www.Sales Is a Contact Sport.blogspot.com

How Disturbing are You?

2011-11-29T13:40:00.001-05:00

One of the most renowned insurance salesmen to have ever lived was Ben Feldman from East Liverpool, Ohio, a small, low-income community situated in the northeast part of the state. East Liverpool and the surrounding communities are populated, by the most part, with blue collar residents.

In his day, Feldman wrote more life insurance in one year than some insurance companies did. During his lifetime, he wrote over $1 billion in life insurance and was recognized by the Guinness Book of World Records as the "most outstanding salesman in history." When someone of Feldman’s caliber speaks, people should listen. According to Feldman, a key to his success was his courage to ask his prospects what he called “the disturbing questions.” That is, he asked his prospects well-thought-out, planned questions that were purposefully designed to reveal their underlying need or desire for protection. Although his expertise was in the life insurance realm, his methods and salesmanship techniques apply to our efforts as multiline agents.

Feldman’s “disturbing questions” are the kind of questions that trigger the emotions and disturb a person into thinking about circumstances they would normally not consider on their own. It’s a means of provoking thought and bringing about clarity on those issues of life that can easily and suddenly turn someone’s world upside down. That’s your challenge. That's your job... and I might add, it’s also your responsibility and obligation as a professional.

Feldman understood how people think. He knew people don’t move in their minds from "I have a problem" to "I have a need for your product and service" until they are first made to consider the consequences of the problem and personalize them, relating them to their own lives.

Until a Thing Becomes Relevant, It Has No Importance

Consider the following disturbing questions and build on these when formulating your own disturbing questions game plan!

Disturbing Questions about Long-Term Hospitalization & Inability to Work:

“Who do you know who has ever suffered from a serious medical problem or has been injured, requiring a significant amount of medical care? When was the last time someone in your family was medically confined due to illness or an accident? What happened? Were you left with bills that were not covered by your medical coverage? What kind of expenses were you left to pay out of your own pocket, medical and otherwise? What did you do? Where did the money come from? How did that make you feel? How helpful would it have been to have had a way to pay those bills without having to pay for them out of pocket? What kind of red tape did you have to deal with when it came to your medical bills? How much wasn’t covered? How would you pay for deductibles and co-pays?”

OR

“Imagine you have been struck ill—a stroke or injury to your back while lifting a supply box onto the conveyor belt where you work at XYZ Company. Consider all the expenses not covered by your major medical plan, like deductibles, travel expenses, lodging and rent, meals, prescriptions, and co-pays. How will you pay for these things when that happens? Who is going to help you with paying the bills? How will you be able to meet your mortgage and utilities and still pay for gas in the car or put food on the table? When I don’t work, I don’t get paid. What happens when you can’t work due to illness or accident? How will it affect your family? What will they do? What considerations should be made in case you become sick or injured and cannot earn a paycheck? What will happen? How will you manage? How will your family feel or react if the bills go unpaid because of the extra expenses incurred as a result of your illness or injury? How will being unable to work due to injury or illness affect your ability to pay for your debts, bills, monthly obligations, deductibles, and co-pays?”

Disturbing Questions about Long-Term Care, Nursing Homes & Medicaid:

“What plans have you made to protect your assets? What plans have you made to make sure your children will inherit your assets? What plans have you made to prevent having to live in a nursing facility when your health declines? Has anyone ever explained to you to your satisfaction what happens when Medicaid is used for long-term care? Who do you want to inherit your home, your savings? How would you feel if your family has to give your home and other assets to the government to pay for your care and your Medicaid benefits? Do you know anyone who has needed long-term care? How familiar are you with what happens when nursing home care is needed and how it is paid for or not paid for? How did it change their lives and affect them? What financial burdens did they experience? When your health fails, would you rather have a plan in place that gives you control over your care, or are you content to be at the mercy of your condition? What are your plans for when your health changes? Do you plan to live with your children when your health changes? How will that work? How do your children feel about it? What kind of burdens would that add to their family situation? How do you feel about the possibilities of having to live with your children if you were to need continuous care? When your health changes, would you like to remain in your home and have in-home care? Why? How will you make sure that happens, that you have that option? Where will the money come from? How will it affect you if you cannot live at home anymore? How important will it be for you to maintain the control and choice over your healthcare in the future? How would you feel if someone else was in control of your medical care and the choices you have for assisted care? When you are no longer able to care for yourself, what is going to happen? Who will take care of you?”

Disturbing Questions About Life Insurance:

“If you were to die today, Mark, how would your wife Melissa and little Mark and little Melissa maintain the standard of living you’ve worked so hard to provide for them? How would the mortgage get paid? How would the utilities and all those other bills like food, clothes, and car upkeep be provided for if you are no longer around to earn a living for them? How tragic would it be for them to live, struggling constantly to make ends meet, and maintain their own self-respect when it comes to being responsible and paying their bills? How would Melissa feel if she had to take just any job to make sure the bills get paid? Where would the money come from for little Mark and little Melissa to go to college as you’ve said you want them to? What would happen to their dreams and hopes if they aren’t able to go to college?”

Disturbing Questions About Auto Insurance:

“Mark, let’s say you are driving down Main Street and accidentally swerve the car—for one reason or another—and go left of center on the roadway, hitting another vehicle head-on. If the other driver was hurt badly and needed hospitalization, they might sue you. What would you do, Mark, if you were sued? How would you pay for it? What would you do if your savings, 401k, and other assets like your inheritance or your children’s college funds were suddenly at risk of being seized by the courts in settlement of the damages claimed against you for hurting and injuring the other driver?”

These are just some simple examples of how a sales conversation might sound. We can debate on the strength of the disturbing questions and scenarios I offer here as examples, but don’t let that distract you from the point being presented. And that point is to be disturbing—to be compelling and courageous in getting customers to face the possibilities and the realities of life when bad things happen to good people.

It’s important to be nice, but do not be nice to a fault. Failing to get customers thinking about the things that can happen if they aren't properly insured is part of our mission and responsibility as insurance professionals.

Be disturbing! Ask disturbing questions of your customers and your friends who need auto insurance and life insurance. They may squirm in their seats for a moment, but customers will thank and respect you if they ever need your help or the protection they’ve purchased from you.

Not long ago, my good friend passed away of a disease that was gradually debilitating to his body and mind. Watching how the disease progressed and overcame him was heartbreaking to witness. My friend was a wonderful individual, one in a million, and I had great respect for him. Our families were close and we had a lot of fun times together.

As his disease advanced, I saw how he slowly drifted away mentally and physically. Just two years before his diagnosis, our families were enjoying a picnic together, and I mentioned that he might want to consider life insurance for his wife and two beautiful little girls. It was a conversation we had had a dozen times before, but to no avail. I tried to explain to him the importance of making sure his wife and girls were taken care of in case something happened to him, but I wasn’t getting through to him. He often responded lightheartedly, “God will take care of us.”

My response was always, “That’s true, but sometimes we have to give God something to work with,” and that made him laugh. Then I said, “How are your girls going to go to college if you die? What is going to happen to this home when you’re gone? What is your wife going to do for money? Right now, she works at home. Surely, without you, she will have to go out and find a traditional job to earn a consistent paycheck. Doesn’t she want to be able to stay at home with the girls?”

After I asked enough of the disturbing questions, my friend finally bought a policy, albeit a bit reluctantly. It was a start, something he could build upon when he had more money and was more financially secure. I was a bit relieved, and so was his wife.

Just before he died, we had a private conversation at his bedside. My friend never cried; he was a tough guy, and crying just wasn’t his style. In fact, we would kid around about his ‘no crying’ policy all the time, laughing and accusing him of being a softhearted guy at the core and how he was just trying to hide it by acting macho. He was tough on the outside, with a soft, kind hearted center. As I sat at his bedside, he said to me with tears in his eyes, “Thank you. Thank you for shaming me into buying that life insurance. Now the girls and my wife will be able to pay the house off. My wife will have to go to work, but at least she won’t have to worry about the mortgage. That’s a big deal, Tony. Thanks for being my friend.”

He died not long after that conversation. I miss him, and I know his family does as well, but he did the right thing for them. He didn’t leave them empty handed, with sleepless nights filled with worry about how the bills will get paid. He left a legacy to carry on. In this case, I was speaking to a friend, someone I had a good relationship with and who I felt I had the liberty to do some straight talking with, disturbing him as to the possible consequences of what will happen without adequate life insurance to pay for the bills.

Maybe it was easier to have courage talking to a friend, but I have had that same difficult conversation with many people during my career. I have been disturbing people for years! I have other stories chronicling the miracle of life insurance, but his is the most memorable for me, and I’m happy to have disturbed him—or, as he said, "shamed" him—persuading him into buying what he needed for his family.

Hopefully, you would do the same.

"How disturbing are you to people?" I hope the answer is that you are very disturbing, because in the end, it's the one annoyance people can't live without.

Copyright © 2011 - Tony Cefalu

The Real Reason Businesses Exist Pt. III (Final)

2011-05-26T11:04:00.000-04:00

The Paradox of Business

One of the great paradoxes of business is this: Focus on People and Not Profit, and the Profits Will Come.

My goal as a business owner is to make a profit. To deny that would be patently absurd. But my overriding desire and formula for business success, and that of profitable business owners around the world, is to serve the needs of people first…helping them…providing them peace of mind as an insurance advisor and agent…understanding what it is that is important to people and not what is important to me.

It is the selfless life; the life that seeks to serve others before serving oneself that will, in turn, be the reason a business owner will make a profit.

"If you build it, he will come." Quote from the 1989 Movie, “Field of Dreams”

The above quote is often misrepresented as, “If you build it, they will come.” I must admit, the error is attractive, particularly as it relates to the topic of business “purpose.”

In the movie, the character, Ray, played by Kevin Costner, hears a voice compelling him to build a baseball field on his property in Iowa. If he does this, “he will come,” is declared by the spirit of baseball legend, Shoeless Joe Jackson. As Hollywood plays it, the comment harkened back to Ray’s father. In other words, his father would be the one that “will come” if Ray were to build a baseball field on his farmland.

It is a great movie; a good family film with a message of hope, imagination and delight which everyone can appreciate. The character, Ray, had a dream of building a baseball field. His dreams came true that day when it was finally built and the spirit of his father came to meet him one last time…on that field of dreams, to play catch with him.

“If you build it…they will come.” If you, the agent, build relationships with people, create for them buying experiences that are memorable and out of the ordinary, and develop processes that make people feel special and valued…then ‘they will come’.

A focus on profits yields only a single sales result that must be sought after time-and-again, over and over, one painstaking sale after the other in order to generate the cash flow necessary for marketplace survival. That type of business philosophy is predatory in nature, always seeking that next sale, that next opportunity.

Whereas, a focus on people yields a steady stream of sales results that often find their way to you instead of you always ‘hunting’ the opportunity down. Such a focus on people rather than profits yields a clientele that will work for you, advocate for you, and will stay with you as a loyal patron even when it is ‘cheaper’ to go to the competition.

So what will it be for you? Will you adopt the business philosophy of immediate gratification with a narrow perspective on ‘why’ business exists at all, foregoing long term viability in the marketplace at the cost of being singular minded toward profit and nothing more as a business owner?

Or, will you adopt the philosophical paradox where automatic results and profit through the power of relationship building (‘creating’ customers) is the basis for business existence and the ultimate trigger to increased profits and growth? Your answer will determine your outcome.

“If you build it…They will come.” Bank on it.

Copyright © 2010 - Tony Cefalu

The Real Reason Businesses Exist Pt.II

2011-05-09T20:38:00.001-04:00

“The sole purpose of business existence is to create a customer.” Peter Drucker

If I focus on profit as an agency-owner, then my behaviors will be in response to price points, expenses, margins, numbers, units produced and the number of sales made to name a few.
But, if I focus my attention as an agency-owner on people instead, in creating customers and converting them into loyal patrons; my behaviors will be in response to their needs and concerns.

If I am dominated by the thought of profit, then my behaviors and subsequent business practices will naturally be in response, first, to “How can I increase my margin,” and not on, “How can I better serve the customer to provide them with greater value than the competition offers?”

As a proponent of “creating customers” rather than making a profit,” I shape my business activities around things that the customer wants and rarely gets from the “other guy.” For me, the buying experience and customer feelings and emotions are inextricably tied to the buying impulse and the value people seek as shoppers.

If I create my marketing & sales processes on the principle that business exists to create a customer and not to make a profit, I inevitably will make a “profit.”

Copyright © 2011 - Tony Cefalu

The Real Reason Businesses Exist

2011-04-27T21:14:00.001-04:00

"What is the true purpose of business?" No doubt, the unanimous response to such a question would be, “The purpose of business is to "make a profit."

It’s tough to argue with that answer, especially when making a profit is what businesses focus their energies on. The idea that making a profit is a "good" thing, and a necessary thing at that, is vital to the strength and power of the American economic engine.

But, what is it that makes a profit for a small business owner? What is the key to business profits and growth? The answer: customers; it’s customers that are the source and wellspring of profit for a business. Without first creating a customer...profits are merely a pleasant fiction for the business aspirant.

So again I ask the question, "What is the purpose of business...to make a profit...or is it to create a customer instead?"

The question is one of a significant nature to anyone who owns a small business, or any business for that matter. Why; because perspective determines relevance, direction, methods of operation for a business owner; and ultimately, perspective determines whether or not a business venture is successful or not successful in the end.

“The sole purpose of business existence is to create a customer.” Peter Drucker

Copyright © 2011 - Tony Cefalu

Experience is Not the Best Teacher

2010-12-26T20:49:00.000-05:00

The world comes to me as a fact, but I decide what to conclude from here.
Peter Block, The Answer to How is Yes

What is an experience but the present moment of a particular circumstance? They are as fleeting as they are arresting; as real as they are imagined; and as useful to us as they are benign. Experiences are like the sounds of the pendulum’s swing rushing through the air one moment, while telling the lessons of time about the dial in the next. They are all around us, but alone, experiences are neither good nor bad, right nor wrong, worthwhile or a waste . . . at least not until they are reflected upon . . . given relevance and meaning as a result.

Thus, experience is not the best teacher; rather, it is reflected experience that is the best instructor of life. Not until something becomes relevant to a person can it ever affect a change in their behavior or thinking. And not until something is reflected upon—a past experience that is pondered, considered, and internalized in search of its meaning and lesson, can it ever become relevant.

Relevance is discerned through reflection. Change is made through relevance.

It is at the point of relevance, or realization, that our experiences become useful to us; they change us and we discover how behaviors affect outcomes, and how behaviors adjusted can modify our outcomes. Therefore, reflected experience is the only effective means to get people to change, grow, and be successful.

What Does All This Mean to the Sales Professional?

Beware of amassing a lifetime of sales experience that yields no value aside from the commission. Beware of a life that says twenty years of sales experience equates to superior sales prowess and success. It’s a virtual proverb that experienced means none other than you have a lot of time accrued in the industry.

Experience counts for nothing in many instances. Why? Because sales professionals often never take the time to reflect upon those experiences so they may learn and grow and become a better person and professional.

Reflection is Evaluation

Evaluate your activities and your sales conversations. Let others do the same. Be honest with yourself when doing so—analyze your marketing efforts and your sales techniques. Formulate a simple means (i.e. checklist) that causes you to reflect from time to time on your daily, weekly, monthly or yearly experiences.

It is not all that important how often you reflect upon your experiences as a sales professional, nor is it that important how you evaluate yourself either. What is important is that you do it. Plain and simple as it sounds, schedule time if you have to to reflect upon your business activities and results. The outcome will be growth for you personally and professionally.

A Final Note on Reflected Experience

Never expect training to change behavior or to provide a pathway to personal and professional growth. Training, particularly classroom sales training, has no real value in many organizations. Why? Because most training is very brief, impractical, and lacks a “reflection” component as well.

No one is going to change as a result of our desires.
Peter Block, The Answer to How is Yes

Many Learning & Development divisions within sales organizations fail at achieving positive change for sales professionals because a follow-up component (reflection – evaluation of sales experience) is missing in their training model. Those units would be more accurately named Learning rather than Learning & Development because little to no development ever actually occurs.

Don’t be like so many other sales professionals or organizations, who never take the time to reflect upon their sales and marketing experiences in order to learn from mistakes and successes.

Experience is Not the Best Teacher. Reflected Experience is the Best Teacher.

Copyright © 2010 - Tony Cefalu

Sell the Experience Pt IV (Final)

2010-12-21T13:49:00.001-05:00

About 15 years ago, I relocated to another area of the state for business reasons. As a result, I had the dubious task of having to find a new family doctor. And as many of you know, doctors and I don't mix well. I figure they tolerate me as a non-compliant patient and I tolerate them as pious know it alls. Terrible attitude, I know. I'm working on it…really!

Anyway, I went to this family doctor after finally getting sick one day. After the appointment, I saw my wife. Fearing the worst had happened, she asked how it went with a subtle wince. I told her, "Great!" "In fact, it went better than great. This doctor is absolutely the best doctor I have ever had. I'm going to recommend her to all my friends. That's how good she is. For once in my life, I think I've found a good doctor I can trust and stay with."

In shocked amazement she smiled and asked, "How do you know she's any good? Did you see where she graduated from? Did she tell you her grades in school? Did you ask her where she did her residency? What was it that made you think she was great and a keeper as a family doctor?" I thought for a second and simply said," Because I liked her."

"She was pleasant. She listened. Her staff was great. They smiled. I waited a long time, but when they called my name, they apologized for the wait and told me that the doctor had an emergency case come in. That's why it took so long. They didn't want me to think that they didn't appreciate my waiting; that I was important to them." Hear what I'm saying…the entire office experience...from the pleasant environment of the office itself, to my contact with the staff and doctor…their genuinely nice manner and concern for me...made me feel good even though I waited an extraordinary amount of time in the waiting room. Do you think we can learn something from this experience? You bet we can! Don't think for one second that my "favorite" new doctor and her staff aren't in sales…They are; and doing a good job of it!

Now, I'm not claiming that the entire experience was fun, problem free, and some life changing experience for me. It wasn't like that. I'm also not claiming that substance doesn't matter, because it does. I am simply pointing out the fact that when coupled with positive emotional experiences in the business environment, sales professionals can take their profession AND results to the next level. It's a nuance of the experts…that extra honing of the business craft and the art of sales that we can begin to take advantage of…it's that little extra which makes the difference between good and great.

Choices are emotional. Buying is a choice. It can generate negative feelings or positive feelings. How is it with you? How do you make your customers feel?

Are you giving them what they want...attention, empathy, consideration, reliability, honesty, helpful and pleasant service, convenience, follow-up, kept promises, genuine appreciation? In order to do that, it starts with a belief in who we are and what we offer. Remember, we're "cool" and people need us…they truly need us. It doesn't get any better than that.

By the way, the rest of my story is that United Healthcare decided to pull out of the area last year. Consequently, my "favorite" new doctor was no longer a subscriber under my health insurance plan. I refused to go to a different doctor. Instead, I paid out of pocket for an entire year before a new contract with United Healthcare was negotiated with the local hospital and subscribing physicians. But then, I was willing to do that because...I liked her…I liked her staff, and the entire office environment. They made me feel special.

Copyright © 2010 - Tony Cefalu

Sell the Experience Pt III

2010-12-16T12:02:00.001-05:00

So, do you want more customers? Do you want to keep the ones you have? Then SMILE…even when you don't want to! Brighten someone's' day and you'll end up brightening up your own. What reward is there anyway in only smiling when you feel like it? Give a good handshake. Make them feel important and special…because they are important. Make them feel at home. Talk about what they like. Be friendly. Give the customer the experience they are looking for and want! I'm not saying you have to be a phony or unprofessionally "giddy" in front of people…but be genuine, friendly, considerate…and interested in them. People will "sniff that out" and will react positively towards you in return.

I know, some of you reading this are are saying , "We do all that stuff already. Besides, doesn't it just come naturally to most of us who are in the people business anyway?". Well, I'm not buying that one. Most people have to work at being friendly and creating positive customer experiences.

So, at every juncture of customer contact (I call those junctures Customer Perception Points, or CPPs) with your office, what are customers feeling? What's your strategy to enhance their buying or transaction experience? What CPPs have you identified as the most important; that have the greatest impact on customer retention and the buying process? What's your business habit…your E-Tactic (Emotion Tactic)?

When customers call in, are they greeted cheerfully? What is said? When they walk in, do you smile at them and tell them how glad you are to see them? Do you make them feel special, valued or important? Do you have a strategy so they don't feel ignored?

How about when a customer complains; do you have an "apology" strategy that makes them feel 'heard' and validated? When you are having a sales conversation, do you get the customer talking about what they are interested in and 'like'.

How do you treat customers when they first walk into your office/agency? Do you offer them a token of our appreciation in the form of a "give-away" item or a cup of coffee or water? Are they complimented on meeting with you? Do you offer them a nice chair to sit in?

Do you make things easy, smooth, and as effortless as possible when transacting business with them? When there's a claim, do you have a strategy to empathize and help them get the process started. Or do you just do what comes naturally…or what you THINK comes naturally to be but really doesn't!

How's the lighting in your office? Is it too dim or worse yet, does it create a depressing mood that puts the customer in a negative mindset? Is the office too noisy or full of distractions? Are there smells that are objectionable? These are questions that can't be ignored if you are to begin to truly differentiate yourself from the 'other guy'.

Think about it. Can you have constructive weekly team meetings with your associates that have on the agenda things such as 'CPPs and how we can enhance the customer experience' when it comes to claim time for auto; for homeowners; for health, or life insurance? That would be a great start to differentiating your agency from the competition. Begin by asking your team members, "What does the customer want come claim time?" Your answers will frame your strategy.

By the way…what's so wrong with giving the customer what they want? We're in business to do that…aren't we?

Copyright © 2010 - Tony Cefalu

Sell the Experience Pt.II

2010-12-10T14:27:00.000-05:00

Herb Kehlleher, former CEO of Southwest Airlines said, "I keep telling them (visitors to Southwest Airlines) that the intangibles are far more important than the tangibles in the competitive world because, obviously, you can replicate the tangibles. You can get the same airplane. You can get the same ticket counters. You can get the same computers. But the hardest thing for a competitor to match is your culture and the spirit of your people and their focus on customer service because that isn't something you can do overnight and it isn't something that you can do without a great deal of attention every day in a thousand different ways."

Southwest is one of a few profitable airline companies out there today.

What was Kehlleher really saying? Certainly the 'tangibles' matter with any business. For instance, a tangible, quality product is a requirement to be an impact player in any market. That is irrefutable. But what Kelleher was saying is this: "It is the 'little things' that matter most to customers. Business doesn't thrive on what it has or is to a customer, rather it thrives on what it does for its customers and how it makes them 'feel'.

Kelleher was also saying that it is the subtleties of everyday life; the smile, the firm handshake, the attention given and the courtesy shown to a customer that can mean the difference between success and failure in business. The intangibles are those things that the customer experiences and feels and, in the great majority of cases, ultimately relies on when deciding where to buy...and from whom they will buy it from. The intangibles differentiate us from the crowded competitive landscape and get us remembered and referred for future sales.

But instead, businesses all too often focus on the tangible elements of such things as the number of marketing calls made, or the number of sales appointments set and sales made in a given week or month. All these things are important to track and know. But it is the tracking and understanding of what 'really' has the power and allure to get an individual to want to buy that is best to master and know.

Call it the E-Factor for Experience or Emotional Factor. Whatever name you give it, the truth remains the same. How a customer feels, particularly when they buy and make choices, makes the difference between closing a sale and not closing a sale. The E-Factor is the difference!

So, what are your customers experiencing and feeling when they walk into your office? How about when they call in to your office or business? What about at claim time, how do you make them feel; comforted, nervous, uncertain? Is their experience a positive one?

Your answer can be the difference between whether you have a successful business or not.

Copyright © 2010 - Tony Cefalu

Sell the Customer the Experience Pt.1

2010-12-09T11:42:00.000-05:00

Ari Weinzwig, cofounder of Zingerman's delicatessen in Ann Arbor, Michigan ("That Place Up North") which generates $10 million in annual revenues describes to his staff the importance positive emotional experiences have in the day-to-day operation of his business…

"I tell our people that you want the customer to think they're the best thing that has happened to you all day. We're not here to sell a loaf of bread or a sandwich or an apple. We're selling them an experience. It's not enough to sell people a great bottle of olive oil. Who cares? You've got to give them a great experience. People are going to go where they have a great experience, where it's fun, where they are appreciated."

Now, I know we aren't in the delicatessen business. In fact, I'm glad we're not in the delicatessen business! What we do is much "cooler" than that. What we do ought to spark some passion within each of us. That passion translates into a genuine care for what we do…and who we serve.

Think about it for a moment. We help keep hopes and dreams alive in the midst of material loss, or worse yet, the loss of a loved one. We help keep families together that might otherwise succumb to the financial strains that can so often break the human will and spirit when tragedy occurs. We help people keep their self dignity and self respect by providing them with choices through the things that we do, particularly when it comes to our health products. We help people maintain peace of mind by taking the worry from them. We help people with a good conscience through the insurance, investments, and services we provide. We are cool…and what we do matters.

So, if a delicatessen owner understands the "business" importance of a good customer experience and how EMOTIONS factor into the decision to buy and stay with a particular sales professional or place, then why can't we?

Researchers tell us that 60% of the customers who leave a sales professional or place of business is not because of the quality of the product. In fact, only 14% truly leave or switch for that reason. No, the primary reason that the great majority of people "defect' or leave us is because of the way they are treated. Or you might say, they leave because of how we make them feel! Ah oh! You mean I need to evaluate my office systems to include making the customer "feel good"; to have a "positive experience?"

Yep! That would be my advice.

Customers are Always Emotional When Buying or Transacting Business.
Buying is NEVER an Emotionally Neutral Event. Turn it to the Positive Side of Things.

Advice to New Agents Pt III (Final)

2010-10-14T14:25:00.000-04:00

1.) Be Urgent
2.) Don't Be Patient with Your Needs
3.) Keep Your Focus
4.) If You Think It; Ink It
5.) The Will to Win is Not as Important as the Will to Plan to Win
6.) Control Your Calendar

7.) You are not responsible for results. I have yet to meet a sales professional who could make another person buy from them. No one can make another person do something they don't want to do short of using threats of bodily harm or some other similarly egregious method. My point here is that no one individual can "crawl" into the mind of another person, push the "buy" button of their intellect and emotions and drive someone else's impulse to buy. No one has that kind of power as a sales professional. But, what we do possess as sales professionals is the ability to powerfully and effectively persuade people to want to buy through the spark of individual self-discovery.

With that in mind, consider that even the best of sales professionals have "dry spells;" periods where they don't sell anything...days, weeks, or even months where they fall short of their sales goals. Why does that happen? It happens because of the nature of human beings to be creatures of emotion and individual will that can often be unpredictable.

Too often, a sales professional will internalize rejection and the failure to close a sale. This can have disastrous affects on individual morale and happiness. Don't do that to yourself. Recognize your role as a persuader and not a "manipulator" of people. And recognize that at the confluence of artful persuasion on the part of the sales professional and individual will on the part of the customer does a sale ever close.

Therefore, the best a sales professional can ever hope for is to engage in as persuasive a sales conversation as possible with individuals in order to serve as the catalyst for their self-discovery and action towards buying. You are not responsible for results...What a sales professional is responsible for is right behaviors, or executing on the right processes that are proven to be compelling and persuasive to people.

Simply said; focus your attention on your own behaviors, or processes. Be certain to execute on those time honored methods and processes you know to be successful in yielding positive sales results. Be as persuasive and thought provoking as possible with people. And because of human nature and the strength of individual will in the buying decision; "some will, some won't, so what...next customer!" Remember, you are not responsible for results; just right behaviors. You'll be much happier professionally and personally if you adopt this "thinking."

