Change Your "But" To "And" To Overcome Objections

If you've been selling for long, you already know the first rule of overcoming an objection - empathize and understand where they are coming from and agree that the objection exists. A lot of agents start this process off on the right foot but then screw it up because of their "buts." If you agree with a prospect about an objection and then finish the statement with a "but", you negate everything that came before it and let the prospect know that you think they are wrong for objecting at all. "Buts" mean there is something bad coming. For example, if a guy asks a woman out and hears, "You are a really nice guy, but..." we all know that guy is toast!

If  a prospect tells you "it costs to much", a good way to get on the same team as your prospect is by saying "I understand how you feel, it is a large investment. A lot of my clients have felt the same way AND that is why..." or you can say "I can appreciate that AND it makes sense to..."

By changing your "but" to an "and" you are no longer negating your agreement with them. You are giving their thinking validity AND getting on the same side as them to work out the objection together. It is much better to working with your prospect towards a solution you will both be happy with than arguing with them over their incorrect thinking. Even if you win the argument, you'll probably lost the sale!

Once you've agreed and empathized, don't forget to isolate the objection to make sure there is nothing else holding them back. "I understand how you feel, it is a large investment and a lot of my clients have felt the same way. Is there anything else about my proposal that you don't like or is it just the price that is holding you back?" Once you know what the true objections are and if there are any hidden objections, it is a lot easier to work through them and close the sale.

After you've isolated the objection you can now reframe it and put it into a new perspective. If the price was the only objection, you can now reframe it and focus on the value or extra benefits that make the price less relevant in the decision. Of course, if you're trying to sell a $10,000 per year product to a $1,000 per year buyer, nothing will help you get it done. But if you are working with a qualified prospect and you are confident that your recommendations will make their lives better, you have a responsibility to be a professional and make sure the sale closes. Changing your "but" to an "and" will help you get that done!

Don't Be Like The Broncos. Play To Win In 2013!

It is Sunday, January 13th 2013, the day after the Broncos loss to the Baltimore Ravens and elimination from the playoffs. I sit here as a disappointed, down and out Broncos fan, still reeling over yesterday's game. It was frustrating and upsetting, and unfortunately very predictable based on the style of play chosen by the Broncos in yesterday's game.

The Broncos were not playing to win, they were playing to not lose. The underdog Ravens, on the other hand, were playing to win. There is a big difference between the two, and there are some pretty good lessons to be learned from the Broncos' loss as well. In order to make 2013 a winning year, let's take a look at the Broncos' mistakes to make sure we don't repeat them in our own business lives.

1. Never Went Long Or Took Any Chances: The Broncos never went for the big play - the long pass down the field for a touchdown. Instead, they stuck to the little runs and super short passes and, in doing so, missed out on the opportunity of a big score that could have put them so far ahead of the Ravens they would have never caught up. Don't make the same mistake in your agency. You need to have the consistent smaller sales to keep moving forward, but don't neglect the big plays that will really make a difference in your yearly production. Be on the lookout for the large premiums and big cases and don't be afraid to go for it a few times per year. You never know when a large case will connect for a big score that elevate you to a whole new level. Try asking at least one person a week if they need an extra $1,000,000 worth of life insurance. That would give you 52 chances at a big play, and you never know which one will connect if you don't at least try.
2. Relied Too Much On Others: Instead of taking charge and really pushing ahead, the Broncos' offense relied on their defense to do more than their fair share and keep them from losing. Meanwhile, instead of forcing a turnover or making big plays, the defense was relying on it's offense to score more than the Ravens in case they were unable to stop the Ravens from putting points on the board. In a playoff game, and in the game of life, you are responsible to make it happen, and no one else is going to do it for you. There is an old saying that still rings true today, "if it is to be, it is up to me." Take responsibility for your own success in 2013 and adopt the common denominator of success into your business. Those who are truly successful form the habit of doing the things that failures are either unwilling or unable to do (Albert E.N. Gray). It takes discipline and hard work to be successful, and as the Broncos players found out yesterday, no one else can be expected to do it for you.
3. Didn't Make Necessary Adjustments: Champ Bailey got burned 3 times for big scores from the Ravens. The Broncos receivers couldn't get open down field. Ray Lewis was being blocked effectively. The Broncos had the same problems from the start of the game all the way through a second overtime. But the even bigger problem was that they stuck with a flawed game plan and didn't make the needed adjustments to win the game. If you're like me, you spent some time at the end of 2012 setting your goals for the new year and putting a game plan in place to succeed. But not all game plans work out. Home offices change rates or underwriting, consumers change what they want and things that worked a year or two ago may not work today. It's great to have a game plan, but don't be so rigid that you stick to something that isn't working. Make adjustments in your communication, closing techniques and marketing if your systems aren't producing the results you need. Keep learning and growing and tweaking in order to stay ahead of your competition and win in 2013.
4. Quit Before The Game Was Over: With 36 seconds left to play and 3 timeouts left, the Broncos took a knee in the 4th quarter and quit playing. They didn't try to get down the field and score one more time to seal the win. They played not to lose, for fear of turning over the ball. Just like in football, it's not over until the final whistle blows. There is always more that can be done and a little more effort that can be given. As you finish each day, don't give up at 4:55. Make one more call, fix one more problem, try to get ahead one more time. If you quit before it's over, you're adding more work to tomorrow and missing out on the opportunity for one more win. If you made on more call on your way out the door every day, you'd have 200 more phone calls in a year. How much more successful would you be if you called an extra 200 people in 2013?

