Submit to Bind

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  • Taking Heroic Notes
     In sales, the producers that do the best are able to juggle a lot of balls and spin a lot of plates. When I first got into sales, there were not a lot of CRM options like there are today.  There are so many options out there to keep track of your clients, the conversations you have with them and, of course, the disposition of the lead or the call.  Maybe one day, I'll do a comparison of different CRM systems and why the features may matter to you. However, today I want to talk about the process of taking notes and why you should be going deeper with your prospects. You should take notes for your future self. Be the best assistant you can be to yourself by doing the work today.
    There are several great reasons why you should be taking notes, while you are in a meeting, on the phone with a client or watching a training. There have been several studies that show that active listening improves your ability to retain information as well as the time you save by not having to rewatch an entire video or even to find the relevant information.  
    However, when talking to a client or prospect, is it enough to just take down their DOB and address so you don't have to ask for it again?  Certainly having to give the same information twice to someone who wants my money is very annoying, and I highly recommend pulling a customer's profile up if they have business with you and “verifying” you have the correct information and not ask them for a shortcut. 
    “Hey John,  I'm sorry I don't have your profile up. So I can get you a quick quote on this: what's your DOB.”  
    When talking to a client, you should pull their profile up every time. Don't let your laziness be the reason the client wonders if you are paying attention. 
    Now that we have talked about note-taking in general. Let's talk about “Heroic Notes.” Have you ever gone to your bank, gym, or favorite pizza place and even though you hadn't been there in a while they still remember your preferences. Or maybe they will ask you about how your son is doing in their favorite sport? You think to yourself. “That was pretty cool.”  Especially if you have someone with you, and you walk into a store, and they remember your name or have a drink waiting for you when you get to your table. It is an over the top level of service and commitment. The results of “Heroic Notes'' are the type of notes you take when you get your prospect or client on the phone after a year or two of not talking to them, and they realize “Oh wow. This person took the time to write that part of my life down and not only that, took the time to ask about it. I don't know what the price is, but I certainly hope its in the range of competitive because this is where I want to do business.” 
    We have that same ability when it comes to working with our clients. However, being the boss of “Heroic Note” taking has to be something deep inside you. Because we are not a coffee shop, we don't know who will be our customer or not. So we have to start listening for opportunities to take Heroic notes from the very beginning. Heroic notes are not for today. They are not even for the sale in front of you. They are for the opportunity to win a client you didn't the first time. They are for when the client calls back and disputes something you told them. They are for empathy, rapport and E and O. For those of you that still use paper, this next might be a little hard for you. Heroic notes need to be in a place where you can retrieve them again. If you write it down on a piece of paper or steno pad but don't transfer it to your CRM then they are just notes that never get a chance to put on a cape. I highly recommend taking notes in the system they will live in. I know that hand - handwritten notes are the best way to recall information in the future, but if you can't get to them quickly then they don't do you much good. I got into the habit of taking paper off my desk. In fact, I don't have any drawers on my desk or in my office. When you make the commitment to not taking notes on paper and move to digital, you can't have paper close enough to grab. You have to be willing to just start typing in the “notes” notes section and allow for run on ideas and sentences. I would regularly type the VIN and then hit  the “Enter” Button and add the customer's spouse name right below it. Just create a new line every time you have to switch ideas or use a slash. 
    With that said. Any note is only as good as your ability to read it later. If you put in incomplete ideas or something that will “jog your memory” then you are wasting your time.  If you have to read your notes to your client in a year to remind yourself of what you wrote, you are doing it wrong and making yourself look foolish. These notes are supposed to make you your client the Hero and you are the guide. 
    Make a commitment today to start taking meaningful notes in your next meeting. Remove that paper from your desk. Stop talking so much and let your prospects talk. Just listen and write something down that will be impactful on them later. Take some Heroic Notes. Have a good day and get after it. 
     
    5 min
  • Everyone Needs an Umbrella Pt. 2
     In this episode of Submit to Bind we will follow up from Part 1 of “Everyone needs an Umbrella” where I talked about the 7 facts about liability umbrella policies as well as what you and your customers will be covered by having an umbrella. If you haven't listened to part one 1 I would stop here and go back and listen to it. Let's dive into how we can use our sales skills to convince our customers that “Everyone needs an umbrella.” Yes…. Even them.
    There are three types of customers that don’t have an umbrella:
    1. Someone that has never heard of an umbrella before.
    2. Someone who had an umbrella but decided they never used it or it wasn't for them.
    3. Someone that doesn't believe they have enough assets to need one.

