80-20 Producer Coaching Blog

Seminar Selling 101

nospam@example.com (Bill Reynolds) — Fri, 12 Aug 2011 02:15:38 -0400

Seminars are fantastic way to create for you and your agency a powerful “Halo Effect” – someone who is an expert in the field of risk management. Seminars can be held in one of three formats.

The first are on-site seminars. Here you are holding your seminar in your agency office. In short, your customers and prospects must come to you. Since you are already paying for the space (assuming a meeting room is available) the main benefit of this approach is cost. However, your agency location may not be convenient to all targeted attendees. Plus, how many prospects do you know that want to go to an insurance agent’s office? Not many, right?

The second format is an off-site seminar. In this format you are holding the seminar at a hotel, restaurant or off-site conference center. The cost of an off-site seminar can run anywhere from $500 to $3,000 depending on the audience you are trying to attract, your marketing approach, and the location you decide to use. So this lead generation technique must be used carefully and must be planned in great detail. However, you will find that the quality of prospects is absolutely fantastic. Plus, you are meeting them personally and have an enormous opportunity to make a good first impression. Many agents are reluctant to consider off-site seminars because they are afraid to get in front of a group and give a speech. Believe me, if I can do it, you can do it. Plus, once you get the first one under your belt they get easier and easier.

The third format are webinars. In this format you are conducting the seminar via teleconference and remote web-casting. There are extremely reliable, cost effective services that allow you to invite prospects to attend an audio presentation supported by web-based visuals. Because the attendee never leaves their desk they are more convenient to the prospect and may raise the level of interest. They usually are less expensive than an off-site seminar and are normally easier to plan and present. The disadvantage of webinars is that you are not face-to-face with the prospect so there is no personal interaction.

Here are a few tips that will make your seminars more effective and generate sales. First, pick your topic very carefully. Listen to your Clients and prospects. They will always give you insight into what is keeping them up at night. Be sure that you follow the pain. Never pick a topic that is “touchy-feely.” You want to pick a topic that is timely and relevant to issues companies are facing. Otherwise, why would they invest their valuable time coming to your seminar in the first place? Ideally your topic should open up multiple opportunities from a sales perspective. For example, an off-site seminar on Employment Practice Liability can lead to a sale in both property and liability (selling them an EPL policy, plus more) and also lead to an employee benefit sale. Pick a topic that plays into your agency’s competitive strength. Never go into uncharted waters. The attendees will pick up on this immediately, and you will lose their interest, now and in the future.

Second, define your market audience carefully. Not only will this increase your return-on-investment, your participation rate will dramatically improve. Your sure-fire list should include your existing Clients, prospects you expect to quote in the next 12 months, your “A” list of prospects, and centers of influence (accountants, attorneys, etc.). Wherever possible direct your invitations to niche markets. That will also increase participation. Don’t waste your time or money blindly broadcasting your invitations. Have a strategic reason for inviting them.

Third, consider working with joint venture partners. This can generate huge dividends for you in a number of ways. First, and quite frequently, they will share the cost of the seminar with you. Second (and this will blow you away) they often will share their customer list with you. This will increase your turnout significantly and works almost like a referral. Third (and this is also amazing) you can let them “spill the candy” and give away all their secrets. Remember, you do not want to provide unpaid consulting. For some reason accountants and lawyers feel that have to do this…so let them. Fourth, they will bring their expertise to the table and add credibility to your seminar topic. This is particularly important when you are starting out. Now, all that having been said, there is one joint venture partner I strongly recommend you not use – your insurance carrier. Why? Because they will get up there as sell themselves and their company and rarely will mention or promote you and your agency. So, unless you can reach a clear understanding up-front I suggest not using them.

Fourth, carefully select your location, date and time. Your seminar site should be as centralized and easy to get to. Keep it off-site and remote from your agency office. After all, no one wants to go to an insurance agency (I know that hurts, but it is the truth). Have the seminar in the morning if at all possible and keep the length of the seminar to no more than 4 hours. You can serve coffee, rolls, etc. but do not go overboard. Avoid having your seminar on Mondays and Fridays. These are killer days for your attendees and your turnout will reflect this. July, August, December and April are bad months. The summer is when people go on vacations, December is the holiday, and April is tax time. Finally, allow enough lead-time. Do not invite them a couple of weeks in advance. I usually send out my invitations 2 months in advance with follow-up flyers and promotional materials.

Fifth, promote aggressively. Send invitation letters and flyers, insert announcements in your Client billings, FAX them, and issue press releases. Use all your standard marketing techniques aggressively and often. The key thing to remember is this: do not just mail an invitation once. You need to send at least three separate invitations to get the proper response. If your turnout is low consider telemarketing the remainder of the invitees. This is where you can use an in-house CSR or secretary. The call is easy and takes very little time. In your invitation be very clear what they are going to get. Load up with Free Reports, checklists, books, manuals, and anything else you plan to put together. Make the value of the seminar is worth their time to attend. Do not forget to promote internally. Get your agency principal and other producers on board and involved.

Sixth, carefully plan your handout materials. seminar selling is different in that the attendees expect to bring home something – a book, a manual, etc. So give them something of value, but do not give away the store. You can give away special reports that peak their interest and prompts them to come back for more. But be careful here. If you give away the store they will thank you, never call back, and keep using their current agent. Always make sure you have enough materials to hand out. Always make more than enough just in case people walk in. Always have a duplicate set of overhead transparencies, even when you are using a Power Point presentation. If your projector blinks out you can quickly pull out your back-up stuff and keep going (the attendees will be impressed by this, believe me). Finally, rehearse your presentation in advance. Do not come in cold.

Seventh, make your presentation informative and educational. Always take the time to make the attendees comfortable and relaxed. Let them know that they can ask questions any time. Constantly refer to your handout materials and if they want more information they can either see you after the seminar or contact you. Give them several ways of contacting you. Make it as easy and risk-free as possible. Always ask them to fill out an evaluation form to get feedback. Their responses will lead to potential leads. Always try to get their email address and permission to send them your agency newsletter.