Michael Dell, of Dell Computer, was once asked if he was concerned about the competition duplicating his ideas and his business model. His response to the question was this; "Not at all, I know we will execute better." Execute better than your competition. Resist the urge to chase down a sale...to focus on the results. Instead, chase down excellence in execution. The sales will follow just as the sun will rise in the east tomorrow morning. It is inevitable. You are not responsible for results...You are only responsible for right behaviors.

8.) Freedom can kill you. I've often commented in the past that people are as lazy as they dare to be...And it appears to me that some people dare greatly! One of the great benefits to being a sales professional is having the liberty to set your own work schedule. One of the great dangers of being a sales professional is having the liberty to set your own work schedule.

Yes; the flexible work hours associated with the sales profession is very attractive to industry newcomers. But, the attraction can easily become an affliction. Because of the freedom enjoyed with making one's own schedule and determining when you will "work" and for how long, there is a corresponding burden of responsibility to work; regularly and effectively. With the privilege of a flexible time schedule comes the responsibility and discipline of getting up every day and in executing on marketing & sales processes.

It's not glamorous work that we do as sales professionals, but it is worthwhile and rewarding work personally and monetarily. Success is rarely a chance thing. Often, it is something that is deliberate, calculated, and can be seen dressed in the clothing of "hard work." Success requires an individual to fight the temptation to seek the easiest path, to resist the allure to sleep in late into the morning, or to complete a task that could easily be delayed or avoided altogether.

Freedom can kill a sales professional...Don't let it kill you.

In summary, my advice to new sales professionals is this:
1.) Be Urgent
2.) Don't Be Patient with Your Needs
3.) Keep Your Focus
4.) If You Think It; Ink It
5.) The Will to Win is Not as Important as the Will to Plan to Win
6.) Control Your Calendar
7.) You are Not responsible for Results...Just Right Behaviors
8.) Freedom can Kill You if You are not Careful

Copyright © 2010 - Tony Cefalu

Advice for New Agents Part II

2010-09-17T20:40:00.000-04:00

Previously, I had outlined the first of several recommendations to help new agents start their careers on the right track and to realize longterm success. They are:

1.) Be Urgent
2.) Don't be Patient with Your Needs
3.) Keep Your Focus

My recommendations continue with the following:

4.) If you Think It; Ink It. Years ago, author, businessman and sales expert, Ron Willingham, taught me the value & power of writing goals and benchmarks down on paper. Writing down your plans, goals, and strategies for success does something positive for you. For one, it makes the goal tangible and "more" real. Your ambitions become codified to a degree when they are written down; they become part of a record or public document that others can possibly see and note. Whatever the driving force or "magic" that is found with writing down your goals happens to be, the fact that it helps you to accomplish what you set out to do is undeniable. So, if you think it, ink it in order to be successful.

(Mark McCormick in his book, What They Don’t Teach You at Harvard Business School, tells of a Harvard study conducted between 1979 and 1989. In 1979, graduates of the MBA program were asked to set clear written goals for their future and their plans to accomplish them. It turned out only 3 percent of the graduates had written goals, 13 percent had goals but they were not in writing and 84 percent had no specific goals at all aside from getting out of school and enjoying the summer.Ten years later, in 1989, the researchers again interviewed the members of that same graduating class. They found that the 13 percent who had goals that were not in writing were earning, on average, twice as much as the 84 percent of students who had no goals at all. Most surprisingly, they found that the 3 percent of graduates who had clear, written goals were earning, on average, 10 times more than 97 percent of their graduating class. The only difference between the groups was the clarity of goals they had set (and spelled out) for themselves when they graduated.)

5.) The Will to Win is Not as Important as the Will to Plan to Win. If ever I had an adopted mantra, it would be those words. I cannot overstate the importance preparation and planning is to being successful. The assumption that success "just happens" to a person is all too often an accepted viewpoint. Success is a deliberate act. I encourage everyone to be deliberate with their goals, ambitions, and their lives as much as is possible for them. If you want to be successful in business and in sales, then plan on success. Write down your goals and measures for success. Give those goals a time-line to be followed. Plan out a path to success one step at a time. Regularly review your plan...adjust your methods...And for goodness sake, act on your plan. Nothing gets done until someone does something. So plan your success and act upon it. The will to win is not as important as the will to plan to win. Plenty of people with strong wills, exceptional talent, and enviable privilege fail in life. Why? They fail because they relied on their will, talents and privilege to make them successful. They never thought to plan out their success. Be deliberate. Plan to be successful.

6.) Control Your Calendar...or someone else will. A challenge that faces everyone who is working, employee and employer alike, is time management. For the new agent that is busy with marketing & sales activities, controlling your calendar and utilizing the limited resource of time as efficiently as possible is a critical element to success and happiness. Get a calendar, use it, plan out your days and weeks with activities that are marketing & sales related. Develop regular habit patterns in your work schedule that are targeted at getting people in front of you (marketing) and in holding sales conversations with as many people as possible. Push to the periphery of your work day those tasks that are not marketing & sales oriented. Confirm appointments and reschedule them as appropriate. If you have a 5:00 pm sales appointment and 7:00 pm sales appointment on the same day, call the 7:00 pm appointment and see if they will move up to the open 6:00pm slot. Be accommodating with your schedule...But don't be at the mercy of everyone else's whim & calendar as well. Strike a balance with your available work time that is reasonable. If you allow others to control your calendar, you run the risk of becoming gradually frustrated and embittered as a sales professional.

Copyright © 2010 - Tony Cefalu

Advice for New Agents Part I

2010-09-10T09:58:00.000-04:00

Every sales organization has its own unique system of recruiting, training, and installing their sales force into the marketplace. In my current line of work, I deal with a lot of newly hired agents in the insurance and financial services industry that sell under a "captive" arrangement. Their challenges are many.

They must learn to navigate the organizational maze of a large corporate structure while concurrently starting their own small business organization that is geared to market & sell. It is a daunting challenge for them, to say the least; especially during those first several years as a new agency owner.

Given the opportunity, I share with new agents the following keys to success:

1. Be Urgent.Too often, new agent trainees look at their production requirements without the requisite urgency needed to be successful. For some reason, a false sense of security develops in the new agent and they get off to a slow or mediocre start when it comes to sales results. I can only theorize that one of several things are causing this phenomenon. First, they think their production requirements are not that difficult to achieve. Secondly, they feel that they have plenty of time to reach their production goals and do not need to be in any hurry. And lastly, it may just simply be a matter of laziness. Whatever the explanation is for the lack of urgency on the part of the new agent, it is not a mind-set conducive for the start of a successful sales career.

I am not trying to add to the stress that new agents are challenged with early in their careers. But the reality is this; time is not a new agent's ally and falling behind on production requirements is a very easy thing to let happen...and a very difficult thing to have to overcome. Be urgent.

2. Don't Be Patient with Your Needs. The home office of many sales organizations are there, ultimately, to support the marketing & sales efforts of their agents. As a new agent, your "needs" are many, particularly at the onset of your sales career. When a "need" arises and assistance is requested, do not patient to your own detriment. Specifically, if there is a marketing or sales need for support such as the need for sales materials, sales ideas, or marketing support...get it somehow, someway...right away. Don't let the procrastination or the overburdened workload of others be the reason your sale is delayed or lost.

More narrowly defined, I wouldn't be patient with needs that are: 1.) commonly provided in support of the new agent, 2.) are time sensitive, 3.) and are marketing & sales in nature. I also would be as professional and considerate as possible in how I got that need fulfilled. I am not suggesting a new agent be rude and bully their way around an organization to get what they need. Just don't let your success as a sales professional fall victim to the whims or schedules of other people or the machinations of an organization's many different layers. If you are ever going to fail at an endeavor; I would suggest that it is much nobler and mature to own your failure. Don't excuse away success by reasons of someone else and their inability to provide or do what is needed for your benefit. Nor would I want to fault circumstances that are within my control for why I failed to accomplish something. Don't be patient with your needs.

3. Keep Your Focus. There are three distinct functions that any agent must manage as a sales professional; 1.) The Organization, 2.) Marketing Activities, 3.) Selling Activities. Marketing is all those things an agent does to get & keep people (customers). Selling is what we do in front of people while the organization is defined as all those things an agent does to support the marketing and selling functions of the agency. Put in their proper order, marketing & sales should be paramount among the duties of a sales professional; the organization is secondary. Please do not misunderstand me. Maintaining the function of a healthy and efficient agency (organization) is important. But when given a choice on what to invest time on, I recommend the investment be made in marketing & selling activities first...all others are secondary.

A sales professional's time is precious. Because of that fact, it is wise for an agent to make the best use of the time provided each work day in order to maximize the revenue generating capability of the agency. What better use of an agent's time is there than to use it on those activities which will directly impact revenues into the agency. Therefore, endeavor to push all activities that are not directly related to marketing & selling functions to the periphery of the work day as much as is possible. Use those premium hours in the work day to generate appointments & opportunities to speak and meet with people (marketing) and to conduct sales conversations (selling). Work on the organization before, after, and in-between marketing & selling time when you are able. Being busy doesn't mean you are being productive. It simply means...you are busy. Focus your time on marketing & selling first...and be busy about all the other things afterward. (Part II to follow)

Copyright © 2010 - Tony Cefalu

Innocently Insulting

2010-09-08T16:01:00.000-04:00

Language is important. What people say, and how they say things, matters. Words have meaning beyond their dictionary definitions. Words convey emotion, nuance, information and subtleties about a circumstance or story that go beyond their literal meaning. By what someone says, they can betray a thought, a bias and either endear an individual to themselves or alienate them in the most innocent fashion.

In sales, developing a sensitivity to how our words are perceived by others is a key element to success and to being understood as an individual. As I have remarked often in the past in regard to the immortal words of Henry Wadsworth Longfellow; "To be understood is a luxury;" it is time for sales professionals to get into the luxury business and to be understood as best as possible when speaking to people.

Are You the Insulting Type?

One area in which sales professionals often lose momentum and weaken their sales presentations is by way of "insult." Yes; I said "insult," those innocent remarks we can make to people that are never meant to be hurtful or "cutting," but in the end, are hurtful and cutting.

They are quietly demeaning remarks that often imply disparaging overtones heard quite loudly by the person being spoken to. The following are some example remarks along with a translation of how the listener can interpret what is being said to them:

Remark: "Yes, but...or...Yes, however...or...Nonetheless, I think..."
Translation: "I hear what you are saying, but I don't care what you said."

Remark: "Do you understand...or...What you don't understand..."
Translation: "Is this concept too hard for you to figure out?"

Remark: "What you need to realize...or...What you fail to recognize..."
Translation: "What you haven't a clue about is..."

Remark: "Why would you...or...Why do you..."
Translation: "What were you thinking?"

How you say something has a tremendous impact on the message being transmitted. Therefore, to say that some of the above examples can be used in a sales conversation without any negative consequence is correct. How a person says something can completely change, or soften, a remark that may otherwise be construed as harsh in most other circumstances.

Just consider the above remarks the kind of words you may want to avoid for fear of being misunderstood and of innocently insulting someone in conversation.

"Do you see what I mean?" (Just kidding. No insult intended!)

Copyright © 2010 - Tony Cefalu

Are You a Person of Interest?

2010-08-20T12:44:00.000-04:00

A good friend of mine recently remarked to me; "To be interested in people is to be interesting to them." We were discussing at the time the subject of sales people and their treatment of customers; particularly we were talking about the conversations sales people have with potential customers. His summary of it all was in the aforementioned statement .

To be Interested...is Interesting

As a young man growing up with a father who was a sales professional, my friend often recalled how he was advised to always get into the other person's world when talking to them. Allow the people you are in contact with to talk about the things they want to talk about and not what you want to talk about. Don't give in to the urge to talk about yourself or your concerns as a sales professional. Rather, get into the habit of listening to what other people have on their mind; what their concerns and needs are instead of what is important to you at the time. Do this, his father would advise, and you will be a successful sales professional.

A Bore is Someone that Talks about What is Important to Them

Don't be a bore to your customers. Resist the urge to talk about products and services that you offer from a company-centered perspective. By company-centered, I am referring to the trap many sales professionals fall into when having a sales conversation with someone. Company-centered conversations are focused on what it is you have to sell. It is a conversation that revolves about product details, service contracts, costs & price, logistical support and other metrics to prove your product or your service is better than the competition.

A company-centered sales conversation ignores the needs of the customer...It assumes the customer will draw the natural conclusion that if the product being offered is bigger & better than anyone else's, it must be what the customer wants. That just isn't the case oftentimes.

If I ask You What Time it is...Don't Tell Me How to Build a Watch

The above cliche' rings eternally true in the world of sales. People are not interested in what it is that you have to sell...They are interested in what it does for them. That is what people buy. They don't care about the company, the agency, or you, for that matter. At least, customers don't care about those things as much as they care about themselves and their own particular needs. It's a natural part of the human condition. It is neither right nor wrong to be naturally interested in oneself. It simply is a fact of our nature.

And in knowing and understanding human nature, the prudent sales professional recognizes the necessity in being "interested" in the customers they speak with on a daily basis. To be interested is truly interesting to customers.

Interest Earned is Profit Made

Being interested in customers, or prospects, results in increased revenue and profits for the insurance professional. If you show interest in people, ask them questions about their lives and their concerns; and if you seek to understand them and their needs, they will be drawn to you and, in turn, will find you to be an interesting person. That just may be enough to persuade them to buy from you instead of some other, "boring" salesperson. Get interested in people, your agency's survival depends upon it.

Copyright © 2010 - Tony Cefalu

Your Money is Your Business...Literally

2010-08-18T20:35:00.000-04:00

Expense Management is a Key to Survival for the Small Business Owner

It is a very competitive business landscape in virtually every sector of the market; particularly hard hit by rising costs in recent years has been the insurance and financial services industry. The slightest miscalculation in spending valuable agency resources can result in a tremendous amount of harm to vital cash-flow needs and deplete precious capital reserves needed to continue operating the agency and meeting payroll demands.

As commissions (revenues) steadily decrease among most insurance companies along with increasing operating expenses, agents are seeking new outlets to acquire customers and access new streams of prospects to drive growth, achieve policy count increases and offset the challenge of higher operating expenses.

It all Begins with a Simple Choice

Expense management is not as complicated a matter as is often made of it at the agency level. In fact, when considered against the backdrop of some simple questions related to sales & marketing, controlling expenses is not a difficult process.

It is not the choice between one thing to spend money on and another that presents difficulty for most agents. It is the actual follow through on that decision, or the execution of the choice to spend or not to spend, that causes the most problems for agents and other small business people.

Making the choice between good and bad, wise and foolish, smart and…not so smart, are easy choices to make. But acting on those choices; now that is a different challenge altogether.

Expense Management begins with the Two Questions

1. Is the money I am considering spending intended to drive prospects to my business?

2. If not, does the money I am considering spending go towards keeping the business entity viable and operating effectively and efficiently so I can drive customers to my storefront and keep the current ones that I have acquired?

-If the answer to both questions is, no; then don’t spend the money…Or, if you feel absolutely compelled to spend the money anyway, at least, spend the money very slowly, deliberately…and very reluctantly.

-If the answer to either is, yes, then spend it…And, yes, spend it carefully and wisely.

Recognize that the farther you deviate from this two question standard, the farther away the business drifts away from profitability and solvency.

Expense management has to do with the discipline of follow through.

Can you say, no, to one expense and, yes, to another after applying the two question standard…and then actively follow through with the decision?

I am not begrudging agents and other business owners the liberty to spend their money on what they want. The freedom to make choices and decisions is one of the great attractions of being a business owner; and being an American for that matter. What I am suggesting is that agents take the time to consider their expenditures, and impulses, through the filter of the two question standard.

Impulses and Careless Spending can Lead to Business Failure

Many times, I have observed the unnecessary spending of precious business funds on things that are not relevant to the business goal. Blackberry phones, expensive pens and office items, unneeded office furniture and decorations, unnecessary and frequent business meals and excessive spending on office supplies to name a few are examples of expense traps that many agents can fall prey to when making spending choices.

And as a matter of record, it is oftentimes the small and seemingly “harmless’ expenditures that cause big problems for the agent owner.

Inevitably, the day will come when money is needed for an expenditure that could actually drive prospects to your storefront, but the funds will not be there to spend. Why? Because satellite radio and that Monte Blanc pen you wanted for the office to impress clients was purchased instead.

Logic could be used to justify the purchasing of all of the aforementioned items. But if squarely applied to the two question standard, and critically assessed in regard to their benefit to the overall success of the agency, the answer would be to forego those expenses. It would be wiser to spend the money on marketing & sales processes within the office that will have a direct impact on revenues and in lowering expense ratios.

Then when the day comes where you have adequate disposable income and the liberty to spend your money more liberally, then do so; enjoy the fruits of your labor. But for the agent, particularly for the new agent with tight tolerances for spending capital resources, be disciplined and deliberate in what you spend your money.

Freedom can Kill You…And it can Kill the Business…

Again, I feel it necessary to remind readers that your money is your business, literally. The ability to spend money and to make choices is a relative matter and a highly personal one as well.

Some agents have the fortunate ability to spend more than others on a variety of different things. Some agents have a very narrow margin of discretionary money, and are thus; more sensitive to cash-flow issues. This causes them to keep expenses strictly centered on profit and growth spending more so than the individual with a greater capacity for spending outside the boundaries of necessity.

Agents operating under narrow margins, which are most common, have no latitude for deviation from the two question standard. Still, the wonderful part of business ownership is the ability to exercise personal authority over the spending of money as you see fit. After all, it is your business, and no one else’s, especially when it comes to what you spend your money on.

But with the wonderful privilege of business ownership and the freedom of choice that comes with it, there can also be a curse brought upon the business owner. Freedom without self-discipline is a curse…and a killer; a killer of profit.

It is also a killer of production excellence, personal achievement, and a killer of many small business ventures in the end. Freedom without discipline soon leads to bondage and enslavement financially.

In regard to expenses and managing them properly as a business owner, there’s a certain discipline necessary that every agent-owner must exercise in order to adhere to the two question standard.

The answer to expense management issues is not the solution to the problem of expense management. It is the active adherence to the answer that is the solution to the problem…

The questions, once again, are this:

1. Is the money I am considering spending intended to drive prospects to my business?

2. Does the money I am considering spending go towards keeping the business entity viable and operating effectively and efficiently so I can keep current customers or drive new customers to my storefront?

The answer is going to be either, yes or no to either question. But the solution is not in concluding on a yes or no answer. The solution is in the deliberate, disciplined act of not spending when it is so indicated, or desired.

That is the discipline of expense management. Sounds simple in its basic form; that's because it is simple. But simple doesn't mean it is easy. The hard work is in the application of the answers; the discipline and determination to execute on the answers is the challenge and the magic to effective expense management as an agency owner.

After all, your money is your business.

Copyright © 2010 - Tony Cefalu

The Closing Ratio is Queen

2010-08-06T22:11:00.003-04:00

If cash flow is king, then selling, or the closing ratio, is queen. This is just one example of simplicity and the need for clarity in small business management. Stay focused on what matters to your agency and keep it as simple as possible. Don't complicate things; considering life is complicated enough, why would any small business owner want to make things worse for themselves?

Start first by resisting the urge to do everything. Keep to the basics and be flawless at the essentials when it comes to running an agency.

Football legend and National Football Hall of Fame coach, Vince Lombardi, is reported to have held up high a football saying the following to his recruits and returning veterans on the first day of football practice every year before the regular season opened; “Gentleman, this is a football.”

What a strange thing to have said to these men; many of whom were living football legends in their own right, professionals who had dedicated their lives to the perfection of their craft, who had sacrificed their bodies and their hearts and minds for years in the pursuit of excellence and sporting greatness .

Of course, these men knew that what he held high in his hand was a football. But that wasn’t what Vince Lombardi was trying to say. What he was reminding them all, rookie and veteran alike, is that success is a simple matter.

He was reminding all of them, and you and me today, that the road to success and glory isn’t some secret or privilege reserved for the few or some special class of people. Success is about being great at the basics and in keeping things simple.

Football is about blocking, tackling, running and passing the ball. Beyond these basic principles, there isn’t much more to the game of football that the mind cannot overcome. His charge to his players was as genius as it was simple at the start of every season; keep it simple by being great at the basics.

We can take a lesson from his approach. In our profession, selling insurance and financial services products, our great need is to embrace simplicity, to keep things simple and resist the urge to do it all…right now.

Like football where the team that blocks best, tackles best, runs best and passes the football best is usually the winner; the agent, or agency, that runs an effective organization best, markets best, and sells best…wins.

It doesn’t get any more complicated than that.

Be great at the basics. Focus on what is important to success and don’t try to boil the ocean.

Copyright © 2010 - Tony Cefalu

Marketing Basics

2010-08-03T23:57:00.000-04:00

As I define it, marketing is all those things we do to get and keep customers. It is an area of small business ownership that can often be the most difficult to do. Why is that true? Because marketing is about “getting and keeping” customers, it involves action, movement, execution and persistency…and a lot of patience at times.

It is the “block and tackle” part of the sales business; the foundational work from which all sales results are born. Without the hard work of marketing, nothing, absolutely nothing gets done for the insurance agent.

The following principles will help in building effective marketing processes within an agency.

1. Focus the majority of your daily energy on the execution of specific marketing activities. Compared with selling, marketing involves a greater degree of effort in order to be successful. Once a prospect is face-to-face with a sales professional, the great majority of them will buy. Insurance agencies never fail because of a weak sales force or poor individual salesmanship. Agencies fail because of inadequate or ineffective marketing execution. The secret to sales success is no secret at all; having enough opportunities to conduct a sales conversation with people is what creates sales success. The only way that can be accomplished is through executing a marketing plan. Don’t be distracted from the simple fact that marketing success is fueled by determined and consistent execution of a plan of marketing. Otherwise, it’s just a plan and nothing more.

2. A solid marketing plan has balance within and without. It has balance in terms of mining business opportunities from within the book of business and without the book of business. That is, there is oftentimes a “book within the book” when referring to additional sales to current customers. Take every opportunity available to you in order to cross sell and even “up-sell” your current customer list. A lopsided marketing approach common to agents is to market their current customers almost exclusively at the sacrifice of marketing outside the book towards new ones. That is a mistake in terms of missed opportunities for growth and stability.

3. A solid marketing plan has balance in creating awareness and in creating attraction. By marketing awareness, I am referring to broad based advertising such as billboards, radio and television ads, telephone book ads, fliers and posters, signs plus any other media designed more for market presence and identity rather than driving business to a specific storefront, website or phone number. Be discriminate with your marketing budget. Have a presence in both marketing realms. But use the bulk of your marketing dollars on processes that specifically attract and drive business to your transaction portals be it a brick and mortar storefront, an Internet site or a 1-800 number. The desire to feel good about buying billboard space or telephone book ads should be tempered by the reality that these marketing mediums do little in terms of creating an acceptable return on investment for the insurance agent trying to grow his/her business.

4. A solid marketing plan has balance between passive processes and active processes. The idea of passive and active processes fits well with our previous discussion about awareness and attraction. Many marketing awareness efforts are not “efforts” at all. They tend to be passive attempts at getting people in front of you. A billboard, for instance, is an extremely popular yet passive means of marketing. Many agents use billboards to market themselves. And sadly, many more use billboards and other passive methods are their primary means for marketing. These methods tend to be expensive, difficult to measure in terms of return on investment, and simply do not produce the predictable efforts of more active means of marketing. I will not discount the importance of billboard advertising and other passive-awareness methods in an overall, well balanced marketing strategy. What I will discount is the effectiveness of such advertising over more active methods such as cold calling and other telemarketing, leveraging centers of influence and other relationships, participating in civic and community events,

Copyright © 2010 - Tony Cefalu

Script Book: A Recommended Way to Organize Scripts for Future Reference

2010-07-29T00:03:00.000-04:00

Get a 3 ring binder and place dividers in it that separate your scripts into categories similar to the following:

SALES

1. Auto Sales Conversation
2. Homeowners Sales Conversation
3. Life Sales Conversation
4. Commercial/Small Business Sales Conversation
5. Investment Sales Conversation (Variable Products, Fixed Products)
6. Props/Proofs & Other Media Sources to be Used at the Point of Sale
1. Persuasive Facts and Figures
2. Current News Articles/Magazines Articles
3. Sales Conversation Tools/Visuals/Graphics or Other Produced Sales
Discussion Platforms Used at the Point of Sale.

MARKETING

1. Other Scripts
a. X-date Phone Script
b. Follow-Up Phone Script
c. Premium/Price Change Phone Script
d. Claims Handling Phone Script
e. Review/Insurance Check-Up Phone Script
f. Confirm the Appointment Phone Script
g. Competitive Auto/Homeowners Quote Phone Script
h. Follow-Up/Re-quote Phone Script
i. Complaint Handling Phone Script
j. Thank You for Your Business/Birthday/Congratulations Phone Script
k. Auto/No Home Phone Script
l. Home/No Auto Pphone Script
m. Multi-line or Life Phone Script
n. No Automatic Bank Withdrawal to Pay Premium Phone Script
o. Service + 1 Phone Script or Walk-in Script
p. I Just Want a Quote Phone Script
q. 30 Second Commercial Script/or Introduction Script
r. Referral Scripts
2. Objections & Concerns Scripts
a. No Need
b. No Money
c. No Time
d. No Interest

3. Processes (Who, When, Where, How, What): Step by Step Plan of How a Particular Marketing Process will be Executed, When it Will be Executed and by Whom.
a. External/new business marketing
1. X-dating for Auto Competitive Quotes
2. Call-in/Walk-in quotes
3. Referral System
4. Community & Civic Events/Church, Clubs, Membership to
Organizations, Events
5. Centers of Influence; e.g. apartment complexes, realtors, small
businesses
6. Telemarketing
7. Friends/Family/Acquaintances
b. Internal/Retention & Cross Selling Processes (Who, What, Where, When, How)
1. New Customer Follow-Up System
2. Premium/Price Change System
3. Claims Handling System
4. Review/Insurance Check-Up System
5. Small Business/Commercial Marketing System
6. Requote/Follow-Up System
7. Motorcycle/Bike Night System
8. Birthday Card/Thank You System

It may initially appear that putting together a “script” book is unnecessary work, but it isn't. Think of it this way; if we require of doctors and airplane pilots and lawyers, for example, to be professionals who know their craft inside and out by way of study, memorization and deliberate practice; then why should we require any less of ourselves?

Also, If we desire to be taken seriously and to earn the privilege of being called a sales professional, then we need to take up the responsibilities akin to what it takes to earn that title.

Scripting is Harnessing the Power of Words

Scripting is the means by which insurance agents can earn the title of “professional, expert, advisor and trusted consultant.” It is the work, duty and responsibility of insurance sales professional to be able to effectively communicate with individuals as powerfully as possible in order to persuade them to do those things they need to do for themselves; like buy insurance.

Scripting is the means by which that is accomplished.

“To be understood is a luxury.” Henry Wadsworth Longfellow

It’s time to get into the “luxury business.”

Copyright © 2010 - Tony Cefalu

Hire for the Position and Not the Person

2010-07-21T21:23:00.000-04:00

I know I have written about this before, but it merits repeating. Be very specific and deliberate about who you hire and for what reason. Don’t hire someone who is talented in an area that you have determined is NOT critical to the agency’s success. That would be tantamount to putting a “square peg” into a “round hole;” it’s just not going to work.

But agents and business owners make this mistake quite often. They interview candidates for a specific position, intending to hire someone who will fulfill a role the business unit needs. But then something happens to derail the process.

While interviewing different candidates, someone impressive interviews for the job…The only problem is that this individual, although talented and clearly someone who could contribute to the right business opportunity, doesn’t have the skill set or background the business needs at this time in order to move forward and grow.

But they are hired nonetheless in the hope that they can be converted to the needed role anyway…Or, they are hired and accommodated to perform a role other than originally intended at the sacrifice of the business unit’s real needs.

