Is Your Website User Friendly?

Have you ever purchased a product that came with one of those clever little registration cards?  Like a blender or a washing machine?  Generally the sales person tells you at the point of sale that there's a warranty included and all you have to do is visit a website answer a few questions and give a little data about yourself. How can it go wrong?

It's so convenient, just type in the address and let technology do the rest.  However, once you get over to the company's website you find it's not the modern marvel of technology that you had imagined. In fact it's just the opposite. Understanding what you are supposed to do or even how to answer their vague questions proves to be more trouble than it's worth.  After toiling for twenty minutes and pulling out your hair the perceived value of your purchase/warranty is falling and will continue to plummet until you struggle through or just give up in aggravation.

Yet the worst is when you don't even get a chance to start. You get to the website only to find that the "company's servers are experiencing technical difficulty" and you need to "try again later".

If you have a website you better make sure that it is user friendly.  Don't let it give the wrong impression about you or your agency.  For example, is your site only functional during "business hours?" Can prospects get a quote? Can they at least complete a Desires Needs Analysis (DNA)? 

Websites are for 24 hour a day people. It needs to provide functionality 24 hours a day. Users don't just need a way to find out your phone number or who you have as staff. They can use your Facebook page for that.

If you direct them to your website they better leave feeling like they've accomplished something.  If you don't have quoting ability then they should at least be able to complete a DNA and be followed up on within 24 hours.   Along with that, fill the site with educational information like importance of higher limits or an umbrella policy.
 

Finally, utilize videos of your staff and current customers.  Instead of someone reading about how flood insurance isn't included in a standard home policy have one of your staff do a video.  You could also post that on YouTube to guide prospects to your site.   It should also be noted that everything should look as professional as possible, don't half-do it.

 

Is The Hand Writing On The Wall?

This weeks post reminds me of one of my favorite Bible stories.  It comes out of the book of Daniel in chapter five.  It involves the old saying the "handwriting on the wall."

For those not familiar with the passage, King Belshazzar was a prideful and self-exalted King who knowingly went against the wishes of God.  During one of his lavish parties that he often threw a hand appeared out of no where and begin to write an inscription on the wall.  To make a long story short, Daniel one of the King's servants interpreted the writing to say that the days of the king's reign were numbered.  He had been weighed in the balances and been found wanting.  His kingdom would be divided.  

I find this story relevant because there seems to be a lot of writing out there that we, as independent agents, have been warned and that our days are numbered.

For example, I read an article today titled "Is Personal Lines Auto Worth Fighting For?"  It was written in response to another article that surfaced recently about a study done by the investment bank Nomura proclaiming the demise of the independent insurance agency (the handwriting on the wall). I highly recommend that you read both articles and have included links to each.  I only ask that you start with the Nomura study to read all of their data as to why our way of life is doomed.

I don't want to rehash each of the articles but I do want to point out that both elude to personal auto being a commodity. Which is very unfortunate, and only somewhat true.  For two reasons:

1. For years we have sold it as a commodity never explaining the differences in coverages or upselling subtle nuances but rather cutting as much as legally possible and reducing it to its lowest obtainable price.  We've been treating all personal auto insurance as non-standard auto insurance.
2. The Nomura study goes even further to state that "as company underwriting models evolve and become more intelligent, the need for front line underwriting or talented and trained agents diminishes."  So just like fast food you can pull up to a drive thru and pick and choose what coverage you need off of a menu.  That doesn't work for most people.

When you go on vacation are you willing to spend a few more dollars at a hotel with far superior service?  You could just pick the cheapest room available, besides a bed is just a bed isn't it? 

On your anniversary would your rather have Ruth's Chris Steakhouse or Taco Bell? 

When you have a devastating and unforeseen accident would you rather have a person on the end of the phone several states away explaining you only bought the state minimum requirements or would you rather have a trained and capable agent sitting beside you who spent the time to explain all of your exposures to you and sold you the coverage you truly needed coupled with an umbrella policy?

Here's my gist.   Selling insurance the way that we know it now might be a thing of the past.  I definitely won't totally discount what the Nomura study had to say.  So instead of calling ourselves insurance agents, and selling a commodity, maybe it's time that we market ourselves as Risk Managers.

I mean if the majority of your day involves taking change requests over the phone and cutting coverages or shopping companies everytime someone complains about price then I have to agree with the Nomura study.  The hand writing is definitely on the wall for you and your days are numbered.   Your services will soon be obsolete.

