Fwd: Closing Life Insurance Sales & REFERRAL
LUGI CHENNAITEAM
The Art of Asking for Referrals – The Power of Word-of-Mouth Marketing
If Satisfied… Tell Others
Asking for referrals is probably one of the most effective business development activities. It costs you nothing and yet can have a hugely positive effect on your income stream. It seem obvious to me that it’s so much more powerful when somebody else says ‘You’re great’ than when you say it – particularly when the ‘somebody else’ is already trusted.
Most clients who are delighted with your service will be pleased to be asked to provide referrals. It can help develop a stronger sense of a partnering relationship. Also we typically feel good when we can give something to somebody. So why doesn’t happen much?
When we discuss this technique with partners we discover that they find the idea of asking for referrals uncomfortable. They fear it might be seen as too pushy or they fear being rejected by the client. Also they rather naively think that referrals might be being made without asking for them. The harsh reality is that hardly any are. Your clients probably think you’re too busy!
Here is a straightforward four step process for asking for referrals which isn’t pushy and which is designed to be effective.
1. Seek feedback on your work to date
The pre-requisite for a successful request for referrals is that you have a delighted client. By asking for feedback and hearing their level of delight, you can be sure to proceed. If you receive some degree of criticism, you may be better to forego making the request until a later stage. You could say something like this:
“We value our relationship with you and would appreciate knowing the extent to which you are entirely happy with the service we’re offering and whether there are any areas we can improve”
2. Make your request for referrals and explain why
Start by reminding the client of the trust they are placing in you and leverage off this to make your request.
“We appreciate the continued confidence you place in us delivering a good service. We are keen to maintain our excellent reputation and seek to expand so we can continue to invest in quality people and more innovative processes etc. We would appreciate you mentioning us to others. We will look out for any such referrals and put extra effort into ensuring we impress any new client, thereby making a good impression on you, as well as us.”
3. Provide any guidance on how a referral could be made
It will help if you make it easy for your client to make referrals, so make the process clear and comfortable:
“We would suggest you mention to [specify types of organisation and roles] that we’ll offer a free consultation and not charge anything until we have provided a fee quote and your referral has agreed to proceed with us”
4. Appreciate the client for prospective referrals and follow up
You will increase the chances of the client taking action if you reinforce your appreciation and offer some kind of incentive. Also it will be important to keep in touch with the client and reinforce your appreciation.
“Any referral you make will be greatly appreciated and we will acknowledge those referrals with [a small payment, a gift, a reciprocal arrangement of referrals, a thank you etc]”
Possible Objections
It can be important to consider what potential objections the referrer might have to your request. One possible objection is that they won’t want to share you with their competitors. They might perceive that they are getting important competitive advantage from your services.
As with all objections in the selling process it is good practice to probe and ascertain what their underlying concern is and offer a response which addresses the concern. For example:
- You could offer the services of your other partners, rather than yourself
- You could ask for referrals to their suppliers or customers rather than their direct competitors
Importance of Monitoring and Follow Up
Firms should record which clients are making referrals and ensure that the firm is responding appropriately. It is pretty obvious that your clients will not want to feel unappreciated or taken for granted!
THE ART OF THE ASK: HOW TO ASK FOR A REFERRAL
photo credit: Pixabay.com
The main source of new orders for many small businesses is referrals. The reason is clear. When people are happy with a service or product, they tell others about it and new orders result. Referrals are a strong form of advertising because they carry an independent assessment from a user that your product or service is worth buying.
As a result, referrals should occupy a prime place in your business plan. So many people share their thoughts online these days that we are neglecting a prime source of sales if we are not able to reach out to satisfied customers by asking for a referral.
But how to ask for a referral can be a challenge. How do we do so without embarrassing customers? Here’s how. Check out these examples of asking for referrals that can serve your business well.
LOOKING FOR SOLUTIONS
A common form of referral occurs when a person asks friends or family members whether they have solutions for a problem or suggestions for a service they would like to use. Their friends and family respond by recommending certain products or services. Today many of these discussions occur in online chat rooms rather than directly person to person, which gives them a much wider reach.
You can suggest to your satisfied customers that they respond to these questions by mentioning your business where it is relevant. Drop the hint through an email or even a telephone call if you feel confident about asking customers for referrals in that way. Customers who are happy with your service will usually be prepared to provide a direct response; sometimes all it takes is to encourage them to do so.
