trustworthy selling -...
TRANSCRIPT
Topics for Today
1. Prospecting & Business Development
2. Collaborative Discovery: Creating a Sense of Urgency
3. Leveraging Behavioral Economics to Increase Closing Ratios
The Lost Art of Sellin
Trust is the “Attribute Under Siege”
85%
59%
26%
Has become significantly more difficult to trust advisors now, versus five years ago
Has become significantly more difficult to build trust with client now, versus five years ago
Sources : MDRT Generational Survey, 2010; MDRT PREP Survey, 2009
The Need Has Never Been Greater!
• 48 million households state they “don’t have enough life insurance”
• 29 million households state they are “likely to buy life insurance in the next 12 months”
• Only 12% of all U.S. Households actually buy life insurance in any given year
• 80% don’t have a personal advisor to turn to!!
48 million households state they “don’t have enough life insurance”
Strong Demand, Yet Reluctance to Buy
29 million households state they are “likely to buy life insurance in the next 12 months”
Only 12% of all U.S. Households actually buy life insurance in any given year
5 out of 7 consumers report being more confused after they met with an advisor than before.
43% of households report being afraid of making a mistake in their financial decision making.
Consumers are Afraid and Confused
“Money in Motion” Categories
Who do you know who was recently married?
Who in your network had a child in the past year?
Who do you know whorecently changed jobs?
Who recently received a promotion at work?
Pinpointing Questions / Categories
“Who is the best salesperson you know?”
“Who do you know that owns their own business/franchise?
“Who do you know that’s approaching retirement?”
“If you were to open your own business, who are three of your sharpest friends you would ask to be your partners?”
“Who are the guardians of your children?
“Who do you know who owns the most real estate?”
Retirement Market – Prospecting Up
One out of six retirees has a written retirement plan.
66% of pre-retirees, within two months of retirement, have no idea what they are going to do with their 401k assets.
Prospecting Resources
•www.martindale.com•www.doctordirectory.com
•www.dentistdirectory.com
•www.cpadirectory.com
•www.infospace.com
•www.anywho.com
“LinkedIn is becoming thedominant global forum for businesses of all kinds.”
225 Million Users –the single biggest repository of user-generated career data
Prospecting – Setting the Stage
“First of all, I’d like to thank Susan for introducing us.
That’s important because I work exclusively on a
personal introduction basis . . .”
Planting Referral Seeds
“Keep in mind, I’m never too busy to see if I can help friends or family members you
care about.”
“The Graceful Exit”
If you happen to run across someone in the future
who you think could benefit from my services, would you
keep me in mind?”
“What formula did you use to determine the amount of life
insurance you need?”
Pain / Gain Questions
Magnification Questions
• Ask about the consequences, effects, or implications of a prospect’s situation.
• Purpose is to develop the clarity and strength of a prospect’s problem.
• Expand the prospect’s perception of value.
Examples of Magnification Questions
• Who would take care of the children if Mary had to go back to
work if something happens to you?
• What will you do if you get to retirement and haven’t achieved
your objectives? Work longer or retire on less money?
• What impact would having to provide long term care for you and
or John have on your children?
• How would the business’s creditors react if you died or became
sick or hurt for a period of time?
People choose poorly when makingfinancial decisions and the immediate context of decision making matters.
Key Research Findings:
-1.5
-1
-0.5
0
0.5
1
1.5
00.
070.
130.
200.
270.
330.
400.
470.
530.
600.
670.
730.
800.
870.
931.
001.
071.
131.
201.
271.
331.
401.
471.
531.
601.
671.
731.
801.
871.
932.
002.
072.
132.
202.
272.
332.
402.
472.
532.
602.
672.
732.
802.
87
Behavioral Traditional
Two Sales Presentations
• Avoid Ambiguity• Visualization• Personal Experiences Overcome Optimism• Fairness• Heuristics• Mental Accounts• Present Value
Seven Tactics FromBehavioral Economics Research:
Visualization: The Six Emotional Drivers
Certainty
Variety
Significance
Connection
Growth
Contribution
Personal Experiences Overcome Optimism
•Story Selling - tell stories about people similar to them who benefited from risk products.
•Use personal experiences, examples and stories to offset perception they do not need risk products.
Fairness Principle:
People will make decisions not optimally beneficial to
them if they perceive they are not being treated fairly.
Make people feel they are part of the process, they have
input, and you respect their questions.
“What questions do you have?”
“Am I explaining this clearly?”
Provide 3 options, but make a specific
recommendation and tell them why.
Heuristics Conclusion:
Give prospects a simple
“rule of thumb” to help
them decide how much,
what kind, etc.
Mental Accounts:
When an expense can be classified in more
than one way it can be assigned to the
account that justifies its occurrence.
Summary
1. Prospecting & Business Development
2. Collaborative Discovery: Creating a Sense of Urgency
3. Leveraging Behavioral Economics to Improve Decision-Making
If the 29 million households that
stated they are likely to buy in the
next 12 months actually bought,
total coverage would increase by
$4.8 trillion dollars and increase
industry revenues by $9 billion.
If the 48 million households who stated
they need more life insurance actually
bought, it would increase coverage by
$9.5 trillion and add $17 billion of
premium to the industry.