chaos
Expert
How to Manage the FE Market:
There are several characteristics a good FE agent should possess along with several tools you will need to be adept at in dealing with the senior FE market. This article covers some, not all of those for new FE agents or experienced agents wanting to explore the FE market.
Dress Appropriately: The FE market is lower income and generally working class. I would not be wearing a three piece suit nor would I be outfitted in a sweatsuit or jeans. They don’t want to see you walking up to the door looking like an IRS agent or a panhandler. I suggest a nice golf shirt, slacks and penny loafers. They need to see a neatly dressed but not overdressed person approaching. You will likely be meeting in the kitchen, dining room or den and it will be out of place and uncomfortable to you and the prospect if you are dressed inappropriately.
Wave to No One: It’s an oldie but goodie. When you get out of your vehicle and are walking up to the door wave toward the residence. You may not see anyone. Wave anyway. The reason for this is that the person may see you waving and think you saw them. That decreases the chances that they may run to another room and hide and pretend to not be at home. You may laugh but I have seen my prospect running and hiding on many an occasion.
Knock the Right Door: Knock on the door that seems to be the one they enter. Friends and family know that door. Strangers and salesmen usually use the front door. This is not always true. Sometimes the front door is the right door. Use your own judgement but I guarantee the thought going through their minds when they hear the front door being knocked is “Who is that” and when the carport door is knocked they feel a little more at ease.
Be confident: FE market prospects are typically, not always, but typically retired individuals who worked hard in a career where they usually had a manager they followed orders from. It may sound somewhat condescending, but I have found that is what they respond best to. They tend to feel more confident to take your recommendations when they are plainly stated as “what they need to do”. Position yourself as the expert who knows what they need to do. That is not to say you just walk in and start barking orders and they get the checkbook out.
Establish Trust: Before the checkbook comes out, they need to trust you. Trust is a vital component of any sale. Most everyone of the seniors feel they can judge whether or not a person is “good” or not after sitting with them for a short while. You need to be the good guy they trust along with being the expert who knows what they need to do. A good way I have found to gain that trust is to compare them to my own parents. Show them that they are like your parents and you have made yourself like one of their children and thus to some small degree part of their family. I tell the simple story of how my mother raised four children on her own and did without so that we as her children would be provided for. They know what “doing without” is like. It changes how they see you from an insurance salesman to someone who understands them and wants to help. Find your own story and it will help you connect with them and to establish trust.
Avoid the “I want to think about it” put off. Most all FE sales are completed in one appointment. You will find that if you leave the home without an application that you will not usually go back to get one. If you are getting this objection you have either not demonstrated you are an expert, not established trust, not demonstrated the need or sense of urgency, or are missing something they have not disclosed. When you leave, the sense of urgency to address the issue starts to diminish. Life’s other demands take over and their thoughts get further and further away from insurance.
Your competition is often not another agent but rather a leaky roof or hot water heater that needs to be replaced. By definition the FE market is low income. That means they may have to prioritize differently than you do. It is tough to choose between the car repair they need and the insurance purchase. The insurance sale can possibly be put off but the car repair or whatever other pressing financial concern may have to be addressed first. Only in dire circumstances should this type of a situation keep you from doing your job. Stress to the client that there are always unexpected bills they will face. As soon as the hot water heater is replaced another unexpected bill will arise. They know that. Explain it to them. Get them to understand that those types of expenses will come up every month and that their insurance has to be taken care of. How would you feel as an agent if the wife called you after her husband passed and asked you if you got the insurance in place and you had to say “no” he wanted to think about it. You should not pressure them into buying a policy they can’t afford but you should also take your role as an agent seriously enough to help them prioritize the decision.
Create emotion: Make it real. That does not mean to scare seniors into buying from you. That is wrong and will come back to bite you and is just plain despicable. Creating emotion is very powerful though. Most interactions you have during your ordinary life do not elicit high emotion. You are checking out at the grocery store, waiting on your oil to be changed, etc. – not very emotional. Don’t make your FE appointment feel emotionless. When you stir their emotions they are connected with you. They had that “moment” with you that oftentimes solidifies the sale. Do it naturally. Don’t try to fake it, it usually shows through. When you can make that connection through an emotional experience though, it may make all the difference in the world to the client. One of the stories I tell is how I helped my mother with the same policy I am selling them. I tell the client how hard my mother worked to provide for us. I tell them that she had no insurance but that I would take care of those FE expenses for her and that I could never repay what she sacrificed for me. My mother was insistent though that she not be a burden and felt that with her income she could afford a small policy. Then I tell them how good she felt knowing those expenses would be taken care of. That usually hits home because they have children and probably feel the exact same way. It’s just a good business practice in general. Agents who treat a sale as merely a transaction will see lower persistency and renewals versus those that connect on an emotional level. That business sticks and will get you referrals as well.
There are tons of other things you will learn over the years but understanding the FE demographic, what the need is, and how to connect through emotion and trust will get you off to a good start. Be a good agent. Do the right thing as the old saying goes.
