Notice Of Closure

Thanks for reading. This blog is now closed.

But don't despair.

My replacement blog is marketingactuary.com (also hosted by blogger.com). The old posts here have been copied there. So you won't lose a word.

I wanted a better blog name, one that emphasized the marketing process rather than the selling stage. We each have our unique value propositions a.k.a. competitive advantages a.k.a. positioning. I'm a marketing actuary and want to be seen as such when working with helping financial advisors. To my pleasant surprise, the URL www.marketingactuary.com was available. So I grabbed it.

If you subscribed for email updates, there's nothing you need to do. You'll now get updates for the new blog.

So point your browser to www.marketingactuary.com and keep reading. And commenting!

How to Double Your Revenue

"How can I double my revenue?"

This question arises even from advisors with revenue in the millions. The great news is that the market is so large that everyone agrees more sales are possible. Since you're probably working more hours than you'd like, the solution is not to work longer. Let's assume you are using time effectively, focusing on the important rather than the urgent.

There are three strategies

1. Catch more fish
2. Catch bigger fish
3. Keep more of the fish

1. Catch More Fish
This approach is about volume and efficiency. You can get volume by selling commodity-like products such as term insurance. You need to

• streamline the process
• automate the process

You're not creating much loyalty with volume. You may be increasing fixed costs for staff or equipment. If you have an assistant for the routine cases, you can concentrate on the bigger ones.

Give your clients an opportunity to increase the size of the sale. You see this in stores with extended warranties and accessory bundles. Can you create a deluxe or packaged option?

2. Catch Bigger Fish
You can use a fishfinder to identify where the bigger fish hide. You can

• go deeper: find opportunities among your own clients by mining your current database
• go wider: search for fish in other places by using techniques such as client seminars or joining clubs or associations

3. Keep More Of The Fish
You probably can't negotiate a larger slice of the compensation. You're much better off focusing on the other two.

Followup
Staying in touch with your customers helps create repeat business and referrals. You'll save time by using emails, newletters or blogging.

The Unremarkable Client Seminar

How do you get new clients? Seminars work very well. When done very well.

Here's a review of an invitation in today's mail. Identifying information has been removed. Click on it for a larger image.

"A" For Effort
The intent to market deserves congratulations. The event is being held at a nice location, The Old Mill. There's champagne and hors d'oeuvres. There's a "top senior financial consultant" (whatever that means) who'll give a "dynamic presentation" on

• advanced tax planning
• augmented tax deductions
• investment strategies

What's being done is good enough, but unremarkable. Wouldn't you expect a keynote speaker to have meaningful professional credentials?

"B" for Confusing Title
The title is "The Wealthy Neighbour (tm)". Why? I know my neighours are wealthy. So what?

Last week, the Toronto Star reported that this is "one of Toronto's toniest and best-educated enclaves" and that "family income tops $170,000".

Maybe there will be stories as with The Wealthy Barber or Rich Dad, Poor Dad? Your neighbour is wealthy because they use our services. You don't. So you're not.

"C" for Timing

Will parents attend a seminar the evening before March Break? Maybe they aren't the target. Maybe it was difficult to book the speaker or venue.

"F" for the Invitations

The invitation looks like a junk mail flyer. Sure, it's printed on nice glossy paper, but many advertisers use that in this neighbourhood. There's no envelope. Wouldn't you expect an invitation to a champagne event to have an envelope or be printed on thick card stock that looks like an invitation? Especially in such a tony 'hood?

Here's the real shock. The event is in less than 24 hours. I'm serious. There is no advance notice. Maybe the mail delivery was slow. Maybe the printers were slow. Whatever the cause, would you feel like attending an event like this?

Why Detail Matters

Nothin' Matters and What if It Did?
--- John "Cougar" Mellencamp (1981)

I want our business to be held in high regard. We sell the invisible: services. Prospects are not able to judge the quality of our services. So they judge what they can see --- the invitation and the attention to detail.

Maybe the event will be a tremendous success. Maybe I'm being too picky.

Would you trust your money to the organizer?

Exchanging Best Practices

(Here's the followup to Sneaking A Peek At Best Practices)

There's so many different worlds.
So many different suns.
And we have just one world,
But we live in different ones.
--- Dire Straits, Brothers in Arms

When you're selling, you lose access to the best practices of your competitors. So what can you do that's effective and ethical?