    Ultimately not believing there is a need is the reason someone doesn't buy. So how do we convince them that “Everyone needs an umbrella?”
    There are a couple of things we need to remember when asking our client to go on this trust journey with us. First, we need to have taken the time to build rapport with them while we are building a profile of their needs (Ep. 3 Pillar 2). Second, we need to be in the right mindset (Ep. 15 Pillar 5). We need to be so confident that this is the right produc, andd we are the person that should be talking with them about it that they see you as a trusted advisor.  You should probably consider having an umbrella yourself. Once these items are in place, you are ready to ask your client the key question.
    “Before I send these quotes over to you I do have one question. Have you ever heard of umbrella insurance before?”
    Now I like the fact that the question is a little confusing. “Why would anyone want to insure an umbrella?” is what I want them to think. Generally, most people will say “no” or question, “what is that?”. We want them to open the door for us and ask us to elaborate and the questions, being a little confusing, gets us in that door. Once they answer, what you say next makes or breaks the proposal. 
    “Well Mr. Johnson, I may be judging a book by its cover here and if that's the case then I apologize. I am looking at your house, your cars and your neighborhood so I am guessing you have some money in savings, 401k, and IRA’s that you don't want to give to someone in the event you are in a bad accident?. 
    This question wrapped in a statement is designed to make anyone you are talking to realize that they have accomplished a lot in their life. Most people, even if they have saved very little, are very aware of how hard it was to get there and the idea of giving it away is a very emotional thought. If said the right way, the customer or prospect will respond, “yes that’s correct.”
    “Mr Johnson, a liability umbrella policy is designed to cover you in excess of what your home and auto policy covers you for liability. This covers you in the event someone gets injured on your property if you or your wife were to get into a very bad accident, and they were to be severely injured or, God forbid, they died. An umbrella policy is usually less than a couple of hundred dollars a year. I will include an option in the package I build for you that includes the umbrella quote so that at least you can see what the cost is and if you decide not to do it now, at least you know what it will cost.”
    It's okay to be graphic right now. Your client needs to see that the consequences of not being covered correctly can be life - altering. Remember, an umbrella not only covers you but also the person you hurt.  You want to transition from your explanation right to letting them know you are going to include the quote anyway. Of course, if they have more questions, then take all the time to get into the nitty-gritty with them.
    Depending on how they react to how I deliver the message is how I will game plan for presenting the quote to them (Ep 5, Pillar 3 Presenting). If they are very receptive and give me a feeling that they need this coverage no matter what the price, I will lead with the price that includes the umbrella. If when we end the conversation, they indicate that their primary concern is getting their current coverage taken care of first and are ok with me presenting a 2nd option, then I will start with the package that gets their needs met first but with the carrier I plan to present the umbrella with. I like to break down the extra cost for the umbrella in terms of how much more a month it will be. 
    “Mr. Johnson, you seem pretty excited about the pricing. However, to add the umbrella we talked about earlier and to increase the liability coverage on your auto to the minimum required to have an umbrella, the price is only $32 more a month.”
    Now of course this strategy won't always be a win. Actually, it rarely will be, but if you commit to presenting an umbrella to every customer, you will get better and better. As you get better and better, your average client will be regularly exposed to higher levels of coverage and will land with higher coverage than they have now. Of course, there will be objections. There will be lots of objections. Remember your 7 facts. Usually, one or two of them will overcome any objection they have, and the client will be left with the option of being exposed to major liability issues and saving a little money or making sure their family's future is secure.
    Lets go over the 7 Facts again:7 Facts:
    1. You don't have to hurt someone for them to sue you.
    2. If you kill someone in an auto accident, it does not matter how much money you have. They are going to come after everything you have and anything you will have in the future.
    3. If you can't pay someone what you owe them from a liability suite you can have a judgment filed against you that lasts until you pay them back or until you go bankrupt or die.
    4. If you have a judgment against you, you cannot participate in certain financial transactions like selling your home until you pay them back.
    5. Your wages can be garnished if you cannot pay your responsibilities. 
    6. If you severely injure someone, and they cannot provide for themselves, you will want to take care of them and will live with the grief of not being able to as you live your normal life.
    7. If you kill someone and cannot make their children whole, you will live with that for the rest of your life. 

    Committing to presenting an umbrella quote to every client is big girl and big boy insurance sales. It also shows that you are willing to insure the client correctly even if it complicates your quick and easy home or auto policy. Remember, if you really get good you will have clients who want to have one and this can cause you to have to work a lot harder to find them the best deal. However, referrals from clients who own an umbrella are the type of referrals you can build a career on. 
    Everyone needs an umbrella. Get after it!
     