However, if you want to be a Next Generation Agent you must be willing to commit the time to:

1. Read and learn something new every day 
2. Obtain your CPCU, CIC or many other industry designations 
3. Recognize the importance of knowing ISO form language

When you do this you can become a true Risk Manager, someone there will always be a need for.  Not just someone who sells insurance.  

Social Media Won't Last

“There is no reason anyone would want a computer in their home.” — Ken Olsen, president, chairman and founder of Digital Equipment Corp., 1977

"In 1938 Chester Carlson invented xerography. Virtually every major corporation, including IBM and Xerox, didn’t think much of his idea and rejected it. They felt that since carbon paper was cheap and readily available, no one would buy an expensive copying machine."
 

Still working without a social media presence?   Still pouring thousands of dollars into a yellow page ad?  Just admit it, you've decided social marketing isn't for you and you're content to leaving low cost access to exponentially thousands of preferred insured's to your competitors.  Besides, your current marketing plan has worked for years.  Or has it? 

Have you ever measured the return on investment for your yellow page ad?  Do you track how many successful submissions (not quotes) that you get from it?  Listen, I'm not saying that a yellow page ad is useless (yes I am) because it does provide one great service, it helps  those looking for insurance with an alphabetized list of  available agents that they can call until they find the lowest price.

However, with agency Facebook and twitter accounts, you could potentially reach customers who might not even know they're looking.   Through passive advertising you create your page, share it with your friends, who share it with their friends and so on and so on.  Just how many friends? Facebook has 1.4 billion users followed by twitter with over 500 million.

Here are some more interesting stats:

Total number of Facebook users worldwide	1.4 Billion
Total percentage of 18-24 year olds who already use social media	98%
Total percentage of people on Earth who use Facebook	11%
Total amount of minutes people spend on Facebook every month	700 billion
Average amount of time a person uses Facebook per month	15 hours 33 minutes
Total amount of people who access Facebook with phone	250 million
Total amount of websites that have integrated with Facebook	2.5 million
Total pieces of content shared on Facebook each month	70 billion

Don't be afraid. It really isn't hard.  Do it tomorrow and then take 10 minutes every day to post something useful or share someone else's useful post.  But keep in mind your page isn't just your business card.   It's important to post valuable and free information. Every time you do that's another chance for someone to link to your page and find out about your agency.

Don't miss out on a chance to start social marketing now because you're intimidated.  There's literally thousands of resources to guide you to become a master of social media.  If you want to study a little further, Click here for some ideas on how to get started.

Build Better Relationships

One of my all time favorite lines from a TV show comes out of an episode of Seinfeld. One of the main characters, George, constantly has relationship problems. Actually, all of the characters on the show have issues, but in this one instance George's girlfriend is breaking up with him. Needless to say he was expecting it, but she tries to give him the "it's not you, it's me" routine. Most would accept that and move on but George just can't leave well enough alone and begins to argue that if it's anyone, it's him.

As a salesperson, relationships will come and go. There will be some you nurture and watch blossom and then there will be some that no amount of miracle grow will help. But if you find yourself on the bad end of a breakup (career wise) more often than not, maybe you should take a good look at yourself. Maybe it's you!

Successful salespeople excel at building relationships.  Like in most relationships you will prosper if you're a giver rather than a taker. In this case giving refers to value. 

Are you having trouble sealing the deal with a prospect? What value have you given? Not promised. It's easy to advise the customer of what you can do once they sign, but you increase your chances at being more believable if you give some of your value for free. 

For example, as an insurance agent you have a chance to educate insured's. I've had many customers tell me that I've told them things that no other agent has. When you take the time in your pre-sale process to educate you build trust and rapport. Both are two of the key qualities needed for a successful relationship.

Another area of value that you can give for free may come in the form of networking.  You might not be able to help the customer at this time but you might know someone who can.  Why not explain to the client that you don't have the expertise or the market that will benefit them most, however you have a colleague or an associate that can help them? 

If you've been having a tough time transitioning your prospects to buyers, just remember, be a giver first!  By doing small things like helping a client network, or gain some education, you will invoke the principles of Liking and Reciprocity.  Both of these Principles of Influence will increase your bottom line and increase your ability to build stronger and longer lasting relationships with your customers.   

