The Sales Solution

Most sales people are by their nature gregarious and relationship-driven. There is no one “right” personality for a producer, or account executive (AE), but people in these positions generally have entrepreneurial and individualistic traits. This is what makes them tick, and it is also what makes them productive.

But there is a downside. Most account executives are highly unsystematic in their approach to sales. This, of course, comes with the entrepreneurial territory, but it also means that the sales process is often “hit or miss”, choppy and even undisciplined. Sure, an AE may be meeting certain quotas for new business, but what is he or she missing in lost opportunities and unfulfilled potential?

That is where “solutions oriented selling” (SOS) comes in. This system allows AEs to use their entrepreneurial skills within a structured sales environment. It puts discipline into the highly undisciplined lives of sales persons. And it works. Those brokerages that have put in place a formal sales system typically see a dramatic increase in all major categories – earnings, revenue per employee and compound annual growth rates.

DISCIPLINED APPROACH

But what exactly is SOS? We can first define it by what it is not. It is not selling on product or price. These are commodities that position you in the minds of your customers as a mere vendor. Essentially, all you are doing is competing on the lowest common denominator and passing the risk through to the carrier. What is the problem with that? Vendors routinely get fired, and in this marketplace we have seen a lot of that. They get fired because there is nothing to differentiate them from the low-cost, or even direct, provider.

SOS is a three-phase process that identifies mutually agreed upon problems the client currently has with insurance coverage, presents solutions to those problems and provides services well beyond merely placing coverage. The first step is what we call the “diagnostic appointment”, which typically takes place four to eight months before renewal. In a meeting with the prospect, the sales person finds out where the “pain” is for insurance customers. The diagnostic meeting should be structured to find at least five problems the prospect is experiencing in his or her business or insurance needs.

Let us face it – most clients do not spend a lot of time thinking about their insurance and their reaction would likely be “my current broker seems to be doing fine”. Do not walk into a prospect’s office and expect them to unload their pent-up frustrations about insurance. Instead, develop “spear” questions. These are designed to probe sensitive areas. The questions prompt the client to ask what the current brokerage is doing for him or her – at least one is sure to hit home. For example, a spear question could be, “does your current broker show you how to use enterprise risk management and loss reduction strategies to reduce risks and maximize profits?” There are many more. In fact, you should consider developing a prospect-oriented brochure listing “ten questions to ask your current broker”.

VALUE ADDED

The second phase of SOS is a “professional review and risk survey”. This presentation more specifically charts out the key exposures a business faces and provides important information the client can use in analyzing loss history, conducting risk mapping exercises and pursuing loss prevention strategies.

The final step is where the rubber hits the road for the AE – the “presentation of solutions appointment”. This is where you provide your best solutions to the client, showing that you have identified the most critical needs and come up with the most thorough, cost-effective options. This process positions the AE as much more than a mere vendor of products, but rather as a provider of professional solutions.

After these three steps, brokers can pursue what we call “full BOR marketing”. BOR, or “broker of record”, marketing involves you asking the client to displace the incumbent brokerage with a clear statement. It is not wasting your time with quotes (often a delay tactic) or endless meetings, but a strategy to show that you are serious about getting the business.

TRANSFORMING SALES

Many brokerages and producers may nod their heads and say, “well, we do some of that.” But they miss the point of how these key elements have to be integrated into a formal sales system. It is not good enough to fire on one cylinder and occasionally win a prospect. It is not good enough to do one or two things well. As Jack Welch, former CEO of General Electric, observes, “you have to build it into the system”.

It is hard for a brokerage to say it is in the insurance sales business and not have a structured sales process that all of its AEs follow. Yet many do exactly that now. We estimate that fewer than 10% of brokerages have a formal sales management system. Right now, the modus operandi for many firms is to join the hiring lottery for the best possible producers, give them free rein to go after prospects and hope for the best. This has to change.

One of the first tangible steps a brokerage can do is hire a sales manager – a kind of coach whose goal is to motivate, teach and monitor AEs. A great sales manager must have both a sense of leadership and strategy, aligned with the goals of the brokerage. After that, the transformation to the “high performance sales team” can begin with some effective tools, such as goal setting and planning, sales meetings, low risk practice, joint sales calls, weekly check-ins, monthly reviews and ongoing feedback.

These are not “feel good” exercises, but specific tactics to transform the average producer into a high performance sales person. Take low risk practice, for example. How is an AE supposed to get better at presentations unless he or she practices and gets feedback? LRP allows role-playing and rehearsing key client presentations before “going live”. This is an essential tool in sales transformation.

The sales manager is also critical in establishing what we call “NOBs” – non-optional behaviors – for what a brokerage expects from its AEs. Brokerage principals and sales managers have to be steadfast in their commitment to a formal sales process and refuse to let anyone throw them off track.

In the end, SOS is about transforming the nature of your sales process and, more importantly, your sales team. To achieve this, most brokerages today will have to shift their thinking and their financial resources. But the rewards, in terms of increased earnings and revenues, are well worth it.