Group Health, Need Big Time Help!

[Labman]

Here's the deal, I've been working with group health for about a year and keep getting my ass kicked. I'm very good at getting appointments, getting a census and taking the prospect a quote. But after that, it is all downhill, apparently I can't close a greased door. I either have the worst luck of anyone or some very important component is missing from my presentation.

I meet with the owner, show them the rates and discuss the highlights of the plan. Usually the say this looks good just let me take a little time to decide on what direction we want to proceed in. Well....this is the point where it blows up in my face. They either don't get back to me or elect to stay where they are. I had one big group where all I needed to do was go pick up the check and they quit responding to my calls. Hell, I can't even get most cases to submit apps. I must be fundamentally doing something wrong, just can't figure out what I'm not doing.

Do you guys take apps on the appointment and get a commitment on the spot? Do you give the owner, say a day, to get them back to you? I'm thinking that maybe I'm giving them too much time and they cool down and are therefore no longer hot to buy, but other than that I seriously don't have a clue.

 

[somarco]

Seems obvious you are showing plans and rates but not selling yourself. The decision maker, assuming you are in fact dealing with the decision maker, is not convinced you are the answer to their problem.

 

[bluemarlin08]

Group health, especially large groups, are a real specialty IMO. I use a guy that has 25 years of experience only working this market and split commissions. If you want his name send me a PM.

 

[Labman]

Somarco,

I am indeed talking to the decision maker. And, I would agree that I'm not selling myself to the greatest extent possible. I'm having a hard time finding that wedge that would give me a leg up. In addition, I still think I'm giving them to much time to make the decision on whether they want to submit apps. This time lapse allows all kinds of things to intervene and causing me to lose the case. Just not sure how to put all of the pieces of the puzzle together.

 

[hockeyday]

question #1 before you show them you plans/rates is: are you willing to change your agent? my guess is your doing all the work and the owners are taking your work back to their golfing buddy agent and he puts your plan in place, ask that question right up front, if yes does not come out in 2-3 sececonds you are being used as a info machine

 

[Labman]

Good point Hockey! That is part of my problem I know, and I'm working dilengently on fixing that right now.

 

[somarco]

Not a dig, Labman, but on many occasions I have been on joint calls where the agent THOUGHT he was talking with the decision maker when in fact he was not. A few minutes of conversation and it became quite evident this was a wasted call.

As hockey pointed out, you are not getting a commitment up front. Doesn't mean they still won't double cross you, but someone unwilling to commit to making a change in AOR at the very least if you show them something worthwhile is not worth spending any time with.

Unless you have asked enough questions to find out what is bothering your prospect you will never make the sale.

Something I learned the first year in the business is find the problem, find the money, offer a solution. It takes all three before you get the sale.

I have taken over accounts in the past where I was unable to save them any money but I was still able to solve their problem. Often it is nothing more than a lack of service that is creating the unrest.

 

[djs]

First off, group sales are not as easy as they sound. I'm not sure what size groups you are working, the dynamics change a LOT as you go over 5 employees, then even more over 20 employees and then HUGELY change over 50 employees.

Assuming you are talking primarily about groups that are 20 and less, chances are, you are selling a health plan, which sounds good up front. Other agents are selling their service, which sounds better as time goes on.

Everyone I talk to understands that the rates are the rates. They are not going to go direct and get a better rate, they are not going to go find another agent and get a better rate. Rates for a given plan are set. I emphasize this because it helps take away 'shopping'.

You have to know what their current problem is. If they don't have one, it's going to be hard to write the deal. They will talk to you, but, without a problem, it's not going anywhere.

You then have to show them how you will service their account better than any other agent. This is why they want you, not the guy down the street. This means having new employee kits readily available for them. This means calling every once in a while to make sure noone is having any issues. This means finding out if they paid their bill and checking on them if something comes up. This means making sure all of their questions are answered and issues resolved.

Group frequently isn't as price driven as many think, but it really is service driven. That is what you have to convince them of in order to close the deal.

Dan

 

[Full Throttle]

First thought: Memorize this and use it on every first appointment, no matter how well it goes (I actually use on the phone before the first appointment):

"Mr. Prospect, one last thing. It may not be an issue here, but I've been put in a very uncomfortable situation in the past and I feel it's necessary to discuss it upfront. In the past, I've done a lot of working for companies helping them find a better plan for their money and showing them options, only to find out they were unable to hire me since they already had a strong relationship with their current broker. So I want to ask upfront, and either answer is fine, if I can show you how to improve your situation, are you able to hire me as your new broker?"

Most amateur brokers are so afraid of hearing "no" that they delay it to later in the process (in the form of non-returned calls, "I'll think about it", and other wishy washy words). If you don't have a chance at the business, you want to know upfront before you invest the time into it.

If you hear "I've been with my current guy for the last 10 years and feel like I have to give him last look", then move on. Respond, "That's fine, why don't you see what he has to show you first, then if you still want my help, give me a call." Believe it or not, they will respect you more for bringing up this issue at the onset, even if it doesn't go anywhere.

Second thought: you need to spend the first meeting finding out what is making them unhappy. If they aren't unhappy, you don't have a prospect:

Plan Issue:
-Price too high.
-Got a large rate increase.
-Billing issues
-Reimbursement issues.

Service Issues:
-Employee don't understand or appreciate benefits.
-No one helps them shop their plan each year (you will get lucky sometimes)
-The shopping consists of spitting out quotes of similar plans, not getting into strategies to control premiums going forward

If you have a service issue, spend your time there and go for an AOR. If you have a plan issue, you will likely need to get them underwritten with another carrier to get the group. If it's the latter, I would tell them that the only way to get meaningful rates is to apply to the carriers for a firm offer. From there, you can talk plan designs and pricing. If they don't give you committment at that point, move on.

From your post, it doesn't sound like you have a "presenation problem", you have two other problems that need to be addressed at the outset:

1. Qualifying upfront to see if they have a relationship that prevents doing business together.
2. Finding the one or two predominent issues they are concerned about and digging in further as to how it's impacting them.

 

[moonlightandmargaritas]

First thought: Memorize this and use it on every first appointment, no matter how well it goes (I actually use on the phone before the first appointment):

"Mr. Prospect, one last thing. It may not be an issue here, but I've been put in a very uncomfortable situation in the past and I feel it's necessary to discuss it upfront. In the past, I've done a lot of working for companies helping them find a better plan for their money and showing them options, only to find out they were unable to hire me since they already had a strong relationship with their current broker. So I want to ask upfront, and either answer is fine, if I can show you how to improve your situation, are you able to hire me as your new broker?"

Outstanding! Bravo! One of the best posts I've ever read on here!