Silver Lining to "The Cloud"

Whether you're a new scratch agency or a veteran office with multiple carriers, one issue both face is the cost of infrastructure. Have you ever priced an agency management system? They're not cheap. Not to mention the maintenance fees and training needed.

Let me take a moment to say that I'm not anti-management system, on the contrary. They're indispensable. But, considering the fees associated I am saying that there might be an easier more affordable way for agencies that are struggling with upfront investment revenue.

I'm talking about cloud computing. Ok, stop; take a breath and relax. This isn't going to be too hard for you to understand.  It's actually quite simple.

Imagine a folder that you can put on the desktop of all the computers in your office, as well as all of your mobile phones.  Everything you put in this folder can be accessed at any of those workstations, regardless of which one originally stored it.  

So for example, if agent A creates a file or contact note for prospect Smith, it can be accessed by all other agents in the office on their device as long as it was stored in the folder connected to "the cloud." Effectively it sets up a cheap and easy network between all of your computers, tablets and smart phones.

So where is this "cloud?"  As I mentioned above there is a cost benefit associated with cloud computing in regards to infrastructure.  The short non-technical way of putting it is that instead of having to buy large computer servers or memory banks and storing them in-house, there are companies out there that will do this for you.  In essence, your files are stored securely on their servers and able to be accessed from anywhere you have internet. 

One other benefit of storing information this way is that if your computer crashes you won't lose or have to replace valuable files.  Simply log on through another work station or mobile phone and you will be able to continue business as if nothing had happened.

Even if you already have access to an agency management system I recommend taking a serious look at the benefits of cloud networking all of your devices.  If nothing else it would be a great way to take pictures of a risk and store them for any other agents or CSR's to pull up back at the office.

For further explanation by a true computer professional follow this link:

Introduction To Cloud Computing

Also check out Dropbox.com or do a Google search for other websites that provide cloud storage.

"Tips Appreciated"



You might think twice before hanging this in the office...



There are many laws that dictate what you are, and what you are not, allowed to do as an insurance agent. One of those laws involves giving and receiving kick backs or gifts. If you've forgotten the fact since you passed your licensing test, they're not allowed.

However you are allowed to receive referrals. In a way, a referral is your gratuity. A referral is your client's way of saying you did a great job and they enjoyed your service. When you receive great service in other industries, you reward that person with a tip.  When you get a referral as an agent, you're getting a tip.

Getting referrals is easy. Just exceed all of your client's expectations of service, or in other words do for your customers everything you want your agent to do for you. Trust me, they will tell others about you.

Or you could just ask! When you get your bill at the restaurant they put a nice little convenient line right under your total for you to write in the tip. Why not add a page to your document with a few extra lines and ask for a few names of friends or family that would appreciate the same service and savings that you just provided them?

There are several easy tips that you can incorporate into your sales technique that will have your clients volunteering names and numbers of friends. For one of these tips just email me at nextgenagent@gmail.com and I will share one with you.

Close Only Counts In Horseshoes

Getting closest to the peg in horseshoes will win you the game, but just getting close to reaching your customers in advertising will waste a lot of your money. 

I speak with a great deal of agents who go through “slow times”; when the phone just isn’t ringing.  Sure they find tasks to fill their day with servicing, but new business production takes a plunge.  Believe me, nothing makes you feel worse as an agent than to work your tail off but at the end of the week your score card is blank.

In a recent conversation one of my agents told me that he was “waiting on the phone to ring.”  If I wanted to be mean I could have told him that the definition of waiting is “to remain inactive or in a state of repose until something expected happens.” 

Promoting your agency and yourself takes action.  If you sit and wait on the phone to ring, you might as well lock your doors, hang the closed sign, and go golfing for the day.  In fact, I would recommend that.  You would actually have a better chance at making a sale. 

What do you do during the slow times?  Do you wait or do you make things happen? 

For example, I was watching television the other day when a commercial for a local trial attorney came on and his jingle was “call Star Star Law” (**LAW).  It was sung lyrically and repeated about 15 times during the ad at which point I was ready to turn it.  I grabbed the remote thinking why would you waste your time making that?! Right after turning the channel, my little two year old niece was playing in the floor, not paying me any attention, singing “call Star Star Law.”  I cannot tell you the phone number to any other lawyers in town but I know his by heart.