There are several characteristics a good FE agent should possess along with several tools you will need to be adept at in dealing with the senior FE market. This article covers some, not all of those for new FE agents or experienced agents wanting to explore the FE market.
Dress Appropriately: The FE market is lower income and generally working class. I would not be wearing a three piece suit nor would I be outfitted in a sweatsuit or jeans. They don’t want to see you walking up to the door looking like an IRS agent or a panhandler. I suggest a nice golf shirt, slacks and penny loafers. They need to see a neatly dressed but not overdressed person approaching. You will likely be meeting in the kitchen, dining room or den and it will be out of place and uncomfortable to you and the prospect if you are dressed inappropriately.
Wave to No One: It’s an oldie but goodie. When you get out of your vehicle and are walking up to the door wave toward the residence. You may not see anyone. Wave anyway. The reason for this is that the person may see you waving and think you saw them. That decreases the chances that they may run to another room and hide and pretend to not be at home. You may laugh but I have seen my prospect running and hiding on many an occasion.
Knock the Right Door: Knock on the door that seems to be the one they enter. Friends and family know that door. Strangers and salesmen usually use the front door. This is not always true. Sometimes the front door is the right door. Use your own judgement but I guarantee the thought going through their minds when they hear the front door being knocked is “Who is that” and when the carport door is knocked they feel a little more at ease.
Be confident: FE market prospects are typically, not always, but typically retired individuals who worked hard in a career where they usually had a manager they followed orders from. It may sound somewhat condescending, but I have found that is what they respond best to. They tend to feel more confident to take your recommendations when they are plainly stated as “what they need to do”. Position yourself as the expert who knows what they need to do. That is not to say you just walk in and start barking orders and they get the checkbook out.
Establish Trust: Before the checkbook comes out, they need to trust you. Trust is a vital component of any sale. Most everyone of the seniors feel they can judge whether or not a person is “good” or not after sitting with them for a short while. You need to be the good guy they trust along with being the expert who knows what they need to do. A good way I have found to gain that trust is to compare them to my own parents. Show them that they are like your parents and you have made yourself like one of their children and thus to some small degree part of their family. I tell the simple story of how my mother raised four children on her own and did without so that we as her children would be provided for. They know what “doing without” is like. It changes how they see you from an insurance salesman to someone who understands them and wants to help. Find your own story and it will help you connect with them and to establish trust.
Avoid the “I want to think about it” put off. Most all FE sales are completed in one appointment. You will find that if you leave the home without an application that you will not usually go back to get one. If you are getting this objection you have either not demonstrated you are an expert, not established trust, not demonstrated the need or sense of urgency, or are missing something they have not disclosed. When you leave, the sense of urgency to address the issue starts to diminish. Life’s other demands take over and their thoughts get further and further away from insurance.
Your competition is often not another agent but rather a leaky roof or hot water heater that needs to be replaced. By definition the FE market is low income. That means they may have to prioritize differently than you do. It is tough to choose between the car repair they need and the insurance purchase. The insurance sale can possibly be put off but the car repair or whatever other pressing financial concern may have to be addressed first. Only in dire circumstances should this type of a situation keep you from doing your job. Stress to the client that there are always unexpected bills they will face. As soon as the hot water heater is replaced another unexpected bill will arise. They know that. Explain it to them. Get them to understand that those types of expenses will come up every month and that their insurance has to be taken care of. How would you feel as an agent if the wife called you after her husband passed and asked you if you got the insurance in place and you had to say “no” he wanted to think about it. You should not pressure them into buying a policy they can’t afford but you should also take your role as an agent seriously enough to help them prioritize the decision.
Create emotion: Make it real. That does not mean to scare seniors into buying from you. That is wrong and will come back to bite you and is just plain despicable. Creating emotion is very powerful though. Most interactions you have during your ordinary life do not elicit high emotion. You are checking out at the grocery store, waiting on your oil to be changed, etc. – not very emotional. Don’t make your FE appointment feel emotionless. When you stir their emotions they are connected with you. They had that “moment” with you that oftentimes solidifies the sale. Do it naturally. Don’t try to fake it, it usually shows through. When you can make that connection through an emotional experience though, it may make all the difference in the world to the client. One of the stories I tell is how I helped my mother with the same policy I am selling them. I tell the client how hard my mother worked to provide for us. I tell them that she had no insurance but that I would take care of those FE expenses for her and that I could never repay what she sacrificed for me. My mother was insistent though that she not be a burden and felt that with her income she could afford a small policy. Then I tell them how good she felt knowing those expenses would be taken care of. That usually hits home because they have children and probably feel the exact same way. It’s just a good business practice in general. Agents who treat a sale as merely a transaction will see lower persistency and renewals versus those that connect on an emotional level. That business sticks and will get you referrals as well.
There are tons of other things you will learn over the years but understanding the FE demographic, what the need is, and how to connect through emotion and trust will get you off to a good start. Be a good agent. Do the right thing as the old saying goes.