As presented, the above scenario of hiring the person because of their obvious talent and abilities versus hiring for the position isn’t always a disaster for the business owner. There are exceptions in such instances, but they are rare.

Have a detailed staff handbook with a detailed job description within it that outlines specifically the tasks and duties of the position your business needs in order to prosper. Using the template of the handbook and job description as a guide, recruit an individual who can satisfy the requirements of the position as outlined.

To hire someone for any other reason aside from fulfilling the requirements of the job description is a poor business decision.

Copyright © 2010 - Tony Cefalu

The Difference Between a Life of Fiction and a Life of Fact

2010-06-24T21:44:00.062-04:00

Imagine it is game day, The Ohio State Buckeyes are playing the last game of the regular season against, none other than, the Michigan Wolverines. It's one of the greatest sports rivals in the American sporting world.

Called out of retirement at age 49 is Tony Cefalu, running back extraordinaire, to join the offensive lineup as the team's "ground threat" along with quarterback great, Terrell Pryor.

In the huddle, Pryor calls the next play; a running play that traces it's steps behind the lead blocking of the right offensive tackle. The plan is to have the "ageless running back," Tony Cefalu, get the ball. Pryor calls, "break," and the offensive team lines up along the line of scrimmage to prepare for battle.

Under center, Pryor begins to call the play and immediately assesses that Michigan is "stacked" with defensive players off right tackle; poised perfectly to tackle the running back great, Tony Cefalu. It was as if the entire Michigan defense was in the Ohio State huddle when the play was called.

Without hesitation, Pryor decides to change the play at the scrimmage line mere seconds before the ball is put into play. He does this by way of an "audible," a tactic used by quarterbacks to change a play just seconds before the ball is hiked. Usually, an audible is a voice command "code" comprised of a word such as "red," or it can be a number, or it can be a combination of the two.

The "codes" used by quarterbacks are different for every team and every game so they can't be "deciphered" by the opponent teams. Audibles in football allow teams to immediately adjust their offensive play to match the real time changing conditions in a football game within a matter of seconds.

So when an immediate change to an offensive play is required to match the ever fluid situation of a game, it can be done instantaneously, imperceptibly, effectively; and everyone on the team knows the "code" and everyone knows what they have to do as a result. The key to a successful "audible" call is planning, practice and situational awareness.

The ball is snapped, Pryor hands it off to Cefalu and he runs off the left tackle as the audible indicated. As a result, he ends up recording one of the longest running plays for a touchdown in college football history! Ohio State wins the game and captures the Big Ten Conference Championship outright while earning a berth to the national title game...which, incidentally, they win handily.

A lesson drawn from this story is this; In order to be able to deviate...one must have something to deviate from...such as an effective "game plan."

In Order to be Able to Deviate...One Must Have Something to Deviate From

What does all this have to do with sales and sales success?

First of all, the scenario painted is born of my dreams and fantasies of being a college football player for one of the greatest teams and schools on the planet; The Ohio State Buckeyes. So please, forgive the indulgence...I couldn't resist the urge to "come out of retirement" for this blog article and to dream a fantastic scenario as the one where I am running back for the Buckeyes.

Secondly, what I am hoping to illustrate with this story is a principle of success that is often lost among sales professionals. That principle is the principle of preparation.

When coach, Jim Tressel, has the OSU football team take the field of play, do you think there was a lot of planning and preparation that went into their practices and their formations before ever stepping onto the gridiron? Absolutely; no successful team takes the field of play without a lot of preparation and planning ahead of the actual game itself.

Before each game, how many basic offensive plays do you think have been planned, scripted out, memorized and practiced by each member of the OSU team in order to win a game? The answer is this; a lot.

It can be argued conservatively that there are at least 15 different basic offensive formations within the OSU arsenal along with as many different variations for each play that a team of their caliber might be expected to execute on the field. Therefore, the different combination of plays that can be potentially called is...enormous. Hence, teams have "play books" which are guarded closely and studied religiously by each player in order to be ready for "game day."

Coach Tressel has won 5 national championships in major college football; 4 of those titles he won while head coach of Youngstown State University in Division I-AA Football. The other title, many of us remember vividly, was during the perfect season year in 2002 with The Ohio State Buckeyes in Division I-A Football.

Winning is not an accidental thing; it is a deliberate action.

The Will to Win is Not as Important as the Will to Plan to Win

You Can't Win Titles without Great Players...But You Can Lose Titles with Great Players

Over the years, I have had the privilege of meeting with and working with hundreds of sales professionals and leaders in trying to improve their sales results and to build upon their skills as business owners. Most of them are brilliant people who are quick witted, smart and possess the social skills that I can only describe as enviable. They exude success.

Quite often, I silently marvel at the ease in which they wield their talents and apply their skills as sales experts. But for as many individuals I meet who possess the will to be successful, have great talent and skill in delivering a persuasive sales presentation; just as many end up failing as sales professionals. Why?

It's not for the Lack of Talent that Sales Professionals Fail...It's for the Lack of Planning to Win that Many Fail

In order to be able to deviate...one must have something to deviate from...as in a plan of action. Do you have a written plan; a game plan of sorts, that you can follow and deviate from, if necessary, in order to be successful?

I'm not speaking of a written business plan only. I am referring to a written document that goes beyond a business plan; that outlines what to say, what to do, who will say it, who will do take action and when it will all happen and with what outcomes.

Do you have your marketing processes planned out and kept in a written document?
Do you have your scripts planned out and kept in a written document?

On "game day," are you prepared to execute your marketing processes or deliver a scripted sales conversation? Do you know what to say? Do you plan and prepare to win?

How do you prepare your team (staff) to be successful? Do you review your processes and scripts periodically with your agency staff?

Where is your "game book," and do you execute on it? When with a customer in a sales situation, are you able to call a sales audible in order to shift the conversation to the ever changing dynamics that are an inevitability when working in a "people-centered business" such as insurance sales and financial services?

Don't fool yourself. The difference between a successful career has a lot to do with planning for success. For me, the difference can be thought of as either leading a life of fiction or a life of fact and meaning as an agent.

The life of fiction can be illustrated by the agent who is continually looking for that "good idea;" that secret formula which will guarantee success and grow the business without any real effort or investment on the part of the agent. That kind of solution doesn't exist.

A life of fiction is a life of no growth; that ignores the practical matters of scripting, planning and deliberate execution on those marketing processes and sales ideas we all know will work for any agent; only if acted upon.

In contrast, the life of fact and accepting the realities of business ownership as an agent-owner where planning and execution go hand-in-hand with being successful is a life of growth, profit and increased income.

Fact versus fiction is a choice between following a path as a "make-believe" business professional or a substantive and successful agent-owner with results, credibility, and the respect of your peers. Which path do you want to follow?

Copyright © 2010 - Tony Cefalu

Personal Note

2010-04-03T00:14:00.000-04:00

I will resume blog posts, pencasts and twitter soon. I have been busy with a personal project for the past two months that should conclude shortly. Thanks you for your patience. TC

Copyright © 2010 - Tony Cefalu

Fail Your Failures Fast

2010-03-06T22:51:00.001-05:00

One the biggest challenges facing the small business owner, or agency owner, is the challenge of hiring competent talent and training them to do the job well. Talent acquisition is one of the most difficult processes for an agency owner to undertake for a number of reasons, least of which is the time and money invested in recruiting, interviewing and managing a new employee in order for them to bring in a positive return on your overall investment in them.

Acquiring the right staff, for the right position at the right time can be the difference between continued profitability and viability as a presence in the marketplace or a slow, financial death for an agency owner.

As the old sports cliché goes; “You can’t win championships without good players; but you can lose championships with good players as well.” In other words, staffing issues for the agency owner exist in two distinct realms; the realm of recruiting good talent and the realm of managing good talent. The successful agent owner has to learn to operate in both spaces in order to thrive or even survive in today’s hyper-competitive marketplace.

The following principles regarding talent acquisition & assessing the hired individual for continued employment purposes is from a “high level” perspective. I leave it to you to decide on the details of how you can execute on these principles and develop an effective agency team.

1. Take your time in screening and interviewing candidates when looking for talent to work in your agency. Hiring is a significant commitment; it’s nothing you should hurry along. Be patient…

2. Recognize that your first hire into a position may not be the last hire you make for that position. Oftentimes, it takes several hires before the right fit for the position is discovered.

3. Never be in a hurry to commit relatively large sums of money and additional emotional and intellectual equity into someone…The process of hiring must be a deliberate process and not random. It must also be a cautious process…without urgency if at all possible. So, always be on the lookout for talent. Keep a scouting book with you that will contain a running list of names and contact information of possible future candidates for consideration. Keep resumes on file for that day when you find yourself in need of a staff person unexpectedly.

4. Fail your failures fast. People reveal themselves rather quickly as a general rule. If the “omens” are not good; that is, if the new hire’s performance is subpar early on in the on-boarding process as a new employee, make the decision to fire them quickly and decisively.

Recruiting and hiring is a lot like buying and selling a stock on the
New York Stock Exchange. Too often, once an investor decides on a stock and purchases it, they become “married” to it, in a sense. That is; an investor often holds on to the the stock even though it is performing poorly. Even though every indicator is suggesting that the investor minimize their losses by selling at a price lower than they had originally purchased the stock, the investor can’t let go.

As a result of “hoping against hope,” the stock does not “come back” and the losses the investor might have sustained yesterday, pale in comparison to the losses they face now from waiting too long to sell.

Don’t do that to yourself or your business. It’s okay to fire someone who is not performing in the position they were hired to fulfill…

Fail Your Failures Fast…Or else suffer the consequences of a bad decision turning into a disastrous decision for the entire business venture.

Copyright © 2010 - Tony Cefalu

Dating Taught Me a lot About Success in the Sales Profession

2010-03-04T23:28:00.000-05:00

I was never a “babe” magnet…And “mojo” was a “no-go” for me when growing up. Okay; who am I fooling, it is the same for me even today as an adult! I don’t possess that ‘X” factor when it comes to meeting women or getting a date.

Experience has a lot to do with maturity and an understanding of circumstances and the facts of how life is and works. For me, I have looked at my past…as pathetic it may seem to others, and have been able to interpret it in a positive light as best as I can.

The sum total of our experiences is only relevant and valuable to the extent that we interpret and apply correctly the lessons of the past to the present time. For me, looking back at my dating experiences proved to be the best proving ground for my future success in the sales profession.

I Heard “No Thanks, I’m Not Interested,” a lot…Unfortunately.

Yes, that is true; I would ask girls out on a date only to hear them say back, “No thanks, I’m not interested.” It got so bad that when I would approach a girl to ask her out, I would say something like this, “I know you’re probably busy, but would you possibly be interested in going out tonight for dinner?”

Of course with such an approach to women, I was predisposing myself for rejection so that the “let down” wasn’t so painful. It wasn’t a good tactic, but then, I’m not the first person to have ever behaved that way. I’m sure of that…I was so used to rejection that I helped set it up whenever “prospecting” for a date.

How about with you; are you guilty of the same behavior? Maybe it isn’t in the dating realm that you can be accused of applying the same logic and tactics, but what about in the sales arena? Don’t do that to yourself…Don’t predispose failure and serve up rejection for yourself by the very things you do or even say to people. Be hopeful, be positive and expect…success. Expect that you will get “the date.”

Lesson #1: Expect a date when you ask for one. Don’t predispose yourself to fail…If you do…then you guarantee failure will happen.

Even a Blind Squirrel Finds a Nut Every So Often

Then it happened; she said, “Sure, let’s go out.” Crap; “What do I do now?” I really hadn’t expected to get a “yes” from anyone! Then it hit me; I should have expected a “yes” all along.

Why; because I kept asking women if they would like to go on a date. It stands to reason; the more women I asked out…and the more often I asked them, eventually someone was going to say, “Yes.”

Lesson #2: The secret to “mojo” is to ask as many women…as often as possible to go on a date with you. The Law of Large Numbers is the secret to “mojo.” So work your mojo and be persistent in asking people to meet with you about insurance. Ask a lot prospects…as often as possible, and eventually someone will say “yes,” I guarantee it.

You Miss 100% of the Shots You Don’t Take

Hockey legend, Wayne Gretzky, is credited with the above saying. He is right. If you don’t try; you don’t get…what you want. After becoming numb to hearing, “No thanks, I’m not interested,” I decided that I would employ my process of asking a lot of women as often as possible if they wanted to go on a date.

Not being particularly gifted with a lot of mojo, I figured my persistency coupled with simply “asking” for a date to as many women as possible would pay-off; and it did.

Lesson #3: Sometimes you score…sometimes you don’t. You never know until you take the shot. So take the shot and talk to that prospect you have always wanted to talk to but haven’t worked up the nerve to do so yet…Ask for the sale even if you think they won’t buy…If you don’t take the shot, you can’t score. (I know; I am going to catch all kinds of crap for using this analogy.)

Fish Where the Fish are Swimming

Obviously, this is another analogy I am going to pay the price for…In any event, what I mean here is that if I was going to be asking women out on a date, I had to go where the women were located in order to do that…Sounds logical, doesn’t it?

Well, if it is so logical, someone please explain to me why so many agents sit in their offices expecting prospects to just magically appear so they can sell them something? I can come to no other conclusion than that some agents must actually think that way; expecting “the sale” to walk right through their agency doors.

People are not like that; they don’t come to you to buy…you have to go to them to get them to buy. So, fish where the fish swim. Seek out prospects actively. Think about where they are and how you can approach them to start a sales conversation.

For me, I never waited around aggressively for a date to show up at my door or to call me on the phone. I knew it wasn’t going to happen. So, I went out to where they were and I would meet them and talk to them. That’s how you get to know people and that is how sales are eventually made. It is the same with our industry and our customers.

Lesson #4: Swim to where the fish are swimming. Don’t randomly wait for opportunity; seek opportunity out. If you want to get a date, go to where the dates are waiting. If you “wait aggressively” for something to happen; you will end up “aggressively lonely.”

Just Having Fun

The point of this entire message is not to disparage women or reduce them to something less than “human.” Women are to be respected as individuals. I hope that I am clear on that point.

Women are to be revered as the civilizing force in the world. They are our equals, our partners, companions, friends, soul-mates and loves. As my “idol” and mentor, Mr. T would say, “I pity the fool” who would think otherwise! (I am sure I lost some people on that last comment.)

So, I do not want to be misunderstood when I draw parallels to dating and the sales profession as if I am discounting the place of importance women have in our lives both personally and professionally.

I draw the parallel of dating and prospecting in the insurance industry all in fun with no intention to belittle or offend anyone. With that said, I did learn a lot of lessons while dating that unwittingly prepared me for a successful career in sales; those lessons summarized are:

Lesson #1: Expect a date when you ask for one…Or else, why bother asking.

Lesson #2: The Law of Large Numbers is the secret to mojo. Therefore, anyone can have mojo, or sales success, if they are willing to be persistent in approaching as many people as often as possible in engaging sales conversations.

Lesson #3: Sometimes you score…sometimes you don’t. But you’ll never know if you could have scored without first taking the shot and trying. If you never take the shot, you can’t score and win. It’s impossible…So take the shot and find out what sales success feels like.

Lesson #4: Swim to where the fish swim. Get up; and get going to where the prospects are swimming; else you will never make contact with them and will never get the opportunity to sell them anything.

That’s what dating taught me about being successful in the sales profession. Now get out there and find yourself a date; I mean, find yourself “a customer.”

Ideas are a Dime a Dozen...

2010-03-03T01:03:00.001-05:00

“Action is the measure of intelligence.” Napoleon Hill

Too often we are in search of that secret marketing formula that gets the phone ringing and customers coming in to buy. We hold seminars, showcase the “big hitters” in sales production at conventions, host discussion groups, and publish “best-practices” all in the hope of discovering the hidden treasure of sales success thought to be cloaked among the privileged and the elite class of sales professionals.

But for a nominal fee of $600, or some other ridiculous amount, it can be made available to the “masses” either by book or CD/tape. I heard it said that instead of learning the tricks of the trade, why not just learn the trade! This is sound advice for all of us—sales professionals and non-sales professionals alike.

Learning should Lead to Action. Simply "Knowing" Means Nothing.

"Action is eloquence.” William Shakespeare

There’s no substitute for the sales professional who “gets is done” in terms of results and sales growth and profits. Getting it done reigns supreme over the sales professional with ChFC, CLU, FLMI, AIC, CFP and any other designation the insurance and financial services industry can envision.

Please do not misunderstand me. Professional designations are important. They lend a lot of credibility to the competency of an insurance & financial services professional. But they mean absolutely nothing beyond proof of an individual’s ability to pass a test if the knowledge gained in these courses is not applied to everyday life as a professional.

Don’t confuse your classroom attendance and book learning with accomplishment and results.

One is simply the means to accomplishing the other if put in proper perspective. I have known people to be involved in all kinds of activities, attending sales seminars put on by marquis named sales experts who hold every designation imaginable. But they fail to link learning to results.

I believe in being a lifelong learner of the sales profession and the insurance industry. I am one of the biggest advocates of personal development and growth, particularly through the many opportunities our industry provides for its people. What I am an enemy of is knowledge for knowledge’s sake. For me, the display of real genius is in the application of what we know and have learned to the benefit of customers and the industry.

“I can’t spare this man; he fights.” Abraham Lincoln on Ulysses S. Grant

One of the most frustrating things facing President Abraham Lincoln was the failure of his generals to “execute” on the battlefield. As brilliant and learned as they were, their weakness was in failing to place their best efforts into how to execute those battle plan strategies and ideas on the field in order to defeat the enemy.
Of the military leaders President Lincoln could have chosen to lead the union forces; he chose the unpolished, but accomplished and results driven, Ulysses S. Grant over other learned and sophisticated generals of the time. Why; because Grant linked knowing...with doing. That was genius.

I know for many sales managers and agents managing their sales teams this frustration is all too familiar. Yes, ideas are precious, they are generated often times out of adversity or the need to overcome some difficult obstacle and they are not to be taken lightly when conceived and envisioned.

But, ideas are a “dime a dozen” if not executed.

Do not put your best effort in coming up with or co-opting the next big sales or marketing idea. Put your best effort on the execution of those ideas you already know to be effective and successful. The real “magic bullet” solution to most sales problems and slumps is the simple need for execution.

Examine your in-book and out-of-book customer base and marketing strategies. Write down the two to three strategies you know to be successful if executed. Be careful not to overburden yourself with too many strategies. Simply choose the top two or three strategies that will work. Once that is done, now work them! Execute. Invest your time; your energies into making something happen.

Act, Do, Execute.

While others continue to rack their brains and search the endless horizon for sales ideas and strategies, you’ll discover the true secret to success . . . execution.
In regard to those circumstances that you can control, stop the excuses that are so common to other sales professionals who are not growing or experiencing increased customer retention. Quit delaying the time for action on those things you know to be effective marketing processes and sales techniques that you can employ.
No more reasons why you aren’t doing something, or aren’t growing. No more searching for the answers to business success; you know the answers . . . They have been presented to you countless times through training, experience, books, colleagues, and observation…

Don’t think me insensitive or out-of-touch when I challenge you in this manner. I do understand that business ventures vary, that they are not the same and that no two markets or their demographics are the same either. Yes; I do understand that many variables come into play in order to drive the success that many of us dream of in life.

What I am challenging you to do is to reflect on your efforts, consider your circumstances and look at them through the prism of honest self-evaluation. It takes courage to do that and I applaud anyone who makes an honest assessment of their agency efforts.

In those instances where you have a measure of control to act, do and execute on a process or idea…I say, “Do it, and you will be glad you did.”

The choice is yours. If not for any other reason, “Do it for…you.”

Copyright © 2010 - Tony Cefalu

Emotionally Centered and Logically Dispersed...Oh My!

2010-01-25T23:50:00.000-05:00

When our passions, or emotions, are aroused, the emotional side holds the rational in check, insinuating itself in precedence and importance in the decision-making process. We are simply “hardwired” this way through a fast-track neural network where rational thought runs indirectly connected with the body’s functions.

Emotions actually stimulate the mind three thousand times faster than regular thought, verifying that in most situations, emotions move a person to act faster than rational thought ever could. This is one of the underlying reasons why our choices are based on approximately 80% emotion (Emotionally Centered) and 20% on selective logic (Cognitive Consciousness).

“When dealing with people, remember you are not dealing with creatures of logic, but with creatures of emotion, creatures bristling with prejudice and motivated by pride and vanity.” Dale Carnegie

We are logically dispersed, first of all, because our rational thinking (logic) is not at the core of our natures; emotions are at our core, and logic is thus dispersed out from the decision-making process. Secondly, we are emotionally centered and logically dispersed because of the way in which logic is used to support the emotional decision to decide and act. Logic is used only to the extent that it supports the emotional decision to buy or act. In other words, the use of logic is scattered (dispersed); it only becomes relevant and useful at various points in order to justify an emotional decision or act, such as the decision to buy something.

We are Emotionally Centered Creatures that are Logically Dispersed in our Thinking to Act & Decide

It is a well-known fact that the physiology of our brain is divided into two clear and distinct hemispheres. Although connected, the two hemispheres possess separate functions and traits. The left side is the quantitative side of our thinking. It is detail-seeking, rational, factual, and analytical in its processing and understanding. It is the rules and regulations side of our mind that crunches the numbers, counts the“debits and credits,” plans each step, organizes into parts, reasons logically and puts things in their literal context. It is triggered by information and gives place to the quantifi able. It is stirred by statistics and satiated with a diet of facts, figures, and data.

On the other hand, the right side of the brain is that part of the mind that puts each piece together; forms pictures; gets a feeling; and is stirred by stories, visuals, humor, and vocals. It understands the meaning and relevance of things. It is the conceptual side of the brain where beliefs, hope, and intuition reside. And, as a matter of fact, it is also the seat of our emotional centeredness and instinct and our urge to decide to act on something.

Once we understand this point—that our emotional selves and decision-making abilities are right-brain functions—we, as sales experts, “will immediately see the relevance of learning to speak the language of the right brain,” both literally in our sales discussions and practically in our marketing and sales strategies.

Don’t Be a Half-Brained Sales Professional

Don’t be the kind of sales professional that is always trying to appeal to the logic of the left brain when speaking to customers. Be in your right mind, stimulate the customer’s emotions, and understand their emotional centeredness for what it is—the natural and dominant factor triggering the customer’s impulse to buy.

I am not talking about sales manipulation. That is an entirely different thing and a concept I wholly reject. I am talking about being a complete sales expert—one who uses logic, reason, and accurate data and features to support the emotional criteria of why someone would buy a product or service for themselves.

All the facts, all the logic, all the rational reasons for buying something are vain unless we make contact emotionally with the customer. It is not the “what it is” that closes the sale and prompts the customer to buy; it is the “what it does” for them in meeting an emotional reason or need for buying that moves them to action. I call that the “emotional criteria” for buying.

“Action springs out of what we fundamentally desire…and the best piece of advice which can be given to would-be persuaders, whether in business, in the home, in the school, in politics, is: First, arouse in the other person an eager want. He who can do this has the whole world with him. He who cannot walks a lonely way.” Harry Overstreet, Influencing Human Behavior

Whatever the emotional criteria for wanting to buy, the sales expert must uncover it in order to present the most compelling reason (right-brain stimulus) to the customer for buying.

Sales pioneer and insurance legend, Ben Feldman of East Liverpool, Ohio, sought the customer’s emotional reason for buying through a strategy he called the “disturbing question.” He would ask the hard questions of people, the emotional questions, the questions that struck at the heart and core of what people face, and pointed out how we, in the insurance industry, could assist them in avoiding or minimizing the risks that they face every day.

In the insurance and financial services industry, this is the one critical skill that separates the “good” from the “great” sales professionals.

“Customers are not always right. They make mistakes; they forget things; they get confused. But customers are always emotional.” Jannelle Barlow & Dianna Maul, Emotional Value

Copyright © 2010 - Tony Cefalu

We "Do Things" because We Desire Things...

2010-01-20T13:49:00.004-05:00

All the facts, all the logic, all the rational reasons for buying something are vain unless we make contact emotionally with the customer.

It is not the “what it is” that closes the sale and prompts the customer to buy; it is the “what it does” for them in meeting an emotional reason or need for buying that moves them to action. I call that the “emotional criteria” for buying. “

Action is Directly Tied into our Emotions...We "Do Things" because We Desire Things...

"Action springs out of what we fundamentally desire…and the best piece of advice which can be given to would-be persuaders, whether in business, in the home, in the school, in politics, is: First, arouse in the other person an eager want. He who can do this has the whole world with him. He who cannot walks a lonely way.”
Harry Overstreet, Influencing Human Behavior

Whatever the emotional criteria for wanting to buy, the sales expert must uncover it in order to present the most compelling reason (right-brain stimulus) to the customer for buying.

Be Disturbing...Speak Disturbing...Be Disturbing...And You Will Succeed in Sales

Sales pioneer and insurance legend, Ben Feldman of East Liverpool, Ohio, sought the customer’s emotional reason for buying through a strategy he called the “disturbing question.” He would ask the hard questions of people, the emotional questions, the questions that struck at the heart and core of what people face, and pointed out how we, in the insurance industry, could assist them in avoiding or minimizing the risks that they face every day. In the insurance and financial services industry, this is the one critical skill that separates the “good” from the “great” sales professionals.

“Customers are not always right. They make mistakes; they forget things; they get confused. But customers are always emotional.” Janelle Barlow & Dianna Maul, Emotional Value

Copyright © 2010 - Tony Cefalu

People are Different, yet Everyone is the Same

2010-01-18T00:27:00.003-05:00

"(People) are different in fundamental ways even though they all have the same multitude of instincts
to drive them from within.” Carl Jung

People are emotional creatures. Yes, logic does play an important role in our day-to-day ability to function and think. But it is our emotions that drive us to decide, to act, to choose or not to choose, to respond to the situation at hand. In the sales arena, it is our emotional nature that overrides all else in moving us to buy—not logic and not the cold, cruel facts of product features and service offers. It is our emotions that rule the day.

“All emotions are, in essence, impulses to act, the instant plans for handling life that evolution has instilled in us. The very root of the word emotion is motere, the Latin verb “to move,” plus the prefix “e-” to connote “move away,” suggesting that a tendency to act is implicit in every emotion.”
Daniel Goleman, Emotional Intelligence

Those emotional impulses to act that Daniel Goleman refers to are wrapped in a cognitive consciousness we call “logic” or “rational awareness.” This is an area of the mind that deals only with the facts of things. It is at this cognitive conscious level or logical realm of our minds that we support the emotional motives for decision-making, or as Goleman says, our “tendency to act.”

People are Emotionally Centered and Logically Dispersed

I refer to it as being “logically dispersed” in our thinking and decision-making process to buy. In other words, logic is dispersed throughout our thinking and is used selectively to support the emotional decision to buy. We disperse facts and rational thought whenever there is a need to justify the emotional motives for buying something.

For example, I buy a red sports car for fun and the appeal it has in making me feel youthful and successful; I justify it logically to my wife that it was a good purchase price, a once-in-a-lifetime deal, and that we will save money in the long run because it is great on gas. I know it is weak logic…but it is logic nonetheless. We go through this emotionally centered, logically dispersed cycle every time we purchase something.

Emotion then Logic...Emotion then Logic...Emotion then Logic...It's a Cycle We All Go Through

“As rational human beings, we like to think that logic drives most of our decisions. But the fact is, in most persuasive situations, people buy on emotion and justify with fact. People may be persuaded by reason, but they are moved by emotion.” Harry Mills

It is emotion that causes us to drop our natural defenses and distracts us from the sales expert’s intention to persuade. It is emotion that requires less effort to process mentally than logical thought or argument. It takes more mental effort to process facts than it does an emotional appeal. Emotional stories are more interesting than facts. Emotional contact through imagery, music, vocals are all much easier to recall than factual evidence.

