Tuesday, October 26, 2010
Tuesday, October 19, 2010
Tuesday, October 12, 2010
Friday, October 8, 2010
Lessons from the Ryder Cup
Tie compensation to the success of the team—not just the individual.
The American team almost climbed out of a giant hole that they had put themselves during last Saturday’s Ryder Cup matches. Their rally fell short on Monday but the camaraderie among the American team was evident as they tried to mount their comeback. The Ryder Cup is different than a typical golf tournament—and it starts with the energy generated by the spectators and competitors.
Players on both sides did not exhibit the traditionally reserved demeanor when playing as individuals. During most golf matches, players acting as individuals in an extremely competitive setting. However, the Ryder Cup has a unique format that enables golfers to play as a team—something that most of them have not experienced since high school or college. Clearly they enjoy the opportunity to compete as a team against a formidable opponent. So, what is the lesson for your agency?
This individual/team dynamic can be compared to producers in an independent insurance agency. Each producer recognizes that their tenure, compensation and success in the firm will be affected by their individual productivity. However, agencies need to guard against a solely centrist view by each producer. Producers who focus only on their own production, rather than the overall success of the agency, can create unintended consequences. Just like CEOs who focus on the company’s near term stock price, their actions can be divisive and deter from the synergy that all organizations need to compete effectively. For example, a producer who speaks negatively of the competition, over promises during the bidding process or fails to share information that could benefit the agency can hurt overall results and create ill will in a small community.
Another typical problem is a producer who has a strong relationship with a commercial client and is unwilling or gives short shrift to introducing other services that the agency can offer in cross-selling opportunities. How can an agency help to instill a culture of collegial cooperation? The answer: aligning interests. And, one of the best ways is to have the compensation structure provide both direct compensation for individual productivity and an element of compensation that is tied to the overall results of the agency. For example, if a producer receives a commission of 35% of premiums, adjust it so that the commission is 30% and the remaining 5% (which is about 15% of the producer’s total compensation) is tied to the overall results of the agency. Now the producer is incentivized to help the agency’s bottom line, not just their own.
Agencies typically list producer sales volumes, which is certainly a necessary metric. Competition and recognition is indeed good and necessary. However, an agency that only targets individual production neglects an opportunity to acknowledge and reward behavior that demonstrates situations where producers or CSRs help a colleague with an account or a crisis that crops up. Providing public recognition and a gift card in those instances will help ensure that assistance is also lauded by everyone in the agency.
The United States has two years to get ready for the next Ryder Cup. Your agency does not have to wait that long to instill a norm of teamwork and cooperation.
The American team almost climbed out of a giant hole that they had put themselves during last Saturday’s Ryder Cup matches. Their rally fell short on Monday but the camaraderie among the American team was evident as they tried to mount their comeback. The Ryder Cup is different than a typical golf tournament—and it starts with the energy generated by the spectators and competitors.
Players on both sides did not exhibit the traditionally reserved demeanor when playing as individuals. During most golf matches, players acting as individuals in an extremely competitive setting. However, the Ryder Cup has a unique format that enables golfers to play as a team—something that most of them have not experienced since high school or college. Clearly they enjoy the opportunity to compete as a team against a formidable opponent. So, what is the lesson for your agency?
This individual/team dynamic can be compared to producers in an independent insurance agency. Each producer recognizes that their tenure, compensation and success in the firm will be affected by their individual productivity. However, agencies need to guard against a solely centrist view by each producer. Producers who focus only on their own production, rather than the overall success of the agency, can create unintended consequences. Just like CEOs who focus on the company’s near term stock price, their actions can be divisive and deter from the synergy that all organizations need to compete effectively. For example, a producer who speaks negatively of the competition, over promises during the bidding process or fails to share information that could benefit the agency can hurt overall results and create ill will in a small community.