Finally, respond immediately to any requests for additional information. This should be prepared in advance and can be easily handled by your CSR or someone else in your agency. The key point is to respond immediately. You want to blow them away with your response and eagerness to help. In addition, irrespective of whether or not they ask for additional information, send them something anyway – a special report or article relevant to the seminar topic, a thank you letter, a survey, anything the keeps the trail warm. Follow-up with every attendee within 3 days to discuss the seminar topic and find out if you can be of further help. Expand the conversation and reach an agreement on when and how you can correspond with them further. Do leave any trails cold!

The 80-20 Producer Coaching Program provides insurance sales resources that can help you. These resources focus primarily on property insurance sales, liability insurance sales and workers compensation sales. You will find at www.80-20producercoaching.com sales coaching and producer sales training resources, sales seminars and sales books to help you succeed. For those who specialize in workers compensation you will also find a certification program (www.isowcs.org) to help you differentiate your organization in meaningful ways.

The Four Steps To Writing A Killer Newsletter

nospam@example.com (Bill Reynolds) — Fri, 12 Aug 2011 02:14:38 -0400

Newsletters build on the principle that the more consistently and frequently you make contact the greater you sales opportunity. Producing a newsletter is relatively inexpensive with high return-on-investment. If written correctly they will expand the power of your brand and predispose the prospect to want to meet with you.

There are two basic formats that you can use in publishing your newsletter.

1. Short form. You could use this format for smaller, middle market accounts. It is a two page, tri-fold flyer that can be easily mailed. It contains a short article on one topic. These can be produced by a local printer without an envelope at very low cost and can be mailed in bulk or with a first class stamp. You can even take these newsletters to a mass mailing house and let them take over the entire process.

2. Long form. You could use this format for larger middle market accounts and for niches. This newsletter is longer and contains more content. The idea is to provide several different articles, and several different chances to generate interest and response. This newsletter format allows you to take on a much more professional profile as well.

Irrespective of which format you select, the articles must be written in a compelling way. Otherwise the prospect will merely toss your newsletter in the trash. The successful formula to use in each of your articles consists of four components. First is the headline. Research shows that, on average, people decide within about eight seconds whether or not to continue reading an article. Business owners, of course, are not average, and some of them are likely to make that decision quicker. Therefore, you must earn the business owner’s attention within the first eight seconds and probably a few seconds earlier than that. You're going to need a compelling headline to do this job.

The second component is problem identification. This is best accomplished by telling a story or providing compelling facts that apply to the prospect’s business. While the headline got their attention, the problem identification portion of the article must keep them engaged and reading. Always remember that the reader is constantly asking: “What is in it for me? (WIIFM). You want to be careful not to dwell on technical language that will bore the reader to death. You want to talk to them in their language and in terms they can understand. Carefully educate the reader on what the problem is and how it can impact them. That is why a third-party story works so well. A story involving a real situation works even better. At the end of the problem identification step you should get the reader to the point where they say: “OK, this applies to me and I understand the problem. Now what do I do about it?”

The third component is what I call the “solution best practices.” This component is extremely important but must be crafted carefully. On the one hand the reader wants useable information and solutions. They do not want to feel cheated. On the other hand, you do not want to give away unpaid consulting. The best approach I have found is to put you in the position of a risk management expert. You can give them general principals on how to begin solving the problem via education but you stop short of giving specific solutions. If the article motivated the reader sufficiently, and the prospect buys-in on your best practice approach, they will want to contact you for the actual solution.

The fourth component is the call to action. You absolutely must offer access to more information and services and multiple ways of requesting this information. The additional information you should offer is the risk management service that will demonstrate how your risk management service can address their specific problem. This can take the form of a special report, a risk management survey that can generate incumbent agent created pain or any other services that will quickly demonstrate the unique value of your services.

If you are not using newsletters as part of your lead generation strategy I strongly urge you to start using them. If you are using them, ask yourself: “Do my articles follow the four-step formula?” Remember: It is all about sending out a consistent message the gets the reader’s attention and motivates them to contact you for more information and an appointment. If your article is written properly your phone will start to ring.

The 80-20 Producer Coaching Program provides insurance sales resources that can help you. These resources focus primarily on property insurance sales, liability insurance sales and workers compensation sales. You will find at www.80-20producercoaching.com sales coaching and producer sales training resources, sales seminars and sales books to help you succeed. For those who specialize in workers compensation you will also find a certification program (www.isowcs.org) to help you differentiate your organization in meaningful ways.

Using Newsletters To Differentiate And Educate

nospam@example.com (Bill Reynolds) — Wed, 10 Aug 2011 02:51:47 -0400

According to a recent survey by the National Sales Executive Association:

1. 2% of all sales are made on the 1st contact;
2. 3% of all sales are made on the 2nd contact;
3. 5% of all sales are made on the 3rd contact;
4. 10% of all sales are made on the 4th contact;
5. 80% of all sales are made on the 5th through 12th contact.

These are absolutely amazing statistics and prove that consistent, systematic lead generation marketing works. Newsletters are an ideal way to use these statistics to your advantage and predispose the prospect to ultimately buy from you.

While there are NEWSLETTER services available, and some are very affordable, they often fall down on several fronts:

1. They appear to be “canned.” You are making every effort to differentiate yourself and your agency from your competition. Why on earth would you send newsletters that scream: “I am just going through the motions?” Prospects get newsletters from their accountants, lawyers, industry groups, plus other agents. A well written, in-house newsletter that portrays your style of risk management will cultivate the relationship quicker.