Emotions rule. Why?

Again, the reason this is true is because we are emotionally centered creatures first and logical in nature second. Logic is used only to the degree that it supports the emotional reason why we buy things.

That is not to say that logic, the cognitive consciousness, is divorced of the emotional connection and our ability to act or decide. In fact, logic and emotion are intertwined. They are partners that are dependent upon one another, jointly affecting the overall impulse to buy. But it is the emotional center that exerts the greatest force on our urge to purchase something.

Scientifically, the evidence is overwhelming as to the fact of our emotionally centered nature and its link to act, to decide and to buy. Research that began over 150 years ago examined the relationships between emotions and reasoning skills. The ability to act and decide is lost when areas of the brain that govern emotion are damaged through accident or illness.

Dr. Antonio Damasio, neurologist from the University of Iowa College of Medicine, completed and published a study in 1994 confirming that patients with damage to the emotional triggers within the brain demonstrate “terribly flawed” decision-making ability yet they show no deterioration in IQ or cognitive ability.

“Despite their intact intelligence,” Dr. Damasio states, “they make disastrous choices in business and their personal lives and can even obsess endlessly over a decision so simple as when to make an appointment.”

The Sales Professional that Makes the Customer Feel the Best, Wins!

"As rational human beings, we like to think that logic drives most of our decisions. But the fact is, in most persuasive situations, people buy on emotion and justify with fact. People may be persuaded by reason, but they are moved by emotion.” Harry Mills, Artful Persuasion

Therefore, heed the lesson being shared here; anytime someone decides to buy a particular thing, from a particular person, in a particular place, it isn't for logical reasons at first. It's all about how they feel during the buying process.

More specifically, it is about how your particular product or service will satisfy an emotional need that the customer has and how you, the sales professional, and your place makes the customer feel in the process.

How do you make people feel during the sales process? The answer to that question will determine how effective you are at closing the deal.

Get Emotional...and Get Selling...Get Going...

Copyright © 2010 - Tony Cefalu

The Human Touch

2010-01-13T00:16:00.000-05:00

Forgive the recent indulgences of the Jim Tressel Song and the Ohio State University Rose Bowl videoclip. Just one more venture beyond the marketing & sales posts. A new Pencast #10 has been posted as an appeasement in the meantime.

Otherwise, I would like to share with you something a friend gave me some time ago.

The Human Touch

’Tis the human touch
in this world that counts,
The touch of your hand and mine,
Which means far more
to the fainting heart
Than shelter and bread and wine.
For shelter is gone
when the night is o’er,
And bread lasts only a day.
But the touch of the hand
And the sound of the voice
Sing on in the soul always.

by Spencer Michael Free

Where there is connection...midnight brings 'bout the day in the human heart.
Copyright © 2010 - Tony Cefalu

The Jim Tressel Song

2010-01-05T00:07:00.001-05:00

Go Bucks!

tressel song.mp3

Sell the Experience

2010-01-04T21:19:00.000-05:00

Retention & Attraction-"Sell the Customer the Experience"

Herb Kehlleher, former CEO of Southwest Airlines said, "I keep telling them (visitors to Southwest Airlines) that the intangibles are far more important than the tangibles in the competitive world because, obviously, you can replicate the tangibles. You can get the same airplane. You can get the same ticket counters. You can get the same computers. But the hardest thing for a competitor to match is your culture and the spirit of your people and their focus on customer service because that isn't something you can do overnight and it isn't something that you can do without a great deal of attention every day in a thousand different ways."

Years later after his comments, Southwest still remains one of a few profitable airline companies out there today. Much of that has to do with Kellehers philosophy of the intangibles.

What was Kehlleher saying? He wasn't saying that the tangibles don't matter. Certainly, a quality product is a requirement to be an impact player in any market. And by the way, Nationwide has without question quality products. So then, what is it that he is saying? What is it that he is saying that we can walk away with that can help us in our business?

What he's saying is that the tangibles are intertwined with the intangibles…Like good customer service and a positive emotional buying experience are inextricably tied to an extraordinary customer experience; the tangible elements of product and service coupled with the intangibles of a positive customer experience are what differentiates us from the competition.

The tangibles are so easy for us to measure and reproduce, for that matter. We point to them on reports and have promotions that look at the bottom line results. It's what we are used to…that's why we focus on them. It's the intangibles that allude most sales professionals. They are those things that the customer experiences and feels and, in the great majority of cases, ultimately relies on when deciding where to buy...and from whom they will buy it from. To put it in "insurance speak", that's customer retention and customer attraction.

Call it the E-Factor, for Emotion Factor. Whatever name you give it, the truth remains the same. Emotions rule. Experiences matter to customers particularly when they buy and make choices. The E-Factor is the difference!

The Transaction of Business is Never an Emotionally Neutral Event...Never.

So, what are your customers experiencing when they walk into your office? How about when they call in? What about at claim time? Is their experience a positive one…at least from the standpoint of how easy it is to get in touch with someone.

Do you consciously react in appropriate ways to their situation? I mean, are you consoling when consoling is appropriate? Are you understanding when understanding is appropriate? Do you follow up with handwritten notes…as may be appropriate in a death claim? Do you have a system of visiting the family when a death claim occurs?

Do you make "quality control calls" to see how everything is going as could be done with an auto or homeowners claim? By the way, isn't claim time an inherently emotional event for customers anyway? What better opportunity exists to reinforce positive experiences than by having a set strategy at claim time that "goes the extra mile" for a customer.

Sell the customer the experiencde...and all other matters will fall into place.

Copyright © 2009 - Tony Cefalu

Update Message for 2010

2010-01-03T22:53:00.000-05:00

Happy New Year

2009-12-31T20:08:00.008-05:00

With 2009 closing in in its final hours tonight, I wanted to start you off with some thoughts for 2010.

1. All work and no play DOES make Jack a dull boy. And who wants to be dull?

2. Remember, it's never as bad as you think, and...it almost always turns out better than anticipated.

3. Life is about relationships...Make your life one friend at a time...connect with people...and be sure to be a friend back as well.

4. Love your customers...someone has to...Besides, what reward is their in loving them when they are being lovable...Think about that one....

5. Be deliberate in your life...deliberate in being friendly, caring, helpful, loving, grateful, happy; be deliberate in being the person you dream you can be. Otherwise, randomness will control your life.

6. Cut yourself a break. Life is hard enough let alone letting self-criticism bring you additional anguish by mulling over our mistakes and shortcomings . We are not defined by what we don't do perfectly.

7. You are not the most important person in the world...But you are to me.

To my teammates and all the agents and people I work and do business with on a daily basis, I'm honored and privileged to know you and partner with you. I also appreciate your friendship and all that you have taught me. And to those yet unnamed and unknown individuals I have yet to meet for this coming 2010, look out, it's going to be another great year of cigar smoking, poker games, Harley runs, art shows, pistol shooting, Ohio State football and laughter while making friends and growing as a professional.

I can't wait.

Tony.

Be Deliberately Successful

2009-12-28T12:39:00.000-05:00

“We Rule Men with Words” - Napoleon

“The difference between the right word and the almost right word is the difference between lightning and a lightning bug.” - Mark Twain

“Ad-libbing is for amateurs.” - Tony Cefalu

These quotes are from three great men in history! (Just checking to see if you are awake.) And so by their words it is understood that what a person says, and how it is said, can be the defining difference between success and failure in almost any endeavor.

This is the distinguishing talent of superstar agents and salespeople. Some salespeople excel in education, others work longer hours, and yet it’s the superstar that transcends the seeming advantage of others. How is that so?

It is by the use of persuasive language; that's how. Superstars understand that the finest product or service in the world will not sell itself and that it takes a carefully crafted, and artfully delivered, construct of words to make it come alive in the clients mind. In other words …

THE SALESPERSON WITH THE BEST WORDS WINS!!!

As a salesperson, we call these carefully selected words a “script” or “sales script.” To some, the very thought of using a script is tantamount to professional sacrilege. But to the wise and those who wish to elevate their sales results above being average and develop their craft as a salesperson beyond the norm, scripts … good scripts, are an indispensable means to that end.

The difference between a great career and an average career can be seen in whether one is deliberate in being successful and another person is random.

Random Acts of Success...(It even sounds stupid.)

Success doesn't just happen...It is the confluence of where a deliberate plan to be successful meets with its deliberate execution. Yes; "random acts of success" have been known to happen. But, choosing the random philosophy for one's career is going to be a regrettable wait for practically anyone who works and lives that way. I know for me, I am not waiting for life and success to "just happen" to me. Instead, I am going to try to "make it happen."

"Well, I don't live that way," some might say to themselves after reading my comments. To those individuals I would say, "Oh really; then on a professional level I can assume you have written down specific goals, a specific time-table for accomplishing them, specific marketing systems designed to get and keep customers that are thought out and clearly documented, and that you have a plan for how to execute on all these things and a way to measure where you are in your random acts of success."

The First Indication that a Sales Professional Rejects the Fiction of Random Success is...

By way of scripting...

Scripting is the deliberate act of being successful in both marketing and selling efforts.

Scripts merely harness the power of organized information. They move the salesperson from the realm of technician into technique, from science to the realm of art.

The Will to Win is Not as Important as the Will to Plan to Win.

Where do I begin? First of all, begin with a script book. Every serious sales professional should have a script book where they record and keep record of word tracks that are developed or discovered in their day-today work and life. Remember, not only are real life situations a good source of sales ideas and language, but magazines, books and fellow sales associates can be also.

Never use the sales script book to record product data or other information aside from direct, pointed and presently useful word tracks to close sales. Before long, you will rarely reference the script book because you’ll have memorized it’s content.

Here is a suggested outline for dividing up the script book. It is not designed to be strictly followed but is a suggestion to get you started.

1. Openings/Introduction/Approaches
2. Transitional Statements
3. Presentations/Interviews
4. Trial Closes/Closings
5. Objections & Questions
6. Illustrations/Stories

It is not mere happenstance that some salespeople consistently out perform their peers. It is by planning, practice, and perseverance that success is made. I said “made,” not granted or given. Success is hard work.

Remember: “The Will to Win is Not as Important as the Will to Plan to Win!”

In summary:
1. Commit to “Plan to Win;" reject randomness for your career
2. Be deliberately successful
2. Use the script book only for useful word tracks … nothing else
3. Be willing to feel the fool at first while learning & using scripts
4. Be willing to share your successes with others

Copyright © 2009 - Tony Cefalu

Paralyzed by Perfection

2009-12-22T22:07:00.000-05:00

“There is no level of success for which we can wade into shore.”
Peter Block
The Answer to How is Yes

Oftentimes, when talking with a sales professional who is having difficulty selling a particular line of insurance or financial products, I hear the following to be the root of their problem; “I’m just not comfortable discussing the product with customers. Until I fully understand how the product works, I can’t sell it.”

Thus, presumably the solution to slumping sales results, or reluctance to sell at all, is the need for a complete knowledge of how the product works. With more study, more dissection of the product details, successful sales and marketing will follow according to such thinking.

“The process of achievement comes through repeated failures and the constant struggle to climb to a higher level.”
John Maxwell
Attitude 101

On its surface, the argument for more product training sounds reasonable. But in reality, the problem of not selling isn’t for lack of good product training or knowledge; instead, the problem behind not selling a product line lies in the lack of simply “doing”.

Knowledge does not precede “doing.” It is “doing” that precedes knowledge.

“Action is the real measure of intelligence.”
Napoleon Hill

John C. Maxwell, author, teacher, and expert on leadership and motivation writes of an account in his book, Attitude 101: What Every Leader Needs to Know, where an art teacher of ceramics made an interesting discovery about how people think, behave, and the outcomes they realize as a result.

Specifically, this ceramics teacher announces to his students that there will be two grading systems for the class. In dividing the class into two groups, one group of students would be graded strictly on the “quality” of the clay pot they produce for the grading period.

The other group of students would be graded strictly on the “quantity” of clay pots they produced in the grading period. A scale would be brought in; those with fifty pounds of clay pots would receive an “A,” those with forty pounds a “B,” and so on.

At the end of the grading period, a “curious fact emerged,” according to Maxwell. Those pots of the highest “quality” actually came from the group who was being graded solely on “quantity.” It seems while those who were in the “quality” group anguished and pained over every minute detail of their one pot; the “quantity” group was improving on their skills and abilities with each new clay pot they undertook.

There is No More Perfect of a Time to Do Something Than to Do It Now

Rather than immersing themselves into the details of a quality product, they immersed themselves into the work of creating and perfecting with each attempt and act to create. The result of their actions was a clay pot of superior quality.

“Do not wait; the time will never be “just right.” Start where you stand; and work with whatever tools you may have at your command, and better tools will be found as you go along.”
Napoleon Hill

The lesson for all sales professionals is this:

Don’t be paralyzed by the thought of having to be perfect right at the start as an agent, consultant, or financial adviser. Don’t use the excuse of needing more product training for a reason you don’t sell a particular product.

As the motto for a famous shoe store line states, if you want to gain skill and expertise in sales, then just do it. That is, just do the work of selling and a “quality” all its own will follow as a result from the act of doing.

Can you falter or stumble, so to speak, from being less than "perfect" in regard to product knowledge, or even less than perfect in your sales conversation? Yes; but then, how else will you become counted among those who the author, John Maxwell, called a "curious fact."

Only when a person refuses to be paralyzed with the notion that complete and flawless product knowledge is necessary in order to be able to sell well...can they actually begin to...sell...well!

Copyright © 2009 - Tony Cefalu

It Matters Who You Know (cont'd)

2009-12-21T23:13:00.001-05:00

It Does Matter Who You Know! (cont'd)

Consider the Following Networking Advice:

1. Have a Game Plan...An Opening Statement You are Comfortable with in Meeting New People: That was addressed in the previous post.

2. Have a 15-20 Second Infomercial (or personal commercial) on "Who You Are and What You're About" memorized and ready to go!

*Don't forget to look people in the eye when speaking to them; smile and have a good handshake (firm) when reciting your infomercial. Also, a little enthusiasm doesn't hurt either when meeting people. No one wants to do business with a "wet blanket," or someone with a "mushy, weak" handshake...man or woman! Remember, people are naturally judgmental and resistant. So make sure that their first impression of you is a positive one.

Also, try to remember names. Dale Carnegie, the author of the landmark piece, "How to Win Friends and Influence People" is oft quoted as saying, ...a person's name is to him or her the sweetest and most important sound in any language." Using a person's name breaks down their initial resistance.

e.g. "I work for XYZ Company here in Cleveland, developing strategies for families and businesses to better organize their insurance and financial affairs, and ultimately, plan for a better and more profitable future."

" I work with XYZ Company here in Canton, helping people and businesses, like those represented here today, better organize their insurance and financial affairs. What I do helps increase employee retention and satisfaction, and the business person's overall bottom-line profits."

"I work for XYZ Company here in Toledo, specifically working with small business owners in helping them increase their bottom line and reduce their exposure to to unnecessary expenses and risks related to health insurance and health related expenses."

"I work with XYZ Company here in Findlay as a health insurance specialist, helping individuals, families, and small business owners in particular, better organize their insurance and financial affairs. A lot of what I do helps business people, like yourself, save money and positively affect the bottom line. I deal with major medical plan needs, disability issues, and even ways of preventing personal and business assets from being unnecessarily used to pay the cost of medical expenses.I find that the expertise I have in this area to be (absolutely necessary for business success; invaluable to individuals and families.) That's what I do."

Your infomercial should be "short and sweet" and, hopefully, make the other person say, "Oh really, how do you do that?" Once that's said, you're off to the races!

The Will to Win is Not as Important as the Will to Plan to Win!

It Does Matter Who You Know!

2009-12-17T00:29:00.000-05:00

Frustrated and unsuccessful salespeople can often be heard saying that, It is not fair…what you know doesn’t matter…it’s who you know that does.

What’s so unfair about that? Now, I believe there is a need for knowing and being professional and competent. But what is so wrong with knowing the right people, so to speak, and capitalizing on that relationship to accomplish your means?

It sounds more like resentment to me then an issue of fairness when I hear the complaints of those who criticize the reality that business is about relationships; and so, life is about relationships as well.

Putting aside all arguments, let’s just say that I am as equally repulsed as other people by the statement, What you know doesn’t matter as much as who you know that matters, especially when it comes to job opportunities, career advancement and success personally and professionally. But then, what good would it do if I refused to accept the fact of relationships and the power they have in influencing people and achieving success in life over knowledge, subject matter expertise or experience?

Why not use your network of relationships to gain access to people in order to sell the greatest product to have ever been conceived by the mind of man? Frankly, that's a lot of how business and commerce works...by way of relationships!

If You Want to be Successful in Life, You Must Understand How Life Works

In order to be successful in life, you must learn how life works, and find ways to work with, or around life; its challenges, opportunities and set backs. So again, let’s set aside the issue of people who leverage the relationships they have to get what they want is fair or not fair and acknowledge the fact that, yes, it does matter who you know.

Networking, no matter how unpalatable it may be to the high minded, is a fact of life and a legitimate means of gaining access to people who need your expertise. Do you hear me? People need you and what you have to offer. What better justification is there for leveraging relationships to your advantage?

How unfair or distasteful can it be for you, then, to network among your acquaintances to gain access to them, set appointments under favorable conditions, and avoid the normal resistance encountered with truly cold contacts?

Consider the Following:

1. Have a game plan; an opening statement you are comfortable with in meeting new people. In some instances, being prepared to share who you are and what you do for people is an excellent pattern to follow when making introductions with new acquaintances. Some call it an elevator speech or 30 second commercial.

The following are some possible ways to introduce yourself to individuals and to begin building your network of influence and friends:

Hi, I'm Tom Smith. This is my first meeting. Are you a member?
(Get people talking about themselves and what they like. Be interested in people. Find out what they do for an occupation, where they were born and what hobbies they may have. Also, ask about family, kids, names; these are all things that help the agent and customer connect as quickly as possible with you.)

Hi, I'm Tom Smith. I'm new to this group. How about you? Are you a member?

Hi, I'm Tom Smith. I was wondering if you could help me with something. This is my first meeting and I really don't know anyone. Would it be possible for you to introduce me to some of your members?
Possibly said to a host/hostess of a meeting or a center of influence in a gathering.)

Hi, I'm Tom Smith- an insurance agent with XYZ company here in the Columbus area. I work with business owners just like you in helping them use their insurance dollars as best as they can while helping to improve bottom line results. Oftentimes, I'm able to help reduce a business owners expenses while at the same time ensuring they are completely protected...and that's important in our "sue happy" society.

*Whatever the approach...make sure it is one that you are comfortable with delivering and owning. Think about using the phraseology, Could you help me?

One of the greatest of human desires is the desire to be wanted and to be a help to people. Strangers naturally respond positively to such requests for help. e.g. I wonder if you could help me, I've been wanting to meet Frank Stone now for weeks and haven't had the opportunity or occasion to talk to him. I understand that you two know each other and I was wondering if you could help me by introducing me to him.

Try it out. It works.

Copyright © 2009 - Tony Cefalu

Successful People Know Their Numbers

2009-12-14T22:04:00.000-05:00

“Know the score—it’s hard to win if you don’t know the score, so
it’s essential to constantly track and measure your sales and the
numbers behind the sales.”

Jack Mitchell
Hug Your Customers

When I was first a salesman in Youngstown, Ohio, I had a wonderful sales manager and sales coach by the name of Chuck who guided my career in the right direction at the onset. He was a true craftsman of the sales profession and a practitioner of the disciplines it took to be successful.

I remember one time growing impatient with Chuck when he insisted we spend some coaching time together discussing and understanding my production benchmarks and how my bonuses and pay are stipulated in my contract. Now at that time, all I cared about was “sell—sell—sell.”

So I said to Chuck, “Why don’t we just skip all the boring paperwork stuff and the training on how I get paid for something really meaningful like sales techniques and marketing ideas. Besides, I figure if I sell more, I make more, right?”

If I Sell More, I Make More...Right?

But Chuck never relented to my ranting and always insisted that I understand and know what my auto, homeowners, life, health, mutual fund, and annuity sales benchmarks were—and he always insisted on reviewing my pay scale periodically and all the bonuses I was eligible to earn. He didn’t stop at that point, either. Periodically, he would see me in the office and ask, “Hey where are you with life applications and premiums for your next bonus?”

The first time he asked me that, I replied, “I’m not sure, let me check and I’ll get back with you.”

His response: “That’s unacceptable. You should know them off the top of your head.”

“Why," I said. “I’ll have them for you in a minute—just give me a second.”

And it was at that moment he taught me one of the most valuable lessons I could learn outside of any sales training class or marketing seminar I could attend. He said, “You’ll never be successful with that kind of thinking. Successful people know their numbers, Tony. Remember that! How can you hit something when you can't see it? Hitting the target means knowing where to aim. It sounds like to me that you don't know where you're going. Am I right?”

Knowing "Your Numbers" Provides You with a Line-of-Sight Towards Success

He was right. The lesson was clear. If I ignored what was required of me by the company—or if I ignore the possibilities of achieving sales bonuses and recognition levels, how could I ever achieve success?

Years later since starting out in the industry, I have had the advantage of observing the differences between successful sales professionals and unsuccessful sales professionals through the eyes of my former mentor and manager. And one of the common threads that have separated the two groups from each other is the constant ability of the successful ones to be able to recite their numbers, or production numbers, whenever asked.

What does tracking your numbers mean to you, the sales professional? Better yet, what does knowing one's numbers say of the sales professional who keeps track of monthly, weekly, or the daily progress of sales results, expenses, or revenue stream? Well...

Knowing Your Numbers Means:

1. That you are goal and achievement oriented...in a concrete way. What does that mean? It means that success, at the end of the day, is a practical matter for the agency; that success is a number that can be pointed to, graphed, counted, measured, and understood in a meaningful and understandable way. Knowing your numbers means that you appreciate and value quantifiable results as well as the non-quantifiable benefits of being an agent; like the intangible benefits of a better quality of life or more liberty to control your own work schedule. Knowing your numbers means that you are a goal oriented individual...and that is a good thing...if you want to be successful.

2. That you are competitive in nature and driven to succeed. If you know your numbers...then you are the kind of person who keeps track of things for a reason...And those reasons are often connected to the competitive nature of the typical sales professional and the environment of competition so attached to the sales industry as a whole. Track your numbers to win...to win that bonus, win that incentive trip, win that personal goal you've established for yourself, to win that challenge placed before you by the company or sales leaders. Knowing your numbers tells me that you are not only driven by goals; but that you are driven by competition, that spirit of excellence which sparks us to be better than someone else or even your own-self. Winning...like being goal oriented, is a good thing too. I prefer it over the alternative of losing...any day!

3. That you understand the relationship between “what gets measured, gets done.” Tracking and knowing your numbers places a focus and attention on specific activities that produce tangible results...That focus and attention translates into a heightened awareness towards execution and the implementation of activities that are meaningful and worthwhile. Knowing your numbers means you understand the power of accountability and how an awareness of the numbers helps you stay focused on activities that yield results...And results is what being a sales professional is all about.

4. That you like a thrill...And thrills can inject passion and energy into any endeavor in life. There's no better place for energy than in the work place...and in an agent.

Today, this very moment, regardless of the sales industry you work in, “What are your numbers? What are your benchmarks for success, for achievement and higher income and benefits? Where are you right now in relation to your numbers? Or don't you know the answer to any of these questions?"

Your future career and success as a sales professional hinges on your responses, or future responses, to those questions.

Be not deceived...Successful people know their numbers.

Copyright © 2009 - Tony Cefalu

Don’t Be a Half-Brained Sales Professional

2009-12-11T14:00:00.003-05:00

People (customers) are both logical in nature and emotional. That is to say, our brains are constructed in such a manner that the left brain and right brain (the two distinct anatomic halves) function differently—with specific tasks and processes for which they are designed and ordained to adhere to naturally.

The left brain is that half which seeks for details, facts and figures, the literal interpretation of things. The “other” half, the right brain, is quite different in its function. It is in the right brain that our intuitive senses reside. It is the retreat for all our feeling, fears, and beliefs. The right brain is the seat of our emotional being and is, therefore, the domicile of our impulse to act and to buy. The two are interconnected as a right brain process.

Where the left brain analyzes things—the right brain understands, empathizes, decides, and is moved to action. So together, the left brain and the right brain form all our thoughts and behaviors as human beings. And when the decision is made to buy something (a right-brain process), the planning and organizing needed to accomplish the act is processed in the left brain.

“These two minds, the emotional and the rational, operate in tight
harmony for the most part . . . In many or most moments these
minds are exquisitely coordinated; feelings are essential to thought,
thought to feeling. But when passions surge the balance tips: it is
the emotional mind that captures the upper hand, swamping the
rational mind.”

Daniel Goleman
Emotional Intelligence

Customers feel first and think second. This statement is not meant to be an indictment against customers, but is simply a recognition of how people process information and react to emotional appeals or stimuli. People buy out of emotion (right brain) and justify later with logic (left brain).

“Emotions influence every aspect of our thinking life: they shape
Our memories; they influence our perceptions, our dreams,
thoughts, and judgments—and our behaviors, including our
decisions whether to return to a place of business, how much we
are willing to pay for a product or service . . .”

Janelle Barlow
Emotional Value

Medical science and marketing research have proven that the customer-mind in relation to the buying behavior is anything but completely logical. A clear hierarchy exists in our thinking; we buy on feeling or emotions and rationalize our behavior afterwards with facts.

“The intuitive gut feeling is the engine of the decision train, and
logic and rationale are the cars it pulls behind. Yet in many of our
presentations to clients we spend too much time filling the
rationale boxcars with facts and figures and not enough time
trying to influence the engine that pulls the train—the gut feeling.
A powerful presentation first influences the emotion that drives the
decision and then adds logic as the client asks for it . . . Buying
decisions hinge more on feeling than they do on fact.”

Scott West & Mitch Anthony
Storyselling for Financial Advisors

So then, what does this all mean to the sales professional? It
means that in order to sell well, you must get emotional with customers! Get emotional with customers? What does that mean?

It means that in order to improve your sales, learn to speak and communicate in the language of the right brain. Don’t be a half brained sales professional—the kind that is always appealing to the logic of the left brain; who feels comfortable within the realm of facts and is all too eager to explain to the customer the internal rate of return of a whole life insurance contract versus a universal life policy, for example.

Be honest with the customer . . . be factual as well. That’s part of being a sales professional. But for your own sake in having a successful career in sales, and for the sake of the customer who is seeking clarity, understanding, guidance, and simplicity . . . be emotional in your sales conversations! Don’t hurt the customer’s “brain” with a bunch of facts and figures only. That can be overwhelming and taxing. Besides, it does not bridge the mind to the emotional right brain where the impulse to buy resides.

“There is no expedient to which a man will not resort to avoid a
real labor of thinking.”

Sir Joshua Reynolds
Influence

Make the sales conversation as easy to understand as possible while at the same time understanding that emotions rule our desires and impulses to buy.

“You know, Tom and Mary, waiting to buy this life insurance protection when you feel you are ready is a little like waiting until you’re ready to have kids. It never feels like you’re ready, but you know in your heart there’s no better time than now. Wouldn’t you agree that there’s no better time than now for you to ensure that your children, Lydia and Thomas, won’t have to move from the home you worked so hard to provide for them in the event you were to die?”

Or

“I understand the loss of a loved one can never be replaced. But what we have proposed here for you two is a plan for $200,000 in life insurance on each of you in order to avoid having the bills pile on as a result of lost income and all the worry that comes with not having enough money to live your life. That would be awful. That’s the last thing you’d want to see your family endure especially after the loss of a loved one. What do you think?”

OR

“Tom and Mary, after analyzing your situation, what is recommended for you in regard to auto liability coverage is $250,000 for bodily injury protection and $100,000 in property damage coverage. What this means to you is that if either of you or your teenage son, Thomas, were to be in an accident and found to be at fault, we will provide you with protection when the other driver comes after you for money for any injuries sustained up to $250,000. Our society is very sue conscious...and it is very common for the other driver to get an attorney and sue when you are at fault..."