    7 min
  • Everyone Needs an Umbrella
     One of the cardinal sins as a salesperson is to shop for our clients with our own money. We tend to want to recommend the products we have ourselves and can have a hard time recommending products we don't believe in or don't understand. Its one thing to work at an electronics store and not believe in the extended warranty but as an insurance agent we could put our clients in a terrible position and border on not doing our jobs if we don't offer certain products. 
    It is your responsibility to know what all of your products cover and the limitations of them. Certain ones should be offered to every client no matter what you believe their needs are. I truly believe every adult should have an umbrella policy and Life insurance. Today I will focus on the Liability Umbrella policy.  We often tie the need of an umbrella policy on the assets or income someone has today.  We make a judgment call based on the car they drive and the home they own and perhaps the way they talk to determine if this person has enough assets to protect beyond the policies we sell them.
    I want to point out a few facts so that you can better understand what an umbrella covers so that you can realize that everyone needs an umbrella.
    7 Facts:
    1. You don't have to hurt someone for them to sue you.
    2. If you kill someone in an auto accident it does not matter how much money you have. They are going to come after everything you have and anything you will have in the future.
    3. If you can't pay someone what you owe them from a liability suite you can have a judgment filed against you that lasts until you pay them back or until you go bankrupt or die.
    4. If you have a judgment against you, you cannot participate in certain financial transactions like selling your home until you pay them back.
    5. Your wages can be garnished if you cannot pay your responsibilities. 
    6. If you severely injure someone, and they cannot provide for themselves you are going to want to take care of them and will live with the grief of not being able to as you live your normal life.
    7. If you kill someone and cannot make their children whole you will live with that for the rest of your life. 

    An umbrella covers so many more things than someone suing you because of an auto accident. In reality, it covers 4 parties. It covers you today for money you may need to pay someone because you are liable for their injuries. It covers the future you from grief and the possibility of garnished wages or being able to save for your children future. Also, it covers their person you may injure and finally it covers their families future as well if they can't work again.
    I know I just listed a bunch of facts to why you need to have a liability umbrella but there are still more that are not facts but have been observed.  If you have an umbrella policy you now have representation from the insurance companies and their lawyers if someone is falsely claiming you hurt them. The insurance company is now on the hook for 1 to 5 million dollars and believe they are not just going to lay down and pay it. So they cover the lawyers cost, win or lose, and they cover the bill if you do lose the suit. 
    I'm going to say it again. Everyone needs an umbrella. It covers the assets you have today and any assets you could have in the future. Umbrellas are not just for rich people. Do not pass up any client you are working with without explaining to them what an umbrella covers. They can still tell you no but don't you dare make that decision for them.  I would employ all of you listening to purchase a liability  umbrella and keep it forever.  The only decision to make is how much coverage to buy. 
    In the next episode we will talk about how to sell one and how to best show your client the value. Hint it will include the 7 Facts. Get after it. 
     
    4 min
  • Pillar 5 Mindset
     In my journey to be a complete insurance advisor and sales person I have found that The 5 Pillars of a successful sales person have helped me remind myself to keep the main thing the main thing. The customer has to be the main reason you come in every day. Trust me I have bills to pay and I don't want to come off like I don't.  The 5th Pillar is mindset and it is the last pillar but really is the most important one because it addresses the “why” when it comes to the insurance industry. 
    The way you think about your job, get ready in the morning and what you think about your clients is what mindset is all about.  Let's look at the Key Principles of Mindset.
    Key Attributes:
    1. Have S.M.A.R.T. goal for the week/month 
    2. Come in ready to get after it (Motivation)
    3. How we think and talk about our clients

    Smart Goal:S-SpecificM-MeasurableA-AchievableR-RealisticT-Timely (Or Timeframe)
    Motivation:Once you have a goal you need to be fueled by something. Of course our children, spouse, retirement, and a comfortable life are the low hanging fruit and there is no more a noble cause. If that is what gets you excited to get after it every day then put your “why” on your mirror, your desk or your background and dig in deep. However, I will tell you if you can start to transition your motivation around meeting clients needs you will come in with an additional purpose and not just you win every day your clients win too.
    Thinking about Client:The way we talk about our clients when they are not around is a good indicator of how you truly feel about them. When you hear your colleague talk about “how stupid” or “that guy doesn't know what he's talking about” does it make your blood boil? Do you say anything to them or do you participate? It's certainly easy to get caught up in negative talk especially if you just got off a frustrating call but remember it was you that couldn’t find a way to show them their own needs. It's so important to remember that everyone comes from a different environment and education, and we have to do our best to protect them despite what they believe. When you can come from a place of compassion and care and truly give a crap about them (there will be a whole podcast on this) then they become your own family. Could you imagine telling your work mates how stupid your grandmother is?  Truly caring about your client and being compassionate if they don't know what you know is how you can keep on track with your goals and stay motivated to not have that negative experience happen again. They way you think about your client matters so much when it comes to mindset. 
    Closing:Its very hard to teach someone how to build a positive mindset. I imagine you are listening to this podcast because you are very interested in being successful in this industry. I can tell already that you are in it for the long haul. Set a goal, get motivated to attain that goal with a very specific reason and remember that this business is always about taking care of your clients and don't let people around you talk negatively about them and you certainly shouldn't either. Having the right mindset means being all in all the time. Get After it. 
     