SPREADING THE WORD
Another type of referral is a testimonial. Someone reviews your product or service, explaining why they like it so much. They are, in effect, referring you to other people who could be interested in your business. Potential clients can see the testimonials on the site on which the review appears, such as Yelp or Amazon, and they will be favorably disposed to buy the product or service.
We need not be afraid to ask for such testimonials. When someone lets you know they are happy with your product or service, you might tell them that others would like to know about it and suggest that they write a favorable review about your business.
Another way to encourage referrals is to provide an incentive for customers to refer your service or product to others. Let them know that if they refer two or three people to your service or product you will send them a coupon or a discount as a reward. Of course, make sure you track the referrals correctly and award them in a reasonable time to avoid disappointing your clients.
You can also make these referrals work harder for you. You can place extracts from these favorable reviews on your website or in your email messages. In that way the reviews will be seen by a wider audience than those who visit the site on which they originally appeared. Of course, extracts from two or three favorable reviews would work better than just one.
ADD BUTTONS
Add share buttons to your website so that people are able to refer others to your business simply by tapping or clicking on a link. Say something like, “Did you enjoy this service? Share your experience with others.” Invite them to enter the email address of friends or colleagues.
Should you have a blog on your website, you might want to have visitors to your website punch a “share” button to send the blog to others. That way, you increase your exposure and so are asking for referrals.
With so many people “liking” items on Facebook these days, it does not take much effort to turn your facebook fans into your customers. Soon all their friends will know about your product or service.
EXPAND REACH OF WEBINARS AND WORKSHOPS
When you hold a webinar or online workshop ask those who register to forward the information to colleagues, friends or business associates who would also benefit from the information provided in the event.
When the event is over, send them an email and ask them to rate the workshop or webinar. If they give you a good rating, you will be able to publish that on your website as a testimonial.
USE EMAILS
Another way to encourage referrals is to ask at the end of your emails whether your clients know of anyone else who needs assistance with the problem that you solve. Provide them with a link to your website that they can use as a referral.
For example, at the end of an email newsletter, send a message that is similar to the following, “Thank you for subscribing! Do you know someone who would also benefit from this information? Please forward this link so they can sign up too.” Then, you can offer an incentive for referrals as a thank you.
LINK WITH OTHERS
Consider including businesses that are complementary to yours to extend your reach. Customers of another business that is close to yours might like to know what you can offer their clients. Together you can reach more people than individually.
TAKE NOTICE OF COMPLAINTS
Listen to what people say about your business. Even when your clients have complaints, check to see how you could have changed their experience into a pleasant one. Make those changes to avoid future complaints. Continue to do that until you start to receive those favorable referrals.
LOOK FURTHER
Check whether there are any places on your websites, in your emails or other communications where you are not asking for referrals from satisfied customers. When you find them, make sure you include a way to encourage referrals in a pleasant way.
FINAL THOUGHTS
Of course, the best way to obtain referrals is to earn them in the first place. When your business does something extraordinary the chances are that your clients will tell others about their experience. When they tell their friends and business associates online what you have done for them, your business is bound to benefit.
When that happens, extend those referrals into other avenues, and make sure you are asking customers for referrals in the ways we have outlined.
Now you know that asking for a referral does not have to be intimidating, there’s every reason to start doing so now.
Three Secrets To Closing More Life Insurance Sales
Closing Secret #1… 'No One Likes To Be Told What To Do!'
One of the main reasons why so many agents and advisors struggle with closing life insurance sales is they tend to lecture and tell prospects what they should do. Once the agent or advisor finds (or thinks they’ve found a problem the prospect has), they’ll immediately try to provide the prospect with their solution to the prospect’s problem. Doesn’t a salesperson telling a prospect what they should do create an automatic response from that prospect… of immediate resistance?
Think about it. Do you like to be told you have a problem? Do you like to be told what you should do? Don’t you automatically fight the idea? Aren’t you immediately skeptical? Wouldn’t you rather identify your own problems and come up with your own solutions?
For example, when most agents and advisors are talking to a family they’ll ask; “Do you have life insurance to pay off the mortgage if something were to happen to you.” If the prospect doesn’t have any mortgage insurance, then the agent or advisor immediately tells the prospect about a great new affordable product that will pay off the mortgage if the prospect dies, or about a great plan to pay off the mortgage early if the prospect lives. The prospect automatically says; “Let me think about it!”
