Cold Calling

[new2independent]

I am at a producer here at a small agency in MA. The agency principal only beleives in cold calling. No marketing whatsoever. I have been here for about 2 months and have obtained about 1-2 appointments per week. I am primarily prospecting commercial lines. The principal is now starting to bear down on lack of appointments. I am trying to make 200-250 calls per week but feel that cold calling isn't that productive. How many appointments should I shoot for? Any suggestions?

[Big Dog]

It goes without saying that the agency principal doesn't understand marketing, and has no idea how ineffective and inefficient cold calling can be. It sounds like he has his book of business set for himself and does not want to put forth the funds to do appropriate marketing.

I'd honestly recommend looking for a mid-sized regional agency to work for - one that has a grasp of how to attract new business, and is willing to put forth the resources to bring in that new business.

[jimmyr1978]

Establish 1-2 niches and "own" those industries. If you are blindly cold-calling, you are spinning your wheels. But if you have a niche, preferably commercial accounts with sizable premium potential ($25k+) and work that niche hard, you will get to a point where you no longer need to "cold call." Every call will be luke-warm to warm since you will know the players, and they will probably know you.

Work smarter, not harder. And get out of that dinky little agency - you probably don't even have the markets to close half of the folks you're calling on anyway. Per the previous poster, align yourself with an established regional agency.

[SlossbergIns]

I believe using many different prospecting and marketing strategies is important. However, the key to cold calling is the volume of calls. Making only 250 calls per week is not enough. In our agency our contact managers are making about 120 calls per 3 hour session. We have two contact managers each working one 3 hour session 5 days per week. By doing this we are generating any where from 1 to 4 leads per person per day. This would be at a minumum 10 per week and a maximum of 40.

[pita3333]

I believe using many different prospecting and marketing strategies is important. However, the key to cold calling is the volume of calls. Making only 250 calls per week is not enough. In our agency our contact managers are making about 120 calls per 3 hour session. We have two contact managers each working one 3 hour session 5 days per week. By doing this we are generating any where from 1 to 4 leads per person per day. This would be at a minumum 10 per week and a maximum of 40.

SlossbergIns: I disagree...while volume is a part of the puzzle...the key is focusing the calls on the contacts that have the best potential of success. I can call 1000 contact selected randomly from a list...and at the end of the day I might have a few warmish results. But then when I try to match them to what my carriers are after...my results will be lower.

However, if I match my carriers hit lists with my prospecting my results will be much better in the end.

Having said all this...everyone has to remember that the sales cycle for commercial lines is typically 120 days +/- on average. So there will not be "quick" results. Getting back to the original posting, it appears that he agency owner is not entirely realistic about his expectations. Likely he feels he is spending too much on this producer and expects to see results immediately. Which means ... that unless the two can somehow meet in the middle, it is time for this producer to find a new more realistic home.

[scott]

"120 calls... 1 to 4 leads per person per day."

The very essence of cold calling - inefficiency and unprofessionalism.

Piss off huge numbers of people to get a few pathetic souls who agree to a quote.

There is a better way. Build marketing gravity. Be an object of interest. Stand out from the crowd. Provide exceptional value.

[new2independent]

Thank you all for your replies. The agency although small, has 7 different commercial lines carriers and definitely does have the markets to acquire any risk in house....except for trucking firms. I agree with you Scott that cold calling is very inefficient. I would like to provide value, however who am I going to provide value to without at least some cold calling? Just something that popped into my head. I beleive cold calling is neccesary but I am just frustrated with the lack of support from the agency principal for any other type of prospecting plan. Thanks again for any suggestions.

[Shagster12]

Here's my 2 cents;
Cold calling relies solely on the "Law of Numbers" for any type of success. That said, you can legitimately expect pure cold calling to yield about 1 in 20-25 contacts with the decision makers. And further you can expect to garner interest from only about 1 in 10 of those.. So now you're looking at real interest of about 1 in 200-250 calls. So if you want to continue with this agency and keep your boss happy I'd recommend about 100 to 150 calls a day!
In agreement with other posters that picking a 'niche' and working it will increase your yield and bring you probably closer to a 1 in 30-40 interest rate, still very innefficient considering the time commitment to make these calls.
Summary; cold calling will RARELY provide successful prospecting on its' own! Successful marketing campaigns will combine several elements to put your name in front of your prospects and should include advertisements that reach your target segment, mailer campaigns and then calling! So I say narrow your focus, increase your efforts and increase your yield!
Good Luck,
Shagster

[scott]

New to Indep,

You say, "who am I going to provide value to without at least some cold calling?"

