Advisers and retail insurers could still be the big losers beyond 2014 in capturing the hearts, minds and insurance policies of Australians unless they work together to get back to the basics of what customers really want from an insurance solution.
The reality is that retail sales growth via advisers was in 2013 the lowest in recent memory, whilst retail lapses continued to trend upwards (15%). Some stand out insurers did however buck this trend with declining lapse experiences.
The reality is that the reinsurer claims experience through the group channel has placed some retail insurers on the cusp of significant price increases, a result of prior pricing philosophies that perhaps did not adequately compensate for the risks being insured.
The reality is that faced with the resultant "bill shock" the value, service, and trust equation of advice and advisers is being questioned and a growing chorus of consumers have turned to the direct channel for a "value for money" solution.
The reality is that some non underwritten direct channels do not offer value for money, as they do not offer claims certainty.
The reality is that there is a growing disconnect between what is being delivered by insurers to advisers to distribute and what customers really want.
Customers and advisers want 'sustainable pricing', they want quality insurance products for the right price, reflective of a properly assessed risk and claims certainty. They want less complexity in the process of applying for and maintaining a policy.
2014 and beyond will be a success for those insurers and advisers who recognise and partner towards what customers really want : the right cover for the right price, and certainty that the right money goes to the right people when they need it the most.
It's a simple proposition that hasn't and shouldn't be changed.
Showing posts with label Life Insurance Sales. Show all posts
Showing posts with label Life Insurance Sales. Show all posts
Saturday, 10 May 2014
Tuesday, 6 May 2014
The Science and Art of Caclulating Trauma Sums Insured : The Value of Advice
Is there a right way for calculating the appropriate sum insured for trauma? Do you have a rule of thumb based on a multiple of income or a formula for removing debt? Or is there a science to our art whereby we can combine the emotional fall out and the true cost of disease to determine a sum insured?
Trauma cover, cover that provides a lump sum payment to assist an individual navigate through the treatment of a serious illness and focus on getting better not the stress of the financial strain, is where and when a quality adviser led insurance process is invaluable.
When my sister was diagnosed with a menigioma (a brain tumour that grows between the skull and the brain) there were a few things going for her:
· She’s a doctor and very quickly she had the best physicians around her
· It was thought to be benign
· It was operable
· She had income protection and trauma insurance
However what she had not had, was: advice. The policy for trauma did not make a payment. The income protection cover was inadequate relative to her salary at that point in time. Only through excellent financial advice post surgery was she able to maximise her income protection claim and secure an appropriate level and breadth of cover for income protection and trauma for the future.
As an adviser I worked with a rule of thumb for trauma. My best and most desired position was a sum insured that allowed for the removal of debt and the provision of one years income. My least favoured but lowest sum insured I would recommend was at least half a years income for the sum insured. Was this appropriate? That depends on the discussion I had with the client and their understanding with my guidance of the risks and outcomes.
Looking at the cost of disease in time and money provides some science to the process of calculating sum insureds. The Health Funds of New Zealand December 2013 report on the time of work due to sickness found that:
· An average of five weeks per person is being lost from the workforce as a result of surgical waiting list back-ups.
· Many thousands of New Zealanders waiting for surgery are having to take extended time off work, and also need loved ones to do the same so they can take care of them.
· 280,000 New Zealanders currently needed elective surgery with the average waiting time from GP referral to surgery in the public system was upward of 224 days.
· Almost a third of those needing surgery reported experiencing significant pain and said they had had to make lifestyle changes.
· More than half said their quality of life had worsened, mainly due to pain and mobility issues but also due to the psychological and financial stress of their ongoing illness.
A Canadian study, (Cancer and Work: A Canadian Perspective, 2011, Canadian Association of Psychosocial Oncology) reminds us of what we know only all too well that Cancer is a complex array of illnesses that can bring a potentially overwhelming spectrum of physical, psychological, social, emotional, functional and economic challenges. The paper concluded that there are broad reaching effects of having cancer on an individual’s worklife. And sadly that the development in the field of vocational rehabilitation and is fragmented and limited, in part due to its infancy.
This is where trauma insurance cover becomes incredibly important. Not only is the sum insured critical to allow required surgery and treatment to take place as soon as possible whatever the choice of treatment the patient embarks upon, but that they can do so without financial stress and further that upon recovery they have the resources to undertake vocational rehabilitation that can address the impact of the psychological and emotional strain of the disease and recovery.
The costs of disease, the financial cost to the individual and family must be also taken into account. As an example when considering the impact of Cancer the individual may also incur financial and economic costs, which are often overlooked when considering the impact of the disease (Cost of Cancer in NSW, 2007, A report by Access Economics Pty Limited for The Cancer Council NSW). This report found that non-financial costs are also very important – the pain, suffering and premature death that result from cancer. Although more difficult to measure, these can be analysed in terms of the years of healthy life lost, both quantitatively and qualitatively, known as the “burden of disease”.
Their detailed analysis found that, individuals bear around 40.4% of the total cost of cancer, with governments (42.1%), society (16.1%), family and friends (0.8%) and employers (0.6%) sharing the remaining costs. In regard to a dollar figure, the finding was this: that the total expected lifetime economic cost of cancer per person is around $966,000 – of which the burden of disease is $851,600 and the financial cost is $114,500.
Applying the 40% ratio, does that provide an appropriate sum insured of $386,000? Perhaps, there’s a science to that calculation. Does it match up against my old rule of thumb? In some cases it far surpasses it, whilst in others it falls short. What it does highlight is this: that not all diseases are the same, in fact this Cancer Council report found that brain cancers can be double the calculation above. Not all the impacts on an individual are the same. Psychologically my sister was well prepared, was financially stable and had a good support network. Should these factors, those emotional inputs be part of your fact find and deliberations in determining a sum insured? Perhaps.
What all of this, points to is the value of advice, the matching of the art and science behind providing an insurance solution for a client. As the cost of cancer as an example, increases, as people live increasingly complex lives within complicated family structures, the value of a trusted adviser to shape solutions, bespoke solutions, has never been more important.
Trauma cover, cover that provides a lump sum payment to assist an individual navigate through the treatment of a serious illness and focus on getting better not the stress of the financial strain, is where and when a quality adviser led insurance process is invaluable.
When my sister was diagnosed with a menigioma (a brain tumour that grows between the skull and the brain) there were a few things going for her:
· She’s a doctor and very quickly she had the best physicians around her
· It was thought to be benign
· It was operable
· She had income protection and trauma insurance
However what she had not had, was: advice. The policy for trauma did not make a payment. The income protection cover was inadequate relative to her salary at that point in time. Only through excellent financial advice post surgery was she able to maximise her income protection claim and secure an appropriate level and breadth of cover for income protection and trauma for the future.
As an adviser I worked with a rule of thumb for trauma. My best and most desired position was a sum insured that allowed for the removal of debt and the provision of one years income. My least favoured but lowest sum insured I would recommend was at least half a years income for the sum insured. Was this appropriate? That depends on the discussion I had with the client and their understanding with my guidance of the risks and outcomes.
Looking at the cost of disease in time and money provides some science to the process of calculating sum insureds. The Health Funds of New Zealand December 2013 report on the time of work due to sickness found that:
· An average of five weeks per person is being lost from the workforce as a result of surgical waiting list back-ups.
· Many thousands of New Zealanders waiting for surgery are having to take extended time off work, and also need loved ones to do the same so they can take care of them.
· 280,000 New Zealanders currently needed elective surgery with the average waiting time from GP referral to surgery in the public system was upward of 224 days.
· Almost a third of those needing surgery reported experiencing significant pain and said they had had to make lifestyle changes.
· More than half said their quality of life had worsened, mainly due to pain and mobility issues but also due to the psychological and financial stress of their ongoing illness.
A Canadian study, (Cancer and Work: A Canadian Perspective, 2011, Canadian Association of Psychosocial Oncology) reminds us of what we know only all too well that Cancer is a complex array of illnesses that can bring a potentially overwhelming spectrum of physical, psychological, social, emotional, functional and economic challenges. The paper concluded that there are broad reaching effects of having cancer on an individual’s worklife. And sadly that the development in the field of vocational rehabilitation and is fragmented and limited, in part due to its infancy.
This is where trauma insurance cover becomes incredibly important. Not only is the sum insured critical to allow required surgery and treatment to take place as soon as possible whatever the choice of treatment the patient embarks upon, but that they can do so without financial stress and further that upon recovery they have the resources to undertake vocational rehabilitation that can address the impact of the psychological and emotional strain of the disease and recovery.
The costs of disease, the financial cost to the individual and family must be also taken into account. As an example when considering the impact of Cancer the individual may also incur financial and economic costs, which are often overlooked when considering the impact of the disease (Cost of Cancer in NSW, 2007, A report by Access Economics Pty Limited for The Cancer Council NSW). This report found that non-financial costs are also very important – the pain, suffering and premature death that result from cancer. Although more difficult to measure, these can be analysed in terms of the years of healthy life lost, both quantitatively and qualitatively, known as the “burden of disease”.
Their detailed analysis found that, individuals bear around 40.4% of the total cost of cancer, with governments (42.1%), society (16.1%), family and friends (0.8%) and employers (0.6%) sharing the remaining costs. In regard to a dollar figure, the finding was this: that the total expected lifetime economic cost of cancer per person is around $966,000 – of which the burden of disease is $851,600 and the financial cost is $114,500.
Applying the 40% ratio, does that provide an appropriate sum insured of $386,000? Perhaps, there’s a science to that calculation. Does it match up against my old rule of thumb? In some cases it far surpasses it, whilst in others it falls short. What it does highlight is this: that not all diseases are the same, in fact this Cancer Council report found that brain cancers can be double the calculation above. Not all the impacts on an individual are the same. Psychologically my sister was well prepared, was financially stable and had a good support network. Should these factors, those emotional inputs be part of your fact find and deliberations in determining a sum insured? Perhaps.
What all of this, points to is the value of advice, the matching of the art and science behind providing an insurance solution for a client. As the cost of cancer as an example, increases, as people live increasingly complex lives within complicated family structures, the value of a trusted adviser to shape solutions, bespoke solutions, has never been more important.
Sunday, 27 April 2014
The Psychology of Buying Life Insurance
Any client engagement resource (that takes into account the clients age, their budget and provides a visual demonstration of what types of insurance cover and what levels insurance should be considered) is based on research on the client psychology of insurance purchases. Studies show that the way to maximise matching insurance solutions appropriately with clients is achieved by clearly advising clients on their life insurance needs with process and openly discussing a clients budget. In fact a doubling of coverage purchased is possible versus advisers who don't provide this sort of engagement.