I know one agent who took the money he would have spent on a Yellow Page ad and bought one of those traveling food vending trailers.  He strategically placed his agency logo on it and he donates it for free to civic groups to use to have bake sells out of.  Not only is he providing a community service and a good deed, he’s getting “miles” of promotion out of it for his agency.

You don’t have to have a marketing degree or access to expensive ad departments like the show Mad Men.  My grandfather used to say you “gotta fish where the fish are.”  Sometimes all you need to do is get out from behind your desk and go meet people.  They’re out there!  They’re at Starbucks getting coffee or the local diner eating lunch.  They’re at fairs and community events.  But the one place you won’t find them is in your office.

Tomorrow, if you’re setting in your office and no one calls before 11:00 am for a piece of new business, grab a stack of your business cards and hit the pavement.  Don’t return until you’ve talked to at least three new people. 

Has Your Agency Caught A Case of "Mono"?

On the couch, thermometer in my mouth, cold sprite by my side, and hot chicken noodle soup to soothe my aching throat.  Sick for a few weeks, way longer than I should have been, a visit to my family physician was in store.  Symptoms were:  sore throat, low grade fever, and the worst part crippling lethargy.  Diagnosis:  Mononucleosis.  (Aka, the kissing disease but in reality contracted from sharing a water bottle while playing softball)

The worst part was the apathy.  I didn't want to do anything!  At least any more than I had to.  Go to work; come home.  Eat dinner; go to bed.   No hanging out with buddies, no hot dates with my wife, and no more sports.  Just lots of bed and lots of reality TV.    

Which makes me think what if there were an Insurance Agency rescue show?

(Read this next bit in deep "promo guy" voice) This week on Agency 911 the Next Generation Agent team visits ABC Insurance Associates in Columbus OH, where owner John Smith is having trouble with producer passivity. It seems his team has their lines crossed when it comes to cross selling! (Ok, you can stop the creepy voice now)

Could I have just as easily substituted your agency's name?  Has your staff become indifferent, doing only the bare minimum?  If you did an agency book profile what percentage of it would be mono-line? Think about your last ten pieces of new business, how many were packages?  How many may lead to packages?  If you didn't say at least seven you may need a visit from Agency 911. 

All kidding aside, your preferred customers likely own other assets.  Writing their auto policy was just your foot in the door.  When completing your DNA checklist (read my previous post!) you better be asking things like "Do you own a home? And if so who is it currently insured with?"; "Do you own a boat or any recreational vehicles like ATV's?"; "Any rental property or seasonal dwellings?" 

These questions are designed to help you cross sell, the easiest way to build agency revenue.  But it also paints a more accurate picture of their insurance needs and more importantly it builds personal rapport and trust, all leading to greater volume, increased retention, and referrals. 

In conclusion, Next Generation Agents are immune to mono-line sickness!  Their mantra is "A package a day keeps the doctor away."

What's The Definition of Insanity Again?

I have a set of hair trimmers that I absolutely loathe.  I mean it, I seriously hate these trimmers.  They operate with AAA batteries and run for approximately one minute and thirty seconds before they completely drain a new set of batteries.  Not to mention the trimmer head won’t stay on without holding pressure on it.  It has been my intention to replace these trimmers for the last two years, and I am still yet to do so.  I keep spinning my wheels every week replacing batteries, holding the plastic together with duct tape and living with the aggravation.  Why?!

As my time and space with this blog is restricted I won’t digress anymore about my love/hate relationship with my personal grooming gear, instead I’ll attempt to bring it back around to my main point; Why do we keep doing the same thing over and over and expect different results?  The number one complaint of the agents I coach is the amount of time they spend daily with clients that give them as much trouble as my broken hair trimmers.  You probably do it as well.  You unintentionally spend the majority of your day on insured’s with which you probably make the least amount of profit?  Of course I’m speaking of the infamous Non-Standard policy holder.

If you added up all the time you spend with your non-standard policy holders, adding and deleting vehicles, calling about cancellation notices, or working with underwriting to re-instate coverage, you might be surprised to find out it’s a considerable drain on your daily routine.  On the other hand, the average preferred risk policy holder is in contact with their agent only once in every four years!   Wouldn’t it make more sense to spend the majority of your time and resources on policy holders that cost you the least amount of work and earn you more revenue?   