2. They fail to support your niche marketing efforts. Many purchased newsletters are written to a general audience. Some attempt to be written on a niche basis but are very weak. A well-written newsletter, targeted at a niche, can position you as a risk management expert in their industry, not just a “plain vanilla” insurance agent.

3. They fail to demonstrate your personal gifts and expertise. Because the purchased newsletter is written by a third party, there is no way that your personal gifts and expertise can be highlighted and demonstrated. Always remember, the name of the game is differentiation.

4. They fail to educate. While many newsletter services do provide a degree of information, many times the information is too generic and general. Frankly, they do this because they do not know how the newsletter will be used or who the ultimate audience is. Therefore, they are careful not to be too specific. Always remember that education is a key to differentiation, particularly when it is niche focused.

5. They spill too much candy. Often newsletters go too far and show the prospect on how to solve the problem. As you will learn shortly, this is a huge mistake. Prospects will love you for the unpaid consulting, but there will be absolutely no reason to buy from you.

6. They fail to have a strong call to action. There is a formula to a successful newsletter, and one critical component is a strong call to action. Your prospect must be motivated to contact you for more information. Otherwise you lose the lead generation potential of the newsletter.

7. They fail to focus on potential incumbent agent generated pain. Many newsletters are too “insurance” focused rather than incumbent agent generated pain focused. Your message in every issue should be to educate the prospect on the process that a professional risk management specialist must take to be proactive and avoid problems. The newsletter must motivate the prospect to ask: “Is my current agent doing this for me?” and, if not, “Why not?”

For the above reasons it is strongly recommended that you give strong consideration to writing your own newsletter in-house, or at least having a high degree of input into the development of them.

There are two basic formats that you can use in publishing your newsletter.

1. Short form. You could use this format for smaller, middle market accounts. It is a two page, tri-fold flyer that can be easily mailed. It contains a short article on one topic. These can be produced by a local printer without an envelope at very low cost and can be mailed in bulk or with a first class stamp. You can even take these newsletters to a mass mailing house and let them take over the entire process.

2. Long form. You could use this format for larger middle market accounts and for NICHES. This newsletter is longer and contains more content. The idea is to provide several different articles, and several different chances to generate interest and response. This newsletter format allows you to take on a much more professional profile as well.

In summary, newsletters build on the principle that the more consistently and frequently you make contact the greater you sales opportunity. Producing newsletters is relatively inexpensive with high return-on-investment. It is strongly recommended that you incorporate these newsletters into your other lead generation strategies for maximum results.

The 80-20 Producer Coaching Program provides insurance sales resources that can help you. These resources focus primarily on property insurance sales, liability insurance sales and workers compensation sales. You will find at www.80-20producercoaching.com sales coaching and producer sales training resources, sales seminars and sales books to help you succeed. For those who specialize in workers compensation you will also find a certification program (www.isowcs.org) to help you differentiate your organization in meaningful ways.

Beware: Publicity Is Not About Selling Insurance

nospam@example.com (Bill Reynolds) — Tue, 09 Aug 2011 02:13:14 -0400

Take a minute and go to the following website: www.PRWeb.com. This website offers free online release distribution services. As you wander around this website you will find a category on, you guessed it, insurance. Open up this category and you will find a number of press releases by agents around the country. Take a careful look at them. Initially you may say to yourself: “Hey, these look easy. I can do that.” But let me tell you, most of them are ineffective. The reason is quit simple. Most of them are nothing more than blatant attempts to sell. Worse still, they are trying to sell the “I” word. They are boring and offer nothing new to the reader. Now I am sure that many of these press releases got some sort of response, but most failed the “SO WHAT” test completely.

So here is the number one rule in using publicity as a marketing technique. Never, and I mean never, “hard sell.” All it will do is turn off the reporter and they will throw it in the waste can. Also, some reporters have long memories. When they see your crap repeatedly they will forever view you as nothing more than an “insurance agent trying to sell insurance.” Your goal is to provide, in very concise form, information to the media that will prompt them to call you for more information and an interview. As Paul Hartunian wrote in his manual “How To Get $1 Million Worth Of Publicity Free” (a resource I strongly recommend you buy): “You want to create a little intrigue so that someone from the newspaper, magazine, radio or TV show will want to call you for more information.”

Here is the rule number 2 in using publicity as a marketing technique. Do not use “insurance jargon” or hard to understand language. Never forget, people think what we do for a living is boring. Nothing will turn off a reporter quicker than getting into the gory details about business interruption, how a workers compensation experience modification is calculated, etc. What they are interested in is a new or innovative approach to a timely problem or situation.

So you may ask: “What the heck am I going to talk about then?” Let me give you a very good, timely example. Everyone in America is acutely aware of the disaster surrounding September 11 and the recent hurricanes in the Southeast. You could talk about business interruption coverage, or flood insurance, but I can guarantee that this is going to turn people off. But let’s say you are offering a seminar or Special Report that will give companies ten (10) ways prepare for disasters. Now that is timely and interesting. Does it have anything to do with the “I” word? Maybe or maybe not, but it has everything to do with risk management.

As another example, virtually every company is having difficulty attracting and retaining quality employees. You talk to any business owner or financial manager and they will tell you that it is one of most frustrating, costly aspects of running a business. Yes, you could talk about employee benefit insurance, or workers compensation insurance, but I can guarantee that this will not get a good response. Plus, they already buy that stuff and have an agent who provides it to them. But let’s say you have entered into a joint venture arrangement with a national organization that will provide, at discount prices, employee screening and drug testing services, plus the ability to provide behavioral assessments of prospective employees. Now that is news. Does this have anything to do with the “I” word? Maybe and maybe not, but it has everything to do with attracting the right kind of people to an organization.

