Introduction:
The progress of every business depends upon, multiple factors. It is not just about the revenue it generates but having a good and trusted name in the market is also very crucial. A successful business depends upon loyal customers and good strategies to cater to them. Good businesses and companies always prioritize customer satisfaction and the fulfilment of their needs.
If the business starts focusing on the clients, the revenue would start generating automatically. It is a constant process of growth. People tend to spread a good word for businesses and companies that catered to them well and accommodated them.
Insurance companies are also based on the same principle. The selling agents should focus on prospects and their needs to bring more business to the company.
Time is money:
A good insurance company would focus to have a filtered prospect list. It is to differentiate between the most valuable leads from the so so ones.
The biggest disadvantage of following a non-potential buyer is the wastage of time. Insurance sellers without a good prospect list usually fail in this market.
The insurance industry is constantly evolving. Every single day new companies are emerging and the fierce competition demands strategies that work and helps the company grow.
But how to save your time? how to predict if a buyer would close the deal or not?
Do not worry I have all the answers and today I have brought a fool proof formula from experienced insurance sellers.
How to create a prospect list?
Success always has a formula. It requires hard work and skills but sometimes learning from an experienced person can spare you from failure. Today, I am going to give you a formula for selling insurance policies. Trust me this would not only save your time but would also let you know about how much effort it would require to get you that deal.
The application of this formula is simple numbers. But, the result would help you in differentiating between unsuccessful and successful leads.
Factors for prospect list:
Following factors should be kept in mind while making a prospect list
Occupation:
Insurance selling agents’ first focus should be the buyer’s profession. A company executive, landlord, and self-employed businessman would always be a great option as compared to an unemployed one. Businesses always target buyers with good earnings. It is because they have the potential and resources to make a timely decision and not waste seller’s time
Marital status:
When it comes to selling insurance marital status is a very important factor. It helps you determine a person’s future dependents. A single buyer won’t be as much beneficial as a married one because you can predict about his wife and children as dependents.
A married man is always more responsible than an unmarried one. He is constantly planning his future. He is always thinking about his life ahead. Getting insured and making his possessions secured would be his utmost priority.
Age range:
Selling agents should keep this thing in mind that insurance policies are sold based on age ranges. It is all about targeting the most important concern of the buyer. A young recently married buyer would be more interested in an automobile or travel insurance. An aged buyer would want to have health insurance while a middle-aged man would mostly prefer landlord insurance.
Another important point is young people are more focused on their income and do not fear possible unseen dangers. They usually do not take insurance seriously. But a middle-aged who has seen the ups and downs of life knows about its unpredictability. He would always secure his assets along with his family members
Dependents:
As I mentioned earlier insurance greatly depends upon the people who have responsibility. People with more dependents are more concerned about potential risks and dangers.
They have to think about their family and make sure everything is secured even when they are not around. Life insurance and health insurance are the best insurances for such buyers.
A good selling agent can highlight these points and let the buyer know about insurance policies he can provide.
Annual Income:
Everybody wants to enjoy the safety that comes with insurance. But like everything even insurance has a price. Your potential buyer would always have a good and steady source of income.
A person who is trying to make his ends meet would consider insurance as a luxury. He would never be able to pay heavy premiums because of a lack of funds.
People with good annual income are good potential buyers. Their basic concern is the safety of their possession even if they have to pay money for this.
Approachability
Buyers who are easily approachable can be extremely beneficial. Selling agents do not have to worry about the availability of the buyer. They can have good communication and meetings. It provides a great opportunity for the selling agent to persuade the buyer and seal a good deal.
Source of name:
Your close friend can be a potential buyer for your company. You do not need to build trust with him as he already knows you.
A close friend already trusts you and most likely would want to have insurance service from your company.
People that you barely know can give you a tough time. They would require a lot of time to get comfortable. You need to first build good relations with them, let them trust you and then maybe they would get convinced to buy a policy from you.
The fool proof formula:
The wait is finally over
Let’s talk about the formula I have been bragging about since the start.
In this formula each factor is allocated numbers with the addition of these numbers and then multiplying them with 2 would give us our desired score.
Points for each factor:
We have allocated points to each factor. Let’s understand this with the help of tables
Points allocated for occupation:
| Points | Occupation |
| 0 | unemployed |
| 1 | employed |
| 2 | Land lord |
| 3 | Self employed |
| 4 | Company executive |
Points allocated for Marital Status:
| Points | Occupation |
| 1 | Single |
| 2 | Married |
Points allocated for Age Range:
| Points | Occupation |
| 1 | Not within 10 years of my age |
| 2 | within 10 years of my age |
Points allocated for Dependents:
| Points | Occupation |
| 1 | No dependents |
| 2 | 1 dependent |
| 3 | 2 dependents or more |
Points allocated for Annual Income:
| Points | Occupation |
| 1 | Under 100k |
| 2 | Between 100k-250k |
| 3 | Between 250k-400k |
| 4 | 400k and above |
points allocated for approachability:
| Points | Occupation |
| 1 | With difficulty |
| 2 | Fairly easy |
| 3 | easily |
Points allocated for the source of the name:
| Points | Occupation |
| 1 | Know about |
| 2 | acquaintance |
| 3 | friends |
| 4 | Close friends |
Add total numbers and multiply by 2
| Total Points x2 |
Understanding with examples:
To make things more clear let’s look at some examples.
Let’s assume there are three prospects A, B, and C.
A is Single 1, Unemployed 0, not within selling agents 10 years’ age 1, doesn’t have any dependents 1. His annual income is less than 100 k 1. He is very difficult to approach 1 and the seller only knows his name 1.
His total number x 2 would be 12
Prospect B Is employed 1, married 2, not within sellers 10 years’ age 1, has 1 dependent 2. His annual income is from 100 k to 250 k 2. Seller knows him well 2 and he was fairly easily approachable 2.
His total number of points x 2 will be 24
Price c is a company executive 4, married 2, within 10 years’ sellers age 2, has 5 dependents 3. His annual income is above 450 k 4. He is the seller’s close friend 4 and he was easily approachable 3.
His total number of points x 2 will be 44
Prospect c is a potential buyer and he would close the deal in 2 to 3 meetings.
Looking at each buyer’s numbers it is obvious that C has the most potential of becoming a client. He has a good source of income and dependents to think about.
A selling agent should target buyers with 35 and above points. Such buyers will close the deal quickly. They will not waste sellers’ time because they have the authority to make decisions for themselves.
Application of this formula:
This formula is created by experts in the insurance industry. Insurance selling agents should target prospects with a 35 score and above. They should do their homework and research about each buyer and access if he is worth the time and effort or not.
By applying this formula, you can easily make a prospect list. It is all about numbers and gives authentic results. Such formulas are created by professionals to assist insurance selling agents. Following such pieces of advice from specialists can be helpful. It would not only help you succeed but also helps you in saving your precious time and energy.
