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July 31, 2008

Opening Sales Statements: Worthwhile or Worthless?

When it comes to opening statements, I guess I'm a purist. I believe that an opening statement should include a hearty hello, your full name, an identification of your company, and your reason for calling. Pretty simple, but simple is good.

Tony Parinello, a writer for Entrepreneur, disagrees. He thinks it’s not worthwhile to state your name and business after the initial hello. “It's too early in the relationship for you to pass along that kind of information,” says Parinello.

Too early? To say your name? To say why you’re calling? Okay …

Parinello advocates offering another pleasantry after the initial hello (“It’s an honor to finally speak with you!”) and then diving headlong into a scripted “hook,” which clearly is just a buzzword for “canned spiel.” Here’s his example of a hook: “"We've helped (three of the top five widget corporations reduce overhead costs by twelve percent this quarter--and they did it without laying off staff or sacrificing product quality)." Ugh. Maybe it’s my cynical Gen-Y makeup, but if I were on the receiving end of such a “hook,” I’d be checking my email before the guy knew the line was dead.

It gets worse. The big goal in your opening sales statement, Parinello says, is to “make it sound conversational.”

Call me crazy, but I think that you should endeavor to start an actual conversation with a prospect, not a phony one. And you should always tell the prospect who you are and why you’re calling. That’s just basic manners. And manners aren’t arbitrary—they exist for a reason, and if you master them they will help your cause tremendously. Being coy with someone you don’t know? Hitting the person with talking points before introducing yourself? Not cool. Worse, not effective.

Parinello’s “long-standing, well-proven statistic” is that you have eight seconds to make an impact in sales call. Here is Parinello relaying a story of how a colleague expressed doubt about the feasibility of his “statistic:”

Daniel was a bit skeptical about my eight-second standard. He looked at me and said, "Boss, eight seconds is too short a period of time! That's hardly enough time to take a deep breath, let alone make a meaningful opening statement."

We happened to be waiting at a red light when he said this. As the light turned green, I kept my foot on the brake and started counting: "One thousand one, one thousand two...." People started honking. By the time I got to "one thousand four," Daniel was begging me to get moving. By the time we hit the sixth second, the guy behind us was starting to get out of his car, and Daniel was looking for a place under the floorboards to hide. When I finally hit eight, the intersection was a symphony of honking horns, "pointing fingers" and shouting mouths. I hit the gas.

Parinello’s anecdote inadvertently makes a completely different point—one that actually undermines his argument. If you’re looking to make an impact in eight seconds, you have one option: Make them angry. Eight seconds is not long enough to engender a strong positive reaction. Remember: Negative reactions come easily. Positive ones come much slower, particularly on sales calls. You've got to earn it, not force it to fit into an eight second window.

What do you think? Am I being too hard on the guy?

July 30, 2008

Free White Paper

A few months ago, before her departure, Megan wrote a terrific white paper entitled "Lead Generation X: Tips for Finding Your Perfect Lead Vendor Match." I came across it today and it occurred to me that it would be a great resource for Agent Blog readers.

Before you get too cynical and think it's merely a treatise on the awesomeness of InsureMe leads, I want you to know that the paper is quite objective—Megan's goal was merely to help agents understand what to look for in a lead generator, what questions to ask, and how to spot a shady vendor. It makes a couple pitches for InsureMe, but the bulk of the paper is admirably neutral.

So if you are looking for lead provider, or if you're wondering if you're paired with a good one now, click the image below to download this terrific document.

Lead Generation X - Tips for Finding Your Perfect Lead Vendor Match.png

July 29, 2008

Referral Karma

There are tons of ways to actively get referrals, but one method in particular may surprise you: Helping others get them.

Put simply, if you look out for other agents, they will look out for you, too. Going a step further, if you develop a reputation for helping your colleagues, you may end getting leads from agents who don’t even know you (often because they will have decided you’re a good person to know). Of course, I’m not talking about sending good prospects to your competitors. Heavens, no! But if you’re a property/casualty agent and one of your clients says she needs a life insurance policy, be ready to give her the name of a life agent you know. Grateful, that same life agent will likely send some business your way.

The insurance industry is incredibly competitive, and many agents have taken that to mean success is a zero-sum game. It isn’t. Once more agents realize that, they’ll realize that their good deeds pay karmic dividends.