Data from the Life Insurance and Market Research Association (LIMRA) allows a glimpse into the mind of the life insurance buyers and provides guidance on what works and what doesn't. In a LIMRA study the buying psychology of 3000 life insurance buyers was analysed and it was found that:
- face to face engagement and a needs analysis that was process driven and utilised social proof provided conversions of 73%
- communication effectiveness : the right communication channels with the right clients has a strong correlation with insurance purchases
- online offers were less effective without the opportunity to use visual triggers
- effectiveness was increased when using processes that defined what the types of insurances do and what they can provide when faced with life traumas
But importantly the data took into account the consideration of what the client could afford. When this was not discussed, prospects felt pressured. Using a tool that openly considered and classified budget issues mitigates these negative perceptions and emotions.
The robustness of process was also found to have an impact in a manifestly positive way on the propensity of a client to refer.
Overall however three keys came out of the research that bring us to the core of why clients buy insurance after being advised in a meaningful way:
1) determining if they are getting their money's worth for the cover they are buying versus the risk they face
2) being able to understand the types of cover they have been recommended
3) being able to understand the reasons for the amounts of cover they have been recommended
High income earners raised these three areas as the top of mind considerations.
Risk advisers are faced with the challenge of engaging clients in a meaningful way that not only produces the best outcome for a client in that they are adequately insured but that they are also compelled to refer their social circle to the advisers services. That's the way to ensure that Australians are adequately insured and we address the mis and underinsurance issues. Education and demystification of insurance is key. The value of insurance and the demonstration of such is absolutely paramount. The way to do that is remembering at our core what it is that we are providing. Clients may buy and we make talk about and insurance policy, but what we are selling and what they are buying is simple : it is the peace of mind that when faced with one of lifes risks that the right money goes to the right people at the right time. That's it, it is no more complicated than that and it is what great insurance advisers know and focus on doing well.
When a client is seated with their adviser the core drive they are seeking to meet is the drive to defend, and it is by engagement, communication, storytelling of lifes risks and the proper positioning of an insurance solution that meets and fulfils this drive. The research into human behaviour shows that people who are able to fulfil this drive have greater life satisfaction than those who have not. Remember what we do at our core as life insurance providers and putting process around this conversation and engagement in a way that is meaningful in the context of a life risk discussion is something not to be distracted from are we as an industry to be successful in ensuring more Australians have the vital cover that they need.
Data from the Life Insurance and Market Research Association (LIMRA) allows a glimpse into the mind of the life insurance buyers and provides guidance on what works and what doesn't. In a LIMRA study the buying psychology of 3000 life insurance buyers was analysed and it was found that:
- face to face engagement and a needs analysis that was process driven and utilised social proof provided conversions of 73%
- communication effectiveness : the right communication channels with the right clients has a strong correlation with insurance purchases
- online offers were less effective without the opportunity to use visual triggers
- effectiveness was increased when using processes that defined what the types of insurances do and what they can provide when faced with life traumas
But importantly the data took into account the consideration of what the client could afford. When this was not discussed, prospects felt pressured. Using a tool that openly considered and classified budget issues mitigates these negative perceptions and emotions.
The robustness of process was also found to have an impact in a manifestly positive way on the propensity of a client to refer.
Overall however three keys came out of the research that bring us to the core of why clients buy insurance after being advised in a meaningful way:
1) determining if they are getting their money's worth for the cover they are buying versus the risk they face
2) being able to understand the types of cover they have been recommended
3) being able to understand the reasons for the amounts of cover they have been recommended
High income earners raised these three areas as the top of mind considerations.
Risk advisers are faced with the challenge of engaging clients in a meaningful way that not only produces the best outcome for a client in that they are adequately insured but that they are also compelled to refer their social circle to the advisers services. That's the way to ensure that Australians are adequately insured and we address the mis and underinsurance issues. Education and demystification of insurance is key. The value of insurance and the demonstration of such is absolutely paramount. The way to do that is remembering at our core what it is that we are providing. Clients may buy and we make talk about and insurance policy, but what we are selling and what they are buying is simple : it is the peace of mind that when faced with one of lifes risks that the right money goes to the right people at the right time. That's it, it is no more complicated than that and it is what great insurance advisers know and focus on doing well.
When a client is seated with their adviser the core drive they are seeking to meet is the drive to defend, and it is by engagement, communication, storytelling of lifes risks and the proper positioning of an insurance solution that meets and fulfils this drive. The research into human behaviour shows that people who are able to fulfil this drive have greater life satisfaction than those who have not. Remember what we do at our core as life insurance providers and putting process around this conversation and engagement in a way that is meaningful in the context of a life risk discussion is something not to be distracted from are we as an industry to be successful in ensuring more Australians have the vital cover that they need.
Wednesday, 24 July 2013
Still one of the worlds most underinsured nations?
Last year when PCE reviewed the IBIS Life Insurance Report we noted that "people don't buy what they don't understand".
At that time complexity, ease of doing business and education were key tasks the industry had to tackle to address the issue of underinsurance.
At its core insurance is there to protect those who would suffer a financial loss, hardship when faced with a death, disability or trauma.
So why one year on does the same message we've been hearing for 20 years still dominate the most recent report?
The industry still provides product complexity as a solution to one of the basic core drivers of human behaviour : the need to defend.
Calculating underinsurance is not an exact science : some say it is not a problem and suggest it only affects 20% of the population.
Other figures range from $700 million to $1.4 billion dollars.
And while superannuation is set to remain an important market for selling insurance there are long term issues with this solution. Robbing super now to protect cashflow in the present disminishes cashflow in the future.
Disappointingly initiatives such as Lifewise : whcih many insurance advisers don't seem to know about, to raise awareness about insurance, dispel myths and suggest strategies to mitigate the risks, seem under utilised and hence ineffective.
But the way forward may be technology.
Imagine a community of life insurance customers, positive claimants (99% of claimants by the way!!) all engaged with the insurance companies and advisers. That's a powerful community to spread the word and protect more families and businesses from the risks and reality of financial devastation.
Forging a community that thrives on dialogue and accessibility may be the key to and companies that lead the way will be well ahead of the curve.
This is sorely needed, the boom in SMSFs and the requirement to consider life insurance can only be effective if advisers in the SMSF space are true believers in insurance. At this stage this seems a wish rather than reality.
Why?
According to IBIS the top four industry participants in advice account for 54% of premiums. Think about who those advice players are and think about the usage of platform in those groups. The concentration is set to get higher and what comes with that is possibly a focus back to funds and transaction rather than pure risk advice from dedicated risk professionals as these groups struggle with the loss of the skills of life agents. As they ramp up there risk initiatives though maybe the power of numbers in their adviser force will be the solution?
Complexity needs addressing but key to addressing the issue we feel is:
- strong risk value propositions by advisers
- greater client engagement and involvement using technology
- a shift to advisers creating communities of clients
- insurers demystifying the process and collaborating with advisers to make insurance more accessible
Who is going to lead the pack?
At that time complexity, ease of doing business and education were key tasks the industry had to tackle to address the issue of underinsurance.
At its core insurance is there to protect those who would suffer a financial loss, hardship when faced with a death, disability or trauma.
So why one year on does the same message we've been hearing for 20 years still dominate the most recent report?
The industry still provides product complexity as a solution to one of the basic core drivers of human behaviour : the need to defend.
Calculating underinsurance is not an exact science : some say it is not a problem and suggest it only affects 20% of the population.
Other figures range from $700 million to $1.4 billion dollars.
And while superannuation is set to remain an important market for selling insurance there are long term issues with this solution. Robbing super now to protect cashflow in the present disminishes cashflow in the future.
Disappointingly initiatives such as Lifewise : whcih many insurance advisers don't seem to know about, to raise awareness about insurance, dispel myths and suggest strategies to mitigate the risks, seem under utilised and hence ineffective.
But the way forward may be technology.
Imagine a community of life insurance customers, positive claimants (99% of claimants by the way!!) all engaged with the insurance companies and advisers. That's a powerful community to spread the word and protect more families and businesses from the risks and reality of financial devastation.
Forging a community that thrives on dialogue and accessibility may be the key to and companies that lead the way will be well ahead of the curve.
This is sorely needed, the boom in SMSFs and the requirement to consider life insurance can only be effective if advisers in the SMSF space are true believers in insurance. At this stage this seems a wish rather than reality.
Why?
According to IBIS the top four industry participants in advice account for 54% of premiums. Think about who those advice players are and think about the usage of platform in those groups. The concentration is set to get higher and what comes with that is possibly a focus back to funds and transaction rather than pure risk advice from dedicated risk professionals as these groups struggle with the loss of the skills of life agents. As they ramp up there risk initiatives though maybe the power of numbers in their adviser force will be the solution?
Complexity needs addressing but key to addressing the issue we feel is:
- strong risk value propositions by advisers
- greater client engagement and involvement using technology
- a shift to advisers creating communities of clients
- insurers demystifying the process and collaborating with advisers to make insurance more accessible
Who is going to lead the pack?
Monday, 20 May 2013
Getting 70% referral rates from your mortgage broker with positive language and great timing
Recently we attended a adviser forum where bank based advisers lamented that while they get a high level of referrals from in house mortgage lenders, the conversion rate was incredibly low, in fact less than 20%.
On further questioning, we found that the way the referral was positioned was flawed as was the timing of the referral. The referral was positioned with the client at the later stages just before loan settlement or the early stages post loan settlement. In referring the pitch was along the lines of: "do you have insurance?"...."our guy can probably do it cheaper".
With no room to add the value of strategy, structure, complete solution plus the positioning of the service as purely transactional the respect shown by both the referrer and the client were set low.
In contrast a study of Bancassurance overseas and in particular Canada, by RGA, reported that referral rates from bank lenders to the insurance network was of the order of 70% and a conversion rate of 90%.
How did they achieve such great results?
It's all about timing and positioning.
The referral was positioned at a very critical stage, in fact when the client was the most relieved, happy, satisfied : in the 7 seconds immediately after the client had just been told that the loan had been approved.
Secondly the referral was positioned quite distinctly. So in that 7 seconds after the client had heard the loan had been approved : " How are you feeling", "It's terrific isn't it, I'm really happy for you" " I want to make sure you always feel this way about your loan and about what you loan is providing you" " I want to make sure you avoid suffering any financial stress" " I'm referring you to our protection specialist, to make sure you can always afford to live in your home/run your business from this property".
Timing and positive language. 70% referral rates, 90% conversion.