As a final example, virtually every business owner and Human Resource Manager is concerned about the difficulty with complying with the American With Disabilities Act (ADA), The Family Medical Leave Act (FMLA), the myriad of privacy regulations, and the hundreds of state and federal regulations involving the employment relationship. Yes, you could talk about Employment Practice Liability, but I guarantee that this will fall flat on its face. Virtually every company has either purchased this coverage or has been offered it by their current agent. But let’s say you offer a unique, proprietary compliance service that helps companies understand their compliance obligations and offers fast resources and solutions. Now that is news. Does it have anything to do with the “I” word? Maybe or maybe not, but it has everything to do with helping a company avoid the severe fines and penalties associated with non-compliance.

So the message is clear: Offer services that have nothing to directly do with insurance but everything to do with solutions to problems that keep the prospects up at night. You will gain faster credibility and response, and this will eventually lead you to a discussion about the risk management ramifications of these issues.

The 80-20 Producer Coaching Program provides insurance sales resources that can help you. These resources focus primarily on property insurance sales, liability insurance sales and workers compensation sales. You will find at www.80-20producercoaching.com sales coaching and producer sales training resources, sales seminars and sales books to help you succeed. For those who specialize in workers compensation you will also find a certification program (www.isowcs.org) to help you differentiate your organization in meaningful ways.

Eleven Reasons Why You Should Use Publicity For Positioning And Differentiation

nospam@example.com (Bill Reynolds) — Mon, 08 Aug 2011 02:25:24 -0400

Closely associated with branding your product or service is the use of publicity. As Al and Laura Reis stated in their book “The 22 Immutable Laws Of Branding”: “The birth of a brand is achieved with publicity, not advertising…A new brand must be capable of generating favorable publicity in the media or it won’t have a chance in the marketplace.”

From an agency perspective publicity is often associated with press interviews, getting on the local TV station, or having radio interviews. While publicity may ultimately involve these activities, most agents view this kind of publicity as overwhelming. They quickly say to themselves such things as:

“I am not a publicity expert. I can barely keep my head above water selling insurance.”

“There is no way I am going to embarrass myself by getting in front of a TV camera or participate in a radio interview.”

“Who in the heck would be interested in what I do anyway. Insurance has such bad name recognition.”

I respectfully submit that at the root of all these comments, plus many more that you may be thinking about as read this information, is head trash. Please keep in mind that you are a risk management specialist. You do not sell insurance. Your underwriter sells insurance. You sell a wide array of risk management services companies need and must have, and only one of them involves risk transfer.

There are at least eleven (11) reasons why publicity will enhance your competitive position and differentiate you and your agency. First, publicity can be done at a low cost. Your press release will cost you approximately 10 cents per page. There are a host of automated FAX services that will do this for you at this cost or less. Compare this will the cost of “snail mail” and the math becomes very obvious.

Second, publicity will differentiate you and your agency from the competition. Very few agencies publicize effectively or aggressively. As your name and unique services are publicized, the more you become recognized. Your prospects will view you as the “pro” to seek out when they have problems. You earn a “halo effect” that transcends the prospect’s traditional perception of an “insurance agent.”

Third, publicity will position you as a risk management specialist rather than “just another agent.” This one is huge from an agent perspective and is closely associated with differentiation By publicizing unique risk management services you are inherently positioning yourself as someone who offers much more than just an “insurance solution.”

Fourth, publicity will give you instant and long lasting credibility as an expert. The media will treat you as an expert and will begin to seek you out for more and more information, all representing additional free publicity. The fact is that people will put more credibility in you if they read about it in the newspaper or magazine than anything you personally can say to them.

Fifth, publicity will open up doors that have, up until now, been shut. You will be absolutely amazed at the opportunities that will be created by using publicity. For example, you may initially launch a publicity campaign involving your expertise in workers injury cost reduction (notice I did not use “workers compensation insurance.”). This may lead to being asked to be an expert witness at a trial, which in and of itself may open up doors. It may also lead to your being asked to give seminars and speeches at association meetings. You may get a call from a large account on the other side of the country that heard about your unique service and wants more information. You may be asked by a trade magazine to submit an article, opening up even more doors for you in a niche. None of this may have been possible without the power of publicity.

Sixth, the responses to your publicity campaign can be immediate. This one will blow you away. If you carefully craft your press release your phone will ring off the hook. Reporters for newspapers and magazines will call to interview you and learn more about your unique service within 1 or 2 days. Yes, you will still get calls several weeks or months later, but the thrill of getting an immediate response will make the effort worthwhile.

Seventh, publicity can greatly increase your prospect base. Because many more doors are now open to you, your traditional market place will expand geometrically. No longer will you be thinking about your market area being solely your city or county. You will be thinking state wide, regional or even national.

Eighth, publicity will increase the traffic to your website. This one is also huge. Because you will be sharing information about your website, readers and listeners will flock to your website for more information. This will set up even more marketing opportunities.

Ninth, publicity is fun. This marketing technique will be new to you and tap into a side of your brain that you have never used. You will find it will be a blast to give an interview with a magazine reporter in your shorts or underwear in the privacy of your own home. Plus, reporters are very nice people who are eagerly looking for people like you who know what they are doing.

Tenth, preparing your press release is easy. We are not talking about a huge set of documents here. The press release is only one page, and it is FAX’d to the media. So there is no envelope, no letter and no stamp. Once you get good at it you can write a press release in an hour or less, identify your target media, and get it out the door electronically with minimal effort. It is hard to beat this kind of sales leverage.

Finally, publicity works. If used systematically and often you will find that your new business production will go through the roof.

The 80-20 Producer Coaching Program provides insurance sales resources that can help you. These resources focus primarily on property insurance sales, liability insurance sales and workers compensation sales. You will find at www.80-20producercoaching.com sales coaching and producer sales training resources, sales seminars and sales books to help you succeed. For those who specialize in workers compensation you will also find a certification program (www.isowcs.org) to help you differentiate your organization in meaningful ways.