July 28, 2008

Beautiful Simplicity

I meant to write a meaty blog post today, but the day got away from me, so I'll just leave you with a funny video about the scary world we'd live in if ad agencies designed traffic signs.

July 23, 2008

NOTE TO OUR READERS

If you’ve noticed that this site has been acting funny and/or triggering warnings from Google, we apologize. We learned today that someone hacked our blog and installed some malicious code. We’ve removed the code and everything should be fine from here out. Sorry for any inconvenience.

-- InsureMe

The Truman Capote Approach to Winning Over Prospects

As strange as it sounds, sales and journalism are quite similar.

Every time a reporter calls a person to get a comment, the reportermust sell him or herself to the subject, who is often a little cagey and reluctant to talk—and probably has already fielded calls from other reporters. Thus the importance, in both professions, of projecting an air of trustworthiness. The reporter and sales person must successfully put the source or prospect at ease.

Similarly, the best sales people are excellent questioners. Their questions provide the basis for a story—a narrative that the sales person can use to determine the prospect’s personality, background and, most importantly, purchasing motivations.

So about Truman Capote. The author of In Cold Blood and the founding father of New Journalism, Capote was one of the best interviewers of his time, and one of his most impressive feats as a journalist was getting the notoriously guarded Marlon Brando to open up and tell his story.

Capote affirmed that he had found “the secret to the art of interviewing,” and he used it with mastery in his meeting with Brando. The secret? He had found that if you divulge a lot of information about yourself, the interviewee will eventually open up and become less guarded—as was the case with Brando.

To be sure, Capote may have abused this technique—see the movie In Cold Blood—lulling his subjects into a false sense of security and exploiting them. That’s the dark side of his art.

For you, as an agent, the key is to use this technique in a positive and constructive way. Open up about yourself, share some biographical details, and even if the prospect doesn’t react in kind, he or she will likely feel more comfortable around you. And if your prospect does open up, you’re on your way toward building rapport—and a little rapport goes a long way toward making the sale.

July 21, 2008

Feel Their Pain

By now it’s a cliché: we're told that empathy—the ability to put yourself in the other guy’s shoes—is an essential element to success in sales. So be empathetic, the pros say. Think of the client—what does he or she feel?

Well, the pros are right, and there has never been a better time to burnish your empathy skills. By lacing up your prospect’s shoes and going for a spin, you’ll better understand their motivations and goals. But more to the point, you’ll more clearly understand their fears. And if there is one fear in particular that is spreading like a prairie fire, it’s the fear of financial ruin.

Just look at this special series in the New York Times. It’s call the “Debt Trap,” and it chronicles how we Americans are drowning in debt. Harrowing stuff.

You know that your prospects want to save money. That’s what every rational consumer wants. But it’s also worth noting that your prospect is probably, if the polls are correct, feeling some level of financial strain.

The better you can understand their situation, the better you’ll be able to speak their language and address their concerns.

July 18, 2008

Summer Friday Afternoons

It is Friday afternoon in the middle of summer. In my mind, the very best time of the year (maybe second to the summer equinox). We are still weeks away from too much campaigning mania and the kids are not in school. I keep thinking about Tony Snow saying "... concentrate on living." That is very good advice. So grab this time and live it.

When I started my career, there was a great manager at IBM that would go around on Friday afternoons and check on his entire team. If they weren't working on an immediate deadline, he'd tell them to knock off early and enjoy the day. He wasn't my manager but I heard about it.

Which brings up my final 'affirmation comment' for this Friday. From research, we know that doing someone a favor not only makes the person being helped feel better, but also the person doing the good deed has more endorphins moving around too. More than that, if a 3rd party observes the good deed, that person ALSO has the benefit of feeling better, just by seeing the kindly action.

So, if you are a manager, help your team leave early. Many people will benefit from that act, including you.

July 17, 2008

Lessons from Lemonade Stands

Lemonade stands, with their diminutive proprietors, are a summer staple. Recently, New York magazine interviewed a gaggle of New York City lemonade stand operators between the ages of 5 and 10.

Despite their youth, these kids clearly have some shrewd entrepreneurial instincts. (Maybe it’s city smarts?)

Check out these interviews, which were conducted by New York magazine writer Joanna Goddard. [Note the Agent Blog analysis after each one]:

Stand 1

REBECCA HORWITZ, 8, AND ARI HORWITZ, 5, SIBLINGS.