Why? Because no one likes to be told what to do! No one likes to be sold. But, people do like to buy, if it’s their idea.
“People buy based on emotions and
then justify their decision based on logic.”
The Top Life Insurance Produces have learned how to close more and much larger life insurance sales by helping their prospects identify and truly understand their problems. Then they help the prospect to come up with their own solutions.
These top producers know that… “People buy based on emotions and then justify their decision based on logic.” They’ve learned to ask questions, and have a real conversation to help prospects to ‘want to take action’ to solve their problems. So the prospect practically sells themself.
Here’s a quick simple example…
Agent: “If I may ask, do you currently have a mortgage on your home?”
Prospect: “Yes, I Do.”
Agent: “And, if I may ask, do you have insurance to pay off your home, for your family, if something were to happen to you?”
Prospect: “No I Don’t.”
Agent: “How do you feel about that?”
Prospect: “I never thought about it.”
Agent: “Well, if something were to happen to you, and your family lost your income, what would happen? What would they do?”
Prospect: “I guess they would have to sell the house and move in our parents.”
Agent: “Is that what you want them to have to do?”
Prospect: “No, but unfortunately I can’t do anything right now. I just can’t afford it.”
Agent: “I understand. None of has any extra money. But, do you feel it’s important to have the home paid-off for your family if you weren’t there tomorrow?”
Prospect: “Yes, I do.”
Agent: “Well, if I could show you how to get the insurance you need to protect your family, without taking any additional money out of your pocket and sacrificing your life style, would you like to know how?”
Prospect: “Yes, I would.”
Can you see the difference? We’ve helped the prospect to identify and understand their problem and become emotionally involved. Now that the prospect understands and agrees they want to solve the problem, we can work with the prospect to help them come up with their own solutions. Isn’t the prospect in fact selling themselves?
Remember, no one likes to be sold! If you learn to ask questions to help the prospect to identify and understand their own problems, and then help them find their own solutions, you’ll close more sales… And, in many cases it’ll be a much larger sale.
Closing Secret #2… ‘Help Your Prospects To Get What They Need and Want!’
That brings us to the second reason why so many agents and advisors struggle with closing life insurance sales. People just don’t have any ‘extra’ money!
“Well, if I could show you how to get the insurance you need to protect your family, without taking any additional money out of your pocket and sacrificing your life style, would you like to know how?”
Are you interested? Would you like to know more?
How much easier would it be to close the sale, if you could show your prospects how to get what they need to protect their family, without them spending any additional money and/or changing their current lifestyle?
Think about it. What’s the biggest obstacle to you selling life insurance? Isn’t it; “I just can’t afford the premiums right now?”
When prospects give you the “I can’t afford it.” objection, do you now apply pressure to try and persuade them it’s worth the sacrifice? Do you try three or four of the 100s of closing techniques you’ve learned, until you get three or more No’s?
Does applying pressure, or using those closing techniques, generally result in you making the sale?
Isn’t our job as sales people, to help people to recognize they have a problem and then get them to agree they want to solve the problem? Unfortunately, that’s where most agents and advisers stop.
"You Must Help Your Prospects To Find The Money"
Closing Secret #3… If you want to close more sales for life insurance, then you must go a step further and help your prospects to ‘FIND THE MONEY!’
In most cases, you can help them ‘find the money’ by reviewing their current situation (doing a thorough fact-find) and then helping them to make some smart money management decisions. (reposition their spending)
Here are just a few ideas on how you can help your prospects:
Can they reduce the premiums on their existing insurance policies?
Do they have low deductibles on their health, auto or homeowners insurance? Can they increase their deductibles to free up some money?
Do they have an opportunity to receive a discount on their auto, homeowners and liability policies by putting them with the same company?
Do they qualify for health insurance through their employer at a reduced cost?
Do they have a Critical Illness policy, DI policy, or Long Term Care Insurance policy with long-term benefits? Example: Having a "to age 65" benefit period on their DI policy is fine, but if it prevents them from getting the life insurance they need to protect their family, is the long-term benefit on these policies really necessary? What is the higher priority?
Do they have expensive, low priority riders on the above policies? Could you free up money by removing these riders?
Do they have cash value polices that can be paid-up with dividends?
Can you recommend a lower priced, quality company for their current insurance? Make sure it's truly in your prospects best interests.
Are they funding a retirement plan?