On further questioning, we found that the way the referral was positioned was flawed as was the timing of the referral. The referral was positioned with the client at the later stages just before loan settlement or the early stages post loan settlement. In referring the pitch was along the lines of: "do you have insurance?"...."our guy can probably do it cheaper".
With no room to add the value of strategy, structure, complete solution plus the positioning of the service as purely transactional the respect shown by both the referrer and the client were set low.
In contrast a study of Bancassurance overseas and in particular Canada, by RGA, reported that referral rates from bank lenders to the insurance network was of the order of 70% and a conversion rate of 90%.
How did they achieve such great results?
It's all about timing and positioning.
The referral was positioned at a very critical stage, in fact when the client was the most relieved, happy, satisfied : in the 7 seconds immediately after the client had just been told that the loan had been approved.
Secondly the referral was positioned quite distinctly. So in that 7 seconds after the client had heard the loan had been approved : " How are you feeling", "It's terrific isn't it, I'm really happy for you" " I want to make sure you always feel this way about your loan and about what you loan is providing you" " I want to make sure you avoid suffering any financial stress" " I'm referring you to our protection specialist, to make sure you can always afford to live in your home/run your business from this property".
Timing and positive language. 70% referral rates, 90% conversion.
Sunday, 5 May 2013
Predicting Client Behaviour : Who's going to buy what you're selling?
Carver and White (1994) put forth that there are two key dimensions of personality:
- anxiety
- impulsivity
These two qualities represent differences in sensitivities of two neurological systems in their responses to environmental cues.
One system regulates aversive motivation.
One system regulates appetitive motivation.
Aversive motivation is regulated by the behavioural inhibition system (BIS) that controls the experience of anxiety and is sensitive to signals of punishment / non reward and as such inhibits behaviour that may lead to adverse consequences.
Appetitive motivation is regulated by the behavioural activation system (BAS) that is sensitive to reward and non punishment and leads to goal directed behaviour with observable positive feelings of hope for example.
People with high BAS sensitivity respond to cues of reward compared to people with low BAS.
High BIS individuals are responsive to punishment cues.
Gray’s (1975) original reinforcement sensitivity theory attributes behavior to the relative strength of these two motivational systems.
So assuming that these systems do indeed operate to regulate motivation to either take risks towards achievement of goals or the reluctance to take chances that may risk jeopardising the status quo : what can you do about it when engaging your clients to utilise your services?
The keys are tapping into and individuals neurological systems and ensuring that you match your pitch in the way that will most resonate with them.
This means for the individual wanting to escape risk : you need to to highlight the risks inaction actually delivers and the consequences (punishment) that may await should they not implement the solutions you recommend.
It's a discussion about statistics, case studies and stories of the what if and adverse consequences of inaction.
For those clients with high BAS, who are looking forward, can visualise a better state of being and ready to take action for the pursuit of a reward : it's all about positive achievement and what people have achieved by implementing your solutions. All they need to do to reach a better state is move forward with you.
The trick of course is identifying which clients have high BAS or high BIS sensitivities.
- anxiety
- impulsivity
These two qualities represent differences in sensitivities of two neurological systems in their responses to environmental cues.
One system regulates aversive motivation.
One system regulates appetitive motivation.
Aversive motivation is regulated by the behavioural inhibition system (BIS) that controls the experience of anxiety and is sensitive to signals of punishment / non reward and as such inhibits behaviour that may lead to adverse consequences.
Appetitive motivation is regulated by the behavioural activation system (BAS) that is sensitive to reward and non punishment and leads to goal directed behaviour with observable positive feelings of hope for example.
People with high BAS sensitivity respond to cues of reward compared to people with low BAS.
High BIS individuals are responsive to punishment cues.
Gray’s (1975) original reinforcement sensitivity theory attributes behavior to the relative strength of these two motivational systems.
So assuming that these systems do indeed operate to regulate motivation to either take risks towards achievement of goals or the reluctance to take chances that may risk jeopardising the status quo : what can you do about it when engaging your clients to utilise your services?
The keys are tapping into and individuals neurological systems and ensuring that you match your pitch in the way that will most resonate with them.
This means for the individual wanting to escape risk : you need to to highlight the risks inaction actually delivers and the consequences (punishment) that may await should they not implement the solutions you recommend.
It's a discussion about statistics, case studies and stories of the what if and adverse consequences of inaction.
For those clients with high BAS, who are looking forward, can visualise a better state of being and ready to take action for the pursuit of a reward : it's all about positive achievement and what people have achieved by implementing your solutions. All they need to do to reach a better state is move forward with you.
The trick of course is identifying which clients have high BAS or high BIS sensitivities.
Thursday, 14 March 2013
Becoming Highly Referable : By Being You
PCE spent time today with a brilliant individual who had lost confidence in their customer approach as it had been questioned by an influential adviser in financial services who has succeeded using a very different style.
So we had in front of us someone who is:
- genuinely passionate about people
- connects with people about their values
- shares her dreams with clients and they reciprocate
- matches strategy solutions with delivering client wants
- lives breathes and sleeps her chosen profession : insurance advice
- professional and polished
So why on earth was she questioning herself now? Well, she's new in town and perhaps that approach does not work in the market she's found herself in.
In PCEs opinion nothing could be further from the truth.
Here before us was a perfect example of a new age adviser : an adviser that clients are desperately seeking.
This adviser has all the hallmarks of being highly referable simply by being who she is.
So here in a nutshell is what you need to do to create the differentiator that leads to genuine client engagement and referrals and genuine enjoyment of what you do. Follow your bliss!
1) be highly referable : that is you need to have a visual value document that illustrates what it is that you do and what your input into the process is for clients. In other words a value of advice document. For more details contact PCE direct www.positiveclientengagement.com. You also need to have a pitch about why you do what you do, who you do it for, what outcomes they have by working with you.
2) be able to demonstrate your process / method for what it is that you do : flow charts are brilliant here
3) engage your clients : lifestyle questions, ratings, profiling, wealth management indexes and scores all help
4) survey your clients and ask for feedback : how well do you know them and how well do they know you
5) educate your referral sources and educate yourself about them : and don't pay them for referrals : rather you through your exemplary service will make them look good purely due to the fact that they cared enough about their clients to refer them to you : and you can turn away referral sources who won't work with you in this way
6) be able to be reviewed : that is have a web presence and on that site show case you, your team, educate, inform, engage, share - but most of all be real
7) communicate communicate communicate : reassure your clients after they engage you, after you present your advice, after they sign up
Templates, examples are all things that great genuine people in this industry share.
PCE has bucket loads and are happy to engage you with these tools ( and a little tip ....most of them can be found in the 100 posts we've written.....so as much as we'd love to package them and sell them to you....with a bit of work from your end ....most of it is here already)
Enjoy!!!
So we had in front of us someone who is:
- genuinely passionate about people
- connects with people about their values
- shares her dreams with clients and they reciprocate
- matches strategy solutions with delivering client wants
- lives breathes and sleeps her chosen profession : insurance advice
- professional and polished
So why on earth was she questioning herself now? Well, she's new in town and perhaps that approach does not work in the market she's found herself in.
In PCEs opinion nothing could be further from the truth.
Here before us was a perfect example of a new age adviser : an adviser that clients are desperately seeking.
This adviser has all the hallmarks of being highly referable simply by being who she is.
So here in a nutshell is what you need to do to create the differentiator that leads to genuine client engagement and referrals and genuine enjoyment of what you do. Follow your bliss!
1) be highly referable : that is you need to have a visual value document that illustrates what it is that you do and what your input into the process is for clients. In other words a value of advice document. For more details contact PCE direct www.positiveclientengagement.com. You also need to have a pitch about why you do what you do, who you do it for, what outcomes they have by working with you.
2) be able to demonstrate your process / method for what it is that you do : flow charts are brilliant here
3) engage your clients : lifestyle questions, ratings, profiling, wealth management indexes and scores all help
4) survey your clients and ask for feedback : how well do you know them and how well do they know you
5) educate your referral sources and educate yourself about them : and don't pay them for referrals : rather you through your exemplary service will make them look good purely due to the fact that they cared enough about their clients to refer them to you : and you can turn away referral sources who won't work with you in this way
6) be able to be reviewed : that is have a web presence and on that site show case you, your team, educate, inform, engage, share - but most of all be real
7) communicate communicate communicate : reassure your clients after they engage you, after you present your advice, after they sign up
Templates, examples are all things that great genuine people in this industry share.
PCE has bucket loads and are happy to engage you with these tools ( and a little tip ....most of them can be found in the 100 posts we've written.....so as much as we'd love to package them and sell them to you....with a bit of work from your end ....most of it is here already)
Enjoy!!!
Tuesday, 4 December 2012
How to Sell Insurance For Children
Selling child trauma cover : an insurance option under a policy for a parent - that provides a payment should that child be diagnosed or suffer from a specific listed event must be a really hard thing to sell.
We have to believe that because we are told constantly by advisers that they find it a hard conversation to start with parents.
We have to believe that because when we look at the data : the number of policies that have child trauma attached is incredibly low : single digits in percentage terms.
Yet when we look at our own families surely we acknowledge that were anything to happen to our children we would as parents want to be there by their side.
We acknowledge that to be able to do that for however long their recovery takes will require financial adjustment.
We take out insurance on our children not to profit but to be able to fulfil the promise of parenthood - to be there for our children.
Why then is so little of it sold?
We have forgotten to share our values with our clients. And in doing so we have not connected to their values that are a mirror of ours. Of course they would want to be there for their children. It is the professional advisers job to facilitate that opportunity for them.
All that is required then is to share your values and beliefs and your action with a client.
An adviser dear to us, tells of how she sells child trauma insurance to every parent every time.
She tells them that if anything happened to her child she knows where she would rather be and she has arranged the method to allow that to happen.
Her clients acknowledge that choice as completely rational. They agree with it. They share that value and belief.
Why does this adviser do it? Because one day her daughter came home distraught that a school friend had been diagnosed with cancer. There was a physical and emotional battle about to start for that child and that family. There was also a financial battle.
For that reason this adviser tells her clients that she knows where she would want to be.
For that reason every recommendation includes child trauma. There is no need to go into micro detail about the policy.
The positioning is simply:
- tell the client what you have done for your own children and why
- they will agree with what you have done : sometimes with just a nod of agreement sometimes with an emphatic "oh yes, I'd want that too"
- then when you present your recommendation you simply say and I have included childrens trauma because I want you to be able to make the same choices I can make and so you can be there for your children too
At about $10 per $10,000 of cover, I do not know a parent who would opt out of covering their child for an appropriate level of cover at what amounts to essentially a cup of coffee a week per child.