For CL sales, take your accountant to coffee. Tell him this:

"Jack, every business activity involves risk. There are four types of risk differentiated by frequency and severity of event..."

Draw a matrix on a napkin using a Sharpie - 4 boxes, 2 by 2

High Probability, Low Severity
High Probability, High Severity
Low Probability, Low Severity
Low Probability, High Severity

"What type of risk are your clients concerned with?"

No insurance agent has ever asked your accountant that question. It's provocative.

Build a three minute presentation for accountants using the above as a starter - do it yourself or buy my book. I dont care.

Done right, you will gain qualified leads from the accountant almost every time.

Use your accountant to get access to other accountants...

"Jim, I know that Betty Smith is in your firm. Can I call her to set up a conversation similar to the one we just had?"

From a relationship with one accountant you can have many coffee meetings a week for months, all leading to conversations with qualified prospects who see you as a peer rather than a hack salesperson.

Why coffee and not lunch? Coffee meetings are faster. If you do them right you can do 4 in one day.

Marketing gravity, be an object of interest, stand out from the crowd, provide value.

[pita3333]

Another thing to do...when you have an appointment with a prospect or client...allow extra time after you finish with them to canvas the neighborhood for additional prospects. This works best if your niche industry targets prospects tend to be clustered. Example: Machine shops, small mfg etc. Walk in talk to the receptionist and ask for the card or info on whom the insurance buyer is. Also pick up any of their sales material that might be available.

Be sure to make specific notes on the card about the visit. One time I walked in and the receptionist was on phone complaining about the extra traffic that morning. I made small talk with her about the traffic and other things. Then when I called to speak to the buyer, I asked her about the traffic that day and reminded her about our conversation when I was in her lobby. I did this on a regular basis and found that many times it helped me by changing me from a voice on the phone to a person they had met.

Also, in your marketing letters, say or do something different. I remember that I started my letter with a comment about the radio advertising that you hear about "cheap insurance" etc. I continued with how can anyone expect to always have the cheapest with out some focus on quality. When I called my suspects/prospects I reminded them of the letter and repeated those topics. Again, it was to remind them that I had already sent them some info.

And finally...along lines of the drum that Scott is beating....ALWAYS ASK FOR REFERRALS! Even if you do not get the sale, ask ask ask ask and then ask some more. Even ask at the end of your first meeting, ask at end of your info gather meeting. You likely will not always get referrals right off bat...but eventually you will. When you do get them, let the person know who gave you the referral. When you write that referral, send a personal Thank You to the referral source - along with another referral request.

[new2independent]

Thank you all again for your valuable suggestions.

[anitadig]

Could this be a problem if you solicit personal clients who are on the "do not reply" registry?

[gregcw]

I am at a producer here at a small agency in MA. The agency principal only beleives in cold calling. No marketing whatsoever......
The principal is now starting to bear down on lack of appointments. I am trying to make 200-250 calls per week but feel that cold calling isn't that productive. How many appointments should I shoot for? Any suggestions?

I guess my question is "What does your Principal consider marketing ?" If it is just advertising on radio or in newspapers I would suggest that you send a pre-apporach letter that includes Information about you and your agency, about your companies i.e. brochures &/or A.M. Best information, coverages that their type of business needs, etc.

If you do this, when you contact the insured, you are no longer a COLD Call but aWARM Call.

Also how tied into the telephone is your Principal? If he's not, I'd try to make a FIRST call in person. Then make any subsequent calls for information gathering or just becoming familiar wiht the prospect. This makes the Prospect feel more comfortable talking with you.

If he is really tied into the telephone calling, make your calls so that they DON'T sound like the callers that are using an automatic dialer to make calls to several different numbers and you can tell that is what they are doing because of the delay before they respond to your picking up the phone. Also do not use a canned sales approach. Make it as personal as you can.

When I started out with Farmers (I'm now independent) I used their canned approaches that really turned people off. They were really not effective.

[darthvieder]

interesting.. im going to check this one out.. thanks a lot

[scott]

Sending a self-serving letter does not make for a warm call.

Walking in on a suspect is worse than cold calling!

Re the principle who only wants you to cold call... His shop, his rules. If you don't like his rules, persuade. If unsuccessful, move on. Employees and employer do not have to agree on everything - they do have to share values to be successful.