Archive for the ‘Agents Marketers’ Category
Key Words That Can Excite A Financial Advisor’s Prospect
I was at a BBQ and over a drink got into a conversation with two people about insurance and investment. The conversation raised the issue of where you go for financial advice, which developed into a rather interesting discussion. I encouraged the debate and treated it as a research opportunity.
Of note was learning about the importance of key words in motivating consumer behaviour – which I will explain. By way of background, the two I talked to have the profile of almost perfect clients. They both enjoy well-above average incomes and high levels of net personal wealth. They were aged 54 and 49 (I asked). The older one is a successful accountant while the other owns his own business and also sits on public and private boards.
Sorry to say, but both had somewhat cynical views about advisors in general, recounting stories of ‘idiots’ they had met. These were some of their comments. “I don’t trust how they make their money. I have heard that they can make 150% on the premiums of some insurance products.” “I hate the way they have to sell you something to make money. That must influence their advice.” “I’ve got four life policies. Two of them are more than 25 years old. I should cash them in.”
Clearly they were somewhat ignorant as to the way advisors work. Which means that neither of them have proper financial advisors in their lives. The real value from the conversation however was their reaction to some specific words. When I talked about how many advisers work, it was key words that made the biggest impact. Notable among these were:
“Audit.” I suggested that a good adviser would be able to undertake an ‘audit’ of their financial lives, including their investment and insurance portfolios. This instantly got their attention. The word ‘audit’ has a powerful meaning to business people.
War Stories From The Trenches That Financial Advisors Can Learn From
Here are two businesses whose lessons apply very well to financial services. These are from real businesses here in New Zealand that happened in the past twelve months.
A builder: This business had been static for some time, his advertising efforts being in all the normal media such as radio, press and directories. Wanting to grow the business, the builder analyzed the last 20 jobs and was stunned to find that ALL were from referrals! Until he had looked closely at them he just assumed that the advertising must have been generating the work.
So, he made up a list of potential and existing Centres of Influence, being architects, structural engineers, developers, the local authority staff, real estate agents and previous clients. He then arranged breakfast meetings with them in small groups. He called them (surprise, surprise) “Friday Breakfasts,” so EVERY WEEK he invites two or three of them to meet informally with him and his staff over croissants and coffee.
Business has gone up 100% in just twelve months. His profit has risen as not only is he saving on advertising but he does not have to compete with as many when tendering. The staff love them as well and as an unexpected bonus, motivation and productivity have increased.
The lesson: What are the real drivers of your business – referrals, advertising, sponsorship or something else? If it’s referrals, do you have a proactive plan for cultivating more of these? The builder in this case study has obviously found a low-cost and apparently very effective plan.
A consulting engineer: This engineer’s clients are local government and large developers. Advertising to date was primarily in relevant industry journals. He undertook a small amount of informal research, which revealed that his clients did not know the range of services he offered. So, he created a simple monthly newsletter that went to his clients explaining the full range of services.
6 Common Mistakes Financial Advisors Make That Can Lose The Sale
So you have the prospect or existing client in front of you. It has cost a lot of time and money to get this far, so don’t blow it! These are a few of the most common mistakes sales people make at the sales interview.
First, you talk too much! How can you sell something if you don’t know what the client’s needs are? This can only come from listening – not talking. As the saying goes, you have two ears and one mouth so listen twice as much as talking. As an idea, try taping the next conversation and analyzing the resulting interview. You may be amazed at the result.
Second, avoiding the beginning of the sale. Many start a conversation by picking up on a point made the last time, such as a personal or family event. This is important in the relationship building aspects of the sales approach. But this then carries on and the salesperson can’t think of an effective way to start the sales presentation – so either doesn’t or goes through it really quickly as all the time has been used up!
If you have an hour, give yourself 10 minutes for pleasantries and have a pre-rehearsed linking technique to start the sales pitch.
Third, working without a script. ‘I’ll wing it’ is a common salesperson expression that often leads the interview nowhere and doesn’t end up achieving a sale. If you are guilty of this, try using your laptop or tablet with a PowerPoint presentation on it. This will still allow for lots of ad-libbing, but ensure that all main points are covered.
The action of committing the presentation to PowerPoint (even if you don’t use it) is an excellent way of gaining an understanding of the selling pitch structure and highlighting the key points to discuss.
Secure The Insurance Sale With Pictures
What do you take to client interviews? What do you present when discussing the client’s needs, the concept and the products? Using visual aids will make your job a whole lot easier. Consider the following US research on the subject:
If you use visual aids, prospects are 43% more likely to be persuaded; prospects will be willing to pay 26% more for the same product or service (this helps overcome cheaper competitor products); learning is improved by up to 200% (important, since your products are not easily understood by most clients); retention is improved up to 38% and the time it takes to explain complex topics is reduced by up to 40% (it has to be worth the effort for this one alone)
The bottom line here is to make everything as visual as possible. Think through each step of the sales process, from the initial prospecting letter, to the client interview, to follow-ups to on-going client relationships. What visual elements are you including at each step? Below are a few ideas:
Contact by post: Postcards have impact due to being heavy on pictures and light on text. Make the opening line in your letters very large (over 24 pt) to act as a visual element. Include drawings or cartoons if appropriate.
Newsletters: Newsletters should include pictures, graphs and charts. Cartoons work well.
The presentation: Use a structured presentation that takes the client through a series of fill-the-gaps pages in a booklet. Use charts and graphs. Blow them up to A3 or even larger when you present them.
‘Word pictures’ such as case studies in newsletters work well, because they build up a picture in the mind of the client. Successful use of analogies achieves the same impact.