SALES EDGE
Strategies for Building Your Practice
Increased Sales through Fact-Finding
Bruce E. Dickes, CLU, ChFC
In prehistoric times dinosaurs ruled the earth. Then,
without warning, a wayward comet or asteroid rudely
put an end to that. In short order, the dinosaurs were
gone.
Bruce E. Dickes, CLU, ChFC
Vice-President & Chief Marketing Officer
Financial Brokerage, Inc.
Bruce Dickes has been involved in the
financial services industry for over 30 years.
He has been a producer, agency manager,
director of training and advanced sales, and
regional and national sales officer. In addition,
he has consulted with numerous carriers
and sales organizations on a wide variety of
business development and practice improving topics. He knows
what it takes to build a successful financial-services business,
and he knows how to help producers grow their business.
Now, fast-forward to modern times and look in on
one variety of 21st century insurance producer who
proposes product solutions without considering his
prospect’s unique situation and concerns. It is too
much trouble for him to get to know his prospect’s
needs – fact-finding is not part of his vocabulary.
Just like the dinosaurs, this type of producer is
doomed to extinction. T. Rex and the pterodactyls
could not adapt to a changing environment. Today’s
changing business climate and suitability expectations
demand a more professional, consultative approach.
How do we adapt?
Prospecting and sales presentations demand a
producer’s attention, but we should not overlook the
value of fact-finding in helping improve closing ratios,
increasing average case size, enhancing persistency
and making referral introductions more likely.
LIMRA studies indicate that clients are looking for
Bruce is a highly sought-after speaker and coach on markets
and agent practice improvement topics as well as financial
products. His informative articles have appeared in Life
Insurance Selling, National Underwriter, Agent Sales Journal,
Senior Market Advisor, GAMA News Journal and inAcord.
sound advice about their protection and accumulation
programs. A producer who does not spend time
getting to know the people he works with has no
chance of providing the valuable, personalized advice
they are looking for. The client-building process is
held together by the glue of patient, comprehensive
fact-finding. Trying to build an insurance practice
without it is a study in futility.
First off, the term “fact-finding” is misleading. Joe
Friday flashed his badge and said, “Just the facts
ma’am.” That is not enough in our business. When
a producer finds out about a client’s feelings, he is
unlocking the keys to the sale.
Sales Edge® is published to provide clients of Financial Brokerage, Inc. with information and strategies helpful to building their practices. The
content is the opinion of the author and is not intended to provide legal, tax, compliance or regulatory advice. As always you should review state
insurance and other licensing laws as well as your sales practices to ensure compliance with all applicable regulations.
If we know what a
prospect’s feelings are,
we know what they want,
and prospects only buy
products that help them
get what they want.
With solid fact-finding a
producer can:
Determine the client’s needs
Fact-finding helps a producer peek inside a
prospect’s head and see the dreams inside. This
allows the producer to fine-tune the presentation
and construct a product solution that really fits.
Design a tailor-made solution
This is the essence of professionalism and the
secret to bigger sales, better closing results,
repeat business and improved persistency.
A producer who masters this will leave the
competition in the dust.
Take the guesswork out of the solution
Fact-finding helps us identify
how much a prospect can afford
and is willing to spend. That
knowledge can help avoid or
defuse objections and make a
successful close more likely.
Identify objections before they come up
Fact-finding and feeling-finding discussions
usually surface the issues that a client feels
strongly about – both positively and negatively.
This enables the producer to anticipate
objections and arms him with the information
to effectively counter them before they arise.
Prepare the close in advance
By exploring a prospect’s feelings a producer
can listen for responses that actually are the
prospect saying, “These are the key issues that
will get me to buy.” Pay attention to these and
the sale will be much easier.
Identify the prospect’s dominant buying
motive
Each client has one or more dominant buying
motives, the objectives that are number one on
their hit parade. A solution and close wrapped
in dominant buying motive language is far
more effective.