Let me be clear, I’m not advising you to stop writing non-standard policies; on the contrary, I’m a firm believer that any successful agency will have access to multiple markets with varying degrees of appetites.  However, I am suggesting that as a Next Generation Agent we realize that our time is valuable and more importantly limited.  We should prioritize our actions to market, brand and otherwise contact our preferred clientele before our competition does.

Next Generation Agent Contact Tips:

·         Use your agency management system or have your company representative run you a report of all of your business with preferred characteristics.  I.e. high limits, full coverage, package business, etc.

·         Send a letter to everyone on that list thanking them for their patronage and ask them to complete a short post card questionnaire to see if anything in their DNA (read previous post) has substantially changed.

·         Be sure to include a business card with contact information informing them they are welcome to call at any time.

·         Follow up after one week with a phone call.  Keep it light and simple.  Ask if they received the letter and if they didn’t want to mail it back could they take a few minutes to discuss the information over the phone.

·         Create an agency newsletter to send out quarterly or if you’re really energetic monthly.  Clearly state that you offer coverage with multiple companies!

·         Call everyone on the list at least once every six months

It’s not complicated and there are many more examples.   Keep in mind the idea is to focus your priorities and resources on maintaining contact with your preferred risk customers.  Don’t let the only communication you get be the Loss Policy Release form they send you for obtaining coverage with another agent.

The Future Really Is In the Palm of Your Hand

Many of you reading this might remember “the good old days.”  It was a little before my time, but I’ve heard the horror stories about the overwhelming amount of people and time it took to present a policy to an insured.  For all of you young whipper snappers it went something like this.  A producer would quote it, using nothing more than a pencil and calculator, pass that on to a CSR who would fill in endorsement forms by hand and then finally it would end up in a processor’s hands to be typed up and mailed out, all in a few days!  How’s that for efficiency?

 

And yet, are we any more efficient today?  We can turn our computer on, and in forty five minutes or less, quote a policy, issue it, take a payment, print it out, and hand it directly to the insured.  We are able to handle the work of three people, in a tenth of the time and in spite of that, finding the extra time in the day to conquer important tasks eludes us.

The majority of you don’t need to work any harder; you probably couldn’t even if you wanted.  But you can work smarter.  The Next Generation Agent answer to being more resourceful might just be in the palm of your hand.  You’re probably using it right now.  Of course I’m referring to your smart phone (On a side note if don’t own one, get one).  It could be argued the development of the smart phone has been the single greatest innovation to improve productivity since Henry Ford gave the world the moving assembly line.  No matter what occupation you’re in, it has become an indispensable tool.

So how can it help us in insurance?  Here is just a small list:

·         Most have high pixel cameras to take pictures of risks.  Store them on your phone or in the cloud (Google it).  Or immediately use it to send them to your underwriter. 

·         Need help finding a risk?  Use the GPS and mapping systems to guide you and even trace the distance to the nearest fire department for PC rating.

·         Receive and answer email while away from the office or use your hands free device to handle that important phone call while driving your car or better yet hitting the links at the driving range.

·         An infinite amount of apps to keep you on time with alarms, reminders and notes.  Some of my favorites are Card Munch, Any.do, and Evernote.

·         Marketing capabilities through social media like Facebook, LinkedIn, and Google+

·         Banking apps to track expenditures or PayPal to send and receive money.

·         Getting ahead of the game as insurance companies are just now developing their own paperless apps for insured’s to manage their policies.

·         And probably the most important, the Starbuck app that you can use to pay for your coffee and earn member rewards….like more coffee!!!

I know that adapting to change can be hard, and certain aspects of technology can be intimidating, but don’t let a little fear hinder you from discovering innovative and creative techniques to becoming more efficient.  In conclusion and to quote a phrase from one of my favorite TV shows, Star Trek, The Next Generation, “Resistance is futile.” 

New Year's Irresolutions

"This year I'm going to go to the gym at least three days a week," I told myself around the end of December. I promised this would be my year but three weeks and a dozen donunts later it was just the middle of January and I had already broken my new year's resolution. Be honest, what was your resolution this year? To lose weight? Start a retirement plan? Quit smoking? 

It's human nature to make resolutions, and inevitably, it's human nature to break them. However, believe it or not, there's quite a bit of science behind it as well. Studies suggest that 20% of New Year's resolutions are broken within the first week of January (count me in that number), and 80% are broken within the year. What's worse is the effect of breaking the resolution on our psyche. Ultimately it makes us feel worse than if we never made the resolution at all.                             