Five Rules For Creating A Successful Agency Brand

nospam@example.com (Bill Reynolds) — Sun, 07 Aug 2011 05:39:04 -0400

The power of the brand is its ability to influence purchasing behavior. The prospect literally imprints into the brain a strong relationship between the brand and your services. However, as powerful as a successful brand may be, it can be weakened or even destroyed by careless marketing. Here are rules to make your brand successful.

First, avoid what marketers call “excessive line extension.” This rule states that when you put your brand on everything it loses its power. As an example, in 1987 American Express had a handful of credit cards and 27 percent of the market. Then it started to introduce a blizzard of new cards including: Senior, Student, Member Miles, Optima, Optima Rewards, Plus Gold, Delta SkyMiles Optima, and Corporate Executive to name a few. In fact, at one point their stated goal was to issue twelve to fifteen new cards a year. What happened? American Express has less than 18 percent of the market today.

As another example, in 2005 McDonalds introduced deli-style sandwiches to its already clogged menu and began test marketing this new line in select market areas. The sandwiches were called “Deli Selects” and “Oven Selects” and were introduced in response to the surging popularity of deli sandwiches, a $19 billion market, and the growth of chains like Subway and Quizno’s. But by September 2005 McDonalds announced that they were pulling deli-sandwiches off the menu. As one management spokesman said: “They’re good sandwiches. But to be profitable, you’d have to sell them for $5 and $6 apiece, and that’s just not going to happen at McDonalds.” Their deli-sandwiches were selling in the $2.99 to $3.99 range. Why does someone decide to go to Subway or Quizno’s and pay more for a deli-sandwich? It is because they perceive the brand to mean a better sandwich. You would think that someone in McDonalds would have thought of that before launching the new product line. But what does McDonalds say in response to this? Their President has publicly vowed to keep generating a “buzz in the marketplace” with new products. At some point they will understand that by continually extending their line of products it is weakening the power of their brand.

The reality is that most people prefer you assign one brand per product. Prospects want brands that are narrow in scope and are distinguishable by short statements – the shorter the better. So what does this mean to a risk management professional? You should develop a separate brand for each exclusive niche or specialization. You should not combine property and liability services with employee benefit services, for example. You want to keep your brand as focused as possible. Expanding your brand will diminish its power. As a matter of fact, the narrower the focus the stronger the brand.

Second, you ideally want to own the word expressed in the B brand as perceived by the prospect. That is why the “I” word does not work. Every agent in America, plus every insurance company and direct writer, uses that word. The prospect simply cannot make the distinction. Once you own a word, it is almost impossible for a competitor to take that word away from your brand. Keep in mind that “ownership” is granted by the prospect once they make the connection. The best example is the word “Xerox.” It can be argued that Xerox Corporation’s major asset is that name. How powerful is it? Even if you are using a Minolta copier you probably say: “I am making a Xerox copy.”

Third, leadership and innovation in your niche or specialization strengthens the brand. The reason is credibility. That is why being the first in the marketplace with an innovative approach to risk management, or being perceived as having a new solution to a problem, has branding power. In fact, most marketing specialists recommend that you use the words “first,” “the leader,” “original,” or “pioneer” somewhere in your brand name. brand credibility almost always trumps benefits.

Fourth, the most important decision you make will be the words you use in your brand. This is not a “Unique Selling Proposition,” or a catchy slogan. Brands are the essence of what makes you and your agency unique in the eyes of the prospect. In fact, one of the fastest ways to destroy a brand is to give it a generic name. The problem with a generic name is that it fails to help the prospect differentiate you from your competition. And, when you couple this with the “I” word the results are catastrophic. As an example, when a prospect hears: “ABC Insurance Agency” or “Jones Insurance Services” what do they really hear? That’s right…the “I” word. Go take a look in your phone book under “insurance.” What do you see? Several companies who are trying t brand their agency by using the “I” word, right? At best the “I” word means “Get Quotes.” At worst it means: “NO, I am not interested.” Taking this a step further, nothing will confuse the prospect more than putting your company name in the brand. While there are a few exceptions to this statement, as a general rule brand names should always take precedence over agency names. The harsh reality today is that prospects buy brands. not companies.

Fifth, once you have a successful brand, develop marketing and lead generation strategies to support the brand. The most powerful way to jump start your brand is through publicity. The key is to associate your brand only to the niche or specialization to which it applies. Do not put your brand on everything. That will only weaken it. As an example of this, I have a company called CompEraser. Its purpose is to provide exclusive, patent-pending resources to quantify and eliminate the total cost of worker injuries. While it has a direct link to workers compensation, nowhere in the marketing of the CompEraser brand will you find the word “insurance.” It would be a huge mistake for me to offer disaster planning services under the CompEraser brand. This would only confuse the prospect. Therefore, the only services that I offer under this brand are services that satisfy the singular need of prospects who understand that the uninsured cost of worker injuries is two - five times more than the insured cost, and want to do something about it now.

The 80-20 Producer Coaching Program provides insurance sales resources that can help you. These resources focus primarily on property insurance sales, liability insurance sales and workers compensation sales. You will find at www.80-20producercoaching.com sales coaching and producer sales training resources, sales seminars and sales books to help you succeed. For those who specialize in workers compensation you will also find a certification program (www.isowcs.org) to help you differentiate your organization in meaningful ways.

Branding Your Services To Establish Competitive Differentiation

nospam@example.com (Bill Reynolds) — Sat, 06 Aug 2011 11:53:40 -0400

The first, and probably most important, step in establishing competitive differentiation is to brand your agency services. A brand is defined as the private labeling of your exclusive services in such a way that it is immediately recognized by prospects and sets you and your agency apart from the other competing agencies. As Al and Laura Reis stated in their book The 22 Immutable Laws Of Branding: A brand is “a singular idea or concept that you own inside the mind of the prospect.” The power of the brand is its ability to influence purchasing behavior. The prospect literally imprints into the brain a strong relationship between the brand and your services. For example, when you think of the term “Golden Arches” what do you immediately think of? That’s right – McDonalds. And with it you think of several other characteristics that McDonalds stands for – clean restaurants, fast service, excellent food, great salads, affordable prices, local to you, etc.

