1. THE MARSHBERRY LETTER
Volume XXVIII, Number 2 February, 2012
Understanding the Sales person who doesn’t recognize cies are not as likely to provide
Process an insurance need, doesn’t have their producers with pre-estab-
the resources or decision power, lished / pre-qualified lead lists.
Do you have a well-defined, has no sense of urgency, may
successful sales process that or may not be engaged, or has Forum
consistently wins you business? a decision date that falls outside After you have found the suspect,
Do you know what steps you your typical sales cycle. Con- you need to approach the oppor-
took in the past that made you versely, a prospect agrees to tunity. This is the “forum” stage in
successful? Or on the con- work with you to find a solution, the model. There are six levels in
trary, when you didn’t win the has a high probability of closing, the forum stage:
business, do you know where fits your profile of a client, and is
there was a breakdown? Most an individual with decision mak- 1. Cold calls and drop-ins
successful producers have a ing power. In most cases, agen- 2. Drop-off / follow-up and drip
formalized and deliberate sales cies with a clearly defined sales method
process or strategy they consis- process will also place heavy 3. Associations
tently follow which is the founda- emphasis on the new business
tion to their continuous success. 4. Introductions via phone or email
appointment and use this step to
This article articulates a fun- differentiate between suspects 5. Building the bridge through
damental and consistent sales and prospects. There are a num- social networking
process which, when applied, ber of ways to find new suspects 6. Introductions in person / referrals
can help producers consistently and prospects. Technology is
exceed sales goals. 7. Cross-selling
progressing at such a fast pace
Suspecting that most people use the internet 1. Cold calls and drop-ins:
to generate suspects. There are
In all sales processes, suspect- many websites that are great This is the most impersonal sus-
ing is the first step (see Figure 1 to research valuable informa- pecting method and typically the
below for entire sales process). tion such as SIC code, number most ineffective method, but is a
Before discussing suspecting, it of employees, industry type, great way to expose producers
is important to define the differ- geographic location, contact to potential buyers’ objections.
ence between a suspect and a information, and in some cases, Experience from overcoming these
prospect. In terms of pipeline decision dates. Figure 2 (Page objections will lead to a more pol-
management, a suspect is a 2) shows that high-growth agen- ished sales approach in the future.
Figure 1 - A Successful Sales Process
Establish Identify Determine
Suspecting Forum Present Close
Credibility Needs Solutions
The MarshBerry Letter Page 1 February, 2012

2. 2. Drop-off / follow-up and 3. Associations: 5. Social Networking:
drip method:
Joining an association is a low cost, Some popular social media
The drop-off/follow up, drip easy and effective suspecting forum. channels used today are Linke-
method and associations, Get active in local associations to dIn, Facebook, Google Places,
involves dropping off an item meet suspects and become known Twitter and Meetup.com.
for the decision maker and fol- within your community. Joining an LinkedIn is probably the most
lowing up at a later date. The association helps build the relation- business-to-business oriented
item can be anything to start a ship through common interests. social media networking used
conversation such as a book Just be sure to only join associations today. These channels allow for
to read or an article from a that truly have members that are warm introduction through brand
magazine. The drip method is potential opportunities. building. Social media also
a technique used to establish makes it easy for people to iden-
4. Introductions Via Phone or Email:
underlying dialogue before tify what associations potential
actually calling or meeting Potential clients usually decide early clients are actively involved in.
someone. A common example in the sales process whether or not
6. Introductions in Person:
is emailing a suspect a monthly they will ever buy from you. With a
newsletter or articles you find in strong introduction, suspects do not As opposed to level three of
newspapers. It is much easier make an objective evaluation, but introductions via phone or email,
to get a suspect engaged if they rather look to validate what your your introduction source accom-
perceive you as an expert. introduction source said about you. panies you on the meeting to
your potential client. The intro-
duction is commonly a lunch or
Figure 2 Figure 3 dinner. This goes much deeper
Percentage of Agencies Percentage of Agencies than a simple referral.