I've made some epic resolutions in the past, and as you might have guessed, my level of failure has been just as epic! So the question is why? Knowing I'm setting myself up for disappointment, why do I keep making and breaking these yearly pledges? To answer the first question is simple. I want to be a better person. That's easy. We all desire to improve ourselves physically, mentally, emotionally or even monetarily. So then why do we break them? 
Why we break resolutions
One answer to that question is the "all or nothing rule." Simply put, we think in terms of black and white which means we either keep the rule or we break it. We do so well keeping up with the resolution while we're enjoying the successes but completely let go at the first sign of failure. According to Rajesh Bagchi, Ph.D., assistant professor of marketing at Virginia Tech, "people tend to take a break-- a well earned breather--after achieving a sub-goal." Unfortunately it's rare that we resume our efforts after the break. 
The second reason we break our resolutions is because as individuals we lack vision. I'm not talking about eye sight. I'm talking about what Webster's defines as "the act or power of anticipating that which will, or may, come to be." Could you imagine a contractor building a home without a blueprint? Better yet, could you imagine a pilot flying without knowing his destination? When you create a vision statement, you're giving your life direction. Your vision statement is who you want to become and it includes your passion. 
Create a vision statement
Having a vision statement takes your focus off of the sub-goals and places it on the end goal. If you made a resolution to earn your CPCU designation, you may or may not get around to actually taking the first test. However, you might be more inspired to carry out this monumental task once you know and understand the root of the motivation or desire to accomplish the goal, such as career confidence, the ability to advance at work, or just the prestige. 
State Auto Senior Sales Consultant Brian Ahearn, one of only 27 Cialdini Method Certified Trainers, states:  "I often tell people one of the most impacting books I've read is Steven Covey's The 7 Habits of Highly Effective People. The reason I say that is because I took Covey's suggestion and wrote a personal mission statement. For more than 20 years now I've reviewed parts of my mission statement daily as a way to remind myself of who I am, who I'm trying to become, and what's most important in my life. As I look back on life it's apparent my mission statement has impacted my thinking, choices and behavior in very positive ways." 
My vision statementRemember, your vision statement is the picture of yourself that you see in the future. It's who you're working to become. This picture is only bound by what constraints you place on it. For example, on a personal note, I've challenged myself to use 2013 to develop my own personal vision statement, here is an excerpt:         

            "I am a salesman. At all times I will know my product, my company and my customer. I will continually learn from those with more experience and share my knowledge with those I can teach. Ethically and humbly I will strive to offer my services at the highest standard of excellence." 

Take my lead, challenge yourself to create your own vision statement. Write it on a note card, sign it in ink, and keep it handy so you can look at it every Monday morning. When you create and buy-in to a vision statement for yourself, you will begin to develop the framework to reach your goals. 
For more information on creating and keeping a vision statement visit http://www.mindtools.com/pages/article/newLDR_90.htm. 

Shut Up and Sell

I’ve been told I was born to sell.  When I was in the sixth grade I made such an impression on my teacher, she sent a note home with my report card to tell my parents that I was quite the little speaker.  Looking back now, I think she might have meant that facetiously. 

But what if you weren’t born with the gift of gab?  What if meeting new people is a challenge and starting conversations never comes easy?  What if the mere idea of cold calling freezes you in your path?  Can you still be a sales person?  Believe me, I promise you can.

Unfortunately selling has a bad reputation.  People don’t want to be sold to.  No one wants to get a phone call at 5:30 pm while their eating supper and have a script read to them about how they can benefit from buying a timeshare in Boca Raton.  Similarly, most people don’t want to call people while their eating supper and read scripts to them about buying time shares.  That’s not selling!  At least it’s not effective selling.

Selling is sitting on the back of an old truck listening to a tobacco chewing farmer talk about his tractor and the good old days.  No fast talking or shrewd promotional techniques.  You don’t even have to know anything about tractors, that’s the beauty of it, your input isn’t required.  Notice I highlighted the word listening.  You can’t listen if you’re talking.  Hence the title of this post “Shut Up and Sell.”

Listening directly leads to likability.  Ultimately if people like you, they will buy from you.  Let that sink in.  If people like you they will buy from you.  You’ve probably heard the saying “All things being equal, people will do business with a friend, and all things not being equal, people will do business with a friend.”

