Believe it or not, having too many prospects can be a problem. The prospecting system I use for my agency consistently generates large numbers of new prospects. While this is normally very favorable, it does create some challenges. Because we have so many new prospects to follow up with, organized follow-up becomes very important. Two major problems become clear when you have a lot of new prospects:
1. New prospects are easy to lose track of if you are not organized about follow-up.
2. If you do not have a systematic way of "releasing" or letting go of new prospects after a reasonable attempt at doing business with them, you can become buried underneath them.
I created a process that solves both of these problems. It includes a set of status codes used in my contact management database along with three different follow-up letters that are sent at various stages of follow-up. The process culminates in a prospect either becoming a client or becoming systematically released from follow-up.
I use several databases to manage my overall prospecting efforts. The first database is the most sizeable, but it is the least complicated. It contains a large group of targeted and prescreened prospects. I talk to and send direct mail to these prospects on a regular schedule. As I do this, a percentage of these prospects reveal themselves to be currently interested and willing to meet with my agency on a favorable basis. Such prospects I call "finished leads." Once identified as such, a finished lead is upgraded for more detailed follow-up.
Status codes
When a finished lead is transferred into my client service database, it is assigned a "status code." Status codes keep track of any prospect according to stage of follow-up. Status codes are numeric and are entered into a database field specifically set up to track and manage status codes. Status codes are queried on a daily basis to assure that all necessary follow-up work is carried out. Here is a list of potential stages of follow-up along with corresponding status codes:
1. Pre-quote. This is a finished lead that has just been transferred into the client service database. Typically, proposals need to be prepared and ordered for this prospect. All prospects at this stage are sent a "follow-up letter one." This letter lets the prospect know we have begun working on proposals and thanks the prospect for the opportunity to be of service.
2. Quote. Quotes or proposals are now complete.
The prospect needs to be contacted and an appointment set up to go over the proposals. All prospects at this stage are sent a "follow-up letter two." This letter lets the prospect know that the proposals are ready and that we will be calling soon to set up a meeting.
3. Presentation. Prospects at this stage have follow-up appointments already scheduled. Any additional work necessary to prepare for the presentation is now completed.
4. Consideration. The appointment is over. The prospect has seen the proposals and is being given sufficient time to decide whether or not they would like to buy.
5. Close. The prospect has decided to become a client. This initializes another set of steps that follow through from underwriting to policy delivery.
6. Release. This is a prospect who has decided not to buy for now. This prospect is sent a "follow-up letter three." This letter lets the prospect know we have concluded follow-up regarding the proposals we prepared. It graciously thanks the prospect for the opportunity to present information and leaves the door open for future contact.
Customize the number and type of codes you use to match up with your unique sales cycle. Prospects released from follow-up are removed from the client service database and returned to the initial database. If we don't hear back from a prospect after presenting a proposal, we give them about three opportunities to call back. When we still haven't heard from the prospect, then a "follow-up letter three" is sent. If you send enough number "three" letters, you will notice some prospects calling you back saying, "Wait! Don't release me -- I'm still interested!" However, it is critical to have a release point. Otherwise, you can collect too many prospects in the follow-up stage, and it can bog you down tremendously.
Improving efficiency
Does having too many prospects sound like a dream? Far from it. When you find yourself with an abundance of prospects, use status codes to manage your follow-up. Effectively using status codes will make you more organized, improve your efficiency and help you write more business.
Ted Stevenot is an independent life and health agent and the author of the book "Prospect Factory." Ted makes himself available to consult with companies on how to improve their prospecting results. He can be contacted through the Web site www.prospectfactory.com.
