What are barriers?
A barrier is something that you come up against that prevents you from winning new clients.
The two greatest barriers are:
- Finding the necessary time to dedicate to winning new clients – the lack of time is often driven by the fact that most people convince themselves that they are too busy handling renewals rather than dedicating time to winning new clients.
Often I see the business running the people, not the people running the business. In a well disciplined broking business, regular time is dedicated to winning new client activity. This is usually the same time each week and everyone is involved, no excuses.
If your staff are “full up” then either try an “urgent and important” matrix to really find out what your staff are spending their time doing or splice the bottom third of clients from your Exec’s account and pass these to another competent (more junior) person (delegate to the lowest level of competence). This will soon free up time to dedicate to winning new clients. This ‘splicing’ activity will also force you to recruit at the right level rather than a level that is expensive and risky.
- Being prepared to expose yourself to rejection -rejection is going to happen, accept it. There are, however, lots of things that you can do to minimise its frequency. Preparation is key. Knowing what objections you are likely to receive allows you to prepare your response. Role plays are a great way to ensure you’re ready and that your methods to overcome objections are valid, authentic and delivered in an appropriate manner.
After each engagement with a new customer take a moment to reflect and ask yourself “what could I have done better or different to create a better outcome?” This will help you prepare for the next time. Share your difficulties and challenges with your team and see what they do to overcome the same issues.
What are objections?
Objections are things that your new customers come up with that prevent you from winning new clients.
There are many of these, many of which are of your own making, usually because you haven’t followed your own process. A successful business that wins lots of new clients has their own winning new clients process. This has often been honed and refined over many years of experience. It has been amended so that it avoids many of the pitfalls that others fall into. Does your business have one?
Asking customers that you didn’t win, “what didn’t I get right?” often identifies the real shortcoming. Most usually jump to, “I didn’t pick the case up as I didn’t have the right price”, but the reality is often, if not always, different. So, for each case that you don’t win, having the owner of your business speak with the clients you don’t win will often lead to improvements in your process.
Many objections arise from your own making. How often do you hear “my renewal isn’t due now” or “we’re very happy with our existing broker” or “thanks for your quote but we’ve decided to stay with our existing broker”? These objections usually arise as you have not asked the right question or used the wrong statement.
For example, the objection of “my renewal isn’t due right now” usually arises after the first contact. The objective of the first contact is to get an initial meeting. This might be a 10 minute meeting in order to build a rapport, and it doesn’t need to be near renewal date – in fact, it’s far better if it’s not as this can put you in control of a review. Telling the client that “you are passing their door on a specific day and that you’ll only take 10 minutes of their time” has more chance of getting the initial meeting rather than the more traditional approach of “I’m from XYZ Insurance Broker and I wanted to know if we could provide you with an insurance review”.
As I mentioned in an earlier blog, winning new clients is a series of steps, the initial approach is just the first.
There are about twenty common objections. Great preparation and teamwork will identify ways to either avoid these from arising or ways to overcome them.
If you want to know more about the ways to overcome the common objections then please feel free to give me a call on 07920 299727.
Missed any of the other 12 Days of BIBA blog posts?
Day 1: Why winning new clients is critical to the survival of any broking business
Day 2: The importance of leadership
Day 3: What gets measured gets done & sources of opportunity
Day 4: Standing out from the crowd
Day 5: Tactics to win new clients & insurer relationships
Day 6: Sources of Opportunity & Personal Qualities
Day 8: You appeals
Day 9: Teamwork & Favours
Day 10: Terms of Reference (TOR)
Day 11: Review & Learn