Dale Carnegie in his book How to Win Friends & Influence People said “you can make more friends in two months by becoming interested in other people than in two years by trying to make people interested in you.”  If you’re having trouble forming genuine personal and professional relationships try not telling people about your life rather let them tell you about theirs. 

Remember, selling isn't about what YOU need, it's about the desires and needs of the client (read last week's post).  When we turn our mouths off and our ears on, we can take the intimidation factor out of the equation. 

It's funny but after seventeen years of selling, I have found I am most successful when I’m not selling at all.  I am most successful when my clients aren’t able to form that impression of me that my sixth grade teacher did. 

Your DNA Holds the Secrets to More Sales

DeoxyRiboNucleic Acid (DNA) is found in all living things.  It’s the tiny structures in our cells containing the blueprint that tells us how tall to grow or what color our hair will be.  More importantly unlocking the mysteries of our DNA has been used to better understand the cause and function of diseases and helped us create better preventative medicines.  Yet what I find most extraordinary is that 99.9% of our DNA is the same as all other humans, with only .1% separating each man, woman and child.  While it doesn’t sound like a lot, it could mean the difference between looking like Brad Pitt or Lyle Lovett.  

One more fun fact about DNA is that there’s enough information in it to fill a 1000 volume encyclopedia.  Ok, I don’t want to bore you. So what does all of this have to do with Insurance?  Comparatively speaking, it doesn’t take an encyclopedia of information to know your customer.  However it’s important to note your customers are not clones, every single consumer has a different set of needs.  Offering “apples to apples” comparison quotes won’t suffice, you need to complete a Desires and Needs Analysis (DNA) on every single client.

This analysis is not simply asking the prospect what coverage and limits they currently have so you can match them.  The intent is to discover the coverage needs in order to craft a customized proposal.  In addition to gathering underwriting data, the DNA is helpful in obtaining important information about the prospect’s psychological needs and buying motivations.

By creating and using a DNA you are accomplishing several tasks:

1. You will distinguish yourself from agents who only ask the necessary questions for a quote.
2. You are demonstrating you are concerned about their total risk management needs, not just selling them a policy.
3. You are gathering vital information necessary to determine their motivation for buying-which gives you a leg up on the competition.
4. You are setting the stage for cross-selling other products as the opportunity rises.

The first part of your DNA should consist of several questions (both open and closed) necessary to get the basic information about the prospect.  Questions like:

1. Name, address, phone number, social security number
2. How did they hear about your agency (referral, yellow pages, advertising)
3. Who is the current company?  How long have they been there?
4. What are the x-dates for all for their personal lines policies?  Not just the business they’re looking to move.
5. Why are they shopping?
6. What are they looking for in an insurance company?

The next set of questions in the DNA is designed to uncover buying motivations and needs.  Such questions might include:

1. Other than cost, are there any areas of your insurance protection that you’re concerned about?
2. What kind of outside activities or hobbies do you and your family enjoy?  Travel?  Collecting?  Sports?  Hunting?  Other?
3. Is there anything you’d like me to know about you and your family?
4. If we can create a proposal that will meet your insurance needs and stay within your budget, is there any reason we could not do business together?

Keep in mind that these are just a sampling of questions that you can include in your DNA.  It’s important that you develop your own list of comprehensive questions that will enable you to complete a personalized insurance proposal, not just a quote. 

Remember, you only have a small window of opportunity to set yourself out from the crowd of agents in the Yellow Pages.  Next Generation Agents understand that the DNA of their customers holds the blueprint to growth and success.

Gaining Trust; Use the Principle of Authority

 I admit that I have zero expertise in regards to automotive entertainment systems (It’s why I write an insurance blog, not one called “Bling My Ride”). 

In spite of this, I would like to share my recent journey to replace my car stereo and how flawless service combined with expert knowledge, in an unconventional package, taught me a valuable lesson about the principle of authority. 

Initially my issue was deciding if I should I buy online or stand in front of a wall sized display and gawk.  I immersed myself in an unrewarding day of Bing searches, and wasted several hours reading user reviews on Amazon.  By the end I was out of Mt. Dew and optimism, I resolved to head to a local shop.