Are they putting money into a Roth IRA? If they need more life insurance to protect their family, couldn't they use a cash value policy for their retirement savings instead of a Roth IRA? Doesn't cash value life insurance build tax-deferred and generate tax-free income just like the Roth IRA?
Are they putting more money into a 401k, than is matched by their company? Or, are they are using a traditional IRA, SEP, etc… Again, if they need more life insurance to protect their family couldn't they instead use some of the money they are putting away for retirement to fund a cash value policy?
Can you help them to reduce or eliminate their debt?
Do they have multiple credit cards and charge accounts with large balances and high interest rates? Could they consolidate all that debt onto one credit card with a lower interest rate and reduce their total payments?
Do they have cash value in their life insurance policy they could use to pay off their debts or a car loan? Aren't they better off borrowing from themselves and paying themselves back, instead of paying someone else the interest? They can become their own bank as in the ‘Infinite Banking’ system. (Note: they must pay themselves back with interest.) (Note: in some cases you can borrow from a 401k to pay off debt and then pay it back over 5 years.)
Do they have untapped equity in their home that they can use to reduce or eliminate their debts? Or, could they refinance their mortgage for a lower monthly payment to free up income? Mortgage interest is tax deductible. So, they save on income taxes, while reducing or eliminating their debt. That’s the idea behind the ‘Missed Fortune’ concept.
These are just some of the creative ways you can help your prospect to ‘find the money.’
By asking questions to get your prospects emotionally involved, so they want to take action, and then using these ‘find the money’ techniques you'll close more sales. And, you’ll close significantly larger sales. By using these ‘questioning’ and ‘find the money’ techniques you can double or triple your life insurance sales in the next 60 days.
Here’s a success story we received from a Northwestern Adviser a few weeks ago…
"Lew, I just wanted to take a moment and thank you for recommending the mortgage protection tool kit. It has definitely helped me increase my average case size from $600 annual premium to well over $2,000 annual premium per case. Also, prior to purchasing the tool kit, I was spending over $2,000 per month on leads. I am proud to say that I have not purchased a single lead in over two months and my production is still climbing. What a life changer. I cannot thank you enough. You are truly making a difference."
Starting today, help middle income families to spend, save, invest, insure and plan wisely for the future, to achieve financial independence, so you become the most recognized, trusted, respected and sought after financial professional in your local community.
5 REASONS WHY YOU MUST ADVERTISE
- By John Jantsch
Image: brizzle born and bred via Flickr
Sending email is free, creating a Facebook page is free, Twitter outreach is free, cold-calling is free, publicity is free, referrals are free, and advertising costs money.
So why is it that even with all of these wonderfully low cost and free ways to promote your business I contend that you must make advertising one of your core lead generation tactics? (Actually one could argue if anything is free, but the items listed above don’t come with a direct cost.)
Advertising is in fact one of the marketing tactics that comes with an invoice. You must write a check to run ads or send direct mail, often before seeing any results. In my experience people shy away from advertising, not because of the cost, because they don’t know how to get results and they don’t understand the long-term residual effects. Think about it, if you knew that for every $100 you spent you could produce $200, you would get out your check book and spend away, right?
To get results from advertising today you must
- Be laser focused on a specific ideal client
- Create awareness for valuable content with a call to action
- Measure leads and conversion fanatically
But, that’s a topic for another post, today I want to first get the leverage to help you understand why you must add advertising to mix and then we can start to talk about how.
When done effectively advertising is an essential part of mix because:
Advertising is the only medium you can control – if you want your message to hit on the day a product launches or event is about to happen, this is the only vehicle you control completely.
Advertising allows you to target ideal customers only – when you match a very personal message to a very select audience you get far greater connection.
Advertising creates awareness for your content – The force that drives a great deal of conversion and trust building these days is educational content – ebooks, seminars and blog posts – advertising is a great way to help get that content found and consumed once you’ve gone to the effort to produce it.
Advertising adds credibility to your message – Don’t ask me why this is exactly, but every time I run advertising people comment that business must be going well. The perception that you can afford advertising is often enough to sell and resell prospects and customers alike and makes it easier to get attention for your entire message.
Advertising amplifies everything else you’re doing – When you are using advertising to create awareness for your content you automatically create more awareness for everything you are doing. Journalists find companies that advertise, referral sources remember companies that advertise, people fan and follow and friend from ads, and employees can point to well-placed ads as a source of pride in place they work.