Ok, the post title may not be perfect, but I'm hoping to draw some attention. 
Here is what I've been (almost obsessively) interested in for a while. I need ideas and feedback. Maybe no one is targeting these 585 people... but if you are or if you want to, I'd love for this thread to turn into something great.
Here is what we've (all collectively, in general) been doing for years. I started in FE a few years ago, moved to Med Supps, now I do both...
We systematically...
1. Send 1,000 direct mail pieces
2. Get 1.5% return (if we are lucky) - 15 cards
3. Close 20% - i.e., 3 apps
(JD has said, over and over, that a good average agent will close 20%, so let's use that #)
4. Count the money... $1,800 AP (* Comp %) - (roughly) $400 lead cost = nice profit.
(of course we also get tele-leads...but you get my drift)
We do this week after week and call it a day. Of course there are variables, but let's talk general.
Here is the bottom line. We market to 1,000 people for 3 applications. So, we close .3% of those whom we market to.
I'm reading through Question Based Selling for a 2nd time. He talks a lot about "latent needs" vs. "active needs" and makes the point that the true opportunity, in any sales market, is found by uncovering latent needs.
These are people who need Final Expense coverage but did not send the card in. i.e., they aren't actively looking. Our card didn't "disturb" them in to looking - but the fact that they are not actively looking does not mean that there is not a need to be filled. (note - a need can created by problems or desires).
So, here's my math...
Out of those 1,000 people that we mailed, let's assume that 600 have a true need for Final Expense Life Insurance. So 400 throw away our card because they don't need (no problems...no desires) a thing from us. The other 600 have a need, but only 15 of those 600 people are actively looking. Out of those 15, we can only sell 3.
But the 585 who aren't actively looking throw the card away. They throw it away even though they have a need! This need hasn't been "disturbed" enough so the needs stays latent....
How can we target the 585, who really are in the same situation as the 15 who did return the card?
If we can figure out a way to target these people, the 58.5%, and close 20%, then I think we'll hit the lion's share of the FE market.
Or we can keep going after the small sliver - the 1.5% who return cards.
This discussion may be similar to the T65 medicare discussion. The T65 have an active need, so most agents go after them. But many have come on here and pointed out that the true "riches" are in targeting the 68+ who aren't actively looking for change.
Help me out here.
Any way to target the 585?
How have you helped these people "realize" their need (either their problem or their desire)?
For those who might stick to their guns by saying that they only work with people who are looking for insurance - then how on earth would you work a referral? Referrals are almost never "actively" looking. But, we sell to referrals because we can bring their problems/wants to light.
How can we do this on a broader scale?
If we can figure this out, we can work a smaller area. i.e., we won't have to send 1-2,000 cards per week. We won't have to have a "territory" spread over a few counties...
We also won't have as much competition - since the 15 people who return cards will no longer be our target. Leave those people to LHLIC...
(to read an excerpt from the book...click here)
Thanks, in advance, for the replies.
Here is what I've been (almost obsessively) interested in for a while. I need ideas and feedback. Maybe no one is targeting these 585 people... but if you are or if you want to, I'd love for this thread to turn into something great.
Here is what we've (all collectively, in general) been doing for years. I started in FE a few years ago, moved to Med Supps, now I do both...
We systematically...
1. Send 1,000 direct mail pieces
2. Get 1.5% return (if we are lucky) - 15 cards
3. Close 20% - i.e., 3 apps
(JD has said, over and over, that a good average agent will close 20%, so let's use that #)
4. Count the money... $1,800 AP (* Comp %) - (roughly) $400 lead cost = nice profit.
(of course we also get tele-leads...but you get my drift)
We do this week after week and call it a day. Of course there are variables, but let's talk general.
Here is the bottom line. We market to 1,000 people for 3 applications. So, we close .3% of those whom we market to.
I'm reading through Question Based Selling for a 2nd time. He talks a lot about "latent needs" vs. "active needs" and makes the point that the true opportunity, in any sales market, is found by uncovering latent needs.
These are people who need Final Expense coverage but did not send the card in. i.e., they aren't actively looking. Our card didn't "disturb" them in to looking - but the fact that they are not actively looking does not mean that there is not a need to be filled. (note - a need can created by problems or desires).
So, here's my math...
Out of those 1,000 people that we mailed, let's assume that 600 have a true need for Final Expense Life Insurance. So 400 throw away our card because they don't need (no problems...no desires) a thing from us. The other 600 have a need, but only 15 of those 600 people are actively looking. Out of those 15, we can only sell 3.
But the 585 who aren't actively looking throw the card away. They throw it away even though they have a need! This need hasn't been "disturbed" enough so the needs stays latent....
How can we target the 585, who really are in the same situation as the 15 who did return the card?
If we can figure out a way to target these people, the 58.5%, and close 20%, then I think we'll hit the lion's share of the FE market.
Or we can keep going after the small sliver - the 1.5% who return cards.
This discussion may be similar to the T65 medicare discussion. The T65 have an active need, so most agents go after them. But many have come on here and pointed out that the true "riches" are in targeting the 68+ who aren't actively looking for change.
Help me out here.
Any way to target the 585?
How have you helped these people "realize" their need (either their problem or their desire)?
For those who might stick to their guns by saying that they only work with people who are looking for insurance - then how on earth would you work a referral? Referrals are almost never "actively" looking. But, we sell to referrals because we can bring their problems/wants to light.
How can we do this on a broader scale?
If we can figure this out, we can work a smaller area. i.e., we won't have to send 1-2,000 cards per week. We won't have to have a "territory" spread over a few counties...
We also won't have as much competition - since the 15 people who return cards will no longer be our target. Leave those people to LHLIC...
(to read an excerpt from the book...click here)
Thanks, in advance, for the replies.