Location: On their stoop near Prospect Park in Park Slope.

Price per cup: 50 cents.

How do you make the lemonade? ELINOR: Real lemons, real sugar, and ice.

Do you sell anything else? ELINOR: We sometimes tell people’s fortunes.

What kinds of fortunes? ELINOR: We usually pick bad ones. Like this woman walked up and we said, “You’re going to grow a beard.”

Where do you put the money? OLIVER: In a jar, but you have to hide it under the table. Otherwise, they will say, “Oh, you already have too much money! We’re not going to buy lemonade!”

What will you do with the earnings? ELINOR: I like to wait for a rainy day. I’m saving for a car when I’m 16. I’ve never touched my piggy-bank money. Once I tried to count it, but it got away from me. I was like, “One, two, three, four, I’m tired.”

Do you go to other people’s lemonade stands? OLIVER: We’re not competitive. We’ll buy their lemonade.

Earnings . . . . . . . . . . $30 to $126

Note that they have diversified their product line by offering fortunes. They also know to keep their money jar away from the public eye. Oliver says they’re not competitive—an indication of confidence!—and that they will patronize other stands. This means they’ll likely get some good competitive intel.

Stand 2
ALSTON BIGGS AND FISCHER BODWELL, BOTH 10, BEST FRIENDS.
Location: On their stoop outside their Upper West Side apartment.
Price per cup: 25 cents.
How did you lure customers? WILL: We made up a word that was Oreo and lemonade: OREONADEOL.
Does it work? WILL: Sort of. We have a lot of customers, and a few were hobos. SAM: No customers were hobos.
How did you know what to charge? SAM: My personal financial advice is 25 cents, because everyone can afford it. Even if your allowance is $1, you will be able to afford four glasses. Also, you can make a classy combo with Oreos, or do three glasses for 50 cents.
Do you have advice about giving good customer service? SAM: You might want to joke with them. WILL: But not a lot. Sam does it too much. SAM: You know it’s good if they point their finger at you, “Ahahahaha.” Laughing is contagious.
Do you enjoy having lemonade stands? SAM: If there’s a definition of fun, that would be the definition of it.
Earnings . . . . . . . . . . . . .$20 to $30
Talk about ingenuity! ‘OREONADEOL’? Brilliant. And yes, Oreos and lemonade are a classy combo. Once again, they’re differentiating themselves by adding another item (cleverly spelled) to the menu. Also, it’s clear that their pricing structure isn’t willy-nilly—they know their client base and what they can afford.

Stand 3
SAM SCHILLER, 10, AND WILL SCHILLER, 8, BROTHERS.
Location: Outside Washington Market Park in Tribeca.
Price per cup: $1.
How do you make your lemonade? FISCHER: My family took lemons and squeezed and squeezed. We were sweating. But Alston’s family mixed powder with water. And the thing is, when you taste it, there’s really no difference.
Did you draw signs? FISCHER: Alston made signs and spelled some things wrong. ALSTON: When you spell things wrong, they say, “Oh, that’s cute.”
So you do it on purpose? We misspelled lemonade: LEMADE.

Does warm weather help sales? FISCHER: Last time, it got foggy. Not as many people came. They’d say, “We’ll come back in one hour.” One hour later, they don’t come back.
Do you share the profits equally? ALSTON: Last year, all his brother Henry did was sit back and eat cookies. He’s a sweet tooth. FISCHER: This year, we paid Henry to carry a sandwich board around the park. Like, slave wages.
Which are? FISCHER: We gave him $2.
Earnings . . . . . . . . . . . . about $20