There is another critical component of a brand that you should also recognize – it does not relate to the prospect’s traditional view of your core service. For example, FedX is in the shipping and package delivery business. But so does the U.S. Postal Service, UPS, and a host of other competitors. FedX spends millions of dollars each year building into its brand the customer’s perception of fast, on-time delivery, rain or shine, guaranteed. Their brand is specifically designed to motivate potential buyers to view their company as not just a delivery service, but a “worry free,” extremely reliable facilitator of your written communications. In fact, in most cases the consumer will pay more to use FedX than the U.S. Postal Services because of their perception that the package will not be delivered late or get lost. No matter how hard the U.S. Postal Service tries, it simply cannot shake its own brand recognition – poorly run, unreliable, government run, unimaginative, etc.

From an agency perspective, your brand really has very little to do with the “I” word. After all, you have a host of competitive companies who selling insurance. To make matters worse, your insurance company “partners” are quietly establishing their own brand on a quasi-direct basis. Many are even aggressively marketing their brand over the radio, TV, and trade magazines. Their goal is not to promote you. They want to increase the perceived financial strength and value of their services over other competitors and hopefully drive the buyer to ask you to place their risk management program with them. Nowhere is there a mention about your agency. At best they will say: “Contact your independent agent.” Do they care which agent brings them the business? No. Just go to your favorite insurance company website. The odds are very high that you will find somewhere on the home page a link: “Find An Agent.” Yes, your agency may be listed, but take a close look at the listing of agents in your market area. There are quite a few of them, and all of them sell the “I” word.

If your brand only offers insurance you are nothing more than “substitute goods and services.” Therefore, your brand should be carefully designed to immediately create in the prospect’s mind an agency that offers unique, exclusive risk management services other than insurance. Yes, one of your services is “risk transfer” but you must offer more.

Now you may be asking yourself: “Why is branding so important?” The answer lies in how the prospect perceives you based upon the messages received. Your prospect is being constantly bombarded by sales letters, brochures, direct mail pieces, telemarketing calls, and advertising from a wide variety of sources. This constant drum of “noise” has the effect of shutting them down and making it extremely difficult for you to get your “unique” message through and get an appointment. Yes, they may eventually allow you to quote but this does not necessarily mean you have a qualified prospect. In fact, often you do not.

Here are some facts that may surprise you. The per capita consumption a year in America is $376.62 a year. This compares with $16.87 in the rest of the world. To put this in perspective, if you were to spend $1,000,000 a year on advertising you are bombarding the prospect with less that ½ cent of advertising spread out over 365 days. The consumer still is being exposed to $376.61½ worth of advertising from other sources. Your prospect is exposed to “insurance noise” on the TV, radio, newspapers, magazines, the mail, telephone, and the Internet, just to name a few. The problem is that virtually all messages ooze with the term “insurance” and make the same, boring, generic promises and platitudes. It has been consistently proven in research studies that the mind only accepts new information that matches its state of mind, or perception. It filters out everything else. What this means is that if you do not focus on truly positioning you and your agency in the mind of the prospect, all they are going to do is associate your message as generic “insurance stuff” and they will throw it in the mental or physical waste can. As the prospect will perceive it, there is nothing new.

Positioning is not easy, nor is an overnight process. However, is carefully planned and consistently implemented the prospect will begin to associate you and your agency and different and hopefully superior to all the other “noise” they are hearing. In tomorrow’s blog we will explore in more detail the importance of establishing your agency brand and how to use this technique to differentiate.

The 80-20 Producer Coaching Program provides insurance sales resources that can help you. These resources focus primarily on property insurance sales, liability insurance sales and workers compensation sales. You will find at www.80-20producercoaching.com sales coaching and producer sales training resources, sales seminars and sales books to help you succeed. For those who specialize in workers compensation you will also find a certification program (www.isowcs.org) to help you differentiate your organization in meaningful ways.

Warning: Just Saying The Word “Insurance” Can Cost You Money

nospam@example.com (Bill Reynolds) — Fri, 05 Aug 2011 02:07:10 -0400

Nothing personal, but the fact of the matter is that most prospects literally hate to buy the “I” word - insurance. To prove the point, let me ask you a question: “When is the last time that a client or prospect told you they really enjoyed the process of buying their company’s insurance?” I bet that it has rarely happened, and if it has it was a real shock to you.

Also, have you ever asked yourself: “What does the word ‘insurance’ mean to the prospect?” The answers may shock you. First, they hate to buy the “I” word. Many prospects really do not know or fully appreciate what is involved in designing a professional, comprehensive, fairly priced, risk management program. To make matters worse, policies are called “simplified,” which leads the layperson to think that it is easy to read and understand. You know just the opposite is true. But just ask a prospect to describe their experience during a recent claim. They are often upset or feel cheated. So, when it comes to renewing coverage, they hate buying something that they feel is loaded with false promises and disappointment. Merely mentioning the “I” word often makes them cringe.

Second, there is a reptilian connection between the “I” word and “insurance carriers” that directly undermines your effort to DIFFERENTIATE. For example, when you say “I am a professional, experienced insurance agent” all they hear is the “I” word and associate you with all the bad experiences they have dealt with over the years. It is guilt by association and you want to avoid this at all costs.

Third, and this is the worst part, the prospect is saying subconsciously: “I already have an insurance agent who, I am sure, is providing what this agent is offering.” The “I” word simply does not do justice to the scope of your services in many cases. So when you say the “I” word the prospect quickly pushes back. Why? They are not ready to entertain a change in agents. Once again, your DIFFERENTIATION is diluted and you lose.