    5 min
  • Presenting Vs Telling the quote
     Are we the most spoiled sales force in the world? Our clients literally require our products. Because of this we can easily have contempt for our position and get lazy. If you were in an industry where you had to convince your clients to be in the buying mode at all would you step your game up?
    As licensed agents however we have a responsibility to not only offer our clients products that meet their needs they inform us of but also to uncover needs they didn't know they had.  We will discuss fact finding in another episode where we talk about asking open ended questions and how to relate those to a prospects need but for this episode we're going to cover presenting the quote in a way that expands the clients mind to not only require the our policy but now to want it and want it to be right.
    Once again its always important to frame the call at the beginning so the client knows what to expect. Traditionally I would either ask the prospect their level of knowledge about home insurance or if they are a first time home buyer and no matter their response I will follow it up with “okay great then I will just go over these coverages line by line real fast, so we make sure we have the coverage correct. After that we can make any adjustments to the quote and then decide how and when to get things started”  Im not asking for consent I am telling them were going to go over this together.  
    Now that we have framed the call I will usually go down the quote whether it be home or auto and describe the coverage but then relate it to a story about “how” it protects them. It doesn't have to be a real story but it needs to be a true story.  As I go down each line I break down the name of the coverage, how much and then how it relates to them. If it s a home quote I will start out by explaining the diffeAs sales people it is our job to find ways to relate our products to our clients needs. Most of the time our clients require our products by law or in conjunction with another financial transaction so there is not a huge need to convince someone to buy or not to buy our products but rather what and from whom they should buy. rence between a broad form policy and a basic so they know the difference. If its an auto I might explain that even though the industry calls a policy “full coverage” that no policy actually covers everything but we will make sure they know what they are covered for.
    Example 1:Mrs. Johnson real quick before I get started I wanted you to know that this quote I did is a broad form policy. There are two main types of policies. A basic policy is where the coverages are listed and that's all that is covered. If its not listed its not covered. As well what you have here is a broad form coverage and its the exact opposite as a basic. We list some exclusions: Usually these might be 1) flood, if you want coverage for rising water we need to get you flood policy. 2)Acts of war, if there is a war in this country and your home is damaged it's not covered. 3) Deterioration over time, we don't insure your home getting old and finally we don't cover you burning down your own house. There are a couple more exclusions but besides those exclusions everything else is covered. In this example I want them to be thinking in the framework of doubting what they may have now and “Why wasn't I told this before?” I will give line item about the policy and then describe it with a story. Let's look at coverages next.
    Example 2:
    1. The first line is the dwelling amount and I have that set for $250,000. This does not include the land and is only what the estimator determined it would cost to build your one home in between 5 other homes on the same slab that is there now. Does that sound like enough coverage?
    2. Next is other structures. This covers your fence, gazebo, pool or shed that is not attached to the home. I did not see anything in the pictures I saw so I reduced this down to $5000. Your garage is attached by a breezeway so that was included in the Dwelling amount. Did I miss anything else that needed coverage?
    3. Next is your contents. This is a coverage for your things inside the home. The things you would take with you if you sold the home. I have the quote set at 50% of the dwelling amount so that would be $125,000 for contents. Does that sound like enough to cover you if you had to re-buy everything you owned? Every sock, soap dish and pair of pants brand new.

    In this example I list the coverage's name, the amount and then a little story putting them in the shoes of my character, so they have to decide for themselves if that is the right coverage.
    Closing:Presenting your product is where you get to shine and show your client value. Telling them the carrier name, deductibles and price is just the highlights of the product and if you are in the game of getting the best price only than maybe that works for you. A true sales agent does both. They find the right value for the client by involving them in the decision and quote building process. 
     
