made a sale to the suggested suspect, the center of influence will be proud (of both you and his or her ability to help) and will probably be inclined to give you more names, or to refer people to you. If you failed to make a sale, the center may want to help you try again. A Final Thought: If you get an opportunity to do a favor for your center of influence, by all means do it. Such reciprocal favors will make the center more receptive to helping you in the future. Source: Prospect Nests A prospect nest is a group of people to whom you have access, but that is too small to be considered a market. Typical prospect nests include social, civic, or religious groups, or the employees of local companies. Your objective is to gain access to these groups, build rapport and trust, and generate as much sales activity and referrals as you can. Usually, you will discover prospect nests through your work with someone in the group. Example: Your prospect works for an advertising firm in your town. As you re developing business with the prospect, get to know (and be known) around the office. If you make a sale, the other employees or business owners and their families will become a nest for you. If you happen to obtain a copy of the firm s employee benefits booklet, you can become an expert in their fringe benefit plan. Then, when you meet with various employees, you can explain to them (in effect): Here s what you have; here s what you need; here are the gaps; and here s how we can address those gaps. Over time, you may eventually become known as the company s financial service representative. Source: City Directories City directories contain public information about the city and surrounding areas, and can be ideal tools for developing lists of suspects. Most directories are arranged by residential and commercial listings, and contain valuable information including names, addresses, phone numbers, occupations, places of employment, and standard industrial codes for businesses. Here are a few ways city directories can help: Identifies target market prospects (occupational groups, geographic areas, etc.) Provides names for direct mail lists 6

7 Agent Guide Building Your Prospecting Reservoir Provides information you can use to complete some of the information on a fact finder before meeting with a prospect Tells where a prospect is employed (information you can use to ask for referrals to the person s employer) Source: Direct Mail/ Direct mail letters/prospecting s are usually sent to unqualified names in hopes of generating activity, and usually reference a particular solution or service. The response that you get from a direct mail or campaign is dependent upon 4 factors: your goal, your list, the marketing piece and the follow-up. Goals Before you begin any type of marketing plan, start by deciding what you want to get out of it. For a direct mail campaign, ask yourself the following: What do you want to achieve through this campaign? Are you trying to generate sales leads or simply trying to establish name recognition and credibility? How will you measure your success by the number of leads received, premium or commission dollars, etc? Lists Commercial list houses sell mailing lists for individuals and businesses using a wide range of marketing criteria, including occupation, income level, age, zip code, standard industrial code, and telephone exchange. Additional names for your direct mail efforts can come from many other sources, including employee lists, club or association rosters, local newspapers and magazines, referrals from current clients, organizations to which you belong, trade shows you attend, Chamber of Commerce members, and personal observation prospecting. Purchased lists If you do not have a compiled or warm list available, you can purchase lists of names from a list vendor. List vendors will generally give you several options from which to choose, including: Number of Uses - You can purchase a list for onetime use or for multiple uses. Although it s a little more money, the advantage of purchasing a list is that you will be able to download your list into a tracking system for your mailing (or seminar), send out additional mailings, and utilize your list for crossselling opportunities. Demographics - Based upon the demographics you specify, you can purchase lists that have been generated from a variety of sources. The price per name will depend on how the list was created. Lists created from census data are less expensive, for example, than lists created from survey responses. List Preview - Once you have given the list vendor your list specifi cations, it s acceptable to ask for a percentage breakdown of the list before you purchase it. In other words, if your target age range is 55-70, and you find that 65% of the people on the list are age 70, you may want to alter your demographics and ask the list vendor to generate a different list. Percentage of Deliverable List - Make sure that you ask what percentage of the list is guaranteed deliverable. Save the number of mailing pieces that come back as bad addresses, and if the bad addresses exceed the guaranteed percentage, you should be able to obtain a refund. Finally, remember to order mailing lists that supply prospect phone numbers, names, and addresses. This will help you track and follow up on your mailing. Sources of lists There are a number of list vendors. Here are just a f ew you might want to contact should you decide to prospect using direct mail. List Brokers, Inc. Phone: (800) Website: CIS (Customer Identification Services, Inc.) Phone: (800) Website: InfoUSA Phone: (800) Website: Emerald Publications Direct Mail Systems Phone: (800) Website: 7