You may laugh at what I just said, but I strongly believe it is true. Every time you mention the “I” word you broadcast into the prospect’s reptilian brain: “No difference” or “let’s get a quote.” You must cement into your DNA that you do not sell insurance any more. Your underwriter sells insurance. You sell superior risk management services, one of which just happens to be risk transfer (see, I have already used a new word.)

The solution - you need to change your vocabulary. Rather that saying the “I” word you need to use different words that relate more to the prospect’s view of the world. For example, in the “I” world you use such phases as “all risk property insurance.” When you say these words the prospect immediately thinks: “This person is trying to sell me insurance” or “I have no time to talk about something I already have.” In fact, from the prospect’s perspective, this is balance sheet protection. What you are really offering are risk management services that will protect their balance sheet from huge, unplanned shifts from changes. When there is an uninsured loss, for example, an asset is reduced and their shareholder equity is reduced accordingly. As another example, in the “I” word you use the phase “business interruption insurance” but to the prospect what you are actually doing is protecting their income statement. Every prospect wants to increase their sales and profits. Did you know that 45% of companies that suffer a disaster immediately go out of business and another 25% go out of business within two years? The reason is simple – dramatically reduced cash flow resulting from lost revenue (customers.) An uninsured time element loss will dramatically reduce sales and cash flow, which then reduces gross profits, net profits, retained earnings, and ultimately the balance sheet as well. No prospect wants to see this happen and will want to understand what you can do to help them prevent this from happening. What you are really selling is a risk management solution that protects this from happing.

This new vocabulary should be used not only while you are speaking to the prospect. It should be used in every sales letter, newsletter, email, FAX, or any other form of communication you have with the prospect.

You want to position you and your agency as the prospect’s risk management advocate and demonstrate risk management services that will make a meaningful impact on their business operations and make the prospect’s life easier. You want to distance yourself from merely being a provider of the “I” word - insurance. Yes, you provide this (it is called risk transfer), and you do a very good job of negotiating the renewal, but so does the incumbent agent. Instead, you want to avoid being linked with the insurance carrier and the painful, costly renewal process, as well as all the bad connotations these represent. Your ultimate goal is to be viewed as the superior solution to their risk management problems caused by their current agent. DIFFERENTIATION starts with learning how to view risk management problems from the prospect’s perspective and communicating your unique services in terms they understand. The choice is up to you – continue saying the “I” word and get caught in the quoting trap, or start positioning yourself as a true risk management professional speaks the prospect’s language.

The 80-20 Producer Coaching Program provides insurance sales resources that can help you. These resources focus primarily on property insurance sales, liability insurance sales and workers compensation sales. You will find at www.80-20producercoaching.com sales coaching and producer sales training resources, sales seminars and sales books to help you succeed. For those who specialize in workers compensation you will also find a certification program (www.isowcs.org) to help you differentiate your organization in meaningful ways.

Warning: Selling Based On Price Alone Is Hazardous To Your Professional Health

nospam@example.com (Bill Reynolds) — Thu, 04 Aug 2011 02:58:37 -0400

This may be a controversial statement, but I honestly feel that prospects have a fundamental, deep distrust for the insurance business. On the one hand they are required to buy many forms of insurance. So they are forced to incur an expense that hits their bottom line. They also do not understand why one year their premium can be X, the next year it can go up significantly to Y, and then drop significantly to Z. They feel that the insurance industry has no idea what price and risk are. In short, they feel the insurance industry offers a very unreliable service.

Many also feel that the insurance industry is one of the worst service industries in America. While there are exceptions to this general statement, and many insurance company executives try hard to eliminate this perception, in the eyes of the corporate consumer the perception still exists. Also, while the impact of the industry scandals involving profit sharing and contingency arrangements has yet to be determined, I firmly believe that this has further convinced many companies that there is an “unholy alliance” between their “insurance agent” and their underwriter. What they want is an independent professional who puts their interest above everything else.

So why is all this important to a professional agent? If you act like “just another insurance agent” you are going to be wrapped in the same negative perception, and viewed as “substitute goods.” On the other hand, if you legitimately hold yourself out as a risk management specialist, and the customer’s advocate, you bring enormous value – and inherently DIFFERENTIATNG yourself from your competition.

While you must conduct business with your insurance company professionally and ethically, the prospect must legitimately perceive you as their loyal, independent advocate. Otherwise your relationship is a premium driven transaction, you never truly DIFFERENTIATE yourself from your competition, and you lose 90% (or more) of the TIME.

First, you should get straight with the traditional way things are done in your industry and understand the enormous cost to you and your agency. In the traditional insurance sales method, the agent goes out, somehow convinces the prospect to allow him or her quote, gathers underwriting information, completes the various applications, submits them to the underwriters, gets quotes, and puts together the proposal.

The proposal has always been a funny little dance because, in the prospect’s system of buying insurance, cost equals premium (that should not come as a surprise….the insurance industry has done a fantastic job of teaching them that for years). Some agents put the premium up front in the proposal. Others put the premium in the back of the proposal. Ultimately it really does not matter. While you are making your proposal the prospect is not really listening to you. The prospect is actually thumbing through your proposal trying to find the premium. To make matters worse the agent has listed in the proposal a number of boilerplate sheets that outline the “value-added services” that he or she will provide to the prospect. Things such as prompt services on day-to-day issues (i.e., service team, promise to provide prompt response to requests, etc.), prompt claim service (i.e., prompt claim support, claim reviews, etc.) and loss control services (i.e., loss control advocacy, in-house staff, etc.)

There are several things wrong with this approach. First, most of these value-added services are not unique. Virtually all agents either have these services or at least promise that somehow they will deliver them.

Second, the prospect rarely has made the connection between the services offered and their risk management needs. In other words, the agent has made a service COMMITMENT that fails to solve an INCUMBENT AGENT CREATED PROBLEM. This HABIT will doom you to failure.

