What is your 2017 vision for your practice? Do you have a system setup to support your goals? Perhaps you have a similar goal from years past or good intentions of putting a plan together, but are overwhelmed on where to start. We've compiled key steps to simplify the process so you can optimize your insurance prospecting efforts, sell more life insurance and deliver on these goals!
First, begin by establishing 'the who.' Who makes up your core business? Perhaps you're familiar with the 80/20 principle, invented by the Italian economist Vilfredo Pareto. Pareto observed patterns of wealth and income in the 19th century and discovered a pattern known widely today as the 80/20 principle. Ed Sierawski, author of the 80/20 Wholesaler says, "on average 80% of your sales or profits come from 20% of your clients. You should be focusing more of your time and efforts on those 20%." Do you apply this rule to your business?
Knowing the top 20% of your customers will help you to streamline your prospecting efforts so you can concentrate on your specific target market. Use the client list to develop customer profiles to gain more insight into your customer's behavior and patterns. This information will help you to find and recognize prospective customers that mirror your best clients.
Segment the list further to identify your highest potential prospects. You can then devote more of your time to higher producing clientele rather than those who won't do as much business with you. Targeting the right prospects will save you resources, time and money. To build your 20% client list follow the five steps below and segment them into two groups: A and B.
- Take your sales from the last year and multiply it by 80%.
- Start with the highest grossing clients and create a descending client sales list, from best to worst, that shows how many clients are required for you to reach 80% of your sales. These are your key clients.
- Determine your average sales by dividing the 80% sales number by the number of key clients identified in step 2.
- Use the average client number to determine which clients were higher than the average and make them your 'A' clients. And those that are lower than the average are your 'B' clients. Your clients are then categorized into A and B lists so that you can start looking for patterns.
- Clients who are not on the A and B lists shouldn't be ignored; however it will allow you to more thoroughly manage your time.
What are A and B clients purchasing? Look at this group to see parallels in buying habits with your products and services. This will uncover what your biggest strengths are, what works and what doesn't. Chances are there will be a trend. Use the information to promote your popular services and products to your prospect market. You'll also be able to see where opportunities are for new products and services with your current clients. This will define a new sales strategy to undertake.
The third 'W' is for when. When does your client purchase products - quarterly, annually or when there is a need? Sometimes this isn't defined to a set number. Often this could be a milestone like; a new home, addition to the family or loss of a family member. Now that you know who the 20% of your clients who make up the 80% of your business are, it's time to get to get to know them better. Communicating more frequently and on a more personal level with clients will deepen these relationships and grow your practice. Your client is already speaking to you about one of their most personal matters - their finances. So ask them about their financial goals and family. Listen to them and show interest in what they tell you. Making this effort will make the next sale easier. You'll know what they are interested in and have more reasons to connect with them. The effort made will be similar to that of a friendship and can often feel like one. There's the saying "people want to do business with those they like" and the same goes to those who refer business. Creating these connections will increase your chances of being referred to by your clients.
Use the Who, What and When information to define your practice and form a winning 2017 strategy. Keep in touch with clients by sending a postcard or email when there's a milestone in their lives. You can also introduce referral programs to help establish new client relationships.