"The same goes for any property damage, such as vehicle repairs or replacement and other damages to someone’s lawn or fence, for example, up to $100,000 of protection. At first glance, these amounts may look like a lot, but an auto accident can easily require these amounts if it were to be of a serious nature. Besides, we would step in and handle all the legal issues and damages on your behalf that your policy affords—protecting your personal assets like savings and investments from being seized as part of a settlement and avoiding the hassle of finding legal representation if you are sued by the other party. In that light, it’s worth it. Do you see how that would work for you and your family?”

We may debate on the exact verbiage of the preceding examples. And it is certain that someone reading this book will find some fault with the script. But don’t fault the effort I make in discussing the facts so much so as to support some of the emotional reasons why people buy life insurance or auto insurance as the two script examples suggest.

“If you want to influence, persuade, or motivate people, you have
to make emotional contact with them.”

Bert Decker
You’ve Got to Be Heard to Be Believed

Before holding sales conversations, plan out word-for-word what you are going to say to the customer. Get used to using emotional language, metaphors, stories, and illustrations in order to stimulate not only the left brain (the factual side or logical side of the mind) but also the right brain (the seat of emotions and the impulse to buy).

Again, don’t be a half-brained sales professional. Make the emotional contact with the right brain of customers as well. Use their names in the sales conversation. Use their children’s names as well. Paint illustrations of what it means to them to have life insurance, health insurance, auto or homeowners insurance with you. Remind them not only of what it is that they are buying, but what it does for them as well. That is the real art of the sales conversation.

It is easy to rattle off facts and figures—but what those facts and figures mean to the customer and how that is communicated can be the difference between a successful sales career and a mediocre or failed sales career. So plan to be successful by first considering the common emotional reasons why someone may buy a particular line of insurance or financial services product from a particular agent.

Some of those emotional reasons for buying are:

peace of mind, love of another person,
no hassles, ease of transaction,
moral/ethical obligation, convenience,
ease of accessibility,fear of loss,
reliability, expectations of gain (greed),
trust, dignity/self respect,
friendly staff, choice/freedom,
pride, make me feel special,
no worries, a good conscience

The above examples simply provide a baseline for you to begin planning out your sales conversation.

By way of another example, if I am in a conversation with a couple about life insurance, and through my questioning (interview/probing) I uncover that they have an overall need of $450,000 apiece in order to meet their specific needs arising from a death. But I discover that the two are most concerned about maintaining the other’s standard of living if they were to die. That is, they are seeking peace of mind emotionally when it comes to why they are really going to buy. A purchase isn’t made for what something is—a purchase is made for what something does for the buyer.

In our scenario, it would be incumbent upon me then to articulate how $450,000 insurance will pay the bills—but better yet, how the money will allay any of their concerns and fears about their children and either spouse having to suffer through the awful ordeal of selling the family home to downsize into something more affordable, changing schools, looking for additional work and sources of income, etc.

This is the language of the right-brain . . . If you want to sell well...to be different...better...and more successful as a sales professional, learn to speak it and not be a half-brained sales professional!

Copyright © 2009 - Tony Cefalu

When Great Customer Service Can Kill Your Business

2009-12-10T22:19:00.000-05:00

Agents sometimes defer to service work over sales work. Why? Because, service work is easier than sales work any day. The premise for focusing on "extraordinary" customer service is that it helps with retention in an economic environment where every policyholder, and every client that is retained, represents a precious income stream into the agency operation.

That is what I call a "specious" argument. That is a fancy word that means, your argument rings true and makes sense on the surface...especially when everyone else is saying the same thing. But in reality, it is a failed philosophy; especially when it comes to customer service.

It is a reality of human nature to fall prey to the temptation of taking the path of least resistance when it comes to accomplishing certain things in life. Unfortunately, the the path of least resistance all too often represents outcomes that are less than favorable for the agency owner. Thus, we excuse away the hard work and necessity for aggressively capturing market share and creating customers for the passive activity of providing "unsurpassed customer service."

Please understand, I am not discounting the value of good customer service. What I am being critical of is the unreasonable focus and almost arrogant notion agency owners and staff members assume with their "personal charge" and pursuit of providing superior customer service over the noble effort of selling to people the products they so desperately need from us.

Selling activities represent risk...resistance...work & planning...investment of time, ideas, effort & money...intellectual energy...emotional investment...physical stress. Selling represents uncertainty.

Customer service is easy. Selling is tough.

Here is when great customer service can kill your business:

1. When you prefer to please rather than persuade someone
2. When you choose being "busy" over being productive.
3. When you think service is more important than securing someone's lifestyle and dreams.
4. When you would rather react to circumstances instead of reach out to people.
5. When you live under the fiction that customer service is how future sales are made.

Are you killing you business with customer service? Are you too busy with being the good guy; the good agent or staff team member who goes beyond the norm when taking care of policyholder problems, questions or concerns?

If so, it's time to shift your agency into a sales organization because, nice guys...do finish last...

Copyright © 2009 - Tony Cefalu

All Customers are Created Equal; Just Some are More Equal Than Others

2009-12-09T21:35:00.002-05:00

I've been criticized by some individuals, particularly those outside of the sales profession, for my declaring openly that “all customers are created equal, just some are more equal than others!”

Somehow it’s construed by some that I am unfairly biasing the treatment of one group of customers over another. Well, the fact that I am biased toward “certain” customers versus another group of customers is...true. I am biased; but I am not biased unfairly!

What I am simply trying to state to small business owners, sales professionals, entrepreneurs and agents is that every customer has an economic value to your business or profession. This economic value can be prioritized or graded. In the case of the sales professional running an insurance agency, every customer, every separate account and policy generated brings unequal amounts of revenue into your business when compared to a separate and distinct "other" customer within the agency.

Therefore, I am merely stating a fact of economics when I state; "All customers are created equal, just some are more equal than others." Those customers or accounts which bring me more revenue value into the insurance agency versus another customer will get treated “differently” than those that do not bring in as much revenue value relative to my business unit. This isn’t heresy; it is just prudent business practice.

Now please understand, I am not advocating that “certain” customers get treated well and “other” customers get treated poorly. No, that is not the message. All customers deserve a good experience, respect, attention, care, professional service, and the utmost in customer service and care. That is the right way to treat anyone person and any customer; with utmost concern for their wellbeing and benefit. That's the kind of trust they place in us as trusted insurance and financial services advisors.

The message is this; with the limited time and money small business owners and agents have to dedicate to marketing efforts, the smart sales professional favors expenditure of these valuable assets on those who are most valuable to the business enterprise. It doesn’t make sense on a business level to weight precious resources in favor of customers who do not have the greater “weight” of economic benefit, or revenue, into the business.

Prioritize your customer list and accounts. Find out who the top 100, 200, 300 premium paying customers you have. Treat all customers as if they are the most important person whenever you are transacting business with them. But when marketing resources come into question or a decision has to be made at where sales dollars are spent; spend wisely...Hug your customers..and Hug your better customers...closer.

Why? Because some customers are just more equal than others”

www.Sales Is a Contact Sport.blogspot.com: You Cannot Out-Perform Your Own Self Image

2009-12-07T12:42:00.000-05:00

http://salesisacontactsport.blogspot.com/2009/12/you-cannot-out-perform-your-own-self.html#links

Copyright © 2009 - Tony Cefalu

You Cannot Out-Perform Your Own Self Image

2009-12-07T00:54:00.007-05:00

Knowledge about people and a fundamental understanding of the dynamics of how behavior and one’s thinking are inextricably linked together is a valuable asset for the sales expert. That knowledge can spell the difference between being a great salesperson and a “not-so-great’ salesperson. Even though there are some inherently universal underlying personality traits among people, among customers, such as our natural tendency to be judgmental; people are still very different and very, very interesting when we examine individual behavior.

But, I think one of the most constructive lessons as a sales professional that I have learned is a lesson, not focused on the customer themselves, but a lesson focused on me as a professional in the insurance and financial services industry. An awareness of personality types and character traits within customers and the buying public is important and useful, as I’ve stated. But, it is an awareness and understanding about me, and even my profession, and my personality and character traits that has proved to be the most valuable facet of personal and professional growth I have ever experienced.

The power of understanding how self-image ties into individual behavior, personal results and outcomes, and a person’s likelihood for success in life is one of the greatest and most valuable sales lessons that can be learned.

I am Not a Psychiatrist...But I Do Play One at Work from Time to Time

I am not a revisionist historian; nor do I blame my parents, or any one for that matter, for my current faults, failures, and imperfections in life. Yes; I come equipped with all the standard human weaknesses, fears, psychological worries and imagined boundaries that the next person possesses. In fact, my family would probably say that I come “fully equipped” with all the extras when it comes to the psychological baggage that human beings can imagine for themselves.

But, I also understand that when past circumstances have been less than favorable for me in my maturation and development, ultimately the interpretation of those circumstances and whether or not they produce positive or negative results remains a personal choice nonetheless. Environment and personal choice play large roles in shaping our futures and our outcomes.

In developing this thought about self-image and the connection it has to actual real world performance results as a professional and as a person, I think it is helpful to be truthful about some of my own personal experiences and resultant thinking and outcomes.

What You Think…Is What You Are…

The connection between our individual experiences and circumstances and what we think of them directly affects outcomes for us. What we think…is what we are…. As I said, I am not a revisionist historian who blames others and their parents for their own problems in life. My parents did a fine job in raising us. But in sharing with you my revelations into the power of self-image, I begin with a story about my father.

Born in the 1930’s, my father was of a generation that was resilient and self reliant. He was a brilliant man; able to work with his hands building a home or fixing plumbing and electrical problems while just as easily as solving the Sunday crossword or managing one of the many businesses he was involved in. He had a college degree, worked as a professional within the parole and penitentiary systems, owned businesses, tried his hand at acting, was gregarious; the kind of individual who could work with both his hands and his mind. He was truly an extraordinarily talented man.

He was also a disciplinarian…prone to being somewhat overly critical at times. It was just his way when it came to dealing with his children. I don’t fault him for it. In fact, it can be said that dad’s style created a mental toughness, of sorts, that has stuck with me even to today. But, it also was the reason for some other “not-so-beneficial” ways of thinking that I adopted as well.

I recall one day when I was about seven years old, dad was working on the furnace in the basement. I was there watching him; ready to help if he asked for anything. At some point, dad had asked me to hand him a tool; I’m not too sure what exactly it was that he had asked me to give him. But, in any event, it was the wrong tool. His reaction was less than approving…Let’s say it was one of his “overly critical” moments for me.

In the aftermath of his disapproval, I remember thinking that “dad is really good with his hands, but I am not.” I thought, “I’ll never be a man-of-the-earth like him.” That is, I thought that I could never be “handy” like him or able to build and fix things using my hands. Because after all, I handed dad the wrong tool that day…So, I must be “bad” at using my hands for such things. Instead, I’ll be an academic…book smart instead of street smart.

And that’s how it was for me growing up. At every turn, I contracted at the thought of taking “shop” class in high school, and as an adult, I dreaded the thought of fixing something in the house or putting together something as simple as a Christmas bicycle. The words, “household maintenance,” became synonymous with being told I need to have a “root canal.” It was unpleasant to think I would have to do something that involved fixing, building, or having to use my hands to do either. I just couldn’t do it. At least, that is what I thought.

You Cannot Out Perform Your Own Self Image

Fast forward to when I was twenty-eight years old and my wife tells me that the garbage disposal at home was no longer working. Being the “can-do” kind of man I thought I was, I did the one thing any red-blooded, self-reliant man would do…I called a plumber.

When he came to the house, I showed him to the sink where the broken garbage disposal was and I proceeded to walk away to let him do his work undisturbed. No sooner had I turned did he advise me that the job was done and the garbage disposal was fixed. I said, “What? How can that be?”

He then showed me the reset button located at the base of the garbage disposal…It was a trip-fuse that would pop out and shut the disposal unit off in the event the tines within the disposal got jammed, for example, when a spoon or fork might fall into the drain unbeknownst to anyone. If the fuse didn’t shut the disposal off, it would likely overheat and burnout causing a fire or permanent damage to the disposal itself. It is a safety feature on the disposal that I was unaware was available.

After paying the $50 to the plumber for the service call, I vowed to never let something like that happen to me; at least it wasn’t ever going to happen to me again when it came to the garbage disposal!

Another time, I was considering remodeling the basement in my house to create an entertainment room for watching television and relaxing with friends when they visited. What did I do? Yes; I called a contractor and got an estimate for the work I wanted done. The price tag for all the remodeling I wanted done, $30,000. I was stunned. I didn’t have that kind of money to spend.

After moping around for several days because the cost of the remodeling would be so expensive, my wife said to me, "You’re a smart guy. Why don’t you do it yourself? Call your father and ask him what to do. He’ll help you. Go to the library and get some books on how to do the work as well. I know you can do this yourself.”

She was right. I did exactly as she suggested. After a summer of dry wall and sanding, I got the basement remodeled how I wanted it to be done. The cost of the entire project was less than $5000; an 80% savings over the original contractor estimate.

Lastly, after I separated from the military following the first Gulf War, I started my civilian career with insurance sales. My manager had provided me with the name of a client who was in need of a review of his policies. I called the client, set the appointment and embarked on meeting them the next day.

At the time, I was the sole wage-earner for the family. With two children under three years old, we made the decision to have my wife stay at home in order to help raise the children while I worked. We also lived in an apartment and had to budget things very closely since I was starting a new agency and business in a profession that was a complete departure from what we both were accustomed to after spending the last nine years in the military.

The car I drove was a used one with the paint fading on it…it was functional, but it was also very “used” looking. My suits could be described in a similar manner; they weren’t used but they weren’t tailored or fitted like I would have wanted. They were plain. Money was “tight,” as some would say. And as a result, we had to watch carefully what we spent our money on.

Self Image Defines the Realm of the Possible

The next evening, while driving to the appointment, I noticed the neighborhood I was going to had a lot of condominiums in it. As I drove closer to my destination, I saw that the condominiums I had been looking at were not condominiums at all; they were houses, big houses. The address I pulled into had a long driveway that ended into a courtyard where there was a Mercedes and several other “high end” cars parked in it. My car looked out of place; I looked out of place. I felt very uncomfortable. These people were obviously very wealthy and in a different social strata than me.

I was correct. They were very wealthy people who had been successful in real estate. In their mid-seventies, they were a gracious couple who welcomed me into their home and allowed me to review their life insurance and investments with them. Afterwards, I returned to the office where I met up with my manager.

The Question That Changed My Professional and Personal Life Forever

Anxious to hear how his new agent had done that evening, my manager asked me, “How did it go?” I told him about the appointment, what we reviewed and about how they had become successful selling real estate and building homes.

He then asked, “Did you sell them anything?” And I responded with, “No. I can’t sell them anything.” Then he asked me the question of questions; the question that would reveal for me the secret to why most people fail in life, fail to realize their dreams, or fail to reach their potential and be successful.

It was a question that was as genius as it was an indictment against my own twisted thinking and poor self-image as an agent. He asked me, “Why not; who told you that you couldn’t sell them anything?”

“Why Not; Who Told You that You Couldn’t Sell Them Anything?”

I think he was stunned at my response. He just stood there looking at me with a puzzled expression, walking away after a couple of speechless seconds ticked by…I was embarrassed and somewhat ashamed at the fact that I hadn’t thought myself capable of selling this rich, elderly couple one of the products I had to offer. I did have products and services they could have used. But instead of talking to them about it when I was there for the review appointment, I left without ever broaching the subject; thinking I wasn't worthy or able to sell them anything.

If You Think You Can or You Think You Cannot; You are Right!

I wish I could end the story of the older couple by telling you that I returned for a second appointment after my manager’s comment selling them something that they needed. But that is not what happened. Yes; I did return in follow-up to suggest some things that they might want to consider with their current life insurance program and some other investment options they could pursue with me. But in the end, they didn’t buy and I walked away without any sale.

But, what I did walk away with instead was something far more valuable then I could have ever imagined at the time. What I gained was an understanding of the power of self-image to define me, to define my life, to define my outcomes and my success or failures both personally and professionally.

In retrospect, it wasn’t my father who told me I couldn’t fix things or use my hands for building and repairing things. It wasn’t anyone who told me I couldn’t fix a garbage disposal or remodel a basement room into an entertainment center. Nor was it any specific person who told me I couldn’t sell that older couple anything. It was me who was limiting…me.

Who Defines the Realm of the Possible for You?

I was the one who was placing limits on my potential and defining boundaries that confined me to being “just” an academic, or just a mediocre salesman, or someone who can’t instead of someone who could or can do something if he puts his mind to it.

How foolish I was in life. How could I have ever missed this before? How could I have done this to myself?

How About You? What Do You Think About Your Abilities & Our Profession?

Attitude isn’t everything; it’s the only thing. What do you think about yourself? What do you think about your abilities as an agent, a professional, an expert? Do you believe you can be successful? Do you think you bring value to people's lives when you consult with them? Do you respect yourself?

Believe in Yourself and the Future is Yours...

How do you feel about our profession; about being an insurance professional? How do you see yourself in relation to being an insurance agent? Do you feel funny about it; or a bit shy or even a little embarrassed about it because of the public’s misunderstanding about our industry?

Do you think we are noble in our pursuits to sell people insurance and investment products? When people ask you what you do for a living, do you try to avoid telling them the plain truth by masking it in language that paints a picture which is other than the whole truth?

Have past circumstances somehow convinced you that you can’t do something? Have past failures defined for you boundaries that limit your potential to be successful or achieve your dreams? Is your poor self-image telling you you’re not good enough for something or not smart enough? Who is holding you back? Is it you?

Everyone experiences self-doubt. Some experience self doubt more than others; but we all have some measure of doubt or question whenever we embark on a new endeavor, forge toward a new direction or undertake a new challenge. Unfamiliarity and uncertainty create a natural tension within each of us.What I am referring to goes deeper and speaks to the core belief you have in yourself, your abilities, your right to be happy and worthy of success.

What's Holding You back? Who is Holding You back?

Be sure that the boundaries in life that you do encounter are not one’s that have been self imposed.

You cannot out-perform your own self image. If you think you can’t make those calls, if you think you can’t make those sales, if you think you can’t achieve that goal…then you are right.

Today, if you visit my house, you will see that my garbage disposal works, my basement is finished and even my garage is dry walled and fitted out like an extra living room in my house. I did all of that because, I am a man-of-the-earth now. I no longer define myself as an academic...Instead, I am a man who refuses to think he is incapable of doing anything...I am a man that works with his mind...and his hands. No longer will I limit myself by poor thinking and a poor self image.

Am I arrogant for writing such a thing? I don't think so. It is because of the lesson of self image; the lesson that says, ‘You cannot out-perform your own self image,” that allows me to write these words.

It is because of the question I was asked years ago, “Why not; who told you that you couldn’t sell them anything?” I was never going to do that to myself ever again…I hope you feel the same way.

In my garage is a workbench full of tools. Ask me for a certain tool, and I promise you, I'll get you the right one. Proving once again, I am a man-of-the-earth despite any past failures, shortcomings, or evidence to the contrary.

No One Will Have Done You a Favor by Buying Off of You

2009-11-16T22:21:00.000-05:00

On the surface, I am sure the above caption sounds arrogant to the reader, but it isn’t meant to be an arrogant statement. At least, it is not intended to be a statement born out of an arrogant heart. Instead, it is meant to be one that is rooted in gratefulness and in the realization that the noble profession we have chosen, the insurance and financial services profession, is one of the greatest professions that has been conceived by the mind of man.

In a world where people toil to make a living, an honest living, and work to provide for their needs and their family’s needs, we get to do one of the better things in life and sell insurance.

What I mean by that statement is this; there are a lot of good and great things that people can do for a living. There are professions and lifelong pursuits such as being a physician to the poor and under-privileged, counseling of the mentally ill and those in crisis, being a nurse, a fireman, policeman and countless other vocations which can be said to be noble in serving the common good of all mankind. These individuals, and others like them, are heroes and are to be honored for the sacrifices and risks they take on behalf of others.

Our Profession is a Noble Pursuit…We Serve the Common Good of all Mankind

But for those of us who are agents, advisors and consultants who sell insurance products and financial services, I would like to say simply, we are cool.

Yes, our profession is a cool profession; a profession that is so often misunderstood and unfairly maligned by the general public, a profession that is vital to industry, vital to our high standard of living, vital to innovation and invention; a profession that is the foundation for so many other industries and people. Take away the insurance & financial services industry and you do damage to the entire landscape of society.

Keeping the Promises…Other People Make

We help keep the promises…that other people make to their loved ones and business partners. Though a loved one may die, a home burns down, business ambitions are lost, or a car is stolen; we are there for our clients…keeping the promises they have made to their families, their friends, their colleagues and business partners by way of insurance protection. We are the means to an end…And that end has nothing to do with what it is that we sell…but in what we can do for people and what our products can do for them.

So if we are so cool, why do people have such a low opinion of our industry and profession? Who is to blame for our poor public image?

To a large degree, those of us who work in this industry are to blame for the negativity and distrust dominating public opinion. Simply put, we aren’t talkative enough about the great things we do for people. Our problem is in a failure to tell our story to enough people…enough of the time.

We Don’t Tell Our Story to Enough People…Enough of the Time

We need to tell our story, to talk about our good deeds in restoring people and making them whole financially. We need to make sure people hear about how we’ve helped people avoid financial ruin or getting into a financial crucible where bankruptcy would have been the logical next step for them had it not been for insurance money to save the day.

Consider What We Do and You’ll Understand the Caption to this Article

That’s right, we are cool. We are in a great and noble industry. And when I hear people quip about how insurance is a “rip off’ or complain about how we work to deny claims and to not pay what we promise, I let people know that such a statement is untrue.

Why? Because I know and respect the people who make the industry so wonderful…good people…dedicated and hard working individuals…and I can’t remain silent when such things are said. Rather, I will tell the story of how insurance and the industry is one of the noblest professions around and how it can keep them from having an accident turn into a tragedy by way of financial hardship.

Consider Life Insurance & the Impact a Policy can Have on a Family’s Future

For example, the loss of a loved one is devastating, to say the least. As a human being who loves people and cares for them deeply, I wish I could take the pain and grief left for the surviving family members away when someone dies... But, I can’t take away their heartache; no one can. It is…what it is…and so life goes on and we can only pray and hope that the future is brighter for those left behind to carry on.

But, things don’t always move forward as hoped. In fact, it is my observation that the loss of a loved one does one of two things to the surviving family members. It either brings a family together making them closer than ever. Or, it tears a family apart driving a wedge between brothers and sisters, husbands and wives...fostering resentment and bitter feelings in the aftermath of a tragedy.

The reasons can vary widely as to why a division among family members can occur. Nonetheless, pile on the bills in the aftermath of a loved one’s death and the likelihood for strife and a rift among family and friends is dramatically increased. Hence, the miracle of life insurance and how it provides families and individuals with the liberty to deal with the pressures of a loved one dying and the associated financial pressures that follow. The agent who sells a life insurance policy today...can be preserving the relationships of brothers, sisters, mothers, and fathers for generations to come. I'll bet you never really thought of it that way before...That is why I say, we are cool.

I Did Not Drink the Kool-Aid®

I am not an apologist for the insurance industry, nor am I someone who blindly follows along; drinking the Kool-Aid® of mindless agreement with everything we do....I also don’t think they need me to argue in support of what they do…I believe their actions and good deeds speak for themselves. Are there bad actors in the industry? Yes. What industry doesn’t have its problem children; companies who practice illegal and deceptive practices that harm the consuming public and tarnish the reputation of others as a result. But those are few in number and they do get policed. Heightened vigilance in the industry to make sure consumers are treated fairly and right is something I am fully in support of in order to avoid and stop abuses and other misconduct by insurance companies.

Don’t Gush All Over When People Buy Off of You…You Know What I Mean…

Bottom line, when someone buys off of me…or you…be grateful that they chose you as their trusted advisor, their insurance agent who is responsible for making sure that they are protected for what they need and want. That is a good thing…gratitude is an appropriate reaction towards a customer who selects you and trusts you to be their agent, particularly since there are so many agent choices out there today.

What isn’t appropriate is the notion of gratefulness that is born out of a sense of unworthiness or favor…In other words, I do not think it is healthy to think of yourself as lucky or fortunate to have had someone actually do business with you, as if, the customer has better choices than you for an agent and they stuck with you anyway. That’s nonsense. You are the better choice.

My sense of the matter is that some agents, particularly new agents, do feel a bit of the “unhealthy” gratitude I just mentioned. The quicker that kind of thinking is dispensed with the better for you as a professional. Bottom line, no one will have ever done you a favor by buying off of you…

You will have done the favor by seeking them out as a prospect, planning a sales conversation that is persuasive and compelling, and in monitoring their needs and meeting with them periodically to review their situation and adjust their individualized insurance plan so it is current and relevant for what they want and need.

That’s a lot of work, energy, concern and dedication invested in a client by an agent…That’s why I say, No one will have ever done you a favor by buying off of you…It’s because we earn our livings by making sure other’s lives are secure…

For that reason, our clients should be thanking us for doing the worrying for them so they don’t have to…

No One Will Ever Have Done You a Favor by Buying Off of You...

The Favor Will Have Been all Yours...

Copyright © 2009 - Tony Cefalu

Off to a Good Start...But with No End in Sight

2009-11-10T02:34:00.000-05:00

90% of the game is half mental.
Yogi Berra

Marathon runners are a very special breed of people. They’re special because of the limits that they push their bodies in a 26.2 mile race; limits that not only test the endurance of the human body, but the power of the will to go on despite the minds rejection of the endeavor and the spirits despair at the daunting task of a finish line unseen.

At what mile mark do most runners quit a marathon? If you are like me, you would probably say the 5th or 10th mile; when the finish line seems so far away and the body’s strain is beginning to anticipate the excruciating pain to come.

But like most things in life, a seemingly simple matter such as the question of when most runners quit running in a marathon race, is not as easily answered as first thought.

It is Important to Get off to a Good Start when Setting out to Run a Race

Aside from the first mile, the 26th is when the least amount of people quit the race. I think the reason that this is true stems from a simple explanation of line-of-sight, or vision for the finish line, where the power of the mind can push the body beyond normal physical limits by way of a clear goal toward the future.

It is important to get off to a good start at the beginning of a race. If a person is to have any chance of success at something, a clear picture of the end in mind is very important in order to start strong and committed, no matter the challenge or the goal. So the beginning of a task, such as the first mile in a 26.2 mile marathon, witnesses very few people quitting because a runners vision of the finish line is so fresh and untested.

Most runners don’t quit at the first mile or so of a marathon because of fresh line-of-sight to the goal…And most marathon runners don't quit during the final mile, the 26th mile either, because they have a vision of where they are going; a vision that is tangible, palpable and real…a vision they can actually see. Sure, they are physically exhausted, but their vision fuels them and tells them to keep going to reach their destination; their prize..

If There is No End in Sight…There’s No End in Sight

Most runners quit a marathon at the 20th mile, a rather strange point it seems to be quitting. Think of the personal investment made by the runner up this point; all the pain, tolerance and sheer will power to keep going just to stop short of the finish line. Why? I think the answer goes back to the original discussion of vision and having a clear line of sight to the goal.

When We Lose Sight of the Prize, the Finish Line…Quitting Makes Sense

When we lose sight of the prize, we lose sight of our purpose and motivation to continue on. If there is no end in sight for the runner, there is no end in sight that can be achieved. Even though a person may be invested both physically and mentally in a given endeavor; invested to the point at which it seems impossible to ever want to give up; it happens. When goals fade away and a vision for the future dissipates, no measure of personal power will sustain the effort to move forward and take another step.

Where there is no vision the people perish.