8 Source: Community Involvement Sources of lists Mailing Piece Follow-up With the advent of the Do-Not-Call list, direct mail and has become increasingly popular. Consequently, consumers are receiving a much larger amount of mail and , so making your marketing piece stand out is often a challenge. When selecting your marketing piece, make sure that you are addressing a need, not just trying to provide a solution. Also make sure that you provide the prospect with a clear response mechanism(s), including a return mail piece, an 800#, an or a combination of all three. s should include the phrase "This is an Advertisement" at the top and include: To be removed from future mailings, please send an to unsubscribe@nationallife.com with the word "Unsubscribe" in the subject line. Also note the following guidelines for bulk The may only be sent to: Existing Clients, People who have provided written permission to contact them via , or People with an existing business relationship Mailing Piece You must also check the following Do Not Contact lists to ensure the addresses you are sending to are not on these lists: The address does not appear on National Life Group's Do Not list, The address does not appear on any statesponsored Do Not list. You are responsible for checking if your state has such a list. The number of recipients must be limited to 20 for each , due to anti-spam policy. Naturally, the more follow-up you re willing to do, the better thee results of your campaign. Doing a single mailing to a cold list will not generate as many sales as a targeted campaign that includes follow-up calls. If you want the best response possible, determine you follow-up plan and make sure that you schedule the time to do it. Source: Advertising Advertising in local publications lets people in your marketing area know about you and your company. Try to coordinate the subjects and timing of your advertising efforts with your direct mail letters, so that people who receive your letters will also be exposed to your advertising if possible, during the same week. Pre-approved and designed ads are available through the National Life web site, and may be customized through National Life s Marketing OnDemand program. Source: Community Involvement Getting involved in a community project can not only be a great way to make a positive difference in the city or town in which you live, but it can lead to your meeting individuals, business owners, and professionals with whom you can do business. By actively participating in community organizations in which you have an interest (e.g. town bands, choruses, boys and girls clubs, Lions, Kiwanis, Rotary, etc.) you increase your visibility and, in turn, your list of people upon whom you can call. And as you make new acquaintances through your various civic, charitable, and political activities, you ll become more relaxed talking about what you do and the services you offer. But best of all, others will feel more relaxed approaching you for assistance. 8

9 Agent Guide Building Your Prospecting Reservoir Note: Committing yourself to an organization or cause in which you believe or have a sincere interest will always be more effective than undertaking a task for the sole purpose of local exposure. Source: Publication Few vehicles will be more effective for your prospecting and recognition efforts than publishing articles on the subjects in which you specialize. Business editors and journalists from local newspaper, trade or alumni publications, or employee newsletters are frequently looking for concise, targeted articles on insurance or other financial matters for the benefit of their readers. To learn more about prospecting in this manner, refer to Public Relations Through Publications. National Life Group also makes available pre-written and pre-reviewed byline articles covering a number of topics. For more information, check the National Life web site. Source: Newsletters Newsletters can be a cost effective way to enhance your prospecting efforts within your target market. A newsletter allows you to promote your image as a knowledgeable professional dedicated to serving the needs of your market members. Send your prospects (and, of course, clients) a newsletter with your personalized imprint and photograph. It will make a lasting impression and keep your name in front of them on at least a quarterly basis. Prospects who were unwilling to meet with you previously may, after reading an article of interest, contact you for more information. As well, they may be more receptive when you contact them in the future. Source: Public Speaking Public speaking is filled with prospecting opportunities. When it comes to self-marketing strategies, no forum is more effective than public speaking. Giving a speech or addressing a gathering can enhance your credibility, showcase your expertise, and reinforce your reputation as a quality provider of financial products and services. Regardless of where you live, there are likely social, civic, and fraternal organizations that are looking for speakers - and financial services is always a hot topic. Public speaking lets people put a face with a name. Perhaps they ve received a direct mail letter from you; or perhaps they ve read a byline article in the newspaper. By speaking in public, you allow people to get to know you, even as you build a list of names on whom you can call. For more information on building public speaking into your prospecting, refer to Public Speaking as a Self-Marketing Tool. Source: Seminars, Trade Shows, and Association Marketing Once you ve become more experienced, you will enter the Marketing Yourself phase of your career, where you will expand your prospecting and marketing activities into such areas as seminars, trade shows, and association marketing. These venues allow you to prospect to large groups of people at the same time. And while that might seem ideal at this point in your career, unless you are already well versed in a particular area (retirement or estate planning, long term care, etc.) you should probably focus your prospecting efforts on the areas covered in this booklet. 9

10 Prospect Profitably Telephone Approach/Do Not Call Rules In many cases, you will want to implement a number of prospecting strategies simultaneously. That way, you aren t dependent upon one particular strategy to carry you through. As already mentioned, if you plan on advertising in a local publication, consider publishing a byline article or doing a direct mail campaign at the same time targeted to the same audience. Likewise, if you are meeting with a center of influence, ask about various prospect nests he or she may know. This integration of strategies will have a positive impact on your prospecting results. Regardless of which prospecting sources you utilize, it is ultimately your consistency and commitment to the process that will determine your success. When phoning prospects for appointments, establish your credentials by introducing yourself and what you do. Be persistent, but at the same time, avoid highpressure tactics. Remember, you provide a valuable service but not everyone will be willing to listen. The National Do Not Call Registry was established in October Significant fines (up to $16,000 per violation) are imposed on persons who violate these new rules. Extensive information regarding the National Do Not Call Registry as well as information about state Do Not Call lists is available on the Market Conduct area of the agent s portal on the company s website. All agents should review these rules before calling any prospect or referral. Furthermore, be sure to provide the company with the names of anyone who asks to be put on a Do Not Call list. Unsolicited advertisements sent by fax are also prohibited. 10

11 Agent Guide Building Your Prospecting Reservoir Notes 11

12 National Life Group is a trade name representing various affiliates, which offer a variety of financial service products. Centralized Mailing Address: One National Life Drive, Montpelier, VT For Agent Use Only - Not For Use With The Public