Third, and worst of all, the prospect has difficulty translating services into tangible economic value. They are just words on a piece of paper. Yes, they are great to have. But the bottom line is that, because other agents have also promised these services, they are neutral to the decision to go with your agency.

The result is that you begin sliding down the slippery slope that leads to premium being the criteria for getting the business. As I have talked with and coached insurance agents throughout the country I hear constantly that they want to get away from merely selling price and find a way to DIFFERENTIATE themselves from their competition. If fact, as we analyze their sales process they learn that virtually every statement and action reinforces the prospect’s perception of them – right from the start and throughout the sales process. It becomes harder and harder to overcome and the INCUMBENT AGENT always has the advantage.

The fact is that insurance premium equals only about 1/3 of the TOTAL COST of commercial property and liability risk management. Where does the other 2/3 come from? Examples of non-premium bearing costs include the cost of uninsured claims, the cost of underinsured claims, errors in the factors that generate the rates (experience mod, etc.), the cost to the organization of poor service, lost productivity from worker injuries, personal stress from dealing with the poor service day after day, and the risk of personal career capital if something goes wrong.

At each sales interview you must clearly define your concept of TOTAL COST and how you and your organization can help minimize this TOTAL COST. This must be done on the first appointment and reinforced at every call. Otherwise the TOTAL COST concept will not stay on the decision maker’s radar screen and be lost forever.

Also, if the prospect consistently does not respond to this concept then, at the very least, you know one thing – they are a “price buyer.” If that is the case, and you still want to pursue the prospect, do not waste time on anything other than premium as the sole criterion for getting the business. Also, you have no one else to blame but yourself when you learn that the prospect stayed with the INCUMBENT AGENT even though your premium may be lower.

The 80-20 Producer Coaching Program provides insurance sales resources that can help you. These resources focus primarily on property insurance sales, liability insurance sales and workers compensation sales. You will find at www.80-20producercoaching.com sales coaching and producer sales training resources, sales seminars and sales books to help you succeed. For those who specialize in workers compensation you will also find a certification program (www.isowcs.org) to help you differentiate your organization in meaningful ways.

Are You Putting The ING Back In SellING

nospam@example.com (Bill Reynolds) — Wed, 03 Aug 2011 10:09:56 -0400

Ever since I was a young boy I have loved to fish. Once, when I was about six years old, my father took me on a weekend fishing trip. Now, I have to tell you that my Dad was the world’s worst fisherman. He loved to fish, but for some reason the fish did not like him. Fortunately that never deterred my Dad from taking me out whenever he could.

On one trip we drove up to North Georgia. At the fishing lodge the other fishermen were raving about all the fish they were catching. I was about as excited as a young country boy could be. My Dad and I fished our hearts out for two full days. As hard as we tried we did not even get a nibble. While I was somewhat patient the first day, throughout the second day I was, well, let’s say a pain in the ass. I kept complaining and complaining. And while my Dad kept trying to catch me a fish, it just was not working out.

In the late afternoon we headed back home. But that did not stop me from complaining. I just could not believe that all the other fishermen were catching fish and I was not. On and on I went, mile after mile. Then, about an hour from home my Dad pulled off the road and said:

“Did you know, Billy, that fishing is two words?”

“What do you mean,” I said.

“Well, there is FISH and there is ING. We did not catch very many fish this weekend, but we sure caught a lot of ING. The ING, Billy, is the enjoyment we had in being together”

I told you this story for two reasons. First, I wanted to reassure you that, unlike my fishing experience, this blog will give you tons of tools, techniques, and systems to go with it, that will grow you current book of risk management products and services to unbelievable levels. I can guarantee that, by applying all the ING tools contained in upcoming blogs you will make a lot more money and have fun doing it. Why can I make this guarantee? Because I have been training agents for years in how to use these tools and have guaranteed that it will work or they get their money back. Agents have taken the tools contained in this manual and have, on average, increased their commission income by $100,000 over more annually.

The second reason I told you the ING story is make a point. Competing in the arena of risk management services is not about trying to sell a prospect any more. It is about helping the customer buy what is best for them personally and for their company. In my humble opinion agents have been taught, encouraged, and even pressured to sell without realizing that there are a host of “little things” they are overlooking. They often go out, meet as many prospects as possible, and do everything they can go quote as many opportunities as possible. The prospect has to buy “insurance,” so at some point they decide to “get quotes.” Elated at the opportunity, the agent rushes back to the office, fills out applications, fights for access to underwriters, and does whatever it takes to drive the premium down. As the renewal date nears there begins a “quotation dance.” “Who is going to be first in the door?” “Are we going to get the last look?” “How can I ‘spin’ the living heck out of the prospect and use my ‘wedges’ to knock the other agents out?” But there is a little problem. When it is all said and done less than 10% of the prospects actually change agents. Then comes the blame game. The underwriter screwed up. The prospect screwed you. Believe me, I have been there and can write the book on these experiences.

Very little attention is given to the ING, which is all the things that help the customer share their true risk management problems with you, perceive you and your agency as the unique source of solutions, and ultimately “kill the incumbent agent.” Instead, selling has evolved into a manipulative “dance,” loaded with empty promises and platitudes that have little bearing on the threshold issues that keep the prospect up at night. Agents are too focused on the singular objective of selling “insurance.” The ING is the lost art of earning the right to be in the prospect’s “buying zone.” Unless you get to that point you are only in the “quoting zone,” and the odds are against you from the very first APPOINTMENT.

The 80-20 Producer Coaching Program provides insurance sales resources that can help you. These resources focus primarily on property insurance sales, liability insurance sales and workers compensation sales. You will find at www.80-20producercoaching.com sales coaching and producer sales training resources, sales seminars and sales books to help you succeed. For those who specialize in workers compensation you will also find a certification program (www.isowcs.org) to help you differentiate your organization in meaningful ways.