Trustworthy Selling: Recapturing the Lost Art of Selling in Your Training & Development
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Trustworthy Selling:
Recapturing the Lost Art of Selling in Your
Training & Development
Topics for Today
1. Prospecting & Business Development
2. Collaborative Discovery: Creating a Sense of Urgency
3. Leveraging Behavioral Economics to Increase Closing Ratios
The Lost Art of Sellin
Presenter
Presentation Notes
First a little about why we developed this program. As LIMRA representatives go out to visit with member companies we hear repeatedly the need to grow productivity, especially among existing agents. As an industry we do a pretty good job of recruiting and getting new agents off to a strong start, but then at about 13 months we experience the 2nd year cliff, productivity and retention drop off and remain low until year 5. Now most of our companies have real good training and onboarding for year one but many have nothing to effectively treat the 2nd year cliff. In the last 10-15 years our training $ have been directed to product enhancements, technology advances and regulatory matters. No apologies, this left brain, process driven training was necessary for the needs our times. However, somewhere in the mix we’ve lost our focus on the art of selling and now we are experiencing a loss of trust. If you look around you can easily see that the whole world has changed but our fundamental selling skills training has remained the same and our productivity is suffering
Trust is the “Attribute Under Siege”
85%
59%
26%
Has become significantly more difficult to trust advisors now, versus five years ago
Has become significantly more difficult to build trust with client now, versus five years ago
Sources : MDRT Generational Survey, 2010; MDRT PREP Survey, 2009
Presenter
Presentation Notes
MDRT: Study, 85% of consumers across all generations say it has become significantly more difficult to trust advisors now, versus five years ago only 59 percent of advisors believed that to be the case — representing a gap of 26 percent. LIMRA: most consumers, 70 percent, decide whether they will trust you the first time they meet you. This makes it critical to create immediate, positive and trustworthy initial impressions with prospects. Words make a difference – what you say and how you say it influences trust. TEACH It happens sooner than you think For 70% of them its by the end of that first meeting! So we again scripted 1.5 minute “intro” meetings to see how consumers react - ASK: Would you like to see? Disclaimer: This is research NOT the ideal sales approach.
The Need Has Never Been Greater!
• 48 million households state they “don’t have enough life insurance”
• 29 million households state they are “likely to buy life insurance in the next 12 months”
• Only 12% of all U.S. Households actually buy life insurance in any given year
• 80% don’t have a personal advisor to turn to!!
48 million households state they “don’t have enough life insurance”
Strong Demand, Yet Reluctance to Buy
29 million households state they are “likely to buy life insurance in the next 12 months”
Only 12% of all U.S. Households actually buy life insurance in any given year
5 out of 7 consumers report being more confused after they met with an advisor than before.
43% of households report being afraid of making a mistake in their financial decision making.
Consumers are Afraid and Confused
Prospecting & Business
Development
3 Reasons for Prospecting Failure
1. Simply Don’t Ask
2. Lack of Belief
3. Lack of Preparation
“People know people,
not referrals.”
“Money in Motion” Categories
Who do you know who was recently married?
Who in your network had a child in the past year?
Who do you know whorecently changed jobs?
Who recently received a promotion at work?
Pinpointing Questions / Categories
“Who is the best salesperson you know?”
“Who do you know that owns their own business/franchise?
“Who do you know that’s approaching retirement?”
“If you were to open your own business, who are three of your sharpest friends you would ask to be your partners?”
“Who are the guardians of your children?
“Who do you know who owns the most real estate?”
Retirement Market – Prospecting Up
One out of six retirees has a written retirement plan.
66% of pre-retirees, within two months of retirement, have no idea what they are going to do with their 401k assets.
Prospecting Resources
•www.martindale.com•www.doctordirectory.com
•www.dentistdirectory.com
•www.cpadirectory.com
•www.infospace.com
•www.anywho.com
Social Media Marketing
“LinkedIn is becoming thedominant global forum for businesses of all kinds.”