Deal with someone who travels in different worlds from you. That's where I can help. I travel in the distinct realms of

• National Accounts: working directly with insurance specialists
  
• Managing General Agents: working directly with insurance brokers
• Investment Advisors: working directly with select ones licensed to sell life insurance
• Actuaries: maintaining contacts at other insurance companies, consulting firms and reinsurers
• Other professions: accountants, lawyers --- someone's got to talk to them :)
• Learning: from articles, books, seminars, conferences (including CALU)
  
• Technology: ways to serve your clients using innovative tools like a blog, wiki or Office 2007
  

Each world has similarities and differences. Each has best practices or knowledge you can apply.

If two people think the same way, fire one: they're redundant.

You're probably in special worlds too and have ideas to share.

What do you want to know?

Conan the Teacharian

You explain a concept to a client. You meet two weeks later to follow-up only to find that you've got to explain the concept over again. What happened? Did you do a lousy job of explaining? Or is the fault with the client's learning abilities?

Maybe one, both or neither. We forget easily.

Image too small and grainy? See the high quality full size graphic. You can save to your computer and use it in PowerPoint.

The Cone of Learning, developed by Edgar Dale in 1946 helps us understand what happens. After two weeks, we remember only 10% of what we read (bad news for a blogger) but 90% of what we do.

To improve recall, we need to engage our clients in more ways. What do you suggest?

Don't ask me. I spent my time creating the graphic ;)
(And don't ask why the cone looks like a pyramid)

Speed vs Gas

We want what we can't have. In this case, gasoline.

I’ve got some downers, some speed
All the drugs that you need
But I can’t get a gallon of gas.
There’s no more left to buy or sell.
There’s no more oil left in the well.
A gallon of gas can’t be purchased anywhere
For any amount of cash.
--- The Kinks

In Toronto, gas prices have increased to nearly a dollar a litre because of a supply shortage. Yesterday morning, I saw that the pumps at my regular gas station were closed. I had about 1/3 a tank left, but started feeling uneasy. I checked my Distance To Empty, which was 240 km. I still felt uneasy. That's the power of scarcity.

I passed several other gas stations and they had fuel. So my uneasiness decreased. By the end of the day, all stations I passed were open --- even mine. I didn't bother refueling because of the lineups. I figured the shortage was over and that prices would drop.

Until this morning.

According to the radio, the shortage is ongoing, government action is needed, truckers may be out of business within days. The usual scare-mongering. I resolved to get gas that morning. The first station I visited was closed. I changed to a slower route with many stop lights and more gas stations.

Look ahead. There's a lineup. And it's not a Tim Hortons! Explain this to me. There's a pump with 6 vehicles lined up while another pump has only one car. Guess which pump I pick? Guess what? There's no premium fuel left. Luckily, my car can use regular. So I fill up at $0.978 per litre.

I'm feeling good until I pass four other gas stations and find only one is closed. Maybe gas isn't that scarce after all. But do they have premium unleaded?

Coming home, the story is different. My car feels less spirited. Is it the regular gas? Maybe it's just psychological. Four of the six gas stations I pass are closed. The two that are open have long lineups. Gas is in short supply again. I feel good.

That's the power of scarcity. And insensitivity to the plight of others ;)

Our clients also want what they can't have. How can we (not) give it to them?

Diluting the Soup

It's 1:36pm and I've yet to have lunch. One of those days. There's a sandwich chain up ahead, they've got empty parking spots and I don't have to make a left turn. Since I'm not with a client, that place will suit me fine.

I ask for a toasted sandwich with lettuce, tomatoes, swiss cheese and mustard. The server gives me cheddar instead, which I don't notice until I'm eating. She did cut a fresh tomato, which balances out.

It's -16C and I want a hot drink. I decide on hot chocolate. I ask if they have any because it's past regular lunch times. They do. I ask for a large cup. I figure a healthy sandwich balances out the extra calories. I'm used to getting hot chocolate from a machine that fills your cup with premixed hot chocolate. Here it's different. They add a packet of Carnation hot chocolate to boiling water. I see what the server does, but it doesn't register. The pangs of hunger must have dulled my perceptions. Do you see the problem?

The hot chocolate packet is designed for small cups, probably 250 mL (or 8 ounces if you're still clinging to Imperial units). The server adds the packet and fills the large cup with hot water. So the extra 35 cents for supersizing my drink only got me

• more water
• a larger cup

No topping of whipped cream. No marshmallow.