We have to believe that because we are told constantly by advisers that they find it a hard conversation to start with parents.
We have to believe that because when we look at the data : the number of policies that have child trauma attached is incredibly low : single digits in percentage terms.
Yet when we look at our own families surely we acknowledge that were anything to happen to our children we would as parents want to be there by their side.
We acknowledge that to be able to do that for however long their recovery takes will require financial adjustment.
We take out insurance on our children not to profit but to be able to fulfil the promise of parenthood - to be there for our children.
Why then is so little of it sold?
We have forgotten to share our values with our clients. And in doing so we have not connected to their values that are a mirror of ours. Of course they would want to be there for their children. It is the professional advisers job to facilitate that opportunity for them.
All that is required then is to share your values and beliefs and your action with a client.
An adviser dear to us, tells of how she sells child trauma insurance to every parent every time.
She tells them that if anything happened to her child she knows where she would rather be and she has arranged the method to allow that to happen.
Her clients acknowledge that choice as completely rational. They agree with it. They share that value and belief.
Why does this adviser do it? Because one day her daughter came home distraught that a school friend had been diagnosed with cancer. There was a physical and emotional battle about to start for that child and that family. There was also a financial battle.
For that reason this adviser tells her clients that she knows where she would want to be.
For that reason every recommendation includes child trauma. There is no need to go into micro detail about the policy.
The positioning is simply:
- tell the client what you have done for your own children and why
- they will agree with what you have done : sometimes with just a nod of agreement sometimes with an emphatic "oh yes, I'd want that too"
- then when you present your recommendation you simply say and I have included childrens trauma because I want you to be able to make the same choices I can make and so you can be there for your children too
At about $10 per $10,000 of cover, I do not know a parent who would opt out of covering their child for an appropriate level of cover at what amounts to essentially a cup of coffee a week per child.
Thursday, 22 November 2012
14 Steps to Sales Success in Financial Planning
Want the keys to sales success and achieve results such as 68% referral rate from you existing client bases and over a 90% close rate?
Want to find out how to write 80% of your future new business from your existing client base?
Follow these steps practised by the leading financial advice firms.
1) BE FOUND
Stand out in any search a prospective client makes.
Yellow pages, local business directories, online or word of mouth in a social circle.
2) CREATE CLIENT CENTRED COLLATERAL TO ENGAGE CLIENTS WITH PRE FIRST APPOINTMENT
3) HAVE A WEBSITE THAT IS ENGAGING OFFERS VALUE AND CONNECTION TO YOUR CORE PROPOSITION
4) HAVE AN OFFICE SET UP THAT TELLS A POSITIVE STORY THAT YOU UNDERSTAND YOUR NICHE CLIENTS
5) BE ABLE TO SAY WHAT IT IS THAT YOU DO AND WHY
6) BE ABLE TO EXPLAIN AND DEMONSTRATE VISUALLY YOUR PROCESS
7) EXPLAIN THE STEPS IN THE PROCESS AND WHAT HAPPENS NEXT
8) HAVE AN ENGAGING AND DEEP CLIENT INFORMATION COLLECTION METHOD THAT COLLECTS MORE THAN JUST FINANCIAL DATA BUT COLLECTS DATA ON VALUES AND MOTIVATION
9) CHECK FOR UNDERSTANDING BEFORE MOVING FORWARD
10) FOLLOW UP POST MEETING WITH A REASSURANCE PIECE
11) BRIEF YOUR STAFF WEEKLY ON THE CLIENTS AND PROSPECTS THAT WILL VISIT YOUR OFFICE AND WHY THEY ARE COMMING IN SO THEY CAN MANAGE CLIENT PSYCHOLOGY WITH SIMPLY A WARM AND RELEVANT WELCOME
12) MAKES SURE YOUR STATEMENT OF ADVICE SPEAKS TO THE CLIENTS INDIVIDUAL NEEDS AND WANTS
13) ENHANCE THE UNDERSTANDING OF THE STATEMENT OF ADVICE BY USING VISUALS
14) CONNECT THE STRATEGY TO THE CLIENTS VALUES, BELIEFS, ATTITUDE AND MOTIVATIONS
Want to find out how to write 80% of your future new business from your existing client base?
Follow these steps practised by the leading financial advice firms.
1) BE FOUND
Stand out in any search a prospective client makes.
Yellow pages, local business directories, online or word of mouth in a social circle.
2) CREATE CLIENT CENTRED COLLATERAL TO ENGAGE CLIENTS WITH PRE FIRST APPOINTMENT
3) HAVE A WEBSITE THAT IS ENGAGING OFFERS VALUE AND CONNECTION TO YOUR CORE PROPOSITION
4) HAVE AN OFFICE SET UP THAT TELLS A POSITIVE STORY THAT YOU UNDERSTAND YOUR NICHE CLIENTS
5) BE ABLE TO SAY WHAT IT IS THAT YOU DO AND WHY
6) BE ABLE TO EXPLAIN AND DEMONSTRATE VISUALLY YOUR PROCESS
7) EXPLAIN THE STEPS IN THE PROCESS AND WHAT HAPPENS NEXT
8) HAVE AN ENGAGING AND DEEP CLIENT INFORMATION COLLECTION METHOD THAT COLLECTS MORE THAN JUST FINANCIAL DATA BUT COLLECTS DATA ON VALUES AND MOTIVATION
9) CHECK FOR UNDERSTANDING BEFORE MOVING FORWARD
10) FOLLOW UP POST MEETING WITH A REASSURANCE PIECE
11) BRIEF YOUR STAFF WEEKLY ON THE CLIENTS AND PROSPECTS THAT WILL VISIT YOUR OFFICE AND WHY THEY ARE COMMING IN SO THEY CAN MANAGE CLIENT PSYCHOLOGY WITH SIMPLY A WARM AND RELEVANT WELCOME
12) MAKES SURE YOUR STATEMENT OF ADVICE SPEAKS TO THE CLIENTS INDIVIDUAL NEEDS AND WANTS
13) ENHANCE THE UNDERSTANDING OF THE STATEMENT OF ADVICE BY USING VISUALS
14) CONNECT THE STRATEGY TO THE CLIENTS VALUES, BELIEFS, ATTITUDE AND MOTIVATIONS
Tuesday, 13 November 2012
5 Steps to Success
It's been a couple of weeks since PCEs last post. There's been a bit of travel that has been a pre-occupation, some daily life activities that have needed attending to, some personal development and well being that took priority but what has occupied PCE most,in these two weeks has been the opportunity to meet and sit down with some masters of client engagement and personal success.
What the clear message is from these meetings is that success comes from doing what you love.
Joseph Campbell offered us the phrase "follow your bliss". Or more exactly If you follow your bliss, you put yourself on a kind of track that has been there all the while, waiting for you, and the life that you ought to be living is the one you are living. Wherever you are—if you are following your bliss, you are enjoying that refreshment, that life within you, all the time.
These businesses that PCE have met in the last two weeks are deliberately and methodically following and leading their clients into following their own bliss.
They have a process. They believe in it. They have developed it and honed it and adapted it to their personalities and the personalities of their client base.
At its core the process is simple:
1) Know and define what you want
2) Create a plan
3) Enlist the services of an action coach
4) Take action
5) Review and adjust
This is about being crystal clear on what it is that you want and creating a sequence and set of objectives in the form of a plan to get you where you want to be.
Having accountability and a guide is crucial.
You can apply this process to anything you do in life - anything that is important enough to you to apply considered thought and process to.
But for financial advice, wealth creation and protection businesses - building this into a client engagement process is by no means an easy proposition. What it requires is you living and experiencing your client service encounter and reflecting on how engaged you would be with your current process. Then answering the question - how would I like to be engaged.
Then follow the 5 steps above and make it a reality.
When you get to step 3 - maybe give PCE a call.
What the clear message is from these meetings is that success comes from doing what you love.
Joseph Campbell offered us the phrase "follow your bliss". Or more exactly If you follow your bliss, you put yourself on a kind of track that has been there all the while, waiting for you, and the life that you ought to be living is the one you are living. Wherever you are—if you are following your bliss, you are enjoying that refreshment, that life within you, all the time.
These businesses that PCE have met in the last two weeks are deliberately and methodically following and leading their clients into following their own bliss.
They have a process. They believe in it. They have developed it and honed it and adapted it to their personalities and the personalities of their client base.
At its core the process is simple:
1) Know and define what you want
2) Create a plan
3) Enlist the services of an action coach
4) Take action
5) Review and adjust
This is about being crystal clear on what it is that you want and creating a sequence and set of objectives in the form of a plan to get you where you want to be.
Having accountability and a guide is crucial.
You can apply this process to anything you do in life - anything that is important enough to you to apply considered thought and process to.
But for financial advice, wealth creation and protection businesses - building this into a client engagement process is by no means an easy proposition. What it requires is you living and experiencing your client service encounter and reflecting on how engaged you would be with your current process. Then answering the question - how would I like to be engaged.
Then follow the 5 steps above and make it a reality.
When you get to step 3 - maybe give PCE a call.
Friday, 2 November 2012
Believing in Unicorns - the power of purity of intent
The mythical unicorn. According to http://www.unicornleanmanufacturingchangemanagementservices.com/about-unicorns.htm
- unicorns are fierce yet good, a symbol of strength endurance and agility, perserverance, wisdom and playfulness, purity, love hope and majesty.
Further to find the unicorn again it is suggested we must unlearn old lessons, seek new paths, stop and listen to guidance and look deep within ourselves for the right answers.
For those in financial services, it is our role to guide our clients then to finding the unicorn meaning in their lives - to have our clients look at their journey, guide them along new paths to a desired destination and teach them to develop a vision that needs to come from deep within so that it satisfies their often unspoken needs.
Doing that ensures the connection between what a client really wants and what the design of the clients strategy to achieve needs to be. It provides our clients with the knowledge that empowers them to understand and recognise the effectiveness of the path that they choose.
Your advice in this process is then invaluable. Those advisers who connect with clients in this way are described by their clients in a way that transcends the advice piece itself. Clients of these advisers have the feeling that their advisers simply "get me" they understand them and their deep needs and motivations. These clients and the relationships they have with their advisers are ones of friendship, coach, guide, confidante.
This can't be delivered unless the adviser themselves embodies the unicorn spirit.
We talk now of "best interest" and what that means. More paperwork? A statement of intent? A promise? Best interest is a way of being.
Unicorn advisers are leaders who are fierce yet good, symbols of strength endurance and agility, perserverance, wisdom and playfulness, purity, love, hope and majesty.
These remarkable individuals have unlearnt old lessons, sought new paths, stopped and listened to guidance and have looked deep within themselves for the right answers.
