Does Anyone Successfully Telemarket Insurance From Cold Call to Close

deleatme · 01-02-2009, 09:48 PM

I have telemarketed exclusively in other industries from the initial cold call to wrapping up the sale and closing. Does anyone do that in the insurance industry? If so, how difficult is it to take care of things life medical exams, etc. over the phone? Thanks for any info.

John

Frank Stastny · 01-02-2009, 10:27 PM

That is the only way I sell insurance. I work the senior market.

bluemarlin08 · 01-02-2009, 10:35 PM

Yes

HomeService · 01-02-2009, 10:56 PM

A lot of people do it, I don't think I personally would like to do telesales, but a lot do.

deleatme · 01-02-2009, 11:21 PM

Frank - Can you tell me what products you market to seniors and do you rent/purchase lists that have been scrubbed for the DNC reg?

Bluemarlin - Could you tell me what markets you are in and the products you sell?

Thanks to both of you for responding. With the downturn in the economy I am looking at doing something different and believe I would be good in the insurance field IF I could telemarket.

djs · 01-03-2009, 12:09 AM

Deleatme -

There may be a terminology thing going on here.
I hire out my telemarketing to develop leads for me to sell. From there, I do a lot of telesales, some office appointments, some client home appointments, and even the random starbucks appointment.

Frank telemarkets, but sells (closes) in person, I believe.

I believe what you are looking for is a telemarket to a telesale, with no customer face to face time. A lot of people do this (for health, some life, little P&C), but there are tradeoffs.

- Closing ratios tend to be lower. It's easier to say no to someone on the phone than it is in person. Keep in mind, your closing attempts should be higher since phone conversations tend to be shorter, with no commute time.
- Retention tends to be lower. When you meet someone face to face, there tends to be a stronger relationship, they tend to feel like they know you a bit better.
- Boredom can become your worse enemy. I don't know about others, but I can't sit in a chair all day and talk on the phone for 8 hours straight. I like to mix it up with some face to face time.

That said, a lot of people are very successful at telesales.

Dan

beatuplunchbox · 01-03-2009, 12:29 AM

I started doing telesales/web conferencing in august and close a few more than when I was going face to face, but you are absolutely right about the retention factor. My percentage of drop offs is quite a bit higher than when I was doing face to face and the other downside is that I have had more prospects lie to me about things that have gotten them rated up or declined.

Its kind of hard to lie to someone that sees you are overweight or have a counter full of medicine bottles or see that newport hanging out of your mouth......

deleatme · 01-03-2009, 01:36 AM

Djs - Thanks for the clarification. Since I've been doing it(telemarketing/sales) for so long the term telesales hadn't been used when I first got into it so I've always called it marketing, but you are right I am talking telesales. And it's really nice to hear that it is being done. I am aware of the tradeoffs. It happened when I went from in-person to telesales. Am I correct in l assuming then that closing is still closing, that is abc and always assume the sale?

Also how would one find those GA's that are currently doing telesales that would be interested in bringing someone on board?

Thanks In Advance

John

somarco · 01-03-2009, 09:00 AM

My percentage of drop offs is quite a bit higher than when I was doing face to face and the other downside is that I have had more prospects lie to me about things that have gotten them rated up or declined

.

If it is that noticeable, you are doing something wrong.

When I moved from belly to belly sales to telesales, the only thing that changed was I was closing few sales. Belly to belly gave me a fairly high closing ratio. The trade off was the time involved, fewer sales presentations and of course the additional expense. No shows & one-legs are something I never handled very well. Doesn't bother me as much when someone tells me to call but then refuses to answer their phone.

I qualify people in just the same was as I did face to face. I have very few declinations and few clients drop off.

deleatme · 01-03-2009, 09:10 AM

Somarco - Thank you for responding. Now that I have the terminology right do you also telesale from cold call to closing and if so can you tell me what products and markets you currently work in?

Thanks,

John

Frank Stastny · 01-03-2009, 09:54 AM

Originally Posted by deleatme

Frank - Can you tell me what products you market to seniors and do you rent/purchase lists that have been scrubbed for the DNC reg?

Bluemarlin - Could you tell me what markets you are in and the products you sell?

Thanks to both of you for responding. With the downturn in the economy I am looking at doing something different and believe I would be good in the insurance field IF I could telemarket.

Currently I only sell Medicare Supplement policies. I do not think that PFFS plans are good for people who live in rural Missouri. They may be okay for those living in St. Louis and KC.

Over the years I have tried just about every way possible to market Med Supps. My method of calling from lists I have purchased (I have never heard of "renting a list") and recycling contacts my prospects database has proved over and over again to be the most effective, easiest way to sell Med Supps.

I have never noticed an impact on Med Supp sales regardless of what the economy was doing. I have been selling them for fifteen years. They can be sold twelve months a year and no goofy restrictions like the ones for selling Medicare Part C plans.

If you would like to discuss it further give me a call.

somarco · 01-03-2009, 09:57 AM

I don't telemarket and I rarely cold call (face to face). I buy leads of those who have indicated an interest in looking for health insurance.

I also do things to promote myself, my web sites & my expertise in the market. From time to time I get referrals as well and these are like gold.

In the past I have done just about everything under the sun to find prospects including direct mail, print ads, B2B cold calling, telemarketing (personal & hiring someone) and buying leads (both direct response and unsolicited).