225 Million Users –the single biggest repository of user-generated career data
Prospecting – Setting the Stage
“First of all, I’d like to thank Susan for introducing us.
That’s important because I work exclusively on a
personal introduction basis . . .”
Planting Referral Seeds
“Keep in mind, I’m never too busy to see if I can help friends or family members you
care about.”
“The Graceful Exit”
If you happen to run across someone in the future
who you think could benefit from my services, would you
keep me in mind?”
Layup Drill
Objection
Handling
Activity
Collaborative Discovery:
Creating a Sense of Urgency
The RPM Questioning Model
• Reality Questions
• Pain / Gain Questions
• Magnification Questions
Reality Questions
Pain/Gain Questions
Magnification Questions
The RPM Questioning Model
“What formula did you use to determine the amount of life
insurance you need?”
Pain / Gain Questions
“What do you want your life insurance to do for you and your family?”
Pain / Gain Question
Magnification Questions
• Ask about the consequences, effects, or implications of a prospect’s situation.
• Purpose is to develop the clarity and strength of a prospect’s problem.
• Expand the prospect’s perception of value.
Examples of Magnification Questions
• Who would take care of the children if Mary had to go back to
work if something happens to you?
• What will you do if you get to retirement and haven’t achieved
your objectives? Work longer or retire on less money?
• What impact would having to provide long term care for you and
or John have on your children?
• How would the business’s creditors react if you died or became
sick or hurt for a period of time?
Card Sort Activity
Gaining Commitment
through
Behavioral Economics
People choose poorly when makingfinancial decisions and the immediate context of decision making matters.
Key Research Findings:
Behavioral Economics tactics gave a 29% increase in closing ratios.
Key Research Findings:
-1.5
-1
-0.5
0
0.5
1
1.5
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070.
130.
200.
270.
330.
400.
470.
530.
600.
670.
730.
800.
870.
931.
001.
071.
131.
201.
271.
331.
401.
471.
531.
601.
671.
731.
801.
871.
932.
002.
072.
132.
202.
272.
332.
402.
472.
532.
602.
672.
732.
802.
87
Behavioral Traditional
Two Sales Presentations
• Avoid Ambiguity• Visualization• Personal Experiences Overcome Optimism• Fairness• Heuristics• Mental Accounts• Present Value
Seven Tactics FromBehavioral Economics Research:
Visualization: The Six Emotional Drivers
Certainty
Variety
Significance
Connection
Growth
Contribution
“What did you learn from your parents about
saving and investing?”
Reflection = Visualization
Personal Experiences Overcome Optimism
•Story Selling - tell stories about people similar to them who benefited from risk products.
•Use personal experiences, examples and stories to offset perception they do not need risk products.
Fairness Principle:
People will make decisions not optimally beneficial to
them if they perceive they are not being treated fairly.
Make people feel they are part of the process, they have
input, and you respect their questions.
“What questions do you have?”
“Am I explaining this clearly?”
Provide 3 options, but make a specific
recommendation and tell them why.
Heuristics Conclusion:
Give prospects a simple
“rule of thumb” to help
them decide how much,
what kind, etc.
Mental Accounts:
When an expense can be classified in more
than one way it can be assigned to the
account that justifies its occurrence.
Summary
1. Prospecting & Business Development
2. Collaborative Discovery: Creating a Sense of Urgency
3. Leveraging Behavioral Economics to Improve Decision-Making
If the 29 million households that
stated they are likely to buy in the
next 12 months actually bought,
total coverage would increase by
$4.8 trillion dollars and increase
industry revenues by $9 billion.
If the 48 million households who stated
they need more life insurance actually
bought, it would increase coverage by
$9.5 trillion and add $17 billion of
premium to the industry.
THANK YOU FOR ATTENDING TODAY’S SESSION!We value your feedback.
Please complete the simple online workshop evaluation for this session using your LAMP app:
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Development Programs
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