These kids tested their product, tried alternatives, and thus were in a good position to know where to cut costs. And with their intentionally misspelled sign, these kids clearly know their market—adoring adults—and shamelessly cater to it. They also take lead generation quite seriously, sending Henry, who will work for pennies, into the park to wave a sign.
Stand 4
WALTER GOLDBERG, 7, ELINOR WEISSBERG, 10, SIBLINGS, AND OLIVER GOLDBERG- LEWIS, 10, COUSIN.
Location: On the sidewalk outside their Dumbo apartment.
Price per cup: $1.
Who’s your typical Customer? ARI: Most are in their thirties or forties. Usually more boys than girls.
Do people give you tips? REBECCA: People will sometimes give you $10 and say “Keep the change.” Why? Because the lemonade is so good and the service is so good.
Maybe also because you’re cute? No.
Has the price of lemons this year affected your stand? REBECCA: Last year, we charged 25 cents for a half cup and 50 cents for a whole cup. But this year, we had to double our prices. My mom said she was shocked at the priceof lemons.
What’s the best age to have a stand? REBECCA: The best age to start pouring is 6. Or 5 or 4. Or 5 and 6. Or 7 and 8.
Do you enjoy selling? REBECCA: Sometimes I worry that the bakery across the street will get angry because we steal their business. ARI: Rebecca is freaking. We’re really not stealing their customers because we’re not taking them without asking.
Earnings . . . . . . . . . . $92 to $240I love the confidence these kids have in their product and service. I also like Ari’s take-no-prisoners attitude when it comes to stealing customers from his competition. Can’t take the heat? Get out of the lemonade stand.

Check out the full article, and accompanying pictures, here.

[Tip of the hat to Megan for the link!]

July 15, 2008

9 Tips from Edward Tufte

Yesterday I had the good fortune to attend an Edward Tufte conference here in Denver.

Tufte, a professor emeritus at Yale, is an expert in the art and science of presenting data and information. He’s the author of Beautiful Evidence, Envisioning Information and The Visual Display of Quantitative Information. He also wrote the now-classic anti-PowerPoint manifesto: The Cognitive Style of PowerPoint, which could also be titled “How PowerPoint Makes Us Stupid.” The New York Times calls him “the Leonardo da Vinci of data.”

Edward Tufte, known as the Leonardo da Vinci of data, thinks PowerPoint harms both the presenter and the audience.

Although I knew he had fans in design circles, I was amazed to observe yesterday that people were treating him like he was Mick Jagger, lining up for his autograph during every break. The audience consisted of everyone from business school teachers to trial lawyers to young designers from Crispin Porter. Everyone in attendance shared the same desire: to be better at presenting their case. Or their company’s case. Or their client’s case.

Tufte makes his living by telling people how to give better presentations, so the bar was pretty high going into the day-long seminar. He sure delivered—all without using a single PowerPoint slide. (He did show a couple short videos.) Anyway, I was scribbling notes the entire time he talked. This morning I translated my notes from handwritten scrawl to type. Check out a few of my paraphrased notes (in the form of 9 tips) after the jump …

TUFTE NOTES

1. Content (not process or fashion) should drive your choices as a designer or presenter. Additionally, your material should evoke a content response, not a design response. In practice, this means that good design should be invisible. Design is meant to assist reasoning and understanding of the content. If it doesn’t do this, it hasn’t done its job.

2. PowerPoint slides are usually about PowerPoint itself, not the ostensible subject covered. If you must use PowerPoint, use it as a computer-based image projector. No bullets. No indents. No words. Just images.

3. Word doc handouts—with text and images and charts—make a better presentation medium than PowerPoint slides. One double-sided 11X17-inch piece of paper can hold as much information as 200-300 PowerPoint slides. The visual resolution of PowerPoint (very, very low) insults the ability of the human eye to see detail. The printed page, on the other hand, has a much higher resolution and can get much more information across. Plus, a person can speak/hear only 150 words per minute whereas a person can read 300 words per minute.

4. Here’s what to do if your audience is reading your material and not listening to you talk: Celebrate! Any time you can get people to read your content is time to rejoice. Don’t worry if they’re not following your every word. Presenting is not about control—it’s about transmitting information. “Let people use their own cognitive style,” says Tufte

5. People do not instantly become stupid when they sit down to hear your presentation. They can read charts and tables. They willingly read complex ones every day in the sports section. Most presentations are excruciating not because of information overload, but because of the slow, monotonous trickle of bulleted content.

6. In general, a good presentation does at least one of three things: (1) shows causality (how something happened), (2) shows contrast (how something is different from another thing), and/or (3) shows complexity (how many dimensions or variables a thing has). The key for the presenter is to use evidence—in the form of text, images, graphics, charts, etc.— to show causality, contrast and complexity.

7. Show up early to your presentation. This gives you time to solve unforeseen problems. It also conveys professionalism and humility.