Disheartened and staring amateurishly at the monolith of stereo units, I was about to call it quits.  “Do you want volume or crisp sound?” a voice from behind me asked.  I turned to find a well spoken young man with large hoops in his ears, piercings in his nose, and more ink on his arm than Motley Crue.  His coolness factor was off the charts.  However, I was about to be even more impressed.  After a few probing questions, he began to explain to me the differences of treble to bass and volts to amps.  While I watched and listened, he pushed buttons going through settings and changing screens on video displays. He did all of this while asking important desires and needs questions (something I’ll cover in my next post), like what kind of vehicle I owned.  Immediately I knew that when it came to car stereos, he possessed authority.  I ended up spending more money than I initially intended, but with the knowledge I garnered and improved acoustics, I feel like I got a steal.

While I don’t recommend the appearance of my car stereo salesman, his technique was textbook.  And like him, if you have large objections to overcome (i.e. Price), your clients need to know that you are their insurance authority.  Why?  According to Dr. Robert Cialdini, author of Influence, Science and Practice, we have an inherent trust in authority figures.  We accept, or buy-in to, their advice and counsel because our brains make assumptions that typically they’ve obtained their positions through superior knowledge and judgment. 

The good news is, if you’ve been in the industry for 2 months or for 20 years, it’s never too late to utilize the principal of authority.  Here’s 3 easy ways to get going:

1. The best advice I can give you is to never stop reading.  One publication that I recommend is American Agent & Broker.  Every month they usually focus on three or four topics of interest with well written and easy to read articles.  If you need some help with your sales technique, try Jeffrey Gitomer’s “Little Red Book of Selling.”

2. Next, obtain an industry designation.  Those include the following:  Associate in Personal Insurance (API); Accredited Advisor in Insurance (AAI); Chartered Property Casualty Underwriter (CPCU); and the list goes on. 

3. Pick a niche and become the best in it.  If you really like writing boat insurance, devote yourself to studying everything there is to know about it and become known as the best boat insurance producer in your city.  Get your name out by going to local trade shows and making contacts with local boat dealers.

In conclusion, if you want to stand out from the 1-800 direct and online competitors, or even the agency down the street, you better be doing something to set yourself apart.  Your survival and success hinges upon your ability to transform the mentality of customers who view insurance as a one-size-fits-all commodity.  Utilize the principle of authority, overcome objections by gaining trust and you're on your way to becoming a Next Generation Agent. 

Introduction

I like to shop.  It’s a trait I take after my mother, whom I’m sure would go to Kohls with an IV in her arm, lying on a gurney if she had to.  But I digress, more importantly I love to sell.  I’ve sold sandwiches, groceries, clothes, bicycles, books, cars, lumber, lotions, (don’t ask) and insurance.  I haven’t liked everything I’ve sold, but I’ve sold just about everything. 

With 17 years under my belt selling I’ve seen the good and I’ve seen the bad, but mostly the bad.  That’s sad, because we live in a consumer based economy where nearly all of our day to day activities involve making some sort of a purchase and most “salespeople” fail to make simple connections.

When people ask me what I do for a living now I cringe.  I don’t cringe from embarrassment, but because most wouldn’t understand. You see, as an insurance sales rep I work with agency owners, producers, and CSRs to help them grow their business profitably. That entails helping them develop commitments, monitor loss results, and conducting product training.  Normally I reduce it to the most common denominator, I tell people I sell insurance.  To be fair, it’s what I do.

Although, if you work in an insurance agency, you probably refer to me and your other company reps as the “donut people.”   My position can be a very valuable asset for both the company and the agency! Unfortunately, all too often I see how the daily grind can weigh heavy as agents get lost in the monotony of taking phone calls, doing quotes, adding vehicles and collecting pay checks.  It can be a vicious cycle.

I want to change that.  I want to change the way agents think and act.  If we don’t make changes, the insurance industry won’t have much need for brick and mortar locations and a personal touch.  I say that because online and 1-800 competitors do well because they’re able to cut out what agents do!  If day to day monotony is all we offer then why not possibly save 15% by going direct?

My goal with this blog is to show you fundamental concepts and sound selling principles to transform your thought process and ultimately your sales.  I want to help you become  the next generation agent (NGA).  An NGA that will offer more than just a personal touch, but who will use those principles, create their personal selling process and present their customers a unique buying experience.  Agent 2.0 is the agent of the future!

I invite you to take this trip with me.  Subscribe to this blog and receive my new material every Wednesday.  Also, please feel free to leave comments and ask questions.  I welcome both.  Hopefully we can have some open dialogue where additional ideas could spawn future posts.