that provide producers that have established 7. Cross-Selling:
with a pre-established / internal cross-sell / referral
pre-qualified list of leads goals between production This is a form of introduc-
or prospects lines of business tion where another producer
introduces you to the prospect
30% 40% through the relationship already
built. The credibility stage in the
35% sales process is easier to pass
25% 37% through since your colleague has
27%
30% already built the rapport with the
client. We refer to cross-selling
20% 30%
25%
as “sofa money.” The money in
the sofas is there for the taking,
but people don’t seem to care.
15% 20%
17% Similarly, we find there are a lot
of cross-selling opportunities
15%
10% that have yet to be exposed.
The usual excuse for producers
10%
not selling an all-encompassing
5% insurance solution to their client
5% is because of their limited knowl-
edge outside their core product
0% 0% expertise. Another common
Average High-Growth Average High-Growth breakdown to successful cross-
Agencies Agencies Agencies Agencies
selling is the insecurity of hurting
The MarshBerry Letter Page 2 February, 2012

3. existing producer-client relation- obvious pains is a proven tactic Figure 4
ships by bringing in an organi- for getting prospects to divulge Decision Maker Concerns
zational counterpart. However, what they expect out of their
cross-selling remains a successful trusted advisor. Asking ques-
technique (see Figure 3, Page 2) tions like “So if your current bro-
when an effective communication ker is a 10 out of 10, they must CEO / Owner
and education process is involved. be providing you with a customer Increased Company Value
perceived value-added service Reduced Cost
Establishing Credibility More Profit
timeline. How often does your
The next step in our sales process broker sit down and review the
is establishing credibility, which timeline with you?” Always ask CFO
we see as the most difficult of the open ended questions and let Lower Unit Cost
HR Department
sales steps to overcome. It takes the customer answer. “What do Cash Flow Service
time to build credibility, yet seconds you really like about your current More Profit Reliability
to destroy it. The potential client program or what do you dislike Coverage Liability Time Saving
will quickly dismiss you if you have about your current program?”
not gained their trust or positioned Remember to look beyond price.
yourself as an industry expert. You need to be competitive, but
Branding yourself through public for now you want additional value roof, offering preferred pricing
speaking and published industry to be realized by the prospect. and coverage by having market
news is one of the most common Don’t just be a quoting machine. control with premium carriers, or
ways to get your name in front of Always be conscious of the deci- that your firm employs a full-
a large number of opportunities. A sion maker. A CEO or owner will time safety advisor that allows
relatively easy and successful tech- be concerned about increasing for more consistent renewal
nique is writing a monthly newslet- company value, reducing costs, for your clients, always relate
ter specific to the industry being increasing profits and improving your solutions back to the “So
targeted. It can be sent out via processes of the organization. what?” mentality. “So what if
mass email or hard copies. Your CFOs are typically concerned your agency is local?” “So what
target audience should be able to with lower unit costs, cash flow, if you have been around for 150
relate to your subject matter in the increasing profit or coverage years?” How is that a solution
article. Become a trusted advisor liability. The HR department to your client’s needs? A few
through building credibility from tends to focus on service, reli- examples of how your agency
actively participating in your chosen ability and supporting his or her can provide solutions to build
associations or other networking team. Figure 4 shows a simpli- client’s perceived value are:
groups. The most effective way to fied breakdown of the various
♦ Risk assessment
establish credibility is to leverage decision maker concerns.
questionnaires and
a referral with an existing relation- preliminary inspections to
Determine Solutions
ship. As mentioned previously, a evaluate the company’s
personal introduction to an oppor- After finding out the prospect’s risks and possible gaps in
tunity is much more valuable than needs, the next step in the sales coverage, if the incumbent
someone just giving you a name. model is to find solutions to those doesn’t already do this.
