To Make The Sale, Leave

To Make the Sale, Leave

By: Josh Seibert, Sandler Training®
  

The STORY:

Nick was having trouble trying to close the prospect. Still never having attended any company sales training courses, he hit upon a solution to the problem. One of the most experienced salespeople was in the back, and Nick decided to go and ask his advice.

“If you could excuse me for one moment,” Nick said, “I just remembered that I have an important message for one of the other fellows who is in the back room . . . I forgot to give it to him earlier.”

“You are going to come back, aren’t you?” asked the prospect.

“Of course,” responded Nick, “why would you think I wouldn’t?”

“Oh, I know I’m a royal pain in the butt when it comes to making a decision about buying something,” responded the prospect. “Most of the time, the salespeople get tired of trying to convince me and wander away, and I never see them again.”

Nick wasn’t sure what to say. He really needed to get the experienced salesperson’s advice so he turned and headed toward the back room.

“Wait a minute,” said the prospect, “I don’t want you to leave. I’ll buy it.”

“You’re sure?” asked Nick, hoping he hadn’t said too much.

“Definitely. Wrap it up.”

When the customer is out the door, thought Nick, I’ll go back and ask the experienced salesperson what to do the next time this happens.

The RESULT:

Nick did something very important for the wrong reason. From the prospect’s point of view, which is the only one that counts in selling, Nick was getting up to leave, never to be seen again. Again, the prospect would be left standing alone, not having bought anything. This pressure on the prospect, which Nick applied without realizing it, was enough to make the prospect give up and buy. Unfortunately, if Nick does ask for advice, he’ll probably be told the wrong thing.

DISCUSSION:

Getting up and leaving a prospect is almost impossible for a salesperson to consider. Why would you ever want to give the impression that you are going to walk out the door?

The reason for getting up and leaving is to let the prospect know it is time to make a decision.

The pressure is now on the prospect where it belongs.

This is not a tactic that you want to try with every prospect you come across. But if you have reached the “end of your rope” with one, you have nothing to lose by trying. The worst that could happen is you won’t make the sale. But then, you had no chance anyway.

APPROACH:

There are many ways to get up and leave. One approach is to physically start to move away.

Another is to simply look at the prospect and say, “Off the record . . . I get the impression that you haven’t come to a decision. Let’s assume that you decide it’s over. You don’t buy. What happens now?”

This verbal getting up and leaving forces the prospect to see a future in which he does not have your product/service. If he is in enough pain to be seriously considering buying, then looking at a future without buying is more painful. The only catch to the verbal leaving is that you MUST wait for a response. Do not rescue him or physically leave him.

Do not change “What happens now?” to “What happens then?” The word “now” brings the future, without your product/service, into the present, and as a result, pressure to decide becomes overwhelming.

THOUGHT:

“Leaving” the prospect makes the prospect want to come to a decision.

 

Josh Seibert is the president of Training & Development Solutions, Inc., Sandler Training located in the Piedmont Triad.  He can be reached at 336-884-1348 or www.training.sandler.com

©Sandler Systems, Inc. All rights reserved.

One Year Later: Progress and Potholes In Cyber Risk, The Most Dangerous Threat No One’s Talking About

One Year Later: Progress and Potholes in Cyber Risk, the Most Dangerous Threat No One’s Talking About
By: Michael Miller, State Director Minnesota, Wisconsin, and Iowa

A year ago in this magazine, I introduced the most dangerous threat no one is talking about in the insurance industry—cybersecurity—and why that was great news for your business. For every four business owners who walk into your agency, three will not be protected against cybersecurity risks. It’s a staggering number, and one that gave you a valuable opportunity to help your clients.

Now, a year has passed, and I wanted to update you on the state of cybersecurity risks today and the progress—and potholes—our industry is making to help protect individuals and businesses.

Notable Cyber Risks in 2017

More data breaches occurred in the first half of 2017 than in all of 2016. Misconfigured security settings, out-of-date software, and lack of strategy on how to prevent and stop data breaches were largely to blame. Uber, InterContinental Hotels Group (IHG), and Verizon all experienced cyber-attacks and data thefts, affecting millions of consumers.

But the largest breach of 2017 occurred at Equifax. In September 2017, Equifax announced 145.5 million consumers were affected by a data breach. That’s nearly half the US population’s sensitive information, including addresses, birth dates, Social Security numbers, and credit card information. The breach was absolutely massive, and experts believe it will cost consumers and Equifax around $4 billion to ameliorate.

Progress and Potholes within the Insurance Industry

Fortunately, the insurance industry continues to develop products to protect consumers and businesses from cyber risk. More than 60 carriers now write monoline cybersecurity policies, with gross premiums into the billions of dollars. Popular carriers include many in the Smart Choice® program, such as Travelers, Burns & Wilcox, Liberty Mutual, CNA, and Crump. Experts at the NAIC believe the number of carriers who offer cyber risk policies and the types of liability those policies cover will increase over the next few years.

However, protecting against cyber risk with insurance is still relatively novel for consumers and businesses. Many continue to learn the hard way that their general liability policies don’t cover losses from a data breach, hack, or other cyber-attack. This puts businesses and consumers at risk of having sensitive information stolen, held ransom, or used against them. Businesses face their own set of cyber risks, from damaged reputations to loss of valuable assets such as customer lists and trade secrets.