They embody what it means to lead. They change people's lives for the better. And they reach far beyond their businesses into the wider community as they inspire and allow people to dream again.
- unicorns are fierce yet good, a symbol of strength endurance and agility, perserverance, wisdom and playfulness, purity, love hope and majesty.
Further to find the unicorn again it is suggested we must unlearn old lessons, seek new paths, stop and listen to guidance and look deep within ourselves for the right answers.
For those in financial services, it is our role to guide our clients then to finding the unicorn meaning in their lives - to have our clients look at their journey, guide them along new paths to a desired destination and teach them to develop a vision that needs to come from deep within so that it satisfies their often unspoken needs.
Doing that ensures the connection between what a client really wants and what the design of the clients strategy to achieve needs to be. It provides our clients with the knowledge that empowers them to understand and recognise the effectiveness of the path that they choose.
Your advice in this process is then invaluable. Those advisers who connect with clients in this way are described by their clients in a way that transcends the advice piece itself. Clients of these advisers have the feeling that their advisers simply "get me" they understand them and their deep needs and motivations. These clients and the relationships they have with their advisers are ones of friendship, coach, guide, confidante.
This can't be delivered unless the adviser themselves embodies the unicorn spirit.
We talk now of "best interest" and what that means. More paperwork? A statement of intent? A promise? Best interest is a way of being.
Unicorn advisers are leaders who are fierce yet good, symbols of strength endurance and agility, perserverance, wisdom and playfulness, purity, love, hope and majesty.
These remarkable individuals have unlearnt old lessons, sought new paths, stopped and listened to guidance and have looked deep within themselves for the right answers.
They embody what it means to lead. They change people's lives for the better. And they reach far beyond their businesses into the wider community as they inspire and allow people to dream again.
Saturday, 20 October 2012
Great Questions For Your Client Discovery Meeting
So recently we've written about initial client engagement and in particular how to engage clients with a difference even before you sit down with them.
We've also posted on YouTube at http://m.youtube.com/user/positiveclientengage
- a couple of videos about using mind maps with clients in the discovery process.
The key outcomes of course that we are looking for are:
- depth of knowledge of the clients circumstances that transcends pure numbers and data of the clients financial situation but leads you to truly understand the clients world
- which then allows you to become involved in that world and play your part
- that part is to assist the client live out what is important to them
If you can do that then that is true client engagement and service delivery. Clients will utilise your solutions and advice and pay for it and proudly refer you to their social circle because simply you have delivered with difference.
But to properly engage even using a mind map technique you need to be asking great questions.
Many people do this naturally - there is an innate and genuine curiosity that demonstrates respect and the understanding of another's point of view.
It's basic conversation. It's about the way you were brought up. It's about how you engaged your family around the dinner table. (do people do that anymore as a family??).
And therein lies the problem. Since 1992 as the internet began, we have started communicating differently.
There are some advice professionals who no nothing other than communicating via a portal rather than face to face.
So great conversations are not so natural today.
So what are the great questions?
It depends on you and if you have some of the ingredients of the above great listeners and communicators.
But essentially you need to be asking:
- what's the clients thought process around planning for their future
- what has that thought process brought up
- how do they feel about it
- how do they feel about areas of their life such as family, health, interests, hobbies, relationships, philanthropy, community, education, living circumstances, travel, over all well being, social circle, work,
- what's a life that is full look like to them
- what dreams are they missing out on
- what dreams are they living
- what dreams are they fearful of chasing
- what would they have missed out on if they don't take action
- how would they live if money was plentiful
- what would they change
- what if circumstances meant they needed to fast track plans for providing for their family
- have they done enough
- what does success look, feel, sound like
- how do you know when you're there
Great questions can not be forced or read out like a script. They need to evolve. It's a journey. Great questions are a great conversation. Great conversations start with a willingness to share and a great listener.
We've also posted on YouTube at http://m.youtube.com/user/positiveclientengage
- a couple of videos about using mind maps with clients in the discovery process.
The key outcomes of course that we are looking for are:
- depth of knowledge of the clients circumstances that transcends pure numbers and data of the clients financial situation but leads you to truly understand the clients world
- which then allows you to become involved in that world and play your part
- that part is to assist the client live out what is important to them
If you can do that then that is true client engagement and service delivery. Clients will utilise your solutions and advice and pay for it and proudly refer you to their social circle because simply you have delivered with difference.
But to properly engage even using a mind map technique you need to be asking great questions.
Many people do this naturally - there is an innate and genuine curiosity that demonstrates respect and the understanding of another's point of view.
It's basic conversation. It's about the way you were brought up. It's about how you engaged your family around the dinner table. (do people do that anymore as a family??).
And therein lies the problem. Since 1992 as the internet began, we have started communicating differently.
There are some advice professionals who no nothing other than communicating via a portal rather than face to face.
So great conversations are not so natural today.
So what are the great questions?
It depends on you and if you have some of the ingredients of the above great listeners and communicators.
But essentially you need to be asking:
- what's the clients thought process around planning for their future
- what has that thought process brought up
- how do they feel about it
- how do they feel about areas of their life such as family, health, interests, hobbies, relationships, philanthropy, community, education, living circumstances, travel, over all well being, social circle, work,
- what's a life that is full look like to them
- what dreams are they missing out on
- what dreams are they living
- what dreams are they fearful of chasing
- what would they have missed out on if they don't take action
- how would they live if money was plentiful
- what would they change
- what if circumstances meant they needed to fast track plans for providing for their family
- have they done enough
- what does success look, feel, sound like
- how do you know when you're there
Great questions can not be forced or read out like a script. They need to evolve. It's a journey. Great questions are a great conversation. Great conversations start with a willingness to share and a great listener.
Tuesday, 2 October 2012
The Five Step Client Interview Process for Insurance and Financial Planning
So you have dazzled your prospective client with the customer experience they have just encountered when first entering your business. Now they are sitting across from you and the fun begins. What do the best businesses do to ensure what happens next: is fun, is differentiated, is highly engaging (for the client and the adviser) leads to 100% conversion from prospect to client and leads to obtaining client referrals at a rate of above 70%?
Essentially there are 5 things that these businesses do. They do them in sequence and as a part of a deliberate well thought out process. Further they advise their prospective clients sometimes well before the meeting itself that there is a defined process that they are going to take them through. Further these businesses have developed collateral be it corporate brochures or web site applications or information that defines what this process is.
The brilliance in what they are doing is first and foremost is that it is simple, second by doing this they tap into a vast array of positive client psychology techniques, third, because it is a defined process it can be taught to emerging advisers and front of house staff, fourth it can be articulated clearly and succinctly and best of all despite the simplicity the fifth point to note is that it is rare that a business works through all 5 elements and consequently it is highly differentiated.
The 5 step client interview process:
1) Engage your clients in the data collection process
This does not mean running laboriously through the fact find or similar data collection forms. This means a highly engaged genuinely curious inquisition into the clients world. This is best done using a formulaic method. Ideally visual, participative and a means to get the client talking about themselves. It's "going deep" with a client.
Best techniques and practitioners utilise mind map diagrams that go further than just assets and liabilities but cover much broader areas of a clients world.
How do you get clients to share that much information? Show them your mind map or family tree but the best practitioners start by outlining what it is that they have incorporated for themselves and then ask the prospect to reciprocate.
2) Ask great questions and set a benchmark for where the client is now and what the possibilities may be.
These are questions about lifestyle and other aspects that are non financial. It's about where else they have obtained advice and what was their experience. It's about hard questions about how they would live their life if time was limited or if money was no object.
Great questions take practice and take time to construct. PCE has created 4 questionnaires available via PCE for those interested. (yes website still under construction)
Further PCE have a benchmark tool to assess where a client sits now and where they will be after your advice.
3) Describe your methodology, for insurance sales, for choosing the right levels of cover. There are plenty of applications that work through clients scenarios, even i pad applications provided by life risk houses, and worksheets that PCE have developed. What's important is to highlight that there is a method and that all your clients go through this process and have positive results as a consequence : this is where the power of story telling about your clients comes into its own. And story telling is a critical element of step 3.
4) Use visuals to explain your suggested course of action. Be it words on a slide. A diagram about how it all fits together, what you need to do here is imprint in a clients mind the solidity of your solution. Flow charts work very well and if you can for example explain how packing insurance options works and will work for the client sitting in front of you by a visual method what stays with the client is not so much the product names and intracacies but rather that you have constructed (or will construct) something cohesive, relevant and understandable for them.
5) Describe the next steps : what is the application process / when will your recommendations be ready / what is the underwriting process and in doing so define the outcome that they will have which should be in the clients words and aligned to the objective that they want to achieve or that you have identified is a necessary component of their well being. Further provide them with an engagement pack that reassures them that they have made the right decision in choosing you. This will certainly have relevance when natural buyers remorse sets in. By having managed the psychology of the sale process during the appointment you have mitigated the natural thought process of the client and reassured them that what they experienced in your waiting room was genuine and that in a very short space of time the feeling that you understand them and are genuinely concerned about their well being. The WHY you are in business is powerful here. Make sure you tell them at this point why it is you do what you do.
Essentially there are 5 things that these businesses do. They do them in sequence and as a part of a deliberate well thought out process. Further they advise their prospective clients sometimes well before the meeting itself that there is a defined process that they are going to take them through. Further these businesses have developed collateral be it corporate brochures or web site applications or information that defines what this process is.
The brilliance in what they are doing is first and foremost is that it is simple, second by doing this they tap into a vast array of positive client psychology techniques, third, because it is a defined process it can be taught to emerging advisers and front of house staff, fourth it can be articulated clearly and succinctly and best of all despite the simplicity the fifth point to note is that it is rare that a business works through all 5 elements and consequently it is highly differentiated.
The 5 step client interview process:
1) Engage your clients in the data collection process
This does not mean running laboriously through the fact find or similar data collection forms. This means a highly engaged genuinely curious inquisition into the clients world. This is best done using a formulaic method. Ideally visual, participative and a means to get the client talking about themselves. It's "going deep" with a client.
Best techniques and practitioners utilise mind map diagrams that go further than just assets and liabilities but cover much broader areas of a clients world.
How do you get clients to share that much information? Show them your mind map or family tree but the best practitioners start by outlining what it is that they have incorporated for themselves and then ask the prospect to reciprocate.
2) Ask great questions and set a benchmark for where the client is now and what the possibilities may be.
These are questions about lifestyle and other aspects that are non financial. It's about where else they have obtained advice and what was their experience. It's about hard questions about how they would live their life if time was limited or if money was no object.