My model works for me and is the result of a lot of trial & error plus observing what works for others.

If what you are doing is not working you can usually figure out it is one of two things.

Either what you are doing is wrong, or the way you are doing it is not comfortable for your style.

Tiger Woods (when he is playing) wins because what he does is consistent and designed to get results. If he were to swing the club the way I do he would never win a tournament and would spend a lot of time in the rough.

When you are on your game you are not just going through the motions but you are doing what works.

When you are comfortable with your market and presentation it flows and it shows. You are more confident and more successful.

My worst experiences (and results) were when I was working in an environment that forced me to do things against my nature.

Frank Stastny · 01-03-2009, 10:14 AM

Originally Posted by djs

Frank telemarkets, but sells (closes) in person, I believe.

I use to do only "in person" closes. However, each year I am doing more and more sales over the phone. I find that when offering the prospect the option of meeting with them or completing the app over the phone, more and more are opting for the phone route.

I present the offer in such a way that strongly encourages them to do it over the phone.

Originally Posted by djs

I believe what you are looking for is a telemarket to a telesale, with no customer face to face time. A lot of people do this (for health, some life, little P&C), but there are tradeoffs.

- Closing ratios tend to be lower. It's easier to say no to someone on the phone than it is in person. Keep in mind, your closing attempts should be higher since phone conversations tend to be shorter, with no commute time.
- Retention tends to be lower. When you meet someone face to face, there tends to be a stronger relationship, they tend to feel like they know you a bit better.
- Boredom can become your worse enemy. I don't know about others, but I can't sit in a chair all day and talk on the phone for 8 hours straight. I like to mix it up with some face to face time.

That said, a lot of people are very successful at telesales.

Dan

I agree with all of the above, especially the boredom part.

I still have clients who I wrote Med Supp policies on in 1993. If one wants to build a solid book of business of "long time clients" face to face is the way to go, in my opinion.

An agent who does not stay in contact with their clients after the sale is going to have a much lower rate of persistency, regardless of how the policy is sold, than the agent who does communicate with their clients on a regular basis.

deleatme · 01-03-2009, 10:32 AM

Frank - thanks for the input. You work the senior market, do you do anything with FE as well and if so is this a cross-sell or an initial sale. And finally, on your Med Supp sales, are these mostly 1 call or multiple calls.

Somarco - I went to your website. It looks like you do a lot in the -65 medical market. Are most of your sales from multiple calls or single calls?

I want to thank everyone for responding. In the electronics industry(where I am now) you couldn't get anyone to respond with answers to questions like these - too paranoid about competition.

Thanks again,

John

HomeService · 01-03-2009, 01:32 PM

I recently tried term life telesales, with internet leads: I dislike term, I dislike the phone, and I dislike the internet for leads, so I was triple bonked.

moonlightandmargaritas · 01-03-2009, 01:36 PM

Originally Posted by Frank Stastny

I use to do only "in person" closes. However, each year I am doing more and more sales over the phone.

An old dog can learn new tricks?

Happy New Year Frank.

GreenSky · 01-03-2009, 01:41 PM

Originally Posted by HomeService

I recently tried term life telesales, with internet leads: I dislike term, I dislike the phone, and I dislike the internet for leads, so I was triple bonked.

You need to spend more time selling and less time bonking.

Rick

somarco · 01-03-2009, 02:48 PM

Sorry, John. I would love to answer your questions but I am beginning to get paranoid about your intentions . . .

The bulk of my business is indeed under 65 major med. Occasionally I will "one call close" a prospect but it is usually a 2 or 3 call process.

I don't pressure anyone to make a decision, and always tell them we can move forward when they feel comfortable with their decision.

This is all about serving THEIR needs over mine. If you have ever read the book

The Nordstrom Way then you have a bit of insight into the way I conduct business.

You need to spend more time selling and less time bonking.

What fun is that?

Frank Stastny · 01-03-2009, 03:48 PM

Originally Posted by moonlightandmargaritas

An old dog can learn new tricks?

Happy New Year Frank.

Bow-wow!

I still don't buy leads and do my own telemarketing from a selective group of seniors.

It is so easy the way I do it I can't imagine why anyone working the senior market would piss away thousands or even hundreds of dollars buying "leads". They either have to be just lazy or already have more money than they know what to do with.
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Originally Posted by deleatme

frank - thanks for the input. You work the senior market, do you do anything with FE as well and if so is this a cross-sell or an initial sale. And finally, on your Med Supp sales, are these mostly 1 call or multiple calls.

John,

Yes and No to all of the above.

I could sit here all afternoon typing, trying to explain what I do and how I do it or you can give me a phone call. There are so many things that go in to my method of marketing that it is best understood by talking, definitely not by "typing".

I prefer to deal with people face to face. I that isn't possible then I like the phone. My least favorite way is typing.

deleatme · 01-03-2009, 05:53 PM

Somarco - I'm sory if I said anything to make you feel paranoid. I was simply trying to get an idea of how many calls it took on average to close a sale. In electronics you might come across someone who needs cd-roms today but usually you have to put them in a tickle file and call them back on a periodic basis so that you'll be top of mind when they do need them and their current supplier can't produce.

Frank - You're right and I'll contact you.

Thank you everyone for enlightening me and spending the time to help me.

John