This underscores an important principle that is a key to success, health and happiness.

That important principle is this:

You must keep your vision alive and stay mentally, emotionally and spiritually fit in order to prosper as an agent, a business owners, husband, wife, father, mother and individual. Know your business plan and envision for yourself what it is you want your agency, or small business, to be known for and remembered for.

After all, there will be days when your body will say no while the mind has to say yes. There will be times when it seems that everything in life conspires to sabotage your goals and dreams. And there will be weeks or even months when you feel like you are hitting the 20th mile. Don’t stop. Keep your eye on the vision of what you want for your business and for you family.

The answer to running the race is to maintain your vision and focus on the finish line. Keep your vision alive and it will keep you alive. Don't give up. Keep striving towards the vision planted in your mind and heart.

In closing, here's a simple 3 step process to keep your vision alive.

1. Write it Down…Write down your vision for your life and career. I heard it once said, If you think it, ink it! That’s good advice. Agents who force themselves to write down their goals end up accomplishing those goals more readily than if they hadn’t.

2. Know your WHY. Why is this vision significant to you? What do you hope for? What is the bigger reason for your vision? Your why is your purpose. You must know your purpose or vision in life. Vision without purpose is like trying to drive a car without an address for a destination.

3. Review your Why statements on a weekly, if not daily, basis. Remember, if you keep your vision alive it will keep you alive.

Purpose fuels your vision and it fuels you. Write down your WHY and your vision for the future will stay clear.

Copyright © 2009 - Tony Cefalu

Hire for the Position, Not the Person

2009-11-08T22:31:00.000-05:00

Recruiting, Hiring and Firing. It Comes with the Territory…

Recruiting, interviewing, hiring, executing background checks, plus training and integrating individuals into capable business associates is an undeniable function within all business entities. The agent-owner who effectively and economically executes their role in these areas will be the business entity that survives another day in fulfilling the business purpose. Those who get lost in the hiring process; getting bogged down by uncertain recruiting costs and high expenses involved with installing new hires into the organization...will not survive.

In order to remain viable as a business entity and to sustain growth, agency-owners must be constantly scouting talent while at the same time ready to assess the potential of a candidate’s fitness to fill a given position. Thus, it is extremely important for the agent-owner to draft detailed job descriptions for each position within the organization detailing all function within the agency that fall under the requirements of the position before ever considering to recruit and hire someone.

The on-boarding of new talent can be expensive. At least, it can be expensive when considering the cost involved with acquisition costs and the time invested in evaluating each potential hire. It can also be expensive from a production standpoint. Specifically, if the candidate hired does not perform well in the position they are hired to fulfill, the expense to the agent–owner can be enormous...and can be measured in actual dollars and cents.

That is the great challenge in hiring any new employee into an agency or other small business; making them a center for profit versus an expense on the balance sheet at the end of the year.

How Can I Increase My Chances of Making a New Employee a Profitable Employee?

So, what can an agent or small business owner do to increase the likelihood that a new hire will be a revenue center for them rather than another expense to worry about? The best thing an agent can do to ensure that happens is by being disciplined in the hiring process.

What does it mean to be disciplined in the hiring process? What it means to be disciplined in the hiring process is this; all too often agents who have determined that their business operation needs a new employee will seek to fill that position with someone who is seasoned in the business and already licensed rather than someone who can satisfy the requirements of the job. Worse yet, the reason for hiring some individuals will rest on whether the agent-owner “liked” them or not for some particular reason.

Experience, licenses and a likability factor are important aspects to consider during the selection phase; but alone, these factors in determining whether to hire someone or not can produce disastrous results for the agent-owner. Remaining disciplined in your approach to recruiting and evaluating talent is vital in matching the right candidate for the position at hand. The proper way to evaluate talent is against a standard based on the skill sets necessary to perform the functions of the open position.

Use a Job Description & Match the Requirements of the Position to the Person

Being disciplined in the hiring process means deliberately matching the skills and abilities of a candidate with the detailed tasks as outlined in the job description. This process helps prevent the agent-owner from succumbing to the temptation of bypassing the steps necessary in matching talent to the skill sets outlined in the job description. As a result, instead of relying on the uncertain factors of "personality" and "industry" experience when assessing a candidate, the agent-owner can focus on specific competencies and skill sets as outlined in the job description.

The candidate who is hired for what they can do, rather who they are...has the greater likelihood of being the best hire. The benefit to be gained in adopted such a policy when recruiting talent is this; trading the opportunity to hire the best candidate for the expediency of selecting someone with experience and a license is a foolish thing. Such an unstructured and random selection process can only result in the wrong person being hired.

That alone has a cost all its own; literally.

Copyright © 2009 - Tony Cefalu

Your Money is Your Business...Literally!

2009-11-07T20:40:00.000-05:00

Expense Management is a Key to Survival for the Small Business Owner

It is a very competitive business landscape in virtually every sector of the market; particularly hard hit by rising costs in recent years has been the insurance and financial services industry. The slightest miscalculation in spending valuable agency resources can result in a tremendous amount of harm to vital cash-flow needs and deplete precious capital reserves needed to continue operating the agency and meeting payroll demands.

As premium revenues steadily decrease among most insurance companies along with increasing operating expenses, agents are seeking new outlets and touch points to acquire customers and access new streams of prospects to drive growth, achieve policy count increases and offset the challenge of higher operating expenses. The adoption and use of the Internet and direct access points are two examples which indicate the heightened concerns agents have for rising costs in doing business while trying to maximize revenues. These new channels promise a low cost burden to the agent while at the same time delivering a high impact marketing benefit…That’s just what any small business owner needs today.

It all Begins with a Simple Choice

Expense management is not as complicated a matter as is often made of it at the agency level. In fact, when considered against the backdrop of some simple questions related to sales & marketing, determining what is a wise business expense to assume versus one that is not…is a simple task.

It is not the choice between one thing to spend money on and another that presents difficulty for most agents. It is the actual follow through on that decision, or the execution of the choice to spend or not to spend, that causes the most problems for agent and other small business people. Making the choices between good and bad, wise and foolish, smart and…not so smart, are easy choices to make. But acting on those choices; now that is a different challenge altogether.

The Two Question Standard and The Magic of Follow Through

Expense management begins with the two question standard.

1. Is the money I am considering spending intended to drive prospects to my business?

2. If not, does the money I am considering spending go towards keeping the business entity viable and operating effectively and efficiently so I can drive customers to my storefront and keep the current ones that I have acquired?

-If the answer to both questions is, no; then don’t spend the money…Or, if you feel absolutely compelled to spend the money anyway, at least, spend the money very slowly, deliberately…and very reluctantly.

-If the answer to either is, yes, then spend it…And, yes, spend it carefully and wisely.

Recognize that the farther you deviate from this two question standard, the farther away the business drifts away from profitability and solvency.

Expense management has to do with the discipline of follow through.

Can you say, no, to one expense and, yes, to another after applying the two question standard…and then actively follow through with the decision?

Before you answer that question, consider the following example: You are contemplating buying satellite radio for your business car because you are in it so much; with all the driving back and forth to appointments & meetings plus the local channels have such poor reception, satellite radio would be a welcome addition to the business environment.

The above example is a seemingly inane circumstance; the kind of expense that is common and minimal in comparison to other large expenses that an agent, or business owner, is accustomed to making.

Satellite radio; it’s only $12 month, that's $144 a year to enjoy the benefit of uninterrupted reception with a myriad of channel choices for a reasonable cost. What harm can it do to have that in the car? Besides, my comfort is an important aspect of work and of life itself. I have earned it.

I would agree with what could be said to justify the purchase. But those things are irrelevant when considered against the two question standard.

1. Is the money I am considering spending on the satellite radio intended to drive prospects to my business? (Answer: No)

2. Does the money I am considering spending on the satellite radio go towards keeping the business entity viable and operating effectively and efficiently so I can keep current customers or drive new customers to my storefront? (Answer: No)

I am not begrudging agents and other business owners the liberty to spend their money on what they want. The freedom to make choices and decisions is one of the great attractions of being a business owner; and being an American for that matter. What I am suggesting is that agents take the time to consider their expenditures, and impulses, through the filter of the two question standard.

Impulses and Careless Spending can Lead to Business Failure

Many times, I have observed the unnecessary spending of precious business funds on things that are not relevant to the business goal. Blackberry phones, expensive pens and office items, unneeded office furniture and decorations, unnecessary and frequent business meals and excessive spending on office supplies to name a few are examples of expense traps that many agents can fall prey to when making spending choices. And as a matter of record, it is oftentimes the small and seemingly “harmless’ expenditures that cause big problems for the agent owner.

Inevitably, the day will come when money is needed for an expenditure that could actually drive prospects to your storefront, but the funds are not there; Why? Because satellite radio and that Monte Blanc pen you wanted for the office to impress clients was purchased instead. Logic could be used to justify the purchasing of all of the aforementioned items, but if squarely applied to the two question standard and critically assessed in regard to their benefit to the overall success of the agency, the answer would be to forego those expenses and apply them to marketing & sales processes within the office that will have a direct impact on revenues and in lowering expense ratios.

Freedom can Kill You…And it can Kill the Business…

Again, I feel it necessary to remind readers that your money is your business, literally. The ability to spend money and to make choices is a relative matter and a highly personal one as well. Some agents have the fortunate ability to spend more than others. Some agents have a very narrow margin of discretionary money, and are thus; more sensitive to cash-flow issues. This causes them to keep expenses strictly centered on profit and growth spending moreso than the individual with a greater capacity for spending outside thee boundries of necessity.

Agents operating under narrow margins, which are most common, have no latitude for deviation from the two question standard. Still, the wonderful part of business ownership is the ability to exercise personal authority over the spending of money as you see fit. Afterall, it is your business, and no one elses, when it comes to what you spend your money on.

But with the wonderful privilege of business ownership and the freedom of choice that comes with it, there can also be the curse of that same freedom and liberty associated with business ownership. Freedom without self-discipline is a killer. It’s a killer of profit. It’s a killer of production excellence. It’s a killer of a small business…and it is a killer of personal achievement. Freedom without discipline soon leads to bondage and enslavement, if not literally, at least financially when it comes to agent owners.

The Answer to the Question is Not the Solution.

The Solution to the Question is Not the Answer.

What You Do with the Answer is the Solution to the Question.

In regard to expenses and managing them properly as a business owner, there’s a certain discipline necessary that every agent-owner must exercise in order to adhere to the two question standard.

That discipline is rooted in the habit of always personally asking the two question standard whenever contemplating business expenditures and executing upon what has been concluded to be the answer to those questions.

For the answer to expense management issues is not the solution to the question; it is the active adherence to the answer that is the solution to the question…and the question, once again, is this:

1. Is the money I am considering spending intended to drive prospects to my business?

2. Does the money I am considering spending go towards keeping the business entity viable and operating effectively and efficiently so I can keep current customers or drive new customers to my storefront?

The answer is going to be either, yes or no. But the solution is not in concluding on a yes or no answer. The solution is in the deliberate, disciplined act of not spending when it is so indicated, or by spending when it is indicated. That is the discipline of expense management. Sounds simple in its basic form…and it is simple. The hard work is in the application of the answers; the discipline and determination to execute on the answers is the challenge and the magic to effective expense management as an agency owner.

Expense Management Relies on Metrics

Finally, expense management relies on metrics or reports that are generated in regard to revenues, expenses, production, growth, retention and a number of other factors which are used to measure the condition of the business entity and the effectiveness of business processes and personnel. One thing is certain, in any modest sized business organization, there are always metrics available to measure and gauge various aspects of the business and assess alternatives to increase production, improve upon service and manage expenses.

Use metrics in order to analyze the condition your business is in and to be able to adjust your operations accordingly; to capitalize on an opportunity, identify a shortfall, and avoid a business threat or to improve upon an operational efficiency.

Successful People Know Their Numbers

Metrics, in regard to your expenses, provide the owner with a line-of-sight to problems on the horizon before they become problems in the moment where time to make a good decision is not an option.

It has been said on many occasions; successful people know their numbers. Know your numbers…Use the reports made available to you to stay informed on where you are spending money and how you may improve upon business operations to create efficiencies and reduce overall costs at the same time.

Use the two question standard to determine whether or not to spend money on something…Then apply discipline to the answers you conclude. That is the simplicity of expense management at the agent owner level.

Afterall, your money is your business.

Copyright © 2009 - Tony Cefalu

The Pain of Discipline or The Pain of Regret

2009-10-30T23:28:00.000-04:00

Success is often disguised as hard work.

Which do you prefer?

1. The pain that comes with hard work and waking in the morning to earn a living and be successful . . .
or
The pain that comes with the secret knowledge of your own laziness and the cause of your own failure.

2. The pain of practicing and studying to get better at something and to feel the thrill of learning something new . . .
or
The pain of never mastering anything.

3. The pain of planning and organizing to win or succeed at some noble endeavor…
or
The pain of always being and feeling overwhelmed, uncertain and without acomplishment.

4. The pain of accepting and attempting new challenges and experiencing new frontiers and making friendships…
or
The pain of boredom and emptiness.

5. The pain of setting goals and working towards them and owning success and the excitement of accomplishment and victory. . .
or
The pain of having no direction, no sense of purpose, fulfillment or achievement.

6. The pain of cooperation and teamwork and the bond it creates among peers.
or
The pain of lonliness, rejection and isolation.

7. The pain of doing right, being honest, and keeping promises
as a person of character, integrity and a good conscience...
or
The pain of a tarnished reputation, of guilt and of a troubled conscience.

The Pain of Discipline or The Pain of Regret. Which do you prefer for your life?

Choose well, for your choices are brief yet eternal. Goethe

Copyright © 2009 - Tony Cefalu

How Often has this Happened to You?

2009-10-27T23:27:00.000-04:00

You're entering into a building, a mall or some type of office, and as you open the door to enter, you notice someone walking towards you to exit the building by the very same doorway you are going to enter. Out of thoughtfulness and good manners, you defer to them and hold the door open, giving them the right-of-way while you patiently wait...and wait...and wait.

But what is it that you are waiting for? Ah, thank you, that’s what you are waiting to hear from the passersby. But there is no corresponding thank you offered; they just walk on through the open door. In fact, they didn't even acknowledge you; avoiding eye contact, pretending you weren’t even there. It is as if they expected you to hold it open for them.

“The deepest principle in human nature is the craving to be appreciated.”
William James

After they pass, you enter the building secretly telling yourself, It's no big deal...I'm above needing gratitude...I'm the better person...

But inevitably, you begin to think, How rude of them to not say, “Thank you.” Where are their manners? I just can't understand some people...Common courtesy is not so common, anymore.

The Exchange of Money is Never an Unemotional Event for a Customer

It is an awful feeling to not be appreciated or recognized for a good deed. If something as simple and seemingly innocent as failing to say, Thank You, for an open door can trigger negative feelings, consider how people feel when we miss the opportunity to thank them whenever we do business with them at the agency.

We are ruled by our emotions. In everything we do, our actions are largely driven by our emotions and supported later by logic. That is especially true for our customers.

Never let them feel unappreciated or taken for granted, or worse yet, feel taken advantage of by not being shown courtesy when they deal with you.

Therefore, whenever transacting business with customers, here are some reminders on when to thank them and show that you appreciate their patronage while also avoiding the offense of making them feel taken advantage of:

1. When they call in about a question on their bill…

Thank you, we appreciate your business and remember; whenever you need anything, we’re here for you. Have a nice day.

2. When they refer a friend to you…

Thank you for recommending us. We appreciate your referral and are happy to give them the same care that we owe you. We’ve sent you a little something in the mail in appreciation for your confidence in us. Thanks again.

3. When they call with a complaint…

We apologize for the inconvenience we’ve caused you, and thank you for calling and letting us get a chance to correct things for you. We value you as a customer. Without talking to you, we wouldn’t be able to fix the problem for you or avoid this ever occurring again. Thanks again.

4. When they call with a compliment or praise…

Well thank you. That is very kind of you. It’s so important to us to make sure we are here for you. You can rest assured that we are doing the worrying for you regarding your insurance needs so you don’t have to…Thanks again.

5. When they suggest things you can do or make a comment on how things can be improved…

Thank you. We keep a ready ear for ways to improve on the way we do business and it is people like you whose opinions matter the most to us. I appreciate you sharing that with us and will make sure that we discuss it in one of our team meetings…

6. When they comply with your request for something…

Thank you for bringing in the paperwork we needed for your jewelry. I understand you are busy and realize how tough it can be to get time off of work to bring something in to the office. That is going to help a lot in getting your items protected and to give you peace of mind much quicker than if we had to wait for it in the mail.

7. Whenever they come into the office…

Thank you for taking the time out of your busy day to meet with me to discuss your life insurance needs. Knowing how important this is to so many families like yours, I applaud you for making this a priority for your family.

8. When they wait patiently…and not so patiently…

Thank you for waiting. I really do appreciate it. We don’t take your time lightly and do apologize for the wait…

9. When they do business with you…every time!

Thank you, I really appreciate your business. Knowing that you have many choices, we do thank you for choosing us as your insurance agent.

Courtesy and good manners are the lost social art. It is common place to not be thanked; to not be appreciated and made to feel special. Remember, although each of us is unique and different in so many ways, we're also very similar as well.

To be valued and appreciated is a shared craving and one of the greatest of human desires. So help yourself and others and remember to say, thank you, to your customers when you meet them and transact business with them.

It matters. Just think how much you appreciate it when you, as a customer, are thanked…or not thanked. Fail to give customers what they want and they will go where they can get what they want: appreciation.

Copyright © 2009 - Tony Cefalu

Success is the Best Revenge

2009-10-24T19:02:00.000-04:00

I was 32 years old, had just relocated to my childhood home of Youngstown, Ohio, married 9 years and the father of two young children; Lindsay who was 22 months old and Tony who was 8 months old. The first Gulf War had just ended and I was a brand new civilian who had just separated from a promising 9 year career as an Air Force officer.

It was my first day of work as an account executive, or agent, with one of the largest life insurance companies in the country. I had never sold a thing in my life, but then at my age, most things were still new to me anyway. From career soldier to insurance salesman; it was a very uncertain time for me and my family.

Part of my introduction into the company was a quick tour of the branch office I was to work out of while selling life, health, investments and auto and homeowners insurance. It was a bland office, very sterile; not a stylish place at all. It was the kind of office that you would expect work to get done…There was no time for anything else at this place.

There were 5-6 smaller interior offices reserved for the top producers in the branch and approximately 15 cubicles for those who have yet to earn that distinction. My cubicle was in the back.

I was being introduced to the staff when one agent, who was young and a recognized top producer, took the opportunity to pull me aside in order to share with me some friendly advice about the insurance business. This is what he said:

“You’re number 41.”
I said, “Excuse me?”
He said again, “You’re number 41. I’ve seen 40 come and 40 go.”
“You’re number 41.”

My response back to him can’t be published. Afterward, I walked to my cubicle thinking about what had just happened and I took a piece of paper from out of the desk and wrote on it, #41. Then I pinned it to the cubicle wall.

Every time I sat in my cubicle to print a proposal, work up a quote or use my phone, I saw that piece of paper and could hear that guy say, You’re number 41. It made me angry.

Six months later, I was accepting the company’s award for top producer in sales. In less than a year, I had out-produced hundreds and hundreds of agents, some with as much as 40 years of sales experience to their credit.

There were a lot of reasons why I was able to accomplish what I did in such a short time. I had planned out each work day, kept my focus on executing my marketing plan; scripted out my sales conversations and tracked all my sales and made sure nothing got hung up in underwriting.

I also had a great manager for whom I will ever be indebted to for his guidance, encouragement and solid sales training. He was instrumental in making my introduction into the industry a positive experience, and he took the time to share with me the benefit of his years of sales experience and expertise.

But the person I am most grateful to is the agent who branded me, number 41. Because of him, I was inspired to succeed and not fail. In life, there will always be people who tell you what you can and can’t do…They will try to limit you in what you can accomplish by the words they use. They are negative people; small minded individuals you will want to stay away from or else you might begin believing what they say.

And there will always be personal doubts and circumstances that plague us from time-to-time; questioning our own abilities to succeed and achieve things. It’s a struggle against the environmental forces of life on the outside that tell us we won’t succeed, and the personal doubts about our own abilities to succeed that most people quietly harbor inside. It’s a normal part of the human condition.

The lesson I learned; you can choose to accept the estimates negative people make of you or you can choose to prove them wrong. You can let that quiet, small voice that causes you doubt about your chances to succeed convince you that it is true, or, you can put it to rest and muzzle it for good by staying focused on your goal and accomplishing what you set out to accomplish.

I despised the agent who called me, number 41. I despised him for what he said and thought of me as a person. But, I despised him even more for the fact that he may be right; that he may have validated my own self-doubts about my potential for success as an agent. I could have gotten revenge against that guy in a lot of different ways, and that would have been wrong. Instead, it was my success as an agent that was ultimately the best revenge...and it was one of the best lessons in life I could have ever learned.

Success is the best revenge. It quiets your critics and proves them wrong about their low opinion of your capabilities…and it puts steel in your resolve to achieve things in the future.

What about you? You may not have someone telling you that success is reserved for others and not you. But if you are like most people, you probably struggle with some degree of self-doubt. Whatever your situation may be, are you getting your revenge? Are you muzzling the quiet voice inside of you that says, you can’t do it?

Don’t live with the weight of doubt and criticism about your chances to succeed. Silence the critics…especially those in your own mind. Refuse to succumb to estimates and predictions of your failure. Get your revenge…make your success. It is the best revenge of all.

By the way, after I was awarded the distinction of salesman of the year by the company, I was granted a private office within the branch for being a top producer. The office I was offered was that of the agent who called me, number 41.

Success is the Best Revenge. There is nothing like it!

Copyright © 2009 - Tony Cefalu

You are that "Link to Value"

2009-10-20T15:18:00.000-04:00

Value is a number placed face-to-face with the benefits to buying something. It is not a string of superlatives such as most reliable, best claims service, strongest financially.

Value is realized when the customer makes the positive connection between price (premium) and the benefits to them of our products and services. Value is not necessarily a comparison or connection between a company’s price and their competition's price.

Value Is…What Value Does…

Value is a comparison of whatever your price is…in connection to…what your price does for the customer. It is the classic features to benefits discussion that the top sales experts understand and apply to their craft as sales professionals…What the price is has no importance to the customer until they see what the price does for them; how something will benefit them. That is value.

Articulate the benefits. Don't fall into the trap of feeling compelled to compare your company or agency to the competition. If the customer brings up the subject of the competition, acknowledge it and move on in your discussion. Focus your sales conversation on how they will benefit from choosing your company and you relative to the declared price. Get the customer looking inside rather than outside for a value comparison.

By inside, I mean, get the customer to internalize all the benefits of choosing your product and service…on how they will benefit personally from doing business with you instead of anyone else. Get their mind’s eye away from looking outwardly at their current price and current insurance company for a frame of reference. Instead, get them looking inwardly at what you can do for them.

For that moment, ignore the price and concentrate on the customer’s needs, articulate through illustration, stories, pictures and emotional language that involves them as the characters in a scenario where you are the clear advantage for them versus anyone else.

To be Understood is a Luxury…It takes Work to be Understood

Don’t worry about the price or the fact that there is a competitor who is vying for the same customer, focus on communicating clearly what you mean to them as their insurance agent; their advisor. And when the time comes, when and if they ever need you to be there for them, keep your promise to your customer. Don’t be like so many other agents and advisors who will say anything to get a sale; keep your promise to be there for them when they need you. That is real value to a customer.

Price is an Issue…But Who has the Biggest Issue with Price?

Price will always be an issue. But, I sometimes think it is more of an issue for the salesperson then it is for the customer themselves. There is a strange mental game we as agents get caught up in where our entire focus is on whether we have a lower priced product or service than the competition. Consequently, we become sensitive to the differences that we see when quoting customers and we feel almost apologetic when presenting our price when it is higher.

We lose sight of the value discussion and in explaining what the price means to them in terms of what we can do for them as agents, as a company, and as an agency who is an advocate for them. Here is the reality; people do spend more money for seemingly similar products and services. Why? Because they feel it is worth it in some circumstances. If you feel you are worth it…than why feel the price isn’t…when you quote it?

Just because the Competition’s Price is Lower, Doesn’t Mean they are Better

When price is discussed, one value proposition that can be articulated is the value proposition of, you, the agent. You are that link to value. So when the premium is stated or discussed, help the customer understand the value to price in regard to you...an agent, advisor, their personal sales professional in insurance and financial services.

For example:

As an expert in auto & homeowners insurance, I deal specifically with the often complicated details associated with claims, billing and the concerns and questions that naturally arise when people talk about protecting their cars and their homes.

Those are two of the biggest purchases most people ever make. So it is important for you to have someone you can trust who can answer your questions and do the worrying for you so you don’t have to when it comes to insuring them.
That’s what I do for people every day, 24/7…

Have you ever had an automobile accident or homeowners claim; or known anyone who has? How did you deal with it? What were some of the difficulties you ran into? What part of the process was the most challenging or confusing? What were some of the difficulties you experienced during the process?

How important would it be to you to have someone like me in your corner if something came up? How valuable would it be for you and your family to have an expert in these matters taking care of things like this? How confusing can it get when a claim is filed or you have a question on a bill?

You get the value of my experience working with hundreds of people, like yourself, as their advisor in these matters. So while you’re busy doing what you like - (like fishing as you mentioned when we first started talking about you auto and homeowners insurance) - I’m the one worrying and working on your behalf - seeing that you and your family are properly protected and taken care of… so you don’t have to be distracted or spoil your family fishing trip!

Other companies give you a 1-800 number and forget about you in voicemail purgatory, as I call it, a seemingly endless tree of voice prompts and confusing push button choices where you can’t get a chance to speak to a live human being about your problem…That won’t happen here.

That's not how we do business. If you need help or have a question, I'm always here for you and can take the time to talk and meet with you whenever you like. And if by some chance you do get our voicemail, our policy here is to call back within 24 hours at the latest…most often, it is much sooner than that…In fact, here is my cell number, I will write it here on my business card for you. That’s in case, if you ever have a question and you need to get in touch with me right away about an accident or a bill, for example, just dial that number and I will answer.
In that sense, I’m worth it.

That’s the value I bring to families like yours.
I care - and because of that, my customers value the relationship we have. Doesn't it make sense to have that kind of relationship & trust with an agent?

You are that Link to Value

You don’t sell insurance or financial products. You sell peace of mind, trust, confidence, kept promises, no worry, security, realized dreams, access and availability, no hassles, ease…You mean so much more to people than they realize…The challenge is to get them to realize it.

You are that Link to Value. Now make sure you tell people about who you are…and what you can do for them.

Copyright © 2009 - Tony Cefalu

Be Brilliant at the Basics

2009-10-16T03:53:00.000-04:00

I was asked by a small business owner what I thought was the key to business success. He was just starting out in business; trying to manage a small sales force while managing the day-to-day activities of payroll, expenses, marketing, IT support, recruiting ...all the moving parts that come with running a small business. I knew what he was feeling after having had several business starts of my own most recently.

He was overwhelmed and his question was more of a plea to me to make some sense out of all the chaos that comes with small business ownership. He was stuck in a fog and needed help.

Immediately, I thought of a story I read about Vince Lombardi, the legendary coach of the first Super Bowl Champion football team, the Greenbay Packers. Every start of the practice year, when the players returned to training camp in preparation for the start of the Fall season, Lomabardi would say this, Gentleman, this is a football.

What was that all about? He was speaking to a group of adults, wasn't he? These were grown men; big grown men! They were professional football players...not peewee league ball players! These guys had been playing the game for a very long time...and for money, I might add. And they were a part of an elite group of men who made it to the top of their profession; a feat the vast majority of would-be professional players could never boast of. So, they were accomplished professionals in their chosen career, and here is coach Lomabardi telling them, Gentleman, this is a football. I think they knew that what he had in his hand was called, a football.