Great questions take practice and take time to construct. PCE has created 4 questionnaires available via PCE for those interested. (yes website still under construction)
Further PCE have a benchmark tool to assess where a client sits now and where they will be after your advice.
3) Describe your methodology, for insurance sales, for choosing the right levels of cover. There are plenty of applications that work through clients scenarios, even i pad applications provided by life risk houses, and worksheets that PCE have developed. What's important is to highlight that there is a method and that all your clients go through this process and have positive results as a consequence : this is where the power of story telling about your clients comes into its own. And story telling is a critical element of step 3.
4) Use visuals to explain your suggested course of action. Be it words on a slide. A diagram about how it all fits together, what you need to do here is imprint in a clients mind the solidity of your solution. Flow charts work very well and if you can for example explain how packing insurance options works and will work for the client sitting in front of you by a visual method what stays with the client is not so much the product names and intracacies but rather that you have constructed (or will construct) something cohesive, relevant and understandable for them.
5) Describe the next steps : what is the application process / when will your recommendations be ready / what is the underwriting process and in doing so define the outcome that they will have which should be in the clients words and aligned to the objective that they want to achieve or that you have identified is a necessary component of their well being. Further provide them with an engagement pack that reassures them that they have made the right decision in choosing you. This will certainly have relevance when natural buyers remorse sets in. By having managed the psychology of the sale process during the appointment you have mitigated the natural thought process of the client and reassured them that what they experienced in your waiting room was genuine and that in a very short space of time the feeling that you understand them and are genuinely concerned about their well being. The WHY you are in business is powerful here. Make sure you tell them at this point why it is you do what you do.
Wednesday, 26 September 2012
Five Ways to Engage Clients Before They Sit Down In The Office
What do great businesses do to engage and educate clients before they have actually started the client discovery meeting?
They have at their disposal waiting room excellence.
In other words the client experience begins as the client enters the business premises. And by design rather than default these great businesses tap into client behaviour and emotion to educate and inform before the formal interview has even commenced.
How?
Follow these five steps and start your transformation.
Create a welcoming environment.
Like the PCE Assurance Letters, the waiting room environment is all about confirming to the client that they have made the right choice. This means that it needs to speak to the client needs that are in play. If you are pitching to senior executive clients a waiting room needs to evoke the environment they are accustomed to. The details right down to the magazine selection needs to be appropriate. If pitching to families a waiting room that is child friendly is a winner.
Your pitch to your prospective client that you understand them, starts in the waiting room. Create an environment that loud and clear announces that you know your market.
Have great front of house staff that can engage your clients.
This works because you can find out vital information about a clients decision making internal influences such as ...attitude, motivation, how they learn (do they watch the video screens, read the magazine, look at pictures in a brochure, read your business collateral?). Recently PCE were strongly engaged in two adviser waiting rooms. Once by a dynamic receptionist who was also studying law. PCE were quite put on their heels and certainly discovered there were some issues over and above what PCE were there to discuss that it was suddenly illuminated that this particular business could assist with. The second occasion PCE was struck by the smiles, the welcome, the conversation of two front of house staff.
Start educating and leading your clients.
Create and use focused and targeted collateral be it brochures, case studies, video that provides information about your business and what it is you do and why.
Importantly what is your process and what sort of clients have been through your process and succeeded. There are many ways to do this. Video, flow charts, client storyboards. What you are doing here is creating credibility that positive results happen for people who work with you.
Demonstrate the value you provide.
With the pressure you face from an ever increasing Competitive environment, differentiating your offer has never been as vital as it is now. To win you need to demonstrate that your offer transcends what else in out there. Easily done. Simply create a map/ a process/ a visual of all the things you do for clients and how broad your network is, in a way that clearly identifies that you can provide and facilitate a multi faceted solution for your clients and that you are the vital hub of their world.
Let them bond with you before they meet you.
How? Let them know you and who you are and who are the clients you've helped. You, your staff, your clients should be on display. This means visuals, photos, a library and other items that can make an emotional connection with your clients. What community contribution do you make? What about charity? What do you stand for and what is valued in your world that you are willing to share? By opening yourself up and displaying your values you will have as a result like attracting like and people bonding with you or at the worst people understanding and respecting your values and giving you the opportunity to reciprocate.
Waiting rooms.......not just for waiting.
They have at their disposal waiting room excellence.
In other words the client experience begins as the client enters the business premises. And by design rather than default these great businesses tap into client behaviour and emotion to educate and inform before the formal interview has even commenced.
How?
Follow these five steps and start your transformation.
Create a welcoming environment.
Like the PCE Assurance Letters, the waiting room environment is all about confirming to the client that they have made the right choice. This means that it needs to speak to the client needs that are in play. If you are pitching to senior executive clients a waiting room needs to evoke the environment they are accustomed to. The details right down to the magazine selection needs to be appropriate. If pitching to families a waiting room that is child friendly is a winner.
Your pitch to your prospective client that you understand them, starts in the waiting room. Create an environment that loud and clear announces that you know your market.
Have great front of house staff that can engage your clients.
This works because you can find out vital information about a clients decision making internal influences such as ...attitude, motivation, how they learn (do they watch the video screens, read the magazine, look at pictures in a brochure, read your business collateral?). Recently PCE were strongly engaged in two adviser waiting rooms. Once by a dynamic receptionist who was also studying law. PCE were quite put on their heels and certainly discovered there were some issues over and above what PCE were there to discuss that it was suddenly illuminated that this particular business could assist with. The second occasion PCE was struck by the smiles, the welcome, the conversation of two front of house staff.
Start educating and leading your clients.
Create and use focused and targeted collateral be it brochures, case studies, video that provides information about your business and what it is you do and why.
Importantly what is your process and what sort of clients have been through your process and succeeded. There are many ways to do this. Video, flow charts, client storyboards. What you are doing here is creating credibility that positive results happen for people who work with you.
Demonstrate the value you provide.
With the pressure you face from an ever increasing Competitive environment, differentiating your offer has never been as vital as it is now. To win you need to demonstrate that your offer transcends what else in out there. Easily done. Simply create a map/ a process/ a visual of all the things you do for clients and how broad your network is, in a way that clearly identifies that you can provide and facilitate a multi faceted solution for your clients and that you are the vital hub of their world.
Let them bond with you before they meet you.
How? Let them know you and who you are and who are the clients you've helped. You, your staff, your clients should be on display. This means visuals, photos, a library and other items that can make an emotional connection with your clients. What community contribution do you make? What about charity? What do you stand for and what is valued in your world that you are willing to share? By opening yourself up and displaying your values you will have as a result like attracting like and people bonding with you or at the worst people understanding and respecting your values and giving you the opportunity to reciprocate.
Waiting rooms.......not just for waiting.
Wednesday, 12 September 2012
How our clients brains stop them making rational decisions
So you've written a great plan, an insurance strategy that is relevant, appropriate and desperately needed by your prospect and yet.....the response is...I'm not sure, I need to think about it.
Maslow offers us some great guidance on motivation and drive.
We at PCE would love to accept that positive view of people that analogy that cream rises to the top that people really do try to be the best that they can be.
For us the one of the greatest examples of Maslow's hierarchy working is Chris Gardner;think Will Smith in the Pursuit of Happyness.
Chris's journey and struggle to be the best he could be was Maslow personified.
But Maslow does not fit when you think of a client walking away from a sound financial plan. Maslow does not explain why someone who has it all still wants more. Maslow can't explain why your COI having engaged you does not continue to provide referrals. Maslow does not explain why people make decisions that appear and probably are totally irrational.
How you understand what is going on in someone's mind and why they make the decisions they do is really the key to positive client engagement.
It's what this website/blog is all about. It's about being the best you can be and being self aware enough that you can engage clients with honesty and genuine curiosity and sincerity.
It's about emotional intelligence and it's application.
As Golemon writes in his groundbreaking work, in 1995, it's about knowing yourself, managing yours and your clients emotions, motivation and understanding motivation, recognising emotions and motivations in your clients, building relationships, maintaining relationships.
People's ability to do this differs and PCE is about developing tools to assist.
But heres the big tip. Ready?
If you want a client to go through a process with you.......do it yourself first.
Go through the PDS and full out your own application. Do a fact find on yourself. Mind map your world on a single page. Get underwritten. Walk through your business with your clients eyes. How do you feel about that policy loading, about some of the personal questions on the application....did you answer the honestly ...really?
What about that fact find process.....how'd it feel.....fake, false, like you were a number.
Draw your family tree......
Examine the way you shop. The last holiday you went on ....did you use a travel agent ...or did you go online......do you value advice when it's your business but diminish the value of advice when it's someone's elses business.
Do you walk the talk?
Do you believe in what you sell? Can you state why you do what you do? Do you know who it is that you help, what problems they have and what you do about it and what your clients feel about what it is that you do?
Our brains have evolved from a brain stem that kept us alive and to this day still regulates all that is automatic.
The other systems that evolved have at their core an emotional centre, the limbic system that receives all the information that bombards us each day and attaches emotional markers to it before our pre frontal cortex makes that decision that we hope is rational but that is driven by experience and acquired knowledge.
What is key here is the emotions that we assign to things, that drive us that shut down rationale thought when the feelings are strong enough.
So how well do you engage your clients on an emotional level? Really? A fact find? What are you doing in your business to really connect with clients?
If you can answer and articulate and demonstrate that then you are well ahead of the curve. And on the way to positive client engagement.
Maslow offers us some great guidance on motivation and drive.
We at PCE would love to accept that positive view of people that analogy that cream rises to the top that people really do try to be the best that they can be.
For us the one of the greatest examples of Maslow's hierarchy working is Chris Gardner;think Will Smith in the Pursuit of Happyness.
Chris's journey and struggle to be the best he could be was Maslow personified.
But Maslow does not fit when you think of a client walking away from a sound financial plan. Maslow does not explain why someone who has it all still wants more. Maslow can't explain why your COI having engaged you does not continue to provide referrals. Maslow does not explain why people make decisions that appear and probably are totally irrational.
How you understand what is going on in someone's mind and why they make the decisions they do is really the key to positive client engagement.
It's what this website/blog is all about. It's about being the best you can be and being self aware enough that you can engage clients with honesty and genuine curiosity and sincerity.
It's about emotional intelligence and it's application.
As Golemon writes in his groundbreaking work, in 1995, it's about knowing yourself, managing yours and your clients emotions, motivation and understanding motivation, recognising emotions and motivations in your clients, building relationships, maintaining relationships.
People's ability to do this differs and PCE is about developing tools to assist.
But heres the big tip. Ready?
If you want a client to go through a process with you.......do it yourself first.
