Insurance agents, just like any other type of business, often dream to close a deal upon meeting with their prospects for the first. However, only 2 percent of sales happen during the first sales interview.
Two percent of people who buy at the first meeting are already aware of what they are looking for. They only need to find the right person at the right time to close the deal. The remaining 98 percent will only purchase if they feel confident in the salesperson.
Following up is an ongoing aspect of the sales process. It is the next step after making contact with a prospect. Any subsequent contact, regardless of whether it was by phone or in person, is called follow-up.
Statistics show that 50% of salespeople have only ever called a prospect once and then quit.
Call a prospect twice and give up.
Call three times and get it over with 7%, then hang up.
– Call a prospect at 5% four times before you quit.
Only 20% of prospects will call you five times or more before they give up.
The 20% generate 80% of business. Research shows that salespeople are responsible for 80 percent of lost sales opportunities. This means that you must follow-up at least five times before you give up on a prospect.
Insurance agents often quit before they have had five follow-ups. Insurance agents are hesitant to call prospects again, as they associate follow-up with annoying. They fear that their prospects might be offended.
Follow up is an integral part of any sales process, especially when large premiums are involved. It is almost impossible for someone to purchase a million-dollar policy in their first meeting with an agent. Before he leaves his money, he must be sure that he understands what he’s doing.
If the prospect is unfamiliar with products, follow up is necessary. People don’t make quick decisions about something they don’t understand. Your prospects will need to make several phone calls before they are willing to admit that you are interested in their mine.
You need to develop meaningful communication strategies when following up with clients. This will allow you to build trust and advance your relationship. A structured follow-up program can help you to nurture clients and bring you closer.
You must plan how much time you will spend with each prospect if you are short on time. It is important to consider how much business the prospect might bring in. Sometimes, it may be worth looking at the quality of any referrals you might get.
These are some communication tools you can use to follow up with prospects
(a) Thank-you note
After the first meeting, send a thank-you note by hand. If possible, include articles relevant to their needs. A thank-you note is a way to express gratitude to prospects and to provide valuable information so they will remember you.
(b) Call them
Don’t leave messages if you don’t get through to prospects. Prospects will be interested to see the missed calls. If you prefer to leave voice messages, repeat slowly your name and tell the prospect you have some questions.
(c) Send an email
You can follow up by email if you prefer. If the prospect does not respond within one week, send another e-mail. If you don’t get a response, send it again one week later. Most likely, you will receive a reply by the third attempt.
(d) Alternate calls or emails
You can alternate between phone calls and emails so prospects have the option to either call you directly or reply to your email.
Insurance agents find it valuable to engage in follow-up activities to learn how to handle people with different backgrounds and personalities. Every failure is an opportunity to learn. While it is normal to be faced with objections, you should not be afraid if the prospect makes a decision to purchase too quickly.
