Telesales Math

[WCMason]

Over the last couple months on this board it's apparent that there are two camps regarding med supp sales: telephone and face-to-face. I do F2F and am very successful at it. While telesales seems like it would be more efficient use of time and money, I don't see how one could make enough cold calls to close as many deals in a week as you can F2F.

How many dials and hours of dialing does it take to close a deal for a better than average agent? Then, assuming a 40 hour work week and looking at a long period, say the first quarter of 2013, how many issued policies? I want to compare it to what I'm doing to see if it make sense to consider a change.

 

[sman]

I don't do cold call sales so I can't give you those numbers. But I sell virtually all Med Supps over the phone. They are all referrals.

However, when I first started selling Med Supps I was buying internet leads. In the beginning they were organic leads and very high quality. I was literally closing 40% of all leads. So I'd spend $130 for 10 leads and sell 4 Med Supps. Well worth it. That percentage lasted for about 6 months and I was buying every lead they could provide. Eventually the quality of the lead changed and it dropped to closing about 1 out of 10. I finally stopped buying the leads and just started working referrals.

Let's look at your F2F system for a second (and this isn't a knock on F2F because it obviously works). How are you getting those leads (DM, internet leads, referrals)? How many appointments are you setting off of the leads? How much time do you spend driving to the appointment (and back)? What is the cost of the lead (add in call time, drive time and gas)?

When I have a referral call me, I spend as much time as they need on the phone (usually no more than 30 minutes or so). Sometimes we take the app on the first call. Sometimes I have to email them information. But eventually it's a done deal. I can count on one hand how many times I haven't closed a referral. And almost all of them are over the phone. That's not to say I don't have the occasional F2F, but it's the exception and not the norm. And when I'm going to meet them F2F, it's to get the application signed. I make that clear before I drive out to see them.

Both methods work. I used to be a F2F guy. I couldn't conceive of the idea of doing everything over the phone. I remember the first time I did an online app. I even told the prospect something like, "this is a new system so bear with me while we work through it. You are my guinea pig."

I think one of the big misconceptions about selling over the phone is the persistency will be bad. I can't speak for others, but the only clients I lose are due to death. And I'm not blowing smoke. My persistency is fantastic. The other misconception is that you can't build relationships over the phone. That's not true either. I just have conversations with people. It's genuine. I'm not trying to rush them off the phone and get the quick close. I genuinely want to help people. And it pays off. There really isn't a week that doesn't go by that I don't get at least one referral.

Selling over the phone may not be for everyone. But it certainly works for me. As does the occasional F2F.

 

[WCMason]

Let's look at your F2F system for a second (and this isn't a knock on F2F because it obviously works). How are you getting those leads (DM, internet leads, referrals)? How many appointments are you setting off of the leads? How much time do you spend driving to the appointment (and back)? What is the cost of the lead (add in call time, drive time and gas)?

My clients come from a combination of direct mail and referrals. Referrals are from clients and a couple of large investment firms that introduce me to every T65 client they have about four months prior to eligibility date and lots of their older clients looking to reduce med supp cost. They have been wonderful to me and those referrals create new referrals. My prospects are all inbound calls; I don't cold call and don't us a BRC in DM.

I run about a dozen appts. per week mostly within a 50 mile radius and have averaged ten apps per week for 2013 (about 70% med supp, 30% MA). Some of the appts. are first visit no sale yet, others two sales on one appt. I haven't calculated expenses of getting leads, gas on a per sale basis but just handed over my books to a CPA to manage so I should get that number soon.

I never considered anything other than setting a time to go see them after the SOA came in but by doing what you've described I wouldn't have to change anything other than offer the option to take care of everything on the phone. I did have the idea that persistency might suffer if I never met them. What I'm doing is working, I just want to cut down all the driving.

 

[somarco]

If it works for you, why change? I suspect most F2F guys have difficulty making the transition to phone sales.

Scott and I both started out F2F and have made successful transitions but that doesn't mean you will.

You can give phone sales a try and see. It is a much different sales process and one-call-closers may find the change very difficult.

 

[azmedsupagent]

Somarco, If you do a phone presentation and I come in and do an in person presentation, assuming you and I both do a presentation of equal quality and quote the same plans and prices, I can assure you that I will be getting that sale. Why? Because your just some nice guy on the phone, and Im the guy drinking a cup of coffee with them and showing off pictures of my daughter to them.

How do you over come this dis advantage on the phone?

 

[SportsNut]

How do you over come this dis advantage on the phone?

az: You make the assumption that every client wants to meet f2f; many don't want to be bothered. It is kind of the philosophy of why Amazon.com is so successful, lots of folks want to shop online or over the tele for commodity purchases, and a supp is just that, a commodity purchase.

Price vs price for a comparable Plan, (F to F, G to G, etc.) and of course displayed knowledge and competency on the part of the agent. Frankly most folks don't really care all that much about a pic of an agents family... but if you are convinced it is an important part of making the sale and it works for you, then keep on keepin on brother. But, my money goes on Somarco! Let the games begin... And they are off.....

 

[russelltw]

AZmedsupagent,
To me it's a matter of time and your reach. I have clients several states away. I could never sell that person F2F. With that said, I do both types. Sometimes the F2F is an option, other times it's not. If you are honest with people and help them, they know it. I am trying to find the best plan for them and explain why it's the best plan for them. I represent almost all major carriers in my market, so replacing my business will be hard.

With phone sales:
you can "fish" in a VERY large pond.
No drive time.
You better work hard on developing a relationship

With F2F:
Easier time putting people at ease.
May have easier time cross selling
Drive time and/or no shows.

Both have it's advantages and disadvantage. Find something you like and enjoy helping people. I know people working each type of system making over $100k/year. Simply find what works for you and build a book of business. Good luck.

 

[senior-advisor-indiana]

az: You make the assumption that every client wants to meet f2f; many don't want to be bothered. It is kind of the philosophy of why Amazon.com is so successful, lots of folks want to shop online or over the tele for commodity purchases, and a supp is just that, a commodity purchase.

Price vs price for a comparable Plan, (F to F, G to G, etc.) and of course displayed knowledge and competency on the part of the agent. Frankly most folks don't really care all that much about a pic of an agents family... but if you are convinced it is an important part of making the sale and it works for you, then keep on keepin on brother. But, my money goes on Somarco! Let the games begin... And they are off.....

Good point, it works both ways too. Some don't want anyone in their house and some don't trust anyone over the phone. There are plenty of both of those. Personally, I think phone sales would put me into a depression being stuck at home all day. I'm trying to transition now but will definitely keep doing F2F at least 30% if the time.

 

[russelltw]

Funny SAI, I am feeling the things. Being at hte home office all day long can be mind numbing. I am trying to get out more to visit some prospects. I was trained in F2F with my previous multiline company. They wanted F2F appointments only. I started doing online sales with a lot of help with the guys from the forum (Thanks Bob, among others). Now I am on my own and seeing the value of doing both.

 

[senior-advisor-indiana]

Funny SAI, I am feeling the things. Being at hte home office all day long can be mind numbing. I am trying to get out more to visit some prospects. I was trained in F2F with my previous multiline company. They wanted F2F appointments only. I started doing online sales with a lot of help with the guys from the forum (Thanks Bob, among others). Now I am on my own and seeing the value of doing both.

There is definitely pros and cons of both ways and I doubt I will ever be 100% phone or F2F again.