In order to facilitate and ensure success in insurance cold calling, one need not reinvent the wheel. Effective agents rely on basic principles that have historically yielded consistent success. Such a process begins, of course, with the introductory call. The introductory call script trains the new employee, refreshes the veteran team member, and develops consistent results with a system through which to control the flow of the conversation, regardless of who's delivering the message.
If you are calling consumers in their homes, be sure you check the Do Not Call (DNC) list rules, as the fines are hefty if you call someone on that list (see box). Insurance agents calling consumers can obtain a list of five ZIP codes of those on the DNC list at no charge.
Following are seven steps to a successful introductory cold call.
#1: Salutation
Avoid insincere-sounding openings that provide little utility, such as "How are you today?" Avoid setting a trap for yourself with questions such as "Did you receive the annuity information I sent you?" which often merely prompts the prospect to respond with "No, send it again," thereby cutting the conversation short or giving short shrift to the information by proceeding without it. Avoid inquiries that precipitate a negative response.
Get right to the point with an introduction such as "Hi, this is Mary from ABC Insurance Agency.
We specialize in assisting employers with their voluntary benefits solutions."
#2: Engaging questions
Ensure that your prospect is an active participant in the dialogue. Create the opportunity for positive responses while getting the information you require as the agent. Avoid run-on sentences or one-way conversations that alienate the client by going on and on about how large your company is, how many years you've been in business, etc. Speak in snippets, because attention spans are often short. People like to talk, and, if given the opportunity, they will verbalize what they think they need without being pressed to do so. Occasionally employ open-ended or conversational questions such as, "How are you currently handling your retirement savings?" or, "How often do you hear from your current agent?" You may also try, "Tell me about your satisfaction with your current insurance situation."
#3: Benefit statements
The prospect often has many products and services from which to choose and is just as often already familiar with your competition. You must be prepared to stress your agency's unique edge and benefits. How will you save your prospects time, increase profits, reduce costs, and offer peace of mind? Quantify the prospect's potential savings and earnings by making available your statistics and dealings with other companies. Increase your credibility by displaying your expertise on solutions to the prospect's unique problems. The prospect must go from looking down on you for intruding to looking up to you for a solution.
#4: Close for appointment
A salesperson who wants the appointment must ask for it. Prospects rarely beg for the appointment during a cold call. Each objection is a detour from the main road. A salesperson must know how to stay on the main road or how to get back on if detoured. An example of a proactive close is, "Do you have a calendar in front of you? Take a look at what looks good for you over the next week or two."
#5: Prepare for meeting; gather information
Before ending the introductory call, gather whatever pertinent information you need so that the prospect's needs assessment can be more personally tailored for the face-to-face meeting. This information may be gathered by asking such questions as, "How many employees do you have?" Avoid intrusive or obligatory questions or those better reserved for the closing meeting, such as, "What does your budget look like?" You can go so far as to suggest, "For our meeting, could you have your current insurance documents handy for review?"
#6: Reconfirm appointment
The incidence of forgotten appointments can be high, so be sure to advise your prospect to write the appointment down, and repeat yourself at least twice with the set date and time. The call may be properly terminated with: "OK, Joe, I keep 100 percent of the appointments I set, so I'll see you on Thursday, Nov. 18 at 3 p.m., OK? Here's my number in case an emergency comes up. It was great speaking with you." By offering your number, the onus is on the prospect to call to cancel, as opposed to you having to call to confirm.
Avoid making a confirmation call the day before, and if you do, get the prospect's extension so you can simply leave a message. Also, if the appointment is a couple of weeks out, write a handwritten "thank you for your time" card, thanking the prospect ahead of time for the opportunity to meet. It not only flatters the prospect, as anything handwritten has become a thing of the past, but it also serves as a reminder of the appointment.
#7: Handle objections
The good news is that there are only about six to 10 objections you will hear from prospects over and over again. The bad news is that, until you become proficient at handling these objections, you will have minimal success.
Following are some examples of the most common objections and rebuttals to overcome them.
- "Send me something in the mail"
I would send you something, but the cost savings are unique to each company, and I assume that's very important to you, right? We need to assess what your needs are and the solutions to match them and then you'll have a number to go with it.
- "I'm happy with my current agent"
That's great, and I don't even know if my company would even be a fit, but tell me, if we could offer you a similar product/service, but at 20 percent less the premium, could that at least be worth a look?
- "Call me after the holidays"
I'm sure both of our schedules get pretty busy right after the holidays. Take a look at your calendar -- do you have it in front of you? (They usually do.) What looks good for you the latter part of the week of the 18th? I'll even give you my number in case an emergency comes up.
- "I don't have time to meet"
I can certainly appreciate your time, but if I am able to share with you a way to measurably reduce costs by 15 to 25 percent and share other things we've done to help <competitor>, isn't that worth a look?"
When each of these seven steps is taken in turn, your cold calls to those seeking insurance solutions will tend to go more smoothly and result in more appointments for your business. With the right approach, cold calling can serve as an effective door opener.
Amanda Puppo is the CEO of MarketReach Inc. She can be reached at amanda@marketreach.biz or 609-448-6364.