But what Lombardi was really trying to do was remind these professionals that it is important to maintain the basics. It was being brilliant at executing on the fundamental skills or systems that are known to bring success that matter most. What it takes to be successful is not elegant, nor is it overly clever or sophisticated.

In fact, I would offer that most times, the secret to being successful is very simple and very basic. And that's the lesson I think Lombardi was trying to teach to his men; to be brilliant at the basics...Be the best you can be; to get serious about the fundamentals of the game.

In Lombardi's case, blocking, tackling, running the ball, passing the ball, working as a single unit called a football team, being able to go from one end of the football field to the other end of the football field, that is what they needed to be able to do better than any other team if they were to be champion. Hey, it wasn't glamorous work running and sweating in practice before each game, but it was honorable work and it earned Lomabardi, and many of his players, a place in history by being inducted into the National Football Hall of Fame...All that for just being brilliant at the basics.

So, I advised my friend of a couple of basic things he should consider in order to be successful in business; and how to be successful in life, for that matter. And all my recommendations centered around the simple things, the basics.

* Marketing is all those things we do to get people in front of us...So spend the majority of your energy on that one task; getting people in front of you.

* Most marketing will center around two activities. Those activities are: looking for reasons to speak to people and looking for reasons to meet with people. Most every marketing activity imagined by mankind will fall into either one of these two activities. Don't over think on how to market.

* If marketing is all those things we do to get people in front of us, sales is what we do in front of people. Therefore, practice your part because sales is a little bit of theater. Make sure you know your "lines."

* Freedom regarding your time as a business owner is great...But freedom can kill some people. Don't let the freedom of owning a business kill you.

* You're only as lazy as you dare to be...and some dare bodly! Don't be that bold...

* You are not responsible for results...You are responsible for right activities. So focus your energies, not on the endgame results of production and income, but on the activities that give you production & income.

* Don't boil the ocean. Resist the urge to do everything at once or else you will burn out. Build your business incrementally.

* The will to win is not as important as the will to plan to win. Probably the most important piece of basic advice. Be deliberate in what you do, plan, consider, reflect, modify that plan and then put it into motion.

* Ideas are a dime a dozen...It's their execution that is priceless. As the famous quote from a shoe company goes, you need to just do it.

* Successful people know their numbers. They have a line-of-sight to their goals. Are your goals within sight? Are you aiming in the right direction as a result?

* The sole purpose of business existence isn't to make a profit...It is to create a customer; plain and simple.

Want to be successful? Then take a lesson from what has been written here today. I did not provide any specific secret formula for success...Nor did I give you any step-by-step process to follow. What I did provide was some basic rules, or tenets, to follow and build a foundation for business success.

Sell the Whole Package: A Preliminary Discussion on the Elements that Influence Customer Perceptions of Value

2009-10-15T22:36:00.000-04:00

In the auto and homeowners insurance sales arena, I often hear sales professionals declare grudgingly, It's all about price these days. I don't care what they say. Price rules! I understand why they say that, especially when a competitor’s premium comes in $100.00 less a half (6 month premium) then their stated premium.

Too often at that point, we end the conversation, wave the white flag and politely smile wishing them Godspeed while secretly hoping a year from now the tables will be turned on the competition when they have to raise their rates above ours! What a way to work and view our profession and our responsibility as experts and advisors in insurance matters.

Now, I realize that scenarios like this happen every day in the life of an insurance professional and that people are concerned with the cost of things. But I also realize that people don’t base their buying decisions solely on the weight of price. People are looking for value; and value is simply the relationship between price and the benefits of having a product or service.

Selling is a Transaction of Value

Sales is a contact sport. But, I would add, Sales is a transaction of value as well. People are emotional creatures who want to be wanted; who want to feel special,who desire to associate and buy from people they perceive to be like them. We are creatures that base decisions on emotion and later validate and justify them with logic. Bringing it back to the realm of auto and homeowners insurance sales, people will look at the price, but will buy based on the emotional benefits they perceive will result from buying off of you, your company and your agency.

Let me see if I can illustrate this point a little better. With many agency training classes we hold, I ask the following, Think about when you purchase things, particularly those things of a significant nature and value. What is it that causes you to buy from one place or vendor versus another? In other words, what is the reason why you buy a particular thing...from a particular person…at a particular place…especially when you have choices to go with someone else or go some other place to buy?

Without exception, the list of responses I write out on a flipchart is dominated with phrases like, a friendly salesman, a nice environment, knowledgeable sales people, not pushy, cares about me, I buy from people I trust, I didn't feel stupid when I asked questions, they made me feel special, they let me decide, I wasn't pressured, I felt comfortable, they took their time, they responded quickly. Now where is price in all this? It’s there…somewhere down the list indicating that, although price is a consideration in the buying decision, it is not the paramount issue we agents and sales people all too often claim it is.

1. The Price

Furthermore, independent research with investor/buyers list the top six priorities people value when choosing to work with financial advisors as, understand my situation, educate me, respect my assets, solve my problems, monitor my progress, and keeps in touch. Again, where is price? Where are the comments, I buy price and quality? They're just not there.

Price Does Matter...But it Isn't the Whole Matter...

It's not because price isn't an issue for people. No. It is because price isn't the whole issue for people necessarily when they choose one thing to buy over another or one place over another to transact business. Emotions rule. Relationships matter. It’s at the origin of feelings and emotion that people link the price to value and worth. It's how people decide...to decide.

So, to those who declare, it's all about price these days, I ask again, where is price among the overwhelming responses that I receive and industry research historically validates about human nature? Again, price does matter. Do not misquote me on this point. But understand when I say that the evidence and my observations on human behavior during the buying process confirm...price is not the whole matter. It is not even in the Top 3 in regard to reasons on why people buy…or choose not to buy.

So now what? What am I to do with this information? What does this all mean for me as a sales expert; an agent? Well, what it means is that we have to begin looking at auto & homeowners less as a commodity sale based on price and more on the emotional aspect of the sales spectrum.

It means we have to begin selling the whole package when it comes to the art of the sale. We have to look at things differently; to begin communicating the emotional benefits of the whole package to the customer so they can make the favorable value connection between price and the benefits of owning our auto and homeowners insurance product. Simply put, we need to get them to see that the premium is worth all that we say it is worth.

So how do we do that? How do we get people to the realization that our price is worth it? By helping them discover all those things about us, about our company, and about our agency that makes us so valuable to people and unique in comparison to the competition. By telling them our story and bringing them into our world of trust, care, concern, competence and friendliness. By being sales professionals who sell the whole package through mastery of key sales conversation basics.

The Value Diamond

So what exactly is the whole package? Well, the whole package deals with leveraging and linking what we understand about the emotional buying nature of people to the value proposition of four interrelated factors; Price, Product, the Person selling and the Place where people buy. I call that relationship, The Value Diamond Concept .

Picture a single diamond shaped graphic, at each of the four apexes there is a word; at the first apex or point is the word, Price, next is Product, then Person and finally, Place. In the center of the diamond is the word, Value; representing that the sum total of all these factors together equal perceived value on the part of the customer.

Graphically, that’s what the whole package looks like; four factors interdependent on each other, working to make the decision to buy from you, worth it. So let’s examine each of these factors in brief and see how they affect the overall motive of the customer to buy.

Price Does Not Have Meaning or Relevance Until It is Compared to Something

First of all, price, what is it? Price is the quantitative measure of what someone must pay in order to have or get something. It’s sterile, clinical, precise, rational, and registers on the left side of the brain, that part of our anatomy which analyzes and computes but does not make the overriding decisions in our life, and that would include the decision to buy.

Price is a Measure...Much Like Fahrenheit or Centigrade are Measures

Price is what it is... a number...nothing more. You can’t change it. So when you present it to a customer, apart from all other factors, it means nothing. But when juxtaposed with the competitions price, it begins to have meaning and relevance to the customer. In some instances, that relevance means that it is a number higher than the other guy’s and, thus, is too expensive of a price. And in other instances, it means it is a number lower than the other guy’s and is, therefore, a good buy. And sadly, too often, that is how we approach selling our auto and homeowners insurance product- by price comparison that is dictated and controlled by the customer’ thinking and not by any sales ability of our own.

Our Great Folly as Sales Experts

Our great folly as insurance experts is that we allow the customer to define the rules of relevance. When it comes to the price of our product, why not exercise true salesmanship by shifting the customer's thinking and focus from what they are currently paying in auto insurance to what they can potentially get from us as a result of the price we just shared with them.

Did you catch what I just said? It was quick and a little subtle. But what I just said is powerful in terms of combating a competitor’s lower price.

Let me say it again a little slower and simpler, most agents exercise enormous stupidity when they fail to tell the customer what it is they are getting for the price they are asking. Now did you get that?

The Only Way to Combat a Competitors Lower Price... Is to Communicate Higher Value...

A better way of communicating price is to shift the customers thinking away from looking solely at what they are paying now and provoking their thought processes to consider the benefits of what they will get when buying off of you. The only way to combat the competitor’s lower price is for the agent to communicate higher value. There is no other way...absolutely none.

For example:

The premium for the first six months, Tom, is $500. Now that is a little more than $80 a month or about $2.50 a day to make sure that you, Peggy and the girls are properly protected if they are ever in an accident. For example, with you, Peggy, driving all the way to Columbus, a 40 mile trip one way every morning and evening is grueling…and dangerous for that matter. A lot of accidents do happen on the beltway around the city. This plan is structured to protect you if you are ever in an accident going to work, for example.

And correct me if I'm wrong Tom, but one of the things you mentioned at the beginning of our discussion was how frustrated you were with your last agent; he wouldn't return your phone calls, couldn't seem to care if you needed anything or any help. I know that must have been really frustrating. Please remember, that 1600 other families just like yours choose us and trust us to take care of their insurance needs. And if you are to choose us as your insurance carrier, I promise you we will treat you like family as well.

In fact, here is my business card, my toll free number is right there Tom, and here’s one of Peggy’s cards as well. You can call 24/7 and reach a live person if you call that number. And if ever you call and we don't have the answer for you right then, which is unlikely with all the experience we have here in the office, we'll find the answer for you and get back with you. We have a policy of getting back with our insured within 24 hours of a call, often it is less, so they know we care about them and appreciate their business. That's just how we work here at the Tom & Peg Insurance Agency. How does that sound, Tom? Peggy? Great.

To think that trying to get a customer to forget about the premium they are currently paying, especially if it is a premium lower than what has just been quoted to them, is not a realistic expectation. That is not what I am suggesting can be done in sales situations. What is realistic and possible is to shift some of that mental energy of the customer; that focus, that attempt at defining relevance by comparing your price to the competitions and to get them to ponder what it is they get for the premium we just quoted.

So instead of the customer saying to themselves, the premium is $500 every six months, but I pay $400 now. I’d have to give up $100 to go with Tony as my Agent...Instead, their thinking can be influenced to consider...Oh, so that's what I get for $100 if I go with Tony as my agent.

It is a subtle difference in thinking...But it is very powerful in its ability to influence and persuade the customer to buy from you even when your price is higher than what they are paying now.

Does Shifting the Customer’s Mental Energy Away from Their Current Company Work All the Time?

Does this technique work every time it is used? Of course not, but then again, I subscribe to the hockey legend Wayne Gretsky's philosophy, You miss a 100% of the shots you don't take....So take the shot...Eventually, you’ll be scoring points on cases you never thought you had a chance to win.

Don’t be one dimensional as a sales professional; always selling on price, hoping that your premium is less than the competitions. That’s no way to live or prosper as an agent. It reduces our profession to no more than “order takers” and makes us no different from what the Internet has to offer.

2. The Product

Product, on the other hand, is just as benign as price when it stands apart from all other factors. In some instances, the other guy’s product will have more bells and whistles (features and benefits) then ours. And in others, our auto and homeowners product will have more bells & whistles than theirs. So again, like price, product is quantitative, factual and sterile in nature. It is what it is, nothing more, and nothing less. So when we sell on product features, we win those where we are richer in feature offerings and benefits and we lose those cases which offer more than we do in comparison.

Price & Product are Left Brain Functioning Factors

Again, I am not discounting the impact that price and product has on a customer’s buying decision. They are important factors in a person’s perception of value. By their very nature, they are left brain functioning elements of the value string. That is, they are factually based elements that are points of discussion in a sales conversation and are processed physically, for the most part, in the left brain; a physical place in our minds that is dispassionate, calculating and unemotional... And because of the nature of price & product as factual based elements of value, the sales professionals has a bigger challenge in translating these naturally cold and left brain (where facts, figures, details are processed) factors into emotionally stimulating language for the customer to hear and process.

Before I move on to the final two elements of value and leave the subject of price and product as key factors in the equation of perceived value for the customer, consider the following two statements in regard to price and product. They are statements I will elaborate further on in regard to value and how to communicate it properly to a customer.
Never…Never…Never…State the Price of Something without Connecting it to a Benefit Statement(s)…

and

Never…Never…Never…Speak about Product without Translating its Features into Benefit(s)…

Two irrefutable & immutable laws of the true sales expert; to ignore this advice is to ignore one of the great secrets of the sales profession.

3. The Person

The final two factors, or elements, that make up this idea of value are emotionally based in nature. They are right brain functions, cohabitating with that part of our human make up which makes decisions, sees the big picture (things at a high level, in total), is stirred by visuals, beliefs, understands the conceptual and the symbolic, hopes and seeks solutions to revealed problems.

They are you, the person, the expert, specialist or agent; and the place, or the environment you create; the agency location, or the Internet website or portal that forms the juncture or point at which the customer buys. Both possess strong emotional pull on the decision making process of the customer to buy…or not to buy.

Their influence on the buying process and a customer’s decision to buy is both naturally more powerful than price or product, and their use and application by the sales professional is more natural and more easily duplicated as a successful habit. Both the person element and the place element of the equation stimulate a customer are right brain functions. Both play an enormous role in the success or failure in closing any sale.

The Person is You

On closer examination of the person factor in the Value Diamond Concept of Value, I refer to Dale Carnegie’s observations about perceptions and the avenues by which people form opinions, feelings, and impressions about us. Carnegie states that every person is known and evaluated by four things, and four things only; What we do, How we look, What we say, and How we say it.

What we do. Think on the occasions when you’ve been asked, So, what is it that you do for a living? Better yet, recall those times when you yourself have asked a similar question of someone. We all do it. Oh, I know, most times we’re asking out of polite curiosity. At least, that’s what we tell people.

Perception is Reality. Facts & Accuracy have Nothing To Do With Perception

But more accurately, from a human nature stand point, we’re asking the question not out of courtesy, but more as a means of sizing up the other person; a gauge by which we form judgments about people. Sizing them up, that’s what it’s called. Everyone does it. Yes, people are judgmental. They form opinions of us within seconds, right or wrong, cliché but true; perception does become reality. The truth, the facts, accurate accounting…none of these things has anything to do with perception.

What a customer perceives is their reality. It doesn’t matter what the truth is…It only matters what the other person’s perception of you is…for that is…their reality. End of story. The sooner a sales person grasps that reality, the sooner they can move on to becoming a better sales professional…and a better person for that matter.

You, as the Person…are Worth the Price…Because You are Cool.

It’s here that we have a distinct advantage over our competition – lower price or not. We are specialists, experts, resources extraordinaire, advisors and consultants, agents and financial counselors whose sole mission is to have or get all the answers, rescue from confusion and assist people in order to make their lives better, safer, less tragic and happier in some cases. We are cool!

That is the message. That is the path we need to take as agents when articulating our story in our sales conversations as we introduce ourselves to prospective customers.

For example:

Today, I’m also trying to earn your business, Mr. Smith. And if you choose our agency to take care of all your insurance and financial needs, my pledge to you is to be your personal advisor and experts in these matters; to do much of the worrying for you so you don’t have to.

I am your link to value, making sure your insurance dollars are spent in the most efficient manner for you as possible. Sure, you can buy auto and homeowners insurance off of just about anybody who has a license. But at the risk of sounding arrogant – I’m not just anybody, Mr. Smith. I keep my promises to my customers of being there when they need me.

As your agent, I’ll work for you, dealing with the details that can often be confusing when an auto accident occurs, answering your questions when your kids begin to drive, working for you 24/7 so you don’t have to worry about those things.

Other companies give you a 1-800 number and forget about you in voicemail purgatory; avoiding the responsibility of being you advocate by hiding behind voicemail messages. That’s not how we do business. If you need help or have a question, I’m always here for you and can take the time to talk and meet with you whenever you like.

In that sense, I’m worth it.
That’s the value I bring to folks like yourself, Mr. Smith.
I care – and because of that, my customers value the relationship we have.
Doesn’t it make sense to have that kind of relationship?

That’s what we do as sales professionals, and that’s value. So altogether, with telling our story, using emotional language, understanding the impact of vocals and how we say things on the human psyche to relate to us and by being conscious of appearance and body language, we can evoke a positive emotional response within people that speaks to them from within saying, I’d like to buy from this person.

That’s the kind of salespeople we should endeavor to be.

4. The Place

The fourth and final piece to the Value Diamond Concept of Value is the place, and in our discussion, I will confine our discussion to a physical location such as an agency office. Although, what we discuss is applicable to a website or other Internet portal where business is transacted.

As such, how is your agency environment perceived by customers and the community around you? Is it a place where customers are greeted readily when they walk through the door? Is it inviting with a reputation for expert service, caring people and a staff that is always there for you when you need them?

When is the last time you took a long hard look at the physical condition or look of the exterior and interior of your office and asked yourself, Is this the kind of place I’d want to put my money? If the answer to that question is something other than yes, then changes need change.

Environment Matters in Perception and Perceived Value

You see, environment matters, and I don’t just mean the physical surroundings. Yes, it’s important to have as professional looking, comfortable and inviting place. But what of the environment the sales team creates? How are people greeted? Are giveaway items used and handed out as people walk in for an appointment?

How easy is it to transact business? At every connection point of customer contact whether it be a call-in, walk-in, seminar you are delivering or appointment; how can we make the customer feel valued, feel special, feel important?

What strategies do we employ to convey convenience, ease, and an overall pleasant experience for the customer when a call-in is taken on servicing issues? When an auto claim is filed, what’s your strategy to relax the customer and engender confidence and loyalty towards you and the agency?
Marketing is not only getting customers into the door and in front of you for a sales conversation. Marketing is keeping customers as well. So it behooves us as sales professionals to build a fence around our customers, to avoid defection and leverage the good will of the place for cross selling and up-sell opportunities.

The Whole Package: Price-Product-Person-Place

The Whole Package…that’s what it is. A combination of a competitive price, a quality product, expert advice and resources as the person, the agent and a place or environment that sets the right tone and atmosphere where the customer is comfortable and can see that you are a person they can do business with. That’s left brain and right brain stimuli working together to trigger the buying decision in your favor.

These elements will be examined again in later commentaries about value.

Be an Executioner!

2009-10-13T16:17:00.000-04:00

Time and again, I bump into sales professionals who love to talk about the latest seminar they have attended or the latest recommended book of the month to read to help get their business jump-started. Keeping sharp professionally by reading and going to sales & marketing seminars, associating with successful people and talking about the business with peers is a healthy activity for anyone; particularly the sales profession where the mental stress can weigh down on an individual quite easily if they are not careful.

What isn’t healthy is being the kind of individual that is always chasing that great idea, that one great marketing or sales idea that will transform their business and guarantee results and success. But, that magic bullet to success continues its elusive ways. It just never seems to show itself…or work as easily as others say it will. And so, like an addiction, even in the face of repeated disappointment, we chase after it ever more determined to find the answer to our own personal business & sales success through others, through ideas that promise success.

Ideas are a Dime a Dozen, But Their Execution…is Priceless

Stop amassing ideas as if a collector of rare coins and art and start executing on them; that’s how to break from the status quo as a business owner and sales professional. Do you want to raise your production and income to the next level? Then you need to execute on the ideas you already know will work and have worked for people in the past.

The True Measure of Genius if Found with Those Who Do

It’s true; genius of the intellectual kind goes unrewarded every day. It’s a common sight. Why? Because genius without application; without the execution of the idea is worthless. I have met countless sales professionals & business owners with more talent than I could ever subscribe to…They are funny, charismatic, brilliant at marketing ideas and on how to recognize sales opportunities. But in the end, they fail or are disappointed in where their business has gone…or more accurately, hasn’t gone. It’s because of one simple thing; a failure on their part not to execute on what they know.

We know what to do to be successful most of the time. On balance, not much has changed in the realm of sales & marketing. Yes, technology advances, Twitter, Facebook, MySpace, LinkedIn.com, Aim.com, Yahoo, Google, Websites, Webmasters, web this, web that…Yes, a lot has happened and a lot is happening. A new language has to be adopted by many of us to stay fresh and current with the changing technology out there. But the basic tenets of marketing, looking for reasons to speak to people and reason to meet with them, remains the same for our profession regardless of technology.

Use these technological innovations to your advantage. Try them out. Stumble a little while applying them to your business. And refuse to be counted in the ranks of those who know…but fail to do… Be an Executioner. That’s really the only way you will grow your business and your sales.

You Buy Out of Emotion & Justify It Later with Logic

2009-10-12T14:27:00.000-04:00

You Buy Out of Emotion & Justify It Later with Logic
People are emotional creatures. Yes, logic does play an important role in our day-to-day ability to function and think. But it is our emotions that drive us to decide, to act, to choose or not to choose, to respond to the situation at hand. In the sales arena, it is our emotional nature that overrides all else in moving us to buy—not logic and not the cold, cruel facts of product features and service offers. It is our emotions that rule the day.

All emotions are, in essence, impulses to act, the instant plans for handling life that evolution has instilled in us. The very root of the word emotion is motere, the Latin verb “to move,” plus the prefix “e-” to connote “move away,” suggesting that a tendency to act is implicit in every emotion.
Daniel Goleman
Emotional Intelligence

Those emotional impulses to act, or gut feelings if you will, that Daniel Goleman refers to are wrapped in a cognitive consciousness we call “logic” or “rational awareness.” It's an area of the mind that deals only with the facts of things. It is at this cognitive conscious level, or logical realm of our minds, that we support the emotional motives for decision-making, or as Goleman says, our “tendency to act.”

Emotionally Centered & Logically Dispersed

I refer to it as being “logically dispersed” in our thinking and decision-making process to buy. Logic is dispersed throughout our thinking and is used selectively to support the emotional decision to buy. In other words, we disperse facts and rational thought whenever there is a need to justify the emotional motives for buying something.

For example, I buy a red sports car for fun and the appeal it has in making me feel youthful and successful; I justify it logically to my wife that it was a good purchase price, a once-in-a-lifetime deal and that we will save money in the long run because it is great on gas. I know it is weak logic…but it is logic nonetheless. We go through this emotionally centered, logically dispersed cycle every time we purchase something.

Harry Mills, author of twenty-two books on sales, negotiation, and influence and whose clients include IBM, PricewaterhouseCoopers, KPMG, Ernst & Young, Lexus, and Toyota states, As rational human beings, we like to think that logic drives most of our decisions. But the factis, in most persuasive situations, people buy on emotion and justify with fact. People may be persuaded by reason, but they are moved by emotion.

It is emotion that causes us to drop our natural defenses and distracts us from the sales expert’s intention to persuade. It is emotion that requires less effort to process mentally than logical thought or argument. It takes more mental effort to process facts than it does an emotional appeal.

Emotional stories are more interesting than facts. Emotional contact through imagery, music, vocals are all much easier to recall than factual evidence. Emotions rule. Why? The reason is because we are emotionally centered creatures by nature. That is not to say that logic, the cognitive consciousness, is divorced of the emotional connection and our ability to act or decide.

In fact, logic and emotion are intertwined. They are partners that are dependent upon one another, jointly affecting the overall impulse to buy. But it is the emotional center that exerts the greatest force on our urge to purchase something.

Scientifically, the evidence is overwhelming as to the fact of our emotionally centered nature and its link to act, to decide and to buy. Research that began over 150 years ago examined the relationships between emotions and reasoning skills. The ability to act and decide is lost when areas of the brain that govern emotion are damaged through accident or illness.

Dr. Antonio Damasio, neurologist from the University of Iowa College of Medicine, completed and published a study in 1994 confirming that patients with damage to the emotional triggers within the brain demonstrate “terribly flawed” decision-making ability yet they show no deterioration in IQ or cognitive ability. “Despite their intact intelligence,” Dr. Damasio states, “they make disastrous choices in business and their personal lives and can even obsess endlessly over a decision so simple as when to make an appointment.”

When our passions, or emotions, are aroused, the emotional side holds the rational in check, insinuating itself in precedence and importance in the decision-making process. We are simply “hardwired” this way through a fast-track neural network where rational thought runs indirectly connected with the body’s functions.

Emotions actually stimulate the mind three thousand times faster than regular thought, verifying that in most situations, emotions move a person to act faster than rational thought ever could. This is one of the underlying reasons why our choices are based on approximately 80% emotion (Emotionally Centered) and 20% on selective logic (Cognitive Consciousness).

When dealing with people, remember you are not dealing with creatures of logic, but with creatures of emotion, creatures bristling with prejudice and motivated by pride and vanity.
Dale Carneghie
How to Win Friends and Influence People

Thus, remember the next time you are sitting across from a customer presenting them with an insurance solution, it's not what it is (the feature) that we sell which creates an impulse to buy from within, it's what it can do (the benefit) for the customer that is powerful and persuasive that compels them to buy. It is the emotional need that we help fill that drives the buying decision for people. Logic, reason, and good sense are merely used in support of that emotional reason for why a person will buy from you.

Features Tell, Benefits Sell

I don't sell an insurance policy, per se. I sell, peace of mind, no worries, trust & confidence, ease & availability, no hassles, assurance, comfort, well being and all those other emotional needs and concerns in order to serve my customers. That's what I do...And I frame my sales conversation around these emotional words or ideas and place my focus, not on features or facts about my product, but around the benefits the customer will enjoy as a result of the insurance product being presented.

Mike, what we have concluded here together is that you need $200,000 in life insurance to cover the mortgage as well as provide some funds for "Little Mike" to go to college if you were to die today. Do you see where we came up with that number, Mike? Sarah?

What that all really means to you both is that you will have the peace of mind and comfort knowing that all you two have worked so hard for; the house and the horses you raise, the lifestyle you have built for “little Mike,” won't be at risk of being taken away for reasons of bankruptcy, or worse yet, public auction if you were to die today and there was no money coming in from your job anymore, Mike. And Sarah, you won't have to worry about how college will be paid for because the money will be there for both of you when you need it. What a relief that must be for you right now. What do you think?

Lead with emotion when speaking to your customers...let their logic tell them they did the right thing when they buy off of you.

Copyright © 2009 - Tony Cefalu

"How Disturbing are You to People?"

2009-10-12T11:26:00.000-04:00

One of the most renowned insurance salesman to have ever lived is Ben Feldman from East Liverpool, Ohio. It's a small low income community situated in the northeast part of the state known for its' "blue collar" residents.

In his day, Feldman wrote more life insurance in one year than some insurance companies did. In fact, in his lifetime, he wrote over $1 Billion in life insurance and was recognized by the Guinness Book of World Records as the "most outstanding salesman in history."

So when someone of his caliber speaks, people should listen. And according to Feldman, a key to his success was the courage to ask the "disturbing question" of his prospects. That is, he would ask his prospects well thought out, planned questions designed to reveal their underlying need or desire for protection. Although his expertise was in the life insurance realm, his methods and salesmanship technique applies to our efforts as multiline agents.

The disturbing question is the kind of question that "triggers" the emotions, disturbs a person into thinking about circumstances they would normally not consider on their own. It’s a means of provoking thought and bringing about clarity on those issues of life that can easily and suddenly turn someone’s world upside down.That's your challenge. That's your job...and I might add...that's your responsibility and obligation as a professional.