    6 min
  • Framing the Sales Process
     More and more often prospects and clients in any sales cycle and sector want to know the steps of the buying process as well where they are in the buying process. This is why Amazon is so much more enjoyable to buy from than just about any other retailer. Not only can you buy it now but you can see what date it will be delivered. You can see what warehouse it is coming from and once its been handed off to the local mail facility. You know from start to finish where your favorite sequence puppy pillow is at all times and can follow its path to your loving arms. 
    In insurance sales this will be mandatory soon enough. Certainly Mortgage companies are working towards letting a client know where they are in the process. Even though you don't readily have an Amazon platform for your declaration pages you can still inform your prospect of what to expect when buying from you. And you should.
    Framing the Process this needs to be done in the opening of your first call. Whether you are working on a 1 call close or a 2 call close you need to give them how the process works and what to expect right up front. I would start with a greeting, so they know your name. Next I would try to discover their pain point by asking what has them shopping.  Once I know why they are shopping I would give them my value proposition (Why working with me is the only option). Finally, I would close my opening statement with framing how the rest of the call will go and of course how the rest of the process will follow. 
    The reason to do this early instead of later is to get their guard down on whatever questions you may have and of course how long the call will take. When someone believes the call will take a long time they are a lot more likely to be closed off because they fear additional questions and the call taking even longer. Framing the call is not asking for permission to ask more questions, it's letting them know that I have a few questions I need to get answered, so I can start and that it will only take a couple of minutes. 
    Example 1: You have all the information you need
    • Mrs. Johnson, your lender sent me you and your husband's name, DOB and address as well I have pulled up the house on Google Maps, so I have most of the information I will need. 
    • Next I will take that information and plug it into a comparative rater that will shop your insurance with 20 or so carriers and get them competing for your business. This might only take 5 minutes or so. Once we have narrowed down what carriers you are interested in and depending on how many there are I may let you go, so I can run the needed reports and plug in some different options. 
    • Within 20min to an hour I will give you a call back so that together we can maximize all the discounts and finalize what options you are interested in.
    • Once you’ve picked a carrier and a price, it’s easy from here. I simply contact your bank and set up the payment for you. All you have to do is sit back, and we will do all the work.  Essentially this is the last call you need to make.



    Example 2: You don't have the information you need
    • Mrs. Johnson, how this works is I will need to get a few pieces of your personal information, so I can get the quotes as accurate as possible. As well since the home you are buying is new construction I can't find anything for it online, so I will need to ask you some questions about the home. This will take less than 10 minutes
    • Next I will take that information and plug it into a comparative rater that will shop your insurance with 20 or so carriers and get them competing for your business. This might only take 5 minutes or so. Once we have narrowed down what carriers you are interested in and depending on how many there are I may let you go, so I can run the needed reports and plug in some different options. 
    • Within 20min to an hour I will give you a call back so that together we can maximize all the discounts and finalize what options you are interested in.
    • Once you’ve picked a carrier and a price, it’s easy from here. I simply contact your bank and set up the payment for you. All you have to do is sit back, and we will do all the work. Essentially this is the last call you need to make. 

    Example 3: Lots of work needed
    • Mrs. Johnson, getting coverage on vacant properties can sometimes be difficult so what I will do next is get the information needed on the house and let you go.
    • I want to get the best price and coverage I can, so I am going to take the rest of afternoon and fill out several applications and run the quotes I can myself. 
    • If the application is has to be reviewed by an underwriter this may not come back today.
    • Once I have all the options I will give you a call back, and we can go over all the coverage and discount options and finalize it together. 
    • From their my team will set up the policy, take the payments and send you the paperwork. I will make this as easy as possible. 

    Closing:We often rush through the steps because we know the process is easy but the client may not know that. They could  be dealing with different brokers, and they may have now had to answer 50 questions between all of them. Letting them know early that this will not be the case and that I can meet the need right away will take their guard down. Once the prospects guard is down you can start to have fun and talk about non insurance related topics and get to know them better. The aim is to build life long relationships and framing the process and the call is the first step to doing that.  Get after it. 
     
    5 min
  • Quoting in 3's (Part 2)
      Welcome everyone. In this episode I will go over how to structure your quotes to be delivered in a set of 3. In part 1 I went over “Why” presenting more than one option and giving your client the ability to shop for themselves changes their mentality from “Should I buy from her/him?” to “Which of these quotes is best for me”.  Certainly this isn't going to take every buyer who already has a lower quote to switch over to you but for the people on the fence they will be more likely to buy from you because you aren't trying to sell them one thing you are helping them pick what policy they need. If you haven't heard that episode I recommend going back its called “Presenting Quotes in 3’s Part 1”
    Naturally when deciding to start providing multiple options, giving just 2 quotes is the easiest way. This might be a cheap price with not very much coverage on the low end and a higher price quote with more coverage and lots of bells and whistles as an alternative. Certainly this will get you more sales as some people will just go with the lower price if they don't want to pay more for the quote you ultimately thinki is best for them. 
    However the reason you quote in 3’s is because you want to add in a value building option. This usually will not be a quote you think is best for your client but a 3rd option that is either close in price or coverage that shows why your best option is so much better or even the only real option. We’ll call that the “Dummy Quote” Let's look at some examples.