Another typical problem is a producer who has a strong relationship with a commercial client and is unwilling or gives short shrift to introducing other services that the agency can offer in cross-selling opportunities. How can an agency help to instill a culture of collegial cooperation? The answer: aligning interests. And, one of the best ways is to have the compensation structure provide both direct compensation for individual productivity and an element of compensation that is tied to the overall results of the agency. For example, if a producer receives a commission of 35% of premiums, adjust it so that the commission is 30% and the remaining 5% (which is about 15% of the producer’s total compensation) is tied to the overall results of the agency. Now the producer is incentivized to help the agency’s bottom line, not just their own.
Agencies typically list producer sales volumes, which is certainly a necessary metric. Competition and recognition is indeed good and necessary. However, an agency that only targets individual production neglects an opportunity to acknowledge and reward behavior that demonstrates situations where producers or CSRs help a colleague with an account or a crisis that crops up. Providing public recognition and a gift card in those instances will help ensure that assistance is also lauded by everyone in the agency.
The United States has two years to get ready for the next Ryder Cup. Your agency does not have to wait that long to instill a norm of teamwork and cooperation.
by Dave Evans
Wednesday, October 6, 2010
How to Consistently Outperform your Sales Competiton
By Dr. Jack Singer
Susan is in life insurance sales. She understands how to make cold calls, how to follow up on leads and referrals and how to offer excellent customer service. Yet, she’s amazed at how much more successful her colleague, Michael, is, when she puts much more time and sweat into her work than Michael seems to do. She wonders what is missing in her approach.
The key difference between their approaches is the fact that Michael has trained himself to be an “active listener.” He uses the Sales T.R.I.U.M.P.H.S. active listening model to not only help him maximize his sales deals, but as a powerful technique that helps him communicate effectively with his wife and teenagers as well.
Here are the components of your sales T.R.I.U.M.P.H.S:
T: Treat your client with respect and value — Developing rapport with the client is a crucial first step. Smile, position yourself at the same level (sitting or standing, depending on what the client is doing), and slightly lean toward the client while maintaining eye contact. Make sure your cell phone is on silent and you can give your undivided attention to the client.
Listen to what the prospective client is saying — don’t shuffle papers or start thinking about your response. Just listen to her. Regardless of what the person asks, don’t fall into the trap of thinking you need to answer immediately. It’s OK to say, “That’s a great question. Give me a day or so to research our products to find the one that precisely addresses your question.” Clients can be long-winded, nervously asking a lot of questions. Cutting off a speaker may lose you the rapport you need to develop. Always give the speaker the courtesy of finishing a point before you interject your own. Again, take notes so you won’t forget what you wanted to say.
Click Here to Read More....
Susan is in life insurance sales. She understands how to make cold calls, how to follow up on leads and referrals and how to offer excellent customer service. Yet, she’s amazed at how much more successful her colleague, Michael, is, when she puts much more time and sweat into her work than Michael seems to do. She wonders what is missing in her approach.
The key difference between their approaches is the fact that Michael has trained himself to be an “active listener.” He uses the Sales T.R.I.U.M.P.H.S. active listening model to not only help him maximize his sales deals, but as a powerful technique that helps him communicate effectively with his wife and teenagers as well.
Here are the components of your sales T.R.I.U.M.P.H.S:
T: Treat your client with respect and value — Developing rapport with the client is a crucial first step. Smile, position yourself at the same level (sitting or standing, depending on what the client is doing), and slightly lean toward the client while maintaining eye contact. Make sure your cell phone is on silent and you can give your undivided attention to the client.
Listen to what the prospective client is saying — don’t shuffle papers or start thinking about your response. Just listen to her. Regardless of what the person asks, don’t fall into the trap of thinking you need to answer immediately. It’s OK to say, “That’s a great question. Give me a day or so to research our products to find the one that precisely addresses your question.” Clients can be long-winded, nervously asking a lot of questions. Cutting off a speaker may lose you the rapport you need to develop. Always give the speaker the courtesy of finishing a point before you interject your own. Again, take notes so you won’t forget what you wanted to say.
Click Here to Read More....
Tuesday, October 5, 2010
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