There are many ways to prospect for clients. The real question is which ones are the most successful and why -- especially for long term care agents.
Before we can explore the numerous methods, we need to understand the product. In its most simplistic definition, long term care insurance is a solution to a number of problems, including asset protection, estate planning, tax savings, and guaranteeing one's ability to make quality health care decisions. Therefore, our prospecting should be in accordance with these parameters.
With specific regard to prospecting, we have several options from which to choose. These include a mail campaign, telemarketing, Internet, networking, and strategic partnerships.
Mail campaigns
Many professionals and organizations incorporate mail campaigns that, when used properly, can be a great source of opportunities. Generally, a mailing campaign is initiated with the purchase of a list that can be queried to specific criteria, the development of the campaign piece (letter, postcard, etc.) and the physical mailing of the piece, plus a follow-up phone call to gauge interest and set appointments. If the campaign is designed within the proper parameters and addresses the hot buttons of the targeted audience, you should expect a 1 to 4 percent return. Then, it's up to the individual to successfully realize the opportunity and maximize its potential.
Mail campaigns can be somewhat effective for LTCI agents. Because public awareness of the product is growing, consumers may want it but not know where they can get it. As a result, delivering a well-designed mailing at just the right time can trigger a positive response. Be sure to purchase a mailing list that squarely hits your chosen demographic. In addition, offer a free, no-obligation quote. Since this may be a prospect's first brush with the product, they may be curious about the cost -- and that can get you in the door. Be aware, however, that you will probably spend a fair amount of time chasing false leads.
Telemarketing
A telemarketing campaign can follow a mailing campaign or be used alone. The risks involved with these methods are the upfront costs and lack of guarantees. Additionally, these methods place an emphasis on selling. Many individuals do not want to spend a lot of time harvesting the opportunities, so they look at the law of averages. It simply becomes a numbers game. The more you target and hit, the more you sell, regardless of what product you're selling.
Obviously, "do not call" regulations have had a negative impact on the telemarketing industry. If your telemarketing campaign is following up on a mailing, one simple step can protect you against possible complaints: Add a checkbox to your return postcard granting you permission to call.
In my experience, telemarketing is not a particularly effective marketing technique for long term care agents, although, as mentioned above, the product's curiosity factor can help boost responses. The question is, are you willing to take a chance on the quality of those responses?
Internet
In today's technological world, with more and more people using the Internet, many individuals are turning to what they consider to be a non-abrasive method of purchasing insurance. This method can be a successful means to expanding your message. For the long term care agent, Web sites offer the opportunity to explain the product in more detail, and there is certainly plenty to talk about with this product. Be sure to use the campaign parameters with the addition of your own philosophies. Remember: Marketing is nothing more than renting brain space, so if your message is unique and captures the visitor's attention, it's more likely that they will do business with you either today or in the future.
In speaking with producers who rely on the Internet, there is one common complaint: Too many people are just looking; there is a lack of response. This can lead to a lot of quote and prep work with little realization. However, in the law of averages, a certain percentage can produce some nice results. It's a matter of time and patience. Web sites build credibility. For LTCI agents, having a Web site might not be a big asset, but not having one can be a bigger liability.
Networking
A highly effective method of prospecting is joining networking groups that incorporate the designated professionals who may be seeking your expertise. Look for local networking groups that involve business owners, as they can be an outstanding source of information and contacts. Remember, networking groups are not necessarily where you will find your clients, but you will find their gatekeepers there. This is particularly true for long term care agents, who often get in the door via referrals and relationships. Networking is definitely worth your time, but you have to be consistent and persistent about it.
Strategic partnerships
It's hard to argue that for those who enjoy prospecting through professional relationships, developing strategic partnerships is highly effective. Imagine an environment where clients are contacting you to assist them with their planning needs. It takes some time, but when done properly, this can be highly effective for long term care agents. First, there is a large group of professionals in need of your services, such as financial planners, CPAs, other insurance agents, attorneys, etc. For the most part, while some financial professionals understand the benefits of long term care planning, many do not understand it or even have the desire to. Instead, they seek assistance from other experts to service their clientele. This is where you come in.
A great way to acquaint yourself with financial professionals is to participate in their respective associations, join the local chamber of commerce, attend business fairs, sponsor or purchase a table at an event, advertise in a newsletter, or publish an informative article in their respective trade magazines.
Strategic partnerships completely change the environment in which you are working. Instead of selling yourself and your products to a prospect, you are introduced as an expert in your field through your strategic partner. Financial professionals are desperately seeking LTCI specialists simply because they don't completely understand the proper LTC planning cycle and aren't too enthused about spending four to seven hours with a client for the level of compensation that LTCI provides. The greatest asset of strategic partnerships is that once you have developed the relationship with your partner, you can incorporate many of the former methods into the marketing in order to maximize the potential, including mail campaigns, seminars, email, etc.
For long term care agents, the best way to prospect for clients is to identify who they are and develop a strategy using the right marketing effort to locate them. Be aware, however: The LTCI industry has changed more over the last five years than it has in the past 20 years. If you're not willing to experiment with new techniques, you will be left behind.
Of course, you can't go wrong by building a network and good reputation over time. But there is no magic bullet solution. The question is, which method -- or methods -- are right for you?
Jay Zandell is Southwest regional director for MAGA Ltd., an independent LTC agency. An individual and group long term care specialist, Jay consults with insurance and financial professionals nationwide. Mr. Zandell may be reached at 800-533-6242, 602-723-9300, orjzandell@magaltc.com. For more information, you may also visit www.magaltc.com.
