Lazy and Brain Dead

[djs]

It's the devil you know, rather than the devil you don't know. We've all been taught that if a deal sounds to good to be true, it probably isn't real. Keeping that in mind, remember that the prospect is thinking, "Why would someone offer exactly the same thing for less money?" If you're not answering that question for the client, they won't switch.

Look at it this way. If I offered you auto insurance, full coverage, exactly the same as you currently have, at $10 a month, would you switch? You would ask a lot of questions first.... and then still back out, it doesn't make sense. Of course, this isn't a real offer, but what makes the offer you're giving you're prospect seem real to them?

Dan

 

[somarco]

Canceling current policies, notifying lien holders and mortgage companies, all the client does for us is sign forms and give us a check. Is all that being left up to the consumer?

Cancelling policies is as simple as dont pay the premium. No one cancels health insurance, they just stop paying and eventually the carrier gets the idea.

Any contractual change needs to be handled by the insured. Most carriers prohibit the agent from making contractual changes, including cancelling coverage. Even if they allowed us to do that I wouldn't. Too much E&O exposure.

 

[hpfrench]

We have a simple form letter that lists the client's name and address, the current carrier and policy #, and the effective cancel date. The form simply asks that all unearned premium, and again this is primarily used for HO and Auto, be returned to the insured. The new client signs it and we fax it.

 

[dholl49948]

I’m new to the board and have been enjoying reading everybody’s comments. For whatever its worth I want to contribute and add my 2 cents. I started in insurance a few years ago as a captive agent with Bankers Life. I sold a few Medicare supplements for them before I found United World and Medicare Advantage plans. Like everyone else, I run into some of the same objections in the field (I want to stay with my current company, I need to think about it, next year, or whatever).

Bankers taught me two concepts that I have found to be very useful,

1. Sometimes you have to be prepared to close someone at least 7-10 times before a they are willing to do to do business with you. They want to see that you actually believe in the product that you want them to switch to.
2. If you sell other products always do a complete fact finder. This can expose other possible problem areas (not enough life insurance, no short/long term care in place). With that information you can make recommendations on what could be done with any potential savings and help them improve their overall financial picture by closing any remaining gaps.

This won’t work 100% of the time but you should pick up a few extra clients with persistant closing.

 

[arnguy]

A front page article in today's Philadelphia Inquirer exemplifies the problem. It discusses the dual role of AARP as both an advocate and marketer of Medicare drug plans. The gist of the article is that the plans marketed by United Healthcare under the AARP banner are just middle of the road plans----not the cheapest and not the most expensive. However, it goes on to say that many seniors will not switch to other plans that may be $500 to $700 cheaper just because of the "trust" they have for AARP. The article gives some examples of this attitude.

 

[Crabcake Johnny]

I think the "it's too good to be true" defense mechanism kicks in. Here we are telling clients they'll save "thousands a year" and in many cases improve their coverage. That just doesn't smell right to most people.

They are too polite to be honest with us so the path of least resistance is to simply not return our calls or emails, say "I just need time to think about it" or whatever excuse they can use.

If they wanted to be honest it would be "I don't know or trust you and I just KNOW that if I go with your recommendation I'm gonna get screwed."

Sometimes people are just frozen in fear of "changing" anything. I've lost deals trying to recommend staying with BX, but just choosing another plan.

My latest case in point was a family on Blue Choice HMO for just over $800 a month. The wife was crying the blues about how bad the rate was and the fact that her family didn't use the coverage. I recommended their HSA which would have saved her around $400 per month. That was over 2 months ago - haven't heard from her since.

 

[arnguy]

I recall at one sales training meeting the trainer stated that people's brains are hardwired to give an automatic response of "no" to any sales offer and that has to be overcome in the presentation to make the sale.

 

[somarco]

Most of the "old style" sales training doesn't seem to work. I have been through training and I am sure most of you have been as well.

I have sales books, tapes (cassette, not 8 track), etc and most of them are all about dominating and pressing the sale.

I do believe prospect need repeat impressions before the light bulb comes on. That is why I use drip marketing as much as possible.

When I used to do face to face meetings one of my favorite "closes" was the Columbo close. I would get to the door, open it and then pause. "Oh, by the way . . . there is just one more thing . . ."

It worked more often than not.

Still use it when I can in phone sales but it is much easier in person.

Of all the material out there, I like stuff like Gitomer (and a few others) put out. His premise is people hate to be sold but love to buy. The idea is to give them as many chances to buy as possible.

 

[Crabcake Johnny]

Typical sales tactics don't apply when people have to keep the product for a year, can return it at any time, and we don't get commissioned or keep full commissions.

I wonder how the field of car sales would be if people could drop the car back off on the lot anytime within the next 12 months, no questions asked and the sales rep got charged back. Just imagine failing to make a car payment, the finance company calls and you could say "screw it - come pick this thing up. I just found a better deal."

I wonder how mortgage brokers would operate if people could cancel their home loan over the next 12 months, no questions asked and simply move out. Mortgage company calls:

"Hey, we didn't get your payment this month."

"Oh...we forgot to call. We found a better deal so we won't be making any more payments."

Pressure and "tactics" work when people cannot back out after the sale is made. I'm sure the time share industry would change just slightly if anyone could cancel or simply fail to pay their loan with no repercussions.

 

[Chkndinner14]

America today----------

Yesterday the final conversation with someone I have been working for 3 months. H/W and 2 kids, no current coverage.

They bought a 2008 Suburban instead of the coverage.