Go through the PDS and full out your own application. Do a fact find on yourself. Mind map your world on a single page. Get underwritten. Walk through your business with your clients eyes. How do you feel about that policy loading, about some of the personal questions on the application....did you answer the honestly ...really?
What about that fact find process.....how'd it feel.....fake, false, like you were a number.
Draw your family tree......
Examine the way you shop. The last holiday you went on ....did you use a travel agent ...or did you go online......do you value advice when it's your business but diminish the value of advice when it's someone's elses business.
Do you walk the talk?
Do you believe in what you sell? Can you state why you do what you do? Do you know who it is that you help, what problems they have and what you do about it and what your clients feel about what it is that you do?
Our brains have evolved from a brain stem that kept us alive and to this day still regulates all that is automatic.
The other systems that evolved have at their core an emotional centre, the limbic system that receives all the information that bombards us each day and attaches emotional markers to it before our pre frontal cortex makes that decision that we hope is rational but that is driven by experience and acquired knowledge.
What is key here is the emotions that we assign to things, that drive us that shut down rationale thought when the feelings are strong enough.
So how well do you engage your clients on an emotional level? Really? A fact find? What are you doing in your business to really connect with clients?
If you can answer and articulate and demonstrate that then you are well ahead of the curve. And on the way to positive client engagement.
Friday, 7 September 2012
Social Media For Financial Services - What You Need To Know
With the Financial Standard launching a scholarship to support financial advisers who are taking the lead in social media, http://www.financialstandard.com.au/smileys
PCE thought it worthwhile to look at some of the aspects of success in social media community building.
As fans of Gossieuax and Moran and others such as Iggy Pintado, looking at their research and writings makes sense for any one grappling with how and what they should be doing to engage clients via social media.
1) People trust people in their tribe.
As humans we have simply not evolved to engage with businesses who deliver to us content embedded with jargon and that is positioned to us in a way that portrays why dealing with said businesses is a good choice for us. What really matters are stories shared with us around the campfire. In other words we look to people we know and we trust to give us green light signals about our purchasing options and choices.
2) Building relationships is predicated and successful only when there is reciprocity.
A bond between people or indeed between people and a corporation is only successful if the bond is mutual which means there needs to be some give and take. In a social media sense this means that in order to engage a community you as the business need to bring something of value to the conversation / to the community.
3) People want to hear, read, see, experience what other people say about you, your services, your service encounters that you deliver.
It however is more than the what you do. People want to know and understand the why. Why is it that others have chosen to work with you. Testimonials are not enough. True engagement that is required is the power of the open forum. In essence an ongoing and virtual conversation about why you do what you do.
4)Forget traditional segmenting.
The financial planning business who talks to us about A,B,C and D segmenting based on revenue should forget about social media marketing.
What needs to occur is a mind shift in your business so that you explore and think about your clients in terms of the communities or using Gossieaux and Morans language the tribes you have in your client base and which tribes within your client base and beyond you would like to engage with.
5) Become truly customer focussed.
This means you need to assess your client service encounters and reshape them so that It speaks to the interests of your core identified communities.
6) To do that you need to listen.
Where is the community that your business can engage with value congregating? What interests do they have? What forums do they engage in? What are they saying?
7) Throw out the rule book.
Easier said than done. This means getting the people in your business to allocate time, budget and resources to placing emphasis on social media strategies. This requires a single dedicated and senior person in you business (senior in regard to hierarchy not necessarily age!) responsible for the strategy. It requires time to spend in forums to respond in a consistent customer focussed manner with alignment to the goal of the business that is importantly something the business can deliver on.
But let's make it clear that you can't do any of the above without the business knowing who it is they want to deal with, what problems those people and people in that community have, what it is that the business does for those people and the results that are provided. This is essentially your raison d'être.
Without that you will sadly get lost in the socia media clouds.
PCE thought it worthwhile to look at some of the aspects of success in social media community building.
As fans of Gossieuax and Moran and others such as Iggy Pintado, looking at their research and writings makes sense for any one grappling with how and what they should be doing to engage clients via social media.
1) People trust people in their tribe.
As humans we have simply not evolved to engage with businesses who deliver to us content embedded with jargon and that is positioned to us in a way that portrays why dealing with said businesses is a good choice for us. What really matters are stories shared with us around the campfire. In other words we look to people we know and we trust to give us green light signals about our purchasing options and choices.
2) Building relationships is predicated and successful only when there is reciprocity.
A bond between people or indeed between people and a corporation is only successful if the bond is mutual which means there needs to be some give and take. In a social media sense this means that in order to engage a community you as the business need to bring something of value to the conversation / to the community.
3) People want to hear, read, see, experience what other people say about you, your services, your service encounters that you deliver.
It however is more than the what you do. People want to know and understand the why. Why is it that others have chosen to work with you. Testimonials are not enough. True engagement that is required is the power of the open forum. In essence an ongoing and virtual conversation about why you do what you do.
4)Forget traditional segmenting.
The financial planning business who talks to us about A,B,C and D segmenting based on revenue should forget about social media marketing.
What needs to occur is a mind shift in your business so that you explore and think about your clients in terms of the communities or using Gossieaux and Morans language the tribes you have in your client base and which tribes within your client base and beyond you would like to engage with.
5) Become truly customer focussed.
This means you need to assess your client service encounters and reshape them so that It speaks to the interests of your core identified communities.
6) To do that you need to listen.
Where is the community that your business can engage with value congregating? What interests do they have? What forums do they engage in? What are they saying?
7) Throw out the rule book.
Easier said than done. This means getting the people in your business to allocate time, budget and resources to placing emphasis on social media strategies. This requires a single dedicated and senior person in you business (senior in regard to hierarchy not necessarily age!) responsible for the strategy. It requires time to spend in forums to respond in a consistent customer focussed manner with alignment to the goal of the business that is importantly something the business can deliver on.
But let's make it clear that you can't do any of the above without the business knowing who it is they want to deal with, what problems those people and people in that community have, what it is that the business does for those people and the results that are provided. This is essentially your raison d'être.
Without that you will sadly get lost in the socia media clouds.
Saturday, 25 August 2012
The power of claims stories
Sales people are not all the same.
By that PCE means that not all sales people representing life risk providers and sales people within advice practices have the same skill sets.
Not all of them have as a dominant intelligence or capability : people skills.
Shocking!
But breathtakingly refreshing. Because as a consequence the fact that some intelligences are more dominant in some sales people than others means that these sales people bring different conversations to the table.
Do we as an industry want to have one dimensional expectations and profiles of our life risk representatives and our advice practitioners?
In a recent exercise observed by PCE, the intelligences of a sales team were measured and what we learnt highlighted the necessity to align the right sales person with the right panel of advisers or indeed for advice practitioners aligning the right adviser with the right subset of clients.
As an example, the salesy, buddy buddy, wheel and deal slick conversations were not the forte or in fact the skill set that was a dominant intelligence with one of the participants.
What proved to be more important was clear statements of facts delivered with selective story telling about one specific aspect of the life risk process : that being claims.
In itself that is not the best part of the story. What is, is the dedication and delivery of claims assistance, counsel and advice to the advice business when then were lodging and assisting a client with a claim.
What the individual concerned does in the delivery of the ultimate promised of life insurance ....the claims promise, is provide advocacy and support to advice businesses when they and their clients need it the most.
Telling those stories whilst not sexy, slick, and the modus operandi of your typical stereotypical sales person, is in PCEs opinion highly effective.
So next time you are making a judgement about the life risk representative who makes contact with your office, comes to see you and in fact the next time you assess your own client engagement take a moment to investigate if they and you know how to deliver on the promise of insurance : the claim process. How do they and you fare? And what would you prefer a sales professional who is slick and a closer or a sales person who is a client advocate and had the intelligences, skills and capabilities to deliver when you and your clients need it the most?
By that PCE means that not all sales people representing life risk providers and sales people within advice practices have the same skill sets.
Not all of them have as a dominant intelligence or capability : people skills.
Shocking!
But breathtakingly refreshing. Because as a consequence the fact that some intelligences are more dominant in some sales people than others means that these sales people bring different conversations to the table.
Do we as an industry want to have one dimensional expectations and profiles of our life risk representatives and our advice practitioners?
In a recent exercise observed by PCE, the intelligences of a sales team were measured and what we learnt highlighted the necessity to align the right sales person with the right panel of advisers or indeed for advice practitioners aligning the right adviser with the right subset of clients.
As an example, the salesy, buddy buddy, wheel and deal slick conversations were not the forte or in fact the skill set that was a dominant intelligence with one of the participants.
What proved to be more important was clear statements of facts delivered with selective story telling about one specific aspect of the life risk process : that being claims.
In itself that is not the best part of the story. What is, is the dedication and delivery of claims assistance, counsel and advice to the advice business when then were lodging and assisting a client with a claim.
What the individual concerned does in the delivery of the ultimate promised of life insurance ....the claims promise, is provide advocacy and support to advice businesses when they and their clients need it the most.
Telling those stories whilst not sexy, slick, and the modus operandi of your typical stereotypical sales person, is in PCEs opinion highly effective.
So next time you are making a judgement about the life risk representative who makes contact with your office, comes to see you and in fact the next time you assess your own client engagement take a moment to investigate if they and you know how to deliver on the promise of insurance : the claim process. How do they and you fare? And what would you prefer a sales professional who is slick and a closer or a sales person who is a client advocate and had the intelligences, skills and capabilities to deliver when you and your clients need it the most?
Saturday, 18 August 2012
Why marketing campaigns don't work and what to do about it
What response rate are you getting from your financial services / life insurance mail out campaigns?
Be it letters, perhaps flyers, brochures, snazzy postcards with eye catching imagery - what is the success rate you get from either your existing client base or from leads from your centre of influence or even better your centre of influences client base that you are strategically attempting to tap into?
30% success?!!! 20%!? Not less than 15%? Less than 10? Don't tell me less than 5?
In PCEs experience businesses who use generic marketing material, perhaps sourced of he shelf from their product providers, experience a response rate of less than 5%. And this response rate is only the response of calls into the business or requests for more information. The actual real response rate and that is the conversion amounts to less than 2.5% of the original marketing sample.
At this response rate is it little wonder that most small business and even large financial planning firm baulk at the offer from product providers to run a marketing campaign. And the BDM with little else in their kit bag finds it difficult to continue the conversation.
What's wrong here is the misalignment of the marketing material and the client base. The generic messages in the content do not match the need of the prospects.
The analysis of the client base has just simply not been done.
The problem with this equation is the lack of knowledge about what to do about it.