Make policies lapse-proof and replacementproof
Cases sold after thorough fact-finding and
needs identification stay in force – and when
competitors call, they usually are sent packing.
Pave the way for repeat sales
Fact-finding helps producers plan for
additional sales to cover additional needs.
The more the
producer knows,
the greater the
likelihood that
he will uncover a
need that can serve
as the basis for
future contact.
Set the stage for referrals
Fact-finding yields a positive, professional
result, which, in turn, should yield more
referred leads.
Build trust and loyalty
When a producer asks the prospect what is
important to him, the prospect knows that the
agent cares. Trust helps build loyalty which
results in a lifelong client and all the ensuing
benefits.
So, is fact-finding the medicine to cure all your sales
ills? Not really, but it is a wonder drug that can put an
ailing practice back on the road to recovery.
How does a producer put fact-finding to use? Here is
a 10-step method to make fact-finding a fundamental
part of your sales process:
Sales Edge® is published to provide clients of Financial Brokerage, Inc. with information and strategies helpful to building their practices. The
content is the opinion of the author and is not intended to provide legal, tax, compliance or regulatory advice. As always you should review state
insurance and other licensing laws as well as your sales practices to ensure compliance with all applicable regulations.
1. Consistently use a form
A “Big Chief” tablet may seem more sincere,
but a prepared fact-finder is more thorough,
more professional, and a better permanent
record. In addition, it will help assure more
consistent use. In turn, the results will be more
predictable and will
improve over time.
2. Find out about facts
and feelings
A prospect’s innermost
thoughts and feelings
are far more important
than the facts by themselves. If the producer
knows how someone feels, he has control of the
process. If he doesn’t, he may find himself on
the outside looking in.
3. Make sure to probe
Follow up on the prospect’s comments and dig
deeper by using probing questions. The results
will be more satisfying and a better fit. When
he swells with pride when discussing his kids
or waxes eloquent about a carefree retirement,
the dominant buying
motive detector should
be sounding in the
producer’s head.
4. Practice active listening
The producer should
spend two-thirds of
his time focused on the
prospect’s comments and
feelings. He should ask his questions and shut
up. Most producers like to hear themselves
speak, but the most important information in a
fact-finding interview comes from the prospect.
5. Watch for non-verbal cues and clues
It’s not always what the prospect says that actually
counts. It might be how he says it, how he sits and
acts, or the look on his face when he says it. Be alert!
6. Restate the client’s more important concerns
for better understanding
There is real power in rephrasing concerns and
asking the prospect to verify them. Then the
prospect will have said it himself, heard the
producer repeat it and agreed one more time that
it is true.
7. Fit solutions to the dominant buying motive
It is more likely that a producer will be able
to sell a product that fits the prospect’s buying
motives, and its chances of persisting are much
greater.
8. Revisit the fact-finder before the delivery and
follow-up visits
Homework enhances every contact with a
prospect or client. A quick review of the
information will pay huge dividends.
9. Keep records
When re-contacting a prospect, vital information
will be at the producer’s fingertips for use in
real-time. He won’t have to rack his brain
trying to recall a conversation from last
February.
10.Stay in touch
Consistent follow-up and annual reviews
provide an opportunity to update facts
concerning the client’s situation - that opens the
door to even more sales.
Most people have a pretty good idea of what they would
like to see happen for themselves, their families and
their businesses. A producer’s number one job is to find
out what it is and provide a way to get it done. Factfinding is our link to their hopes and dreams. Don’t
be like the dinosaurs and become extinct. Make factfinding a central part of your selling approach.
Sales Edge® is published to provide clients of Financial Brokerage, Inc. with information and strategies helpful to building their practices. The
content is the opinion of the author and is not intended to provide legal, tax, compliance or regulatory advice. As always you should review state
insurance and other licensing laws as well as your sales practices to ensure compliance with all applicable regulations.