What bad news will we hear next? How many more banks and investment houses will fail? The economy is in a funk, and most pundits believe we will not see relief until at least mid-2010. The little bit of good news is that mortgage rates are plummeting, which may, in fact, increase consumer investment.
What does this mean for your business? Discretionary spending has dropped dramatically. Would insurance purchases be viewed as "discretionary"? In many cases, yes. Consumers are choosing to postpone certain purchases or forget about them entirely. It can be difficult enough to get prospects to talk to us in a robust economy. Now, they are so busy trying to stay afloat that getting on their calendar is even more challenging.
How do you tackle economic uncertainty? Many agents start to cut, cut, cut -- advertising, purchasing, marketing, prospecting methods. Ouch! The pipeline starts to dry up and the anxiety level goes through the roof. Some agents think that since there's nothing they can do, they should just do nothing. But "nothing" is futile thinking.
Following are five steps to accelerating your sales in a lagging economy, retaining your loyal customers, and attracting new business without increasing your cost of sales.
1. Get advice
Don't go solo. Assemble a group of advisors and solicit their input and innovative ideas. Invite people who think differently than you, and include those who aren't in your business or even in the insurance industry. Be open to new ideas and new ways of working. Use the group not only as a sounding board, but also as a way to experiment. Be willing to give up old ways of doing business that are no longer gaining traction.
2. Stay connected
Get out there. Attend at least one networking event a week. Even better: Attend three. Talk to people; find out how you can help each other. Pick up the phone. Email is great, but you'll get the best information and develop the most productive relationships when you have a one-on-one conversation. Woody Allen said, "Eighty percent of success is showing up." Show up -- it counts.
3. Dazzle your current clients
Your current clients need care and feeding. Don't ignore them at the expense of new business, because they are your best source for new business. Call them. Ask what impact the lagging economy is having on them. Your only purpose for the call is to ask how you can help. You might have a referral for them, an article to send, or someone for them to talk to. Whatever you promise, make it happen. If you do nothing else, pay attention to your clients. (See sidebar for more information.)
4. Be the expert
Everyone wants to talk to the expert. Do you have a specific niche? You offer a wide range
of insurance vehicles. But which products give you the most leverage in your specific market? Is it long term care insurance, annuities, financial advice? The more narrow your focus, the better your position. This is counterintuitive, but the more specific you can be about your expertise, the more you become a believable and credible resource that a prospect wants to meet -- not just another insurance salesperson. (Sorry, but that's how many of us are viewed.)
5. Commit your referral business and decrease costs
There are no hard costs to referrals -- you don't need marketing, direct mail, advertising, or trade show budgets. The only budget you need is your "time and referrals" budget, which involves just that: the portion of your time dedicated to asking for referrals. You know about referrals. When a qualified prospect is referred, you get a new client a minimum of 50 percent of the time, and typically between 70 and 90 percent of the time. Additionally, you are pre-sold, your selling time decreases, you have credibility, and you ace out the competition. There is no other business-development process that can claim these results. And results are what matter.
The bottom line: When you're referred and get that treasured introduction, prospects will
want to talk to their insurance agent -- even in a lagging economy.
Joanne S. Black is a professional speaker and author of "No More Cold Calling: The Breakthrough System That Will Leave Your Competition in the Dust." For more information, visit www.nomorecoldcalling.com.