Feldman understood how people think. He knew that people didn't move in their minds from "I have a problem" to "I have a need for your product and service" until they were first made to consider the consequences of the problem and personalize them relative to their own lives.

Until a Thing Becomes Relevant, It has No Importance

Consider the following disturbing questions in regard to Hospital Income and build on these when formulating your own "disturbing" game plan!

Who do you know who has ever suffered from a serious medical problem or has been injured, requiring a significant amount of medical care? When was the last time someone in your family was confined, medically, due to illness or an accident? What happened? Were you left with bills that were not covered by your medical coverage? What kind of expenses were you left having to pay for out of your own pocket…both medical & non-medical? What did you do? Where did the money come from? How did that make you feel? How helpful would it have been to have had a way to pay for those bills without having to pay for them out-of-pocket? What kind of “red-tape” did you have to deal with when it came to your medical bills? How much wasn’t covered? How would you pay for deductibles and co-pays?

Or

Imagine you have been struck ill…a stroke or injury to your back while lifting a supply box onto the conveyor belt where you work at… Consider all the expenses not covered by your major medical plan; deductible, travel expenses, lodging & rent, meals, prescriptions and co-pays. Now how will you pay for these things when that happens? Who is going to help you with paying the bills? How will you be able to meet your mortgage, utilities and pay for gas in the car? When I don’t work, I don’t get paid. What happens when you can’t work due to illness or accident? How will it affect your family? What will they do? What considerations should be made if you were sick or injured and couldn’t earn a paycheck…What will happen? How will you manage? How will your family feel or react if the bills are not able to be paid because of the extra expenses that are incurred as a result of illness or injury? How will not working due to injury or illness affect your ability to pay for your debts, bills, monthly obligations, deductibles and co-pays?

Consider the following examples for Long Term Care:

What plans have you made to protect your assets? What plans have you made to make sure your children will inherit your assets?What plans have you made to prevent having to live in a Nursing Home when your health declines? Has anyone ever explained to you to your satisfaction what happens when medicaid is used for a person’s long term care? Who do you want to inherit your home, your savings? How would you feel if your family had to give your home and other assets to the governemt to pay for your care and your medicaid benefits?Do you know anyone who has needed Long Term Care? How familiar are you with what happens when nursing home care is needed and how it is paid for…or not paid for? How did it change their life? How did it affect their life? What financial burdens did they experience?When your health fails, would you rather have a plan in place that gives you control over your care, or would you rather be at the mercy of your condition?What are your plans for when your health changes?Do you plan to live with your children when your health changes? How will that work? How your children feel about it? What kind of burdens would that add to their family situation? How do you feel about the possibilities of having to live with your children if you were to need nursing home-like care?When your health changes would you like to have your care at home? Why? How will you make sure that happens or is an option for ypou? How will it affect you if you cannot live at home anymore? Where will the money come from?How important will it be for you to maintain the control and choice over your health care in the future? How would you feel if someone else was in control of your medical care and the choices you have for assissted care?When you are not going to be able to care for yourself, what is going to happen? Who will take care of you?

Consider how disturbing the questions can be for a life insurance sales conversation…

If you were to die today, Mark, how would your wife, Melissa, and little Mark and little Melissa maintain the standard of living that you worked so hard to provide for them? How would the mortgage get paid? How would the utilities and all those other bills like food, clothes, utilities get paid for if you are no longer around to earn a living for them? How tragic would it be for them to live struggling constantly to make ends meet and maintain their own self-respect when it comes to being responsible and paying their bills? How would Melissa feel if she had to take just any job to make sure that the bills could be paid? Where would the money come from for little Mark and little Melissa to go to college as you said you wanted them to do? What would happen to their dreams and hopes if they weren’t able to go to college?

Finally, consider the following examples of disturbing questions that can be asked of customers as it relates to auto insurance…

If you were driving down main street, went left of center hitting another vehicle head-on, and the other driver was hurt badly; needing hospitalization. What would you do, Mark, if you were sued? How would you pay for it? What would you do if you were sued and suddenly your savings, 401k, other assets…inheritance, for example, were suddenly at risk in being seized by the courts in settlement of the damages claimed against you for hurting and injuring the other driver?

These are just some simple examples of how a sales conversation might sound. We can debate on the strength of the disturbing questions and scenarios I offer here as examples. I am sure that someone reading this has an opinion about how something can be said better and with more impact…

But the point here is to be disturbing; to be compelling and courageous in getting customers to face the possibilities and the realities of life when bad things can happen.

Be nice, but don’t always try to be nice to a fault, failing to get customers thinking about the things that can happen if they aren't properly insured. Be disturbing. Ask disturbing questions of your customers; your friends who need auto insurance and life insurance. They may squirm in their seats for the moment..But they will thank you and respect you if they ever need your help and the protection they purchased form you.

Not long ago, my good friend passed away of a disease that can only be characterized as heartbreaking. At least that is how I saw it. He was a great guy…one in a million…I had great respect for him and had a lot of fun hanging out with him and his family.

As his disease advanced, I saw how he slowly drifted away mentally & physically. It was just two years before his diagnosis, our families were enjoying a picnic together and I mentioned how he needed life insurance for his wife and two beautiful little girls; a conversation we had had a dozen times before to no avail.

I tried to explain to him the importance of making sure that his wife and girls were taken care of in case something happened to him. But I wasn’t getting through to him. He would often say lightheartedly, “God will take care of us.” My response was always, “That’s true, but sometimes we have to give God something to work with.” He would always laugh when I said that...

Then I said, “How are your girls going to go to college if you were to die? What is going to happen to this home if you die today? What is your wife going to do for money if you die? Right now, she works at home…How will she be able to stay at home with the girls if she needs to work because you are gone?

He finally bought a policy…a bit reluctantly…But, he bought a policy nonetheless. It was a start; something that he could build upon when he had more money and was more financially secure to buy more. I was a bit relieved and so was his wife.

Just before he died, we had a private conversation at his bedside. My friend never cried, he was a tough guy, it just wasn’t his style. In fact, we would kid around about his “no crying” policy all the time…laughing and accusing him of being a soft-hearted guy at the core and how he was just trying to hide it by acting like a tough guy. He was tough…and he was soft-hearted.

He said to me at that bedside with tears in his eyes, “Thank you. Thank you for shaming me into buying that life insurance. Now the girls and my wife will be able to pay the house off. My wife will have to go to work, but at least she won’t have to worry about the mortgage. That’s a big deal, Tony. Thanks for being my friend.”

He died not long after that conversation. I miss him…and I know his family does as well. But he did the right thing for them…He didn’t leave them empty handed with sleepless nights filled with worry about how the bills will get paid. He left a legacy to carry on.

Now, I know this is a case where I had the courage to speak to a friend, someone I had a good relationship with and who I felt I had the liberty to do some straight talking with; disturbing him as to the possible consequences of what will happen without adequate life insurance to pay for the bills.

Maybe it was easier…But that conversation with my friend was not the first one I had ever had with someone. I have been disturbing people for years! I have other stories chronicling the miracle of life insurance. It's just that my friend's story is the most memorable for me.

I’m happy to have disturbed him…to have "shamed" him, as he characterized my appeal to buy life insurance, into buying what he needed to buy for his family. You would have done the same, I hope.

So in closing, I have to ask you, "How disturbing are you to people?" How annoying are you, so to speak, in order to get people to do the things they need to do for themselves? Have you the courage to ask the disturbing questions of life? Or do you dimiss away the need to ask people directly what will happen to them and their family without insurance protection at the sake of being a "nice" salesperson?

It is possible to be "nice" and to be disturbing at the same time.

I hope the answer to those questions is that you are very disturbing...Because in the end, it's the one annoyance people can't live without.

"To Make Them Thirsty, Make the Well Run Dry"

2009-10-08T10:00:00.001-04:00

There's an old English proverb that goes like this, “You never know the worth of water until the well is dry”. In other words, something “valued” has everything to do with something “needed.”

If Sales is a Contact Sport and people are emotionally centered and logically dispersed (buying decisions are first governed by our emotions & surrounded by a cloud of logic in support of that emotional decision) in nature, then it behooves us as sales professionals to make emotional contact with customers; to get emotional with them and strike at the core of what moves people to want to buy.

For insurance and financial services professionals, I suggest the following be considered as a means of achieving emotional connection:

WRECK ‘EM (auto insurance)
BURN ‘EM (homeowners insurance)
KILL ‘EM (life insurance)
MAKE ‘EM SICK (health insurance)

At first glance, what I’ve said sounds cold and irresponsible. But what it is that I am suggesting is that sales professionals resist the urge to “tiptoe” around the hard issues of life that face us all. We should have the courage to initiate the difficult conversations of life in order to make sure our customers are fully protected and prepared as much as is possible. It's our professional and our moral obligation.

All too often, the tendency of insurance agents when broaching the subject of life insurance with their customers is to illustrate a scenario about some fictituos third party person; some hypothetical situation, where an unnamed husband or wife dies and the family is left without money. Rather than illustrating the possibilities with a scenario using the customer’s names and their situation as the elements of the story…the agent defers to the oft used, and unemotional, third party scenario. That is a mistake.

Be direct with people who are sitting across the table from you. Make them the ones who have died. Ask them how their family will cope financially as a result. Use their names to paint the picture of what could be, and will be, if they die without adequate protection. That is emotion. That is what I call contact and making connection with a customer on a personal and emotional level.

For example:

Tom if you were to die today, how would Mary and your daughter, Lisa, and son, Mike, be able to maintain the lifestyle you two have built for yourselves? What would happen to this home? Their college education? How will Mary manage to take care of all those things without you?

OR

Tom, if you were to be the at-fault driver in a serious automobile accident while on vacation, and you, Mary, and the kids were hurt . . . for example you had a broken arm, Tom. What would you do about the medical bills that followed…especially if you couldn’t work to pay for them? Rather than hassle with worrying about whether being “in-network” or “out-of-network” with your health care provider from work, wouldn’t it be worth it to have the peace of mind knowing that adequate medical payments coverage was part of your auto policy? That way, your family could avoid the worry and potential of out of pocket expenses that would follow; and instead can focus on the important things, like you getting better.

OR

Tom, what would happen today if you and Mary were to have a house fire that, unfortunately, was a total loss for you both and you were to discover your coverages were inadequate to fully rebuild?Where would you live? How convenient would it be for you to live with your in-laws?

OR

Tom, if you were to require nursing home care, say as a result of a stroke, how would you and Mary cope with the added expense of your care? How would you be able to afford it? What would you do, in the meantime, for grocery money, utilities, all those expenses that we incur just to survive and live?

It’s true. People never know the worth of water until the well has run dry. So do your customers a favor, and yourself, and have the courage to be direct. Make the well run dry when talking to them...before it really does run dry on them and they have nothing to drink to quench their thirst. We owe it to them to:

WRECK ‘EM
BURN ‘EM
KILL ‘EM
MAKE ‘EM SICK

Stupid Things I've Heard & What I Think When I Hear Them

2009-10-08T09:59:00.001-04:00

Take inventory of your language and avoid phrases which can make listeners (customers) defensive or make you sound uncertain; lacking confidence, weak, stupid and even a bit manipulative in some instances.

Here are some of the more common stupid things I hear sales professionals say over the phone and in face-to-face sales conversations and what I think when I hear them.

What I've Heard: "I guess I’ll let you get back to your work"
What I Think:"Quit guessing, I've already gone back."

What I've Heard: "I don’t want to take anymore of your time."
What I Think: “Then don’t, you little thief!”

What I've Heard: "I'm sure it’s time for you to get back to business."
What I Think: “You are sooo perceptive!”

What I've Heard: "I hope this is what you are looking for."
What I Think: “Hope is a good thing!”

What I've Heard: "Would it be convenient for you if I took a few moments of your time?"
What I Think: “Nope, I only have so many heartbeats allocated to me in this life!"

What I've Heard: "I just wanted to give you a call today to see if you'd be interested in...."
What I Think: “That's nice to know."

What I've Heard: "I was recently assigned your file and..."
What I Think: “Now that makes me feel special!”

What I've Heard: "If I could show you how you could save money,you'd want to hear more, wouldn't you?“
What I Think: "Just back me into a corner, why don't you."

What I've Heard: "Could I have a few moments of your time?"
What I Think: “Nope!”

What I've Heard: "Sorry to bother you, but…”
What I Think: “Apology accepted. Good bye!”

What I've Heard: "Is this a bad time?"
What I Think: “Now that you mention it, yes it is! "

What I've Heard: "I was wondering if you might be interested in..."
What I Think: “Well you can stop wondering. I'm not ..."

Other weak phrases and words to avoid include:

Sort of , Kind of, This probably is the answer...or worse yet, This prolly is the answer, It should help, I can’t do that, Won’t, Don’t, I think this should help...

These words and phrases fail to engender confidence between you and the customer. As sales experts, advisors, advocates for your customers, you should never find yourself saying can't, won't or don't to a customer.Instead, you're not able to do something is the better way of saying things.

Also, stay away from phrases like, to be perfectly honest, or to tell you the truth. What? You mean you haven’t been perfectly honest with me or told me the truth until now! See how that sounds.

Additionally, you know, pretty much, and what not are over used phrases that serve only to weaken your language and the perception the customer may have of you ever being a competent and capable insurance agent. These phrases are momentum killers in the sales conversation. Just drop them from your language altogether.

Use positive mental words such as: You, We, Us, Together, Work Through, Thanks, Great, Wonderful, Terrific, I’m glad, Happy, Satisfied, Enjoy, Productive, Answer, Idea, Improve, Fix, Help, Relieve, Discuss, Value, Smart, Determine, Choice, Variety, Brilliant, Excellent, Powerful. Words like these have energy and conjure positive images in the mind of the listener.

And please, don’t be guilty of these common violations of the English language:

Wrong way of saying it: Irregardless …
Right way of saying it: Regardless …

Wrong way of saying it: Mute Point …
Right way of saying it: Moot Point...

Finally, there's Ba bye...How about using Goodbye or Thank you, have a nice day. Saying, Ba bye, sounds like the verbal equivalent to Okey Dokey...How professional does that sound?

I know I'll lighten up!

"It's the Difference...That Makes the Difference"

2009-10-08T09:58:00.001-04:00

Growing up, I loved watching Jack Niklaus on the television set golfing with such greats as Lee Trevino, Arnold Palmer, Tom Watson, Gary Player and Tom Weiskopf to name a few. He was great to watch. My father idolized him; calling him the greatest golfer that ever lived. Now Tiger Woods, with his current list of titles notwithstanding, still has some work to do in order to assume the crown from Niklaus as greatest golfer ever.

In any event, at his peak, Jack Niklaus is to have reportedly earned approximately $400,000 in the 1960s while on the PGA tour; an extraordinary amount of winnings particularly for that era.

There was another golfer, a contemporary of Nicklaus' by the name of Bob Charles. Although a good golfer by anyone’s standard; good enough to have achieved professional status as a golfer and a place on the the PGA tour, he was not as successful as Nicklaus. In fact, during that same timeframe, Charles made about $40,000 while on tour compared to Niklaus’ $400,000…a difference of about ten-times less. That’s a huge difference in income and an amazing contrast between two men who played the game of golf professionally.

But even more incredible than the difference in their respective incomes is the level of play, or performances on the golf course, between the two men that earned them their individual incomes and the differences in the two. You see, Jack Nicklaus’ actual performance per round of golf was less than half-a-stroke better on average than that of Bob Charles’. Wow! The difference between the greatest golfer of all time and his high income and a very good golfer without nearly the income was less than one half stroke per round; really amazing when compared to the small difference in their actual performance.

What does this tell us about ourselves; our profession and the noble pursuit we as insurance agents and financial services providers work towards everyday? Better said, what should it tell us about ourselves and our profession and the pursuit of excellence and the honor of being the best professionals we can be?

Oftentimes, the difference between good and great is a small thing; an extra call to a customer about life insurance, a handwritten note to comfort someone who was in an automobile accident or that one more appointment set in order to achieve your production goal for the month.
Whatever that little “extra” is, just do it. “Up your game” just one half stroke more each day so you can get the advantage over the competition that you deserve; so you can be happier and enjoy an income that your rivals will envy.

It’s true…It really is the little things that we do that make the biggest difference in our lives and in the lives of our insureds.

It’s the Difference…that makes us Different.

"Brief is Better"

2009-10-08T09:55:00.001-04:00

In 1863, Abraham Lincoln delivered one of history's most famous and remembered speeches--the Gettysburg Address.

It was 273 words and took only 2 minutes to deliver. The main address that day which preceded Lincoln's address was given by Harvard president and statesman, Edward Everett, who was considered to be one of the greatest orators of his time. Everett's speech lasted 2 hours.

Of the two, which speech is the most memorable or talked about by historians? Of course, it is Lincoln's Gettysburg Address that is remembered and revered.

Now consider present day history. How long was your last sales presentation? Did you consciously and strategically present a powerful and pursuasive sales conversation? Or, did you give in to the urge of telling the prospect everything you know about auto or life insurance, rambling...if not a lot, then maybe just a little.

Brevity is the Soul of Wit and Wisdom

What does that mean for the insurance and financial services sales expert? It means that you should keep your sales presentations on point; direct and well thought out and planned. At least, that is what the "wise" sales expert would do.

Listen People into Buying

Talk Less. Not only will a concise and purposeful sales presentation positively effect the enthusiasm of those listening to you, but it can also impact your own morale during the effort.

(Those of us who've had someone look at their watch more than once while presenting know the negative psychological impact a bored prospect can have on the momentum of a sales conversation.)

Invest some time in deliberately pruning your sales presentations for unneeded discussion points and statements. For every point and every line you script out ask, "Why is this needed for my presentation?" If you're not sure of the reason, cut it out of the script. Lean and effective is your goal.

Remember to have a game plan when it comes to your sales presentations. Think of it as a road map to effective communication and persuasion. Plans allow for flexibility and the liberty to deviate as the situation dictates. Without a plan, you've got nothing to deviate from or be flexible with!

Some People's Definition of "Listening" is Waiting for Their Turn to Talk.

2009-10-08T09:54:00.001-04:00

Listening isn't just hearing...and it isn't waiting for your turn to talk either...which is all too often how most people define it. No, listening is understanding; understanding how our customers think and feel at that very moment while they sit across from us and tell us "their story." That's connection. That's personal power as a sales expert.

Listening is the highest form of persuasion and one of the greatest compliments you can pay someone. For if people perceive they have your full attention, that you are listening to what they are saying, they will in turn listen to you. ..and be endeared to you and loyal as a customer.

In order to be a good listener, avoid preoccupation. That is, avoid thinking of something else when you are supposed to be listening and thinking about the customer in front of you. I know at one time or another, we are all guilty of being preoccupied. Our days are busy, family concerns press upon us, work is stressful; so it's natural for us to wander off at times when these thoughts or images push to the forefront of our minds and divert our attention from the customer sitting before us. I understand that natural part of the human condition. What isn't natural is the disciplined approach of "paying attention" to the customer.

I was at Lowes a few weeks back trying to buy some deck stain. I was talking to the "sales professional" in the paint department explaining to him what I was wanting to do. As I was speaking to him, telling him that I wanted a semi-translucent stain versus a paint medium that doesn't allow the wood grain to show, he was looking beyond me; somewhat distracted. I don't know what he was looking at. It was brief, ever so subtle and barely perceptible, yet obvious to me…the customer. He was somewhere else, mentally...not present with me listening to what I wanted and needed. And it didn't make me feel very good to know he didn't hear a word I was saying.

That fact was further evidenced when, no sooner had I told him I didn't want a paint medium that covered and hid the wood grain, did he proceed to show me a paint medium that covered and hid the wood grain!

Now in my case, it was a small matter. I was just looking for the right deck stain. But the feeling is the same no matter what the buying circumstance. He wasn't listening to me and he wasn't giving me his attention…a most awful feeling from the customer's perspective. Consequently, I decided to go to a different store that was 30 minutes away to spend my money. Why? Because at Lowes I didn't feel special, valued, validated, or whatever word that could be used to describe that feeling of being ignored and not made to feel special. And whenever I'm spending money, I want to feel as good about it as possible. The last thing I want to feel is unappreciated for spending my hard earned cash.

So here's the single best thing you can do for yourself, and your customer, when it comes to improving your listening skills. Are you ready? Now this is revolutionary and "out of the box" kind of thinking. But I'm willing to share the secret with you even though it might be a little intellectual for some of you. The best thing you can do to improve your listening skills is to LOOK PEOPLE IN THE EYE. There you go. I said it. Now you know the secret to making people feel good about you and feel good about spending money with you...That secret is listening to people with your eyes.

That simple act is one of the most powerful techniques any sales expert can employ to improve their listening skills and to gain a favorable footing with a customer quickly. If you think most people or sales experts already look people in the eye, I challenge you to do your own independent study of sales people in your day-to-day life. See if they do it...look you in the eye; when they are "selling" you something. Ask yourself, "Are they intently fixed" on what I am saying; are they undistracted and interested only in what I am saying as evidenced in their eye contact with me? I think you will be surprised at what you "see."

People don't just communicate through words. They also communicate and persuade by the tone of the voice and in the visual realm in terms of body language, gestures and a "look." All these are cues and keys to good listening and convey either a positive or negative message to the customer depending upon their use...or lack of use.

We are intuitive creatures. We pick up on the subtle distractions that draw a person's eyes away from us betraying their boredom, or worse yet, their disrespect for our need to be heard, paid attention to and validated as individuals and consumers. So when someone fails to look at us and fix their eyes and attention upon us, we don't get a good feeling about them or our prospects of getting what we need. Now just imagine how it must feel to our customers when we fail to look them in the eye and give them our full attention.

So the "eyes" have it! Do you want to make your customers feel good, feel special and valued? Then look them in the eye and you'll hear every word they say. In turn, they'll love you for it!

Experience is Not the Best Teacher

2009-10-06T09:37:00.000-04:00

“The world comes to me as a fact, but I decide what to conclude from here.”
Peter Block
The Answer to How is Yes

What is an experience but the present moment of a particular circumstance? They are as fleeting as they are arresting; as real as they are imagined; and as useful to us as they are benign. Experiences are like the sounds of the pendulum’s swing rushing through the air one moment, while telling the lessons of time about the dial in the next. They are all around us, but alone, experiences are neither good nor bad, right or wrong, worthwhile or a waste, at least not until they are reflected upon and given relevance and meaning as a result.

Thus, experience is not the best teacher; rather, it is reflected experience that is the best instructor of life. Not until something becomes relevant to a person can it ever affect a change in their behavior or thinking. And not until something is reflected upon—a past experience that is pondered, considered, and internalized in search of its meaning and lesson, can it ever become relevant.

Relevance is Discerned through Reflection. Change is Made through Relevance.

It is at the point of relevance, or realization, that our experiences become useful to us; they change us and we discover whether the experience was good or bad, right or wrong, worthwhile or a waste. Therefore, reflected experience is the only effective means to get people to change, grow and be successful.

What Does All This Mean to the Sales Professional?

Beware of amassing a lifetime of sales experience that yields no value aside from the commission. Beware of a life that says twenty years of sales experience equates to superior sales prowess and success. It’s a virtual proverb when the word “experienced” is uttered that it means no more than that a person has accrued a lot of time in a particular industry. How sad?

“Experience counts for nothing” in many instances. Why? Because sales professionals often never take the time to reflect upon those experiences so they may learn and grow and become a better person and professional as a result.

Reflection is Evaluation

Evaluate your activities and your sales conversations. Let others do the same. Be honest with yourself when doing so—analyze your marketing efforts and your sales techniques. Formulate a simple means (i.e. checklist) that causes you to reflect from time to time on your daily, weekly, monthly or yearly experiences.
It is not all that important how often you reflect upon your experiences as a sales professional, nor is it that important how you evaluate yourself, either. What is important is that you “do it.” Plain and simple as it sounds, schedule time if you have to to reflect upon your business activities and results. The outcome will be growth for you personally and professionally.

A Final Note on Reflected Experience

Never expect training to change behavior or to provide a pathway to personal and professional growth. Training, particularly classroom sales training, has no real value in many organizations. Why? Because most training is very brief, impractical and lacks a “reflection” component. In my current professional capacity, I am extremely fortunate to be a part of an organization that recognizes the need for reflection & evaluation along with the "block & tackle" work of training on product and marketing systems and sales techniques. But my situation is very unique...and that is why we see such success among the ranks of those agents and leaders we work with and develop. But not everyone has what I have.In fact, most organizations as I have mentioned, fail in the follow up and reflection piece of the learning model.

“No one is going to change as a result of our desires.”
Peter Block
The Answer to How is Yes

Many Learning & Development divisions within sales organizations fail at achieving positive change for sales professionals because oftentimes a “follow-up” component (reflection + evaluation of sales experience) is missing in their training model. Those units would be more accurately named “Learning” rather than “Learning & Development” because little to no development ever actually occurs.
Don’t be like so many other sales professionals or organizations, who never take the time to reflect upon their sales and marketing experiences in order to learn from mistakes and successes.

Experience is Not the Best Teacher. Reflected Experience is the Best Teacher

"Psychological Reciprocity," Now Say That Three Times, Fast!

2009-10-05T11:34:00.000-04:00

There is a concept in sales called, "psychological reciprocity." It's a fancy way of saying, "I give you something...you give me something back in return!" It's an "everyday" concept that we've all used at one time or another. It's often described as a feeling of indebtedness. I liken it to a visit to my in-laws. They always cook up a nice meal when we go over to visit. After eating at their house, I feel obligated to be sociable and make "small talk." I don't necessarily want to talk to them...but I feel obligated to...After all, they did just feed me. So, you see how it works. Bad illustration, right. I was joking...I think!

Really, this is a powerful concept and used by many successful sales professionals either at a first contact face-to-face meeting of a prospect who they are hoping to set a sales interview with, or at the point of sale, or following a sales interview. Mentally, this concept speaks to how people naturally feel obligated to give back to you something in return for your giving them something...first.

Now this feeling of indebtedness, or reciprocal behavior, can come in the form of a sale. That would be the ultimate goal. Or, it can take the form of the prospect being increasingly willing to talk to you and be open about long term care insurance or hospital income discussions, auto insurance; just about anything. Whatever the form this reciprocal behavior takes, it will be a positive one for sure.

So here's my suggestion, take a look at the marketing materials and promotional pieces that you use to attract customers to your storefront or website, etc. Keep those at your desk , pre-positioned, ready give to your customers as a part of the interview routine. A nice giveaway piece might take the form of a business calendar with your branding on it. What you give is not as important as "that" you give something.

Offer a refreshment; coffee, soda or a bottle of water. Even the small "giveaway" promotional pieces that many agents have available to them , no matter how simple and inexpensive they may seem are effective in triggering this important human reaction.

Customers do respond positively to our generosity and good natured message behind the gift. Never…Never…Never...underestimate the power of generosity. And never...never...never...be without a gift, an item, an offer of something to your customers particularly when first meeting them. To do so is to miss out on an opportunity to differentiate yourself and to ignore the power of psychological reciprocity.

The transaction of business…whether it is a direct sales interview or the payment of a bill…is never emotionally neutral. Remember, people are emotional creatures and want to feel special and appreciated. Buying is emotional first…and rational second. Touch customers on the emotional level. Give them what they want.

Sales is a Contact Sport!

Finally, when visiting business establishments for the first time, do as many of other successful sale experts have and put together several simple pieces in a "nice" looking folder to leave with your business card inside. The emphasis here is on a clean, simple, and professional looking handout. Less is more.

Don't clutter it up with a lot of stuff. Business people are busy with "business." They typically have no time for chit-chat & confusing literature to trudge through. They appreciate simplicity and "to the point" approaches...for the most part. Also, don't forget to have your "infomercial" about who you are and what you're about ready to give as well. Then, follow up with a phone call to set an appointment.

"You Can't Build a Reputation on Things You are Going To Do." Henry Ford