What 2018 Has in Store for Cyber Risk

While cyber insurance and cybersecurity regulations will grow stronger and more numerous this year, so will the intensity and frequency of cyber attacks. Sophisticated attacks using artificial intelligence will be increasingly difficult to identify and prevent. Bad actors will continue to hijack consumer and business networks and hold them ransom. Cryptocurrency technologies will sustain attacks, too.

With these threats on the horizon, you can’t afford not to offer cyber insurance to your consumer and business clients. This year, learn about the cyber insurance policies your carriers offer and develop a plan on how to cross-sell them to your current commercial insurance clients. Once you have your pitch down, start promoting cyber insurance in every conversation you have with potential commercial insurance clients. Become the local resource on cyber risk and offer solutions that empower businesses to protect their own data and the personal information of their customers.

What Cyber Insurance Covers

Cyber insurance policies cover liability and property losses that occur when a business is hit with a cyber attack.

Coverage may include:

  • Business interruption from cyber attack
  • Computer fraud
  • Costs of credit monitoring, fines, and loss after a data breach
  • Cyber extortion
  • Data loss and destruction
  • Funds transfer loss
  • Liability from data breaches
  • Liability from web content
  • Notification costs in the event of a data breach

Sources:
Burns & Wilcox
CSO
NAIC
Property Casualty 360

Front of the Pack: Coming Out Ahead in an Everchanging Financial Landscape

Front of the Pack: Coming Out Ahead in an Everchanging Financial Landscape

by Michael Miller, State Director Minnesota, Wisconsin, and Iowa

The stock market has climbed to new heights over the last few months. Recently, the Dow Jones Industrial Average closed over 26,000 points, a record high. While this is great news for the country, it overshadows some serious challenges the insurance industry faces.

While stocks climb, insurance companies are hurting after billions of dollars in losses after several major hurricanes last fall and wildfires and ensuing mudslides in California in December and January. The latest tax bill gave businesses substantial breaks, but left a wake of uncertainty regarding healthcare. Meanwhile, distracted driving is a persistent problem, driving claims and premiums up.

How does an independent insurance agent stay ahead of the game, despite the multiple financial challenges facing our industry? Here are a few ideas I’ve shared with my agents to help them get ahead and stay ahead.

Diversify your offerings and demonstrate your value.

One of the first things I recommend agents do is review the range of insurance products they offer. Many independent agents get into the business writing personal lines, but few expand into commercial, life, and health markets. They do so at their peril. Selling personal lines insurance is a great way to learn the insurance business, but there’s heavy competition from online brokers and captive agents. Adding commercial carriers and learning how to write a great life insurance policy can help you stay in the black, even when the personal lines market is in a downturn.

Regardless of what insurance products you offer, make an effort to demonstrate your value to every client and potential client who walks in your door. Your agency isn’t just a place to buy insurance, it’s a risk management consulting firm. Help your clients understand the risks they face as homeowners, business owners, spouses, and parents, then offer them custom insurance solutions that cover that risk. That’s a level of expertise and service the online brokers simply can’t provide.

Identify your lead generation strategy . . . and work it.

The most successful agents will all tell you that they never take their foot off the gas. They are always sourcing and reaching out to new leads, even when they’re running at or near capacity. Creating and implementing a consistent lead generation process ensures you’ll never run out of new business.

Where is your current business coming from? What opportunities are you ignoring? Identify them and create a plan. Will you join a networking group to get referrals or buy a list of leads? Once you have leads, will you reach out to them by phone, mail, or email marketing? How often? The answers to these questions will help you develop a lead generation strategy you can use all year.

Don’t leave talent on the table.

No agent is successful all on their own. We all rely on teams to grow our agencies, whether they’re outstanding producers and CSRs at our office or our families at home. Who are you underutilizing on your team? On the flip side, are you so overwhelmed with work that you need to hire someone? Make the most of the human talent available to you—your own and that of your team.

Think a year ahead.

The most successful agencies think long-term. It helps them stay focused on their goals and whether short-term financial downturns. Envision where you want your agency to be this time next year. What will you do to reach that goal? Consider subscribing to trade magazines and newsletters to stay ahead of trends in the insurance industry. Use these insights to recalibrate your goals and adjust your plan.

When It’s Time to Move On

You’ve spent your career helping families and businesses mitigate risk and protect their assets and loved ones. You have a full book of business, wonderful staff, and a great office. Have you ever wondered what will happen to the insurance agency you’ve worked so hard to build once it’s time to move on?

You’re in the risk management business, so chances are you’ve thought about this quite a bit. But if not, here are a few tips to take the mystery out of selling your agency:

  1. Get an insurance agency valuation to determine its actual worth, including your book of business, location, the markets you offer, and your phenomenal staff.
  2. Create a plan to sell your agency at least three years before you plan to leave the business with the help of a good business attorney.
  3. Know your sale options, from selling your agency for free through Smart Choice® to identifying a buyer within your agency, your family, or your professional connections.

 

Source:

Insurance Journal