The key is in the message and whether the message is framed to connect with the prospect in a certain way. Advocates of 4 drive theory understand that the curiosity of human beings is heightened enough to cause investigation of a new concept when the gap between the current understanding of an issue and the new information is of a medium variance.
That causes the prospect to drive towards finding more.
In other words we are talking about upwards of 30% response rates.
But most marketing material utilised either does one of two things : one : it does not identify the gap to be large enough and consequently there is no impetus for change OR two: the statement of the issue to be considered is so different to the prospects current situation or made to be so complex that it causes a fear reaction or a complete rejection on either theses grounds or on complexity.
What then is the answer?
It's all about:
- better data mining of the client bases
- smaller subsets
- tailored messages
- better information about the clients that enable the messages to be shaped accordingly
- more creativity with then message
- ultimately closing the gap between the clients current situation and the proposed solution to a point where it is large enough to drive curiosity and small enough for it to appear achievable
For now, think about the messages and material you send to your clients and prospects in your marketing campaigns.
Is it generic of the shelf material that you have sent to a broad set of clients and prospects?
If so .......don't expect a return on your postage spend.
If you want great results....contact PCE.
Be it letters, perhaps flyers, brochures, snazzy postcards with eye catching imagery - what is the success rate you get from either your existing client base or from leads from your centre of influence or even better your centre of influences client base that you are strategically attempting to tap into?
30% success?!!! 20%!? Not less than 15%? Less than 10? Don't tell me less than 5?
In PCEs experience businesses who use generic marketing material, perhaps sourced of he shelf from their product providers, experience a response rate of less than 5%. And this response rate is only the response of calls into the business or requests for more information. The actual real response rate and that is the conversion amounts to less than 2.5% of the original marketing sample.
At this response rate is it little wonder that most small business and even large financial planning firm baulk at the offer from product providers to run a marketing campaign. And the BDM with little else in their kit bag finds it difficult to continue the conversation.
What's wrong here is the misalignment of the marketing material and the client base. The generic messages in the content do not match the need of the prospects.
The analysis of the client base has just simply not been done.
The problem with this equation is the lack of knowledge about what to do about it.
The key is in the message and whether the message is framed to connect with the prospect in a certain way. Advocates of 4 drive theory understand that the curiosity of human beings is heightened enough to cause investigation of a new concept when the gap between the current understanding of an issue and the new information is of a medium variance.
That causes the prospect to drive towards finding more.
In other words we are talking about upwards of 30% response rates.
But most marketing material utilised either does one of two things : one : it does not identify the gap to be large enough and consequently there is no impetus for change OR two: the statement of the issue to be considered is so different to the prospects current situation or made to be so complex that it causes a fear reaction or a complete rejection on either theses grounds or on complexity.
What then is the answer?
It's all about:
- better data mining of the client bases
- smaller subsets
- tailored messages
- better information about the clients that enable the messages to be shaped accordingly
- more creativity with then message
- ultimately closing the gap between the clients current situation and the proposed solution to a point where it is large enough to drive curiosity and small enough for it to appear achievable
For now, think about the messages and material you send to your clients and prospects in your marketing campaigns.
Is it generic of the shelf material that you have sent to a broad set of clients and prospects?
If so .......don't expect a return on your postage spend.
If you want great results....contact PCE.
Sunday, 5 August 2012
Techniques to get more information to win the sale
So the collected posts from PCE have at their core one objective and that is to have professional advisers in financial services engage more people with better skills and in doing so deliver solutions to more clients.
Those solutions take the form of insurance that provides peace of mind and money to families when it is needed most. Those solutions revolve around maximising the possibility that people live well and look after their families.
The key and the lessons of all of our posts is that in order to do this you need to gather more and better information about your prospects, your referral sources and your existing clients.
We at PCE have talked about and demonstrated how revisiting or discovering the theories of Maslow, Jung, Rogers, Nohria, Dilts, and building the learnings into your business in processes and engagement techniques can take you and your clients on the journey towards meeting the objective of positive client engagement and all the success and rewards that come with that.
How do you build it?
We have described in a lot of our posts methods of implementing techniques into your business and we have received feedback of how well it has worked for many businesses.
But to be truthful, these have just been snippets, ideas and conversations like proverbial paper napkin diagrams over coffee or better still a red or two.
The next step for PCE is packaging this for you. Making available the questions, the pro forma questionnaires that can take your business to another level and of course packaging all of the techniques into one cohesive flowing document.
That's exciting for PCE and we hope for you.
Till then as a teaser, how do you engage someone on their values and beliefs?
It's about great questions, centred around what Lawrence and Nohria’s theory focusses on that explains what humans want, as well as why they want those things.
We know from this that people love to:
Acquire
Bond
Learn
Defend
What questions can you design to find out what people want in these 4 areas and why?
2. If you want to succeed in business, it pays to understand what people want. Markets form around core human drives.
Those solutions take the form of insurance that provides peace of mind and money to families when it is needed most. Those solutions revolve around maximising the possibility that people live well and look after their families.
The key and the lessons of all of our posts is that in order to do this you need to gather more and better information about your prospects, your referral sources and your existing clients.
We at PCE have talked about and demonstrated how revisiting or discovering the theories of Maslow, Jung, Rogers, Nohria, Dilts, and building the learnings into your business in processes and engagement techniques can take you and your clients on the journey towards meeting the objective of positive client engagement and all the success and rewards that come with that.
How do you build it?
We have described in a lot of our posts methods of implementing techniques into your business and we have received feedback of how well it has worked for many businesses.
But to be truthful, these have just been snippets, ideas and conversations like proverbial paper napkin diagrams over coffee or better still a red or two.
The next step for PCE is packaging this for you. Making available the questions, the pro forma questionnaires that can take your business to another level and of course packaging all of the techniques into one cohesive flowing document.
That's exciting for PCE and we hope for you.
Till then as a teaser, how do you engage someone on their values and beliefs?
It's about great questions, centred around what Lawrence and Nohria’s theory focusses on that explains what humans want, as well as why they want those things.
We know from this that people love to:
Acquire
Bond
Learn
Defend
What questions can you design to find out what people want in these 4 areas and why?
2. If you want to succeed in business, it pays to understand what people want. Markets form around core human drives.
Saturday, 23 June 2012
Leading the client relationship stakes
Watching Luke Nolan ease Black Caviar up and almost get pipped at the post got us thinking at PCE whether no matter how hard you've gone early is it right to ease up before the line in the interests of taking care of the workhorse(s) under you?
We think yes, a thousand times YES.
To become a business of choice that your clients seek out relies on your ability to develop your capabilities to transform the lives and perhaps the businesses of your clients.
To do that you need to have an unwaivering focus on relationships and continuous improvement schedules for yourself and the people in your team.
The differentiatior in business success is relationships.
Your ability to attract, engage and retain the right relationships is the ticket to the races where you compete to practically apply your product knowledge and strategy skills in a meaningful way articulating how these skills relate to a clients world NOT how they show relate to yours.
This way to play allows your business to be incredibly co-herent and in so doing positions you and your people for success. You are clear in your message about how you add value to your clients and your staff understand exactly how your business does that.
Whatever you decide your way to play is then requires you to develop the capabilities that deliver those promises.
The skills you build are paramount but nothing beats attitude, energy and follow up.
To foster an environment that thrives with the passion of this approach you need to foster story telling and sharing at every possibility with your team. These stories become part of your culture and become the "WHY" we do the things we do.
Further looking to develop your teams and individuals within the team so they can be subject matter experts creates the daily positive momentum that drives them towards that finish line in the relationship stakes.
But you can do none of this without process:
- a system for balancing and harnessing the energy of your team and for replenishment
- accountability for activity
- transparency in team actions including the leader
- a daily assessment of team dynamics
- visual reminders of the promises made by all team members
- the fostering of a high EI culture where mood assessment is an individual and team doctrine
- and a focus on the 1 percenters - all the simple things that you'd like to do for clients but never get the time........these are the differences between winning and losing so build a process and automate these small wins and watch the dramatically positive effect on staff moral and client WOW factor
So is is right to ease up before the finish line in one race to make sure that your team and you can sustain repeated excellence over time.
The way to do this is via individual development and the accentuation of positive re-inforcement and extrinsic motivation.
Critically it's about working within peoples daily and weekly rythyms and their lifestyle outside of work.
It is no surprise that the 5 BRW best places to work offered flexibilty and autonomy BUT matched with clear goals, clear reward systems and intermittent random acknowledgement to drive the positive emotions of staff towards the work itself and the clear defined goal oriented outcomes.
We think yes, a thousand times YES.
To become a business of choice that your clients seek out relies on your ability to develop your capabilities to transform the lives and perhaps the businesses of your clients.
To do that you need to have an unwaivering focus on relationships and continuous improvement schedules for yourself and the people in your team.
The differentiatior in business success is relationships.
Your ability to attract, engage and retain the right relationships is the ticket to the races where you compete to practically apply your product knowledge and strategy skills in a meaningful way articulating how these skills relate to a clients world NOT how they show relate to yours.
This way to play allows your business to be incredibly co-herent and in so doing positions you and your people for success. You are clear in your message about how you add value to your clients and your staff understand exactly how your business does that.
Whatever you decide your way to play is then requires you to develop the capabilities that deliver those promises.
The skills you build are paramount but nothing beats attitude, energy and follow up.
To foster an environment that thrives with the passion of this approach you need to foster story telling and sharing at every possibility with your team. These stories become part of your culture and become the "WHY" we do the things we do.
Further looking to develop your teams and individuals within the team so they can be subject matter experts creates the daily positive momentum that drives them towards that finish line in the relationship stakes.
But you can do none of this without process:
- a system for balancing and harnessing the energy of your team and for replenishment
- accountability for activity
- transparency in team actions including the leader
- a daily assessment of team dynamics
- visual reminders of the promises made by all team members
- the fostering of a high EI culture where mood assessment is an individual and team doctrine
- and a focus on the 1 percenters - all the simple things that you'd like to do for clients but never get the time........these are the differences between winning and losing so build a process and automate these small wins and watch the dramatically positive effect on staff moral and client WOW factor
So is is right to ease up before the finish line in one race to make sure that your team and you can sustain repeated excellence over time.
The way to do this is via individual development and the accentuation of positive re-inforcement and extrinsic motivation.
Critically it's about working within peoples daily and weekly rythyms and their lifestyle outside of work.
It is no surprise that the 5 BRW best places to work offered flexibilty and autonomy BUT matched with clear goals, clear reward systems and intermittent random acknowledgement to drive the positive emotions of staff towards the work itself and the clear defined goal oriented outcomes.
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