8. Never apologize! It only attracts unnecessary attention to what you’re apologizing for.

9. End your presentation early. This generates good will.

July 10, 2008

[Greatest Hits] Sales Lesson from Coors Field: The Sales Tag-Team

Published in 2006, the following post was written by my former colleague and Agent Blog founding scribe, Megan Mahan. It’s one of my favorite entries, for its insight and entertainment value. Megan observes some boozing dudes at baseball game at Coors Field here in Colorado. After covering 100 years of baseball trivia, one of them makes a startlingly perceptive point on the importance of differentiating oneself in sales. … click the image to read this timeless post:

Sales Lesson from Coors Field3.bmp

July 09, 2008

The Ultimate Question

Maybe you already know what it is—the ultimate question you must ask your clients. But heavens! maybe you don't! Click here to head over to the Agent Resource Center to find out.

Client feedback is integral to long-term success. Without it, you're simply fumbling in the dark. (Never a good strategy.) Gaining client reactions through regular surveys is an excellent way to spot your weaknesses and hone your skills. Visit the Agent Resource Center to read more about how surveys can help you and your business thrive.

Survey says -- click to read.bmp

Article: Survey Says: the Value of Customer Feedback Is Undeniable

July 07, 2008

Quiet Is the New Loud

Zen garden.jpg

Many copywriters, sales people, marketers and designers forget that they are competing for increasingly desensitized ears and eyeballs.

Many copywriters, sales people, marketers and designers fail to consider one important thing: the context in which their copy, pitch, message, advertisement, etc., is heard or viewed.

While some marketers and sales people acknowledge they are competing with each other for scarce attention, their response is usually to dial up the volume. The designer will add flash animation to his display ad. The copywriter will throw juicy adjectives and exclamation points into his copy. The sales person will create an artificial sense of urgency.

They forget that they are competing for increasingly desensitized ears and eyeballs. The graphic designer's ad is but one of six on a person’s screen. The sales person's pitch is but one of eight a prospect has heard today. The copywriter forgets that the law of diminishing returns applies to punctuation, especially exclamation points. Faced with this assault of noise, people tune out. Moreover, they selectively tune out the loud and become more welcoming of the quiet.

Quiet is the new loud—where loud means effective and inspiring.

That’s why you actually take the time to read the Ketel One ads. That’s why Google, with plain text , has become the king of online advertising. That’s why your Mac—the actual machine and the operating software—provides a welcome visual reprieve.

July 02, 2008

The Unlikely Power of Testimonials

“Testimonials work best when they are believable, specific, and enthusiastic.”

Testimonials. We tend to think they’re cheesy here at InsureMe, but you know what? We use them anyway because they work.

They work because we humans are pack animals: the opinions and actions of our peers matter to us. That’s why we read Amazon.com book reviews, watch movies that Ebert likes and trample each other at soccer games. It’s the phenomenon known as social proof, or for the layman, it’s called the herd mentality. It’s a powerful force, and testimonials can help you harness it in beneficial way.

Here at InsureMe, unless there is an embarrassing misspelling in all caps, we don’t edit our testimonials. The reason is they bring more legitimacy and flavor when they come from a real person (as opposed to a copywriter). And legitimacy and authenticity are the very things that testimonials are supposed to convey. “Testimonials work best when they are believable, specific, and enthusiastic,” wrote copywriter Dean Rieck in a Monday post for Copyblogger. Thus, Rieck cautions heavily against forging your own.

“Using the real words of real customers is the best long-term approach. Your customers will say things you could never dream up on your own. Their comments are often quirky and have a ring of truth that few copywriters can match.”

And I would add that people are masters at spotting bogus testimonials.

Where to use them.
» Web site
» Email signature
» Marketing collateral
» Business card

How to get them.
Ask for them!
Rieck advocates his own homegrown system, which he calls SPRF—schedule, phone, release and file. Read all about it here.

How to pick them.
You want your testimonial to be positive—that goes without saying—but not so over-the-top positive that people might begin to think it’s fake. For example, if on the off chance that a client said, “Since I started with InsureMe, my business has grown, my romantic life has flourished and I’ve achieved a state I think the Buddhists call nirvana,” we’d be thrilled for that agent, but we wouldn’t use his testimonial.

Pick testimonials that are specific (specificity carries more weight), relevant, positive and genuine-sounding. To clarify the last item on the list, by genuine-sounding I mean that it won’t be mislabeled as a fake.