Again, this didn't register until I took my first sip of the diluted concoction. It tasted horrible. What would you do? Take it back or just take it? I'm wimpy when it comes to complaining. So I drank it. My goal was something hot, after all. As I neared the bottom of the cup, the flavour got stronger. You know why? The powder had not been stirred properly. So for a few sips I got proper hot chocolate and then an over-sweet mixture. There was some chocolate paste left at one side of the cup.

A tea bag can make one cup or two. Not so with hot chocolate. Surely the server knew this. Yet did nothing. Except earn extra profit. You see, the beverage server was also the owner. There's no novice employee at fault.

For want of a nail, the shoe was lost.
For want of a shoe, the horse was lost.
For want of a horse, the rider was lost.
For want of a rider, the battle was lost.
For want of a battle. the kingdom was lost.
All for the want of a nail.
--- Benjamin Franklin remixed

We can easily under-deliver and then get surprised when the customer doesn't return. On the positive side, I didn't get extra calories. And I got a blog post.

Have you experienced bad service? What did you do?

Sneaking a Peek at Best Practices

You're curious, right? Not quite Curious George, but interested nonetheless. You want to know what makes others successful. What works for them may work for you.

But what are others doing? You can ask colleagues, but not competitors. Naturally, we want what eludes us. How do we find out what our competitors are doing?

Three of the four choices are ethical:

1. technology
2. conferences
3. client seminars
4. maven/connectors
   

Using Technology
Technology offers solutions. We can use search engines to find people, presentations, newsletters, newspaper articles, press releases, and websites. It's surprising and sometimes shocking what you can find out instantly for free. The beauty of these sources is the anonymity. No one sees you peeking.

Try a search on your own name at google.ca, for example. Unless you know you're world famous, select pages from Canada.

Attending Conferences
Conferences are another way. You can ask questions during and after a session. Now you are asking a presenter, not a competitor. It's surprising how much you can pick up, how willing others are to share when in the right environment. Friendships can develop, which makes future contact easier.

Crashing Client Events
As Yogi Berra says, "You can observe a lot just by watching." A competitor's client event lets you see

• how the event is arranged
• the location
• the attendees
• the presentation
• the handouts
• the followup process

But you can't go --- even with an invitation. Only clients and prospects are welcome. Some venues are intimate and expensive, which would make your presence more intrusive and more costly. Unless you're a master of disguise like Inspector Clouseau (Peter Sellers, not Steve Martin), you're liable to be found out. To attend, you need permission. Good luck getting that.

So what can you do?

Use Maven/Connectors
There are three types of people. "Those who can count and those who can't?," you ask. "No," I reply. In The Tipping Point, Malcolm Gladwell calls them:

1. mavens (actively accumulate knowledge)
2. connectors (have links between different groups)
3. salesmen (persuaders who help clients act)

Do you see the dilemma? Mavens burst with knowledge but have few to tell. Connectors spread messages, but have no message to pass on. You as salespeople combine the knowledge with your persuasion skills but don't have ready access to the mavens.

You need a maven/connector. Do you know one? If not, you soon will.

Writer's Vista

What if it happened to you? Here's a new blog and I've already run out of things to say. It had to happen sometime, but why now? The launch hasn't even take place (a minimum of 5 articles are recommended). The wiki is under development. The email subscription option has now been added. The template has been tweaked.

All that's needed is content. Insurance is very serious.For humour, visit the Spark Insight blog.

The good news is that this blog is not known. It's not hyped like Microsoft Vista, which sold 59% less units than Windows XP in its first week. Here's why that might be

• no compelling reason to upgrade since Windows XP works well
• the cost ... the Ultimate version costs $300 for upgraders and $500 for new systems ... computer prices keep dropping, but Microsoft doesn't reduce it's prices
• most users would need to upgrade their computer hardware first
• it's only an operating system ... most people have lives
  

In insurance, there's concern about product prices. Explain this then. Vista Ultimate --- the priciest version --- accounts for 30% of the sales. Buyers need sophisticated hardware, which increases costs further. So the low price doesn't always rule. Some people want they consider is the best, which happens to be the most expensive. When clients perceive value, they are willing to pay more.

Testing 1-2-3

At least that's what you say in front of a microphone :)

This blog aims to help you sell more life insurance by

• providing information
• sharing best practices
• answering questions

You can post comments anonymously, if you're worried about identifying yourself.

The focus is on sales in Canada, though much of the content will likely be universal.