    Example 1: 
    1. Your first quote is a name perils basic policy with a 2% deductible to show how low we can get the quote but you tell the client “ultimately you get what you pay for.” This quote is $1000 a year.
    2. Your Second quote “The Dummy Quote” is that same named perils policy with a 1% deductible and add replacement cost, as well as some limited water coverage for $1600 a year.
    3. Your third quote is a Broad form policy all risk with a  1% deductible. You make sure to include full water damage, water backup and foundation protection for $1700 but you have to bring your auto as well to get that price. You also have an auto quote available that is close or better in price. 
    You can see in this example how for the customer it doesn't make sense to pick either of the first two options if they can get their auto price to work with you as they will maximize their home coverage and price.  
    Example 2: 
    1. Your first quote is a name perils basic policy with a 1% deductible to show how low we can get the quote but you tell the client “ultimately you get what you pay for.” This quote is $1200 a year.
    2. Your second quote “The Dummy Quote” is a Broad form policy all risk with a  2% deductible. You make sure to include full water damage, water backup and foundation protection for $1500 a year.
    3. Your third quote is a Broad form policy all risk with a  1% deductible. You make sure to include full water damage, water backup and foundation protection for $1650 a year.
    In this example you noticed with the carrier there wasn't much price difference going from a 2% deductible to a 1% deductible. Imagine if you only showed them Options 1 and 3 and they had to pick between two policies with a 1% deductible. The difference in price is pretty big and maybe the client thinks “lets just save some money and go with the lesser coverage.” That's where quote 2 comes in. You offer them a way to get the higher coverage but at a lower price point but at the tradeoff of a higher deductible which no one wants. Now the comparison is between options 2 and 3 because I can get a 1% deductible for just $150 more a year.
    Closing: There are endless options you can build for your clients if you don't make them pick between 2 things. If you offer just one quote its between you and someone else. If you offer 2 quotes its between your two options and yes you may win the sale but the customer doesn't win the value they couldt see because you didn't show them.  The “dummy” option needs to be something the client can choose that will benefit them over option 1 but really highlights how great option 3 is. 
    Your prospects and clients are shopping for insurance. Let them do that. You already have the quotes done. When you run into a not so great value quotes save it. When you run into a quote that is awesome but a slight change can show how the total value is better save both of those options and present all 3 at the same time. 
    Remember if you don't tell them what you are going to do for them then they won’t know it when they see it and if you don't show them what you did then they won't believe you. 
    Thank you for listening and if you enjoy these podcasts please subscribe. Get after it. 
     

     
    5 min
  • Presenting Quotes in 3's (Part 1)
     I want to start this episode with a geral theme to work off of. If you don't tell them what you are going to do for them then they won’t know it when they see it and if you don't show them what you did then they won't believe you. 
    If I were to ask you why a prospect should buy from you most people would say its because they are a boker and have multiple options with great carriers and can shop the market year after year. 
    So why dont you send your clients all the options so they can pick? I bet you would say and rightfully so:
    1. It would take way too long to get that many options together.
    2. The customer wouldt even know what they are looking at
    3. They could choose something that doesn't have the right coverage just to get a better price.