Everyone knew the Broncos were a better team going into the playoffs. They had home field advantage, an altitude advantage and had won 11 straight games. But they came into the game with the wrong attitude, they came in playing to not lose. Consumers and the insurance industry are always moving forward. If you're playing to not lose and just trying to maintain what you've got, you're going backwards! Make 2013 a great year by really going for it and playing to win. It's the only way to get ahead.

How To Turn A 3% Improvement Into 40% Growth For Your Agency

If you're planning on staying in business for awhile, you already understand the value in growing your agency. And since you're taking the time to read this, you're obviously interested in growth. Increasing the number of clients you bring into your agency each month has a direct impact on your bottom line - how profitable your agency is. Most agents think that in order to grow their agency they need to find the "next big thing" to revolutionize their business and get them to the next level, but nothing could be further from the truth.

The truth is, trying to hit a home run and catapult your agency towards success with one shot is often what drives agents out of business or keeps them stuck where they are. A home run would be nice, but most of the time if you swing for the fences you end up striking out. Too many agents invest a lot of time, effort and energy into one big program that ends up not working out. If you want consistent growth in your agency, you need to focus on the little things - hitting the singles. The singles take a lot less time and effort AND if you do it right, you can turn 3% more effort into 30% annual growth in your agency!

From 3% improvement to 30% growth, where's the magic? Whether you know it or not, there are only 6 major profit drivers in your agency that earn you a profit from new clients. Your goal is to lead clients through these 6 steps in order to grow your agency. The 6 drivers are:

1. Lead Generation: How many client leads you are producing
2. Request A Quote: How many leads you convert to prospects that request a quote
3. Deliver A Quote: How many prospects who request a quote follow through to review the quote on a favorable basis
4. Close The Sale: How many prospects become clients
5. Cross-Sales: How many of your new clients do you cross-sell into additional lines of business
6. Referrals: How many of your new clients provide you with referrals

For a typical agency, here is the breakdown of numbers from initial lead to closing the sale:

What if you could improve each of the 6 profit drivers by an average of just 3%, how would that affect your business? This is where the real magic happens! There are a plethora (one of my favorite words) of things you can do to improve your numbers by a measly 3%, and I'll save that topic for another time, but if you average 3% improvement in each of the 6 profit drivers, you've effectively made 18% worth of improvements. BUT, because of the magic of compounding (something you should be talking to all of your clients about!) each 3% improvement gets bigger as the number from the previous profit driver improves. The result is pure magic - a whopping 34% growth for your agency from a measly 3% improvement!

The best part about a 3% improvement is that you don't have to kill yourself to get it done. You don't have to go out and find the next big thing and you never have to strike out! You can still swing for the fences if the opportunity presents itself, but most of the time it's the small, steady improvements that add up to a big increase in your agency.

Take a little time to break down each of the 6 profit drivers and figure out how to improve it by just 3%. At the end of the year you'll be amazed at the extra 34% of new clients in your agency!

If It Takes 7, Why Do You Quit After 3?

Studies show that people buy after 7 touches, yet most sales reps stop following up after 3 touches. When you stop before 7, all you're doing is prepping your prospects to buy from your competitor! Think about it, if someone contacts you, interested in an insurance quote, then they are probably going to buy insurance at some point in the near future. However, people buy on their own terms and time frames. The secret in closing more sales is to stay positioned in front of your prospects until they are ready to buy, and that usually takes place after 7 touches.

The typical transaction: A new prospect is referred to your office for auto, home and life insurance. You have a nice conversation with them, put together a proposal and review it with them. When you follow up a few days later to answer any questions, "I've been extra busy at work and didn't have a chance to think about it" is the response you get. No problem, you'll just get a hold of them after the weekend. Your call on Monday gets you the same response, too busy to look. One more try a few days later and after they're still too busy, so you give up and write them off as a waste of time.

Sound familiar? When you stop following up, you're quickly forgotten by the prospect and you're pretty much guaranteed to NOT make a sale. The prospect really did get too busy dealing with things to stop and think about their insurance program (that's real life). A month later when things slow down and they're ready to make a move, they've already forgotten about you because you gave up too soon.

You need a 7 step system to stay in front of prospects until they make a decision! There is no SIMPLER way of increasing sales than by positioning yourself to be in 1st position when your prospect thinks about insurance. You position yourself through a 7 step process that consistently reminds your prospect that you are there, ready to help, when they are ready to buy. Positioning yourself simplifies your sales, but simple does not necessarily mean the same thing as easy!

You can't just call your prospect twice a week until you've contacted them 7 times. Although it would probable work better than doing nothing, you don't want to annoy your prospect into buying. Even if you do, the referrals and and cross-selling opportunities will be pretty limited. You need a well thought out, multi-media, multi-step process of staying in front of your prospects that communicates in different ways and provides information the prospect wants. You need to show your value through:

1. Calls
2. Letters
3. Reports
4. Testimonials
5. Videos
6. Emails
7. CD's

You need to delight and surprise your prospects by reaching out to them in new and unexpected ways so that when the time is right, you're the first agent that comes to mind. If you put together a 7 step process, you'll not only be the first, you'll probably be the only agent that comes to mind because no other agents out there will be communicating like you.

The bottom line is that people buy when they're ready to buy, not when you're ready to sell. And, people prefer the familiar over the unfamiliar, so make sure you put a plan in place to become familiar to your prospects. It's all about the positioning!