"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.