    I totally agree but if the value is that they get a one stop shop then why do you only send them one quote? I see it all the time. The agent painstakingly goes over the options and presents the best price and coverage and they still dont win the client. 
    The truth is that most sales reps do a really bad job of presenting their client with their value proposition at the beginning of the sales cycle with a statement of “Let me get all of your information and I will see what options I can get for you.”  You assume they know what you do for a living and that you have multiple carriers. If that is how you explain what you are going to do for them then you might as well have multiple options from one carrier. Couple that with calling them back and presenting just one option then what do you expect them to do? 
    The real value is telling the client the benefit of working with you is that you are going to run the quote with multiple carriers and see what options come out best. Even state the carriers you are going to check with. By letting them know that you are checking 5,10, 15 carriers in their mind they don't need to keep calling. Now pair that with presentingseveral options and having justified reasons for the coverage and price differences and now you have a marketplace they get to participate in. 
    Remember if you don't tell them what you are going to do for them then they won’t know it when they see it and if you don't show them what you did then they won't believe you. 
    When I am shopping for a new cell phone I pretty much know what I want but I like to look around a bit and certainly when I go into the store I take 20 minutes to an hour just touching them taking pictures and scrolling through the screens to what else is out there. I want to make sure that what I came for is really either the best or the best value for me. But its not until I get to get my hands on them until I am certain that what I came for is right. 
    Could you imagine going to a car dealership and there are no cars on the lot up front but you can see them all in the back with different colors and sizes. So you know there are options but the sales person wants to ask you some questions first to get to know you better. He asks about your family size, how far you drive, and what your hobbies are. He may even have you tell him your favorite color. After all of that he walks you to a room with your name on the door. That's odd right but pretty cool. This person is taking their time to butter you up. When you walk in the door the only thing in the room is a car and a table and two chairs. He walks you around it and shows some features and even highlights how it meets the needs he asked you about earlier. Its even your favorite color. He walks you over to the table and says have a seat. He then shows you the price and a finance contract and says “So what do you think? Let's get started on the contract and you can take it home today”  
    Of course your response would be dumb founded “What do I think about what? I came here to walk the lot. This might be the car I buy. Certainly it checks off all the boxes but I don't know what else is out there unless i can see what there is.” 
    Effectively this is what you are doing to your client. When they say they need to talk to their spouse they are effectively saying “I need to see what else there is.” They are saying “I believe you believe this is best for me but I just need to check around a bit more before doing anything.”
    Its critical that you tell your client that you are shopping multiple carriers for them and they get to pick. I recommend following that up with presenting three options. Next week we will go over how to present in threes and its not always a high low middle price thing either. Presenting in threes allows you to show value but also allows the client to ask questions between the different options and really understand what they are getting and losing. 
    Do not forget. If you don't tell them what you are going to do for them then they won’t know it when they see it and if you don't show them what you did then they won't believe you. 
    I appreciate you listening and join me next week where I will show you exactly how to present your quotes in threes. Get after it.
     
    5 min
  • Why Rates Go Up!
     Throughout your insurance agent journey you will find yourself answering the same set of questions year after year. Its very important to be ready for some of them as the answers don't change. “Why did my premium go up?” or “Why did you raise my rates? I've never had an accident.” are the most prevalent. Consumers are left in the dark and deceived by the marketing departments of insurance companies. They are misled by words like “discount”, “save money” and of course “longevity”.  Somehow even though no other consumer product costs less as time goes on there seems to be a misnomer that the longer you stay with a company the less they will charge you.
    Education is part of the business we are in and those who decide to tell their clients the truth and bring down the curtain of discounts and savings will ultimately earn the most trust from their clients and be given the benefit of the doubt when rates go up.  If you really want to do well in this business not only do you need to know the answers to these questions you need to tell your client up front how it works and remind them that its you that will make sure there are no other options that best fit their needs.  Also you are doing your client a disservice if you ever lead them on to believe that insurance rates will ever go down. They may pay less one year than they do the next but overall they will be paying more in 10 years than they are today no matter what they change.
    Here are some reasons rates go up that your clients will most identify with.
    Something Changed in their rating factors:  Insurance companies use all kinds of metrics to decide how likely an individual or a certain type of person is to have a claim. One is individual statistics like consumer reports (credit), claims history, age, and income or job type. Someone with a lower credit score is deemed a higher risk because they are more likely to need to use insurance after an accident instead of paying for it themselves. Someone who is older usually gets a better rate because they are more settled down and pay better attention of course unless you are very old and may have vision or medical issues.  These factors can fluctuate and just because someone increases their credit factors doesn't mean it will counteract having an at fault claim of over the last year. 
    Carrier has too much/too little risk in an area: sometimes the carrier you were with last year has found out that they want to diversify across a county, state or country and would like to remove some of the risk they have in an area and will raise rates just to get some of the risk in that are off the books. Vise versa sometimes a carrier wants to move into an area and will lower rates to get new customers in an area they have never been before but this could change next year. Your longevity with them doesn't matter. 
    Carrier Financial Rating: Carriers are rated by Moodys, AM Best and Demotech on their financial strength and if they are at risk of getting a lower rating because they payed out too much in claims vs what they have in reserve they will need to raise rates to 1) get more money in the door and 2) get people unwilling to pay out the door. This raises their capital and lowers their risk. Once again they may charge you less for being with them longer than someone else but your overall rate over time is going up. 
    Some Insurance Companies are for Profit: some insurance companies are not just spreading risk around but also have shareholders that need and expect to either get dividends or their stock price to go up.  Straight up they need to make more money this year than they did last year and their shareholders may have decided it's time to raise rates. 
    Building materials and labor cost more: One of the main factors in the rising cost of insurance is the cost to make things and the people who put them together is always going up. Inflation is the main reason why insurance costs more today. Just like anything else you client may benefit this year from a discount and their price may go down from the year before but that same discount next year will not counteract the overall cost to rebuild their house going up. I promise you your client does not go to the grocery store and complain to the manager or threaten to shop somewhere else because they keep raising the cost of milk. They may get a .50 cent coupon today but tomorrow the price is going up again. They know that the cost of cows, land, gas, and employee salaries is what drives the cost of consumer products and its what drives the cost of insurance too.
    Closing:As insurance agents it can be a daunting task trying to navigate these waters with our clients. It can be very personal for them because they feel like you raised rates on them and you personally are keeping the difference. We have to let our clients know that we are not always privy to why a company raised rates or if their premium went up because of their consumer reports but instead were here to check to see if there is a carrier that for them specifically is a better deal. It's always hard to explain this once they get the inflated bill but having this knowledge can help you show them that it's not you pulling these strings. However once again the agent and agencies that tell their clients the truth that insurance will always go up year after year instead of trying to pretend they have special rates will better equip their client with what to expect. This will build trust and brand loyalty. What makes you great is not that you have a special price but that you will actually take the time to find it for them. Lets make a commitment today to be different and always “Get After it”
     