needs. If there is a market for
Identify Needs ♦ Insurance coverage analysis
the risk, communicate the next
steps for providing the solution and benchmarking study to
Once you have established cred-
and ask the prospect to confirm compare the client to other
ibility with the decision maker, they
that you are solving their needs. companies in their industry.
should be more forthright with
This is a very effective tactic This is a great benefit for
their organizational needs. Infer-
used by successful sales people. the client to know if he is
ring needs from prior clients in the
Whether it be consolidating all attracting top talent in his
same industry is a successful tactic
their insurance needs under one industry.
to probe their needs. Also, finding
The MarshBerry Letter Page 3 February, 2012

4. ♦ An agency offered business goals. It is effective to close is the penultimate event;
comprehensive inspection recap the prospect’s business the final event is actually deliver-
followed by an accident issues and how your plan solves ing the products and services
prevention seminar to reduce those concerns. Speak the cus- that will make them successful.
accidents, as moving carriers tomer’s language. If you confuse
If you ever feel like the potential
no longer impacts consistent them with insurance jargon they
sale is steering the wrong way,
risk management. aren’t familiar with, it may over-
it probably is. Maintain control
♦ A professional claims whelm them and they will lose
of your sales process by getting
management staff that turns interest. Convince your prospect
back on course. If the prospect
claims around two-times faster, that you are a trusted advisor
tells you just to give them a
allowing the client to re-open and ensure that their particular
quote, then you evidently haven’t
for business faster. emotional requirements are met.
established credibility and they
♦ Continuous risk monitoring Closing do not see your value. You need
during coverage to reduce to jump back to the credibility
The close occurs when the
claim exposure, thus providing stage and differentiate why you
prospect agrees to buy. If you
for a more consistent renewal. are not just a quoting machine.
do not close sales, you are
Control your sales process and
just a professional visitor. Get
Presentation to Prospect you will become a more consis-
commitment with regard to your
tent, successful sales person.
It is now time to deliver what has solutions and realize when the
been agreed to and what has potential customer is ready to Justin Berry is Vice President of Sales
been promised to the prospect. buy. Do not be afraid to ask for Management at MarshBerry and can
We recommend holding the meet- the business at this point. If they be contacted at 440-220-5431 or
ing at your offices so you can do not agree to buy, you have Justin.Berry@MarshBerry.com.
introduce your team and their rel- not uncovered all of their needs. Jim Wochele is a Sales Management
ative functions on that prospect’s Position yourself as a trusted Analyst at MarshBerry and can be
account. When presenting, show advisor which comes with a contacted at 440-392-6559 or
your prospects how your solutions long-term and mutually beneficial Jim.Wochele@MarshBerry.com.
will help them achieve their key relationship. Remember that the
Don’t Forget to Participate in the Insurance Agency Compensation Survey
Compensation typically represents the largest expense of an agency. Thus, it is no surprise that compensa-
tion questions are among the most frequently asked questions to the MarshBerry staff. While compensation
structures vary from agency to agency, we can identify trends and changes in compensation over time.
MarshBerry is currently conducting the 2012 Insurance Agency Compensation Survey, which was included
with your January, 2012 issue of The MarshBerry Letter. Your participation is greatly appreciated. The more
responses we get, the better the information will be for all of us to use in evaluating current compensation
programs. Please go to www.MarshBerry.com for the links to download or complete the survey directly at
www.SurveyMonkey.com/s/9ZVKRCW.
If you have any questions, please call 440-392-6553 or email Megan@MarshBerry.com. The submission
deadline is February 29, 2012. The results of the Compensation Survey will be published in the April 2012
issue of The MarshBerry Letter. Thank you in advance for your help with this very important endeavor.
The MarshBerry Letter © 2012
Marsh, Berry & Company, Inc.
(440) 354-3230 / (800) 426-2774
4420 Sherwin Road / Willoughby, OH 44094
MarshBerry@MarshBerry.com
www.MarshBerry.com