    7 min
  • Always Ask for the Sale
     One of the biggest mistakes we make as a salesperson is failing to ask our client or prospect to buy from us. I believe this is because the average insurance producer  doesn't know what their job is. Often I find my agents wanting to provide a service and they believe that service is to help a client shop and provide them options. However the truth is if your agency is the best place for your client to be protected and provides a very high level of service your job is to show them that they need to be represented by you no matter what carrier they choose.
    Think about it. If you really wanted to take your crush to the dance would you send them an email with a list of attributes about you and hope they see those as good qualities? Would you leave it to chance?
    Things about Me:
    • I’m 5’10”  but can be taller with shoes if needed.
    • I know how to slow dance and will not embarrass you on fast dances.
    • I will never do the sprinkler unless thats your thing
    • I will pay for dinner and tickets to the dance
    • I will have you home by midnight
    I look forward to hearing from you. If you have any questions let me know. 
    No of course you couldn't handle it that way. You would go straight up to them and say. I really like you and have been interested in spending more time with you. Will you go to Homecoming with me?
    Its the same thing with your prospects and clients. You need to be direct and let them know your intention is to have them buy from you. Of course you need to deliver a killer presentation with what you will do for them and what coverages your carriers offer and why year after year you will always be the right choice but then you must end it with the ask.
    Examples:
    • Now that I have shown you several options with coverages we both agree meet your needs witch one can I get started for you?
    • Which one of these best fits your needs?
    • Would you prefer to pay for your policies as monthly or in full and what should I set the start day to be?

    If the prospect sounds hesitant or says I need to think about it, make sure to ask them what common ground needs to be made up so that we can do business together. Of course if they let you know the answer get confirmation if you meet that need that they will be willing to move forward.
    Example:
    YOU: You sound a little undecided on moving forward. What is stopping you from making a decision on it today.Prospect: Everything you are saying is great and I agree that I want a 1% deductible  but I really need to get the home auto insurance down below $2000 a year.YOU: Ok Mrs. Johnson I hear you loud and clear. Though I believe what I just presented was the best mix of coverage and price. Give me 1 hour and let me come up with all the options I have below $2000. However if I can find a policy that will cover your home with similar coverage with a 1% deductible for under $2000 can we get it started today?
    Remember asking them to buy and get things started is a service you are providing them for free.  Usually this is a chore they have to get done by a certain deadline and I am offering to take care of it now. How many times have you been on a website and wondered how much something cost or where to buy it from only to find out you have to set up a consultation first or you have to buy it from a participating store. Now you need to find what location has it in stock and wait for the store to open. All you want to do is buy it and nothing is more frustrating than having to wait.Lets take away the red tape and ask them to buy from you right now. It wont always be a yes and in fact it will rarely be but you will at least get to see what it is thats stopping them from buying from you. Remember you wouldn't let your crush walk away without letting them know you wanted them to be with you and you need to do the same for you prospect. Ask them to the dance.
     
    5 min

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Podcast dedicated to the P & C sales industry and the employees who work in it. We dive into sales & retentions strategies as well as interview some of the industries difference makers.