C.R. Ekern & Company - To Sell Large Accounts

C.R. Ekern and Company

To Sell Large Accounts, Develop a Consultative Style
By Rob Ekern
American Agent & Broker - October 1997
© C.R. Ekern & Company 1997

In the April 97 issue of American Agent & Broker I wrote about the importance of becoming a consultative sales organization. Many Thanks to those of you who called or sent me your comments. One of the biggest questions I have been asked is "How does our firm develop the Consultative Selling Style?"

A vital step in becoming a consultative sales organization is the development of Consultative Prospects. These are prospects who have acknowledged the consultative value of a particular agency/brokerage. They see the organization as a resource. While they are not yet clients, a solid relationship has been developed. This relationship is based upon superior information, knowledge of issues, and potential solutions to problems.

The development of a Consultative Prospect is a more complicated process than the traditional prospect. This is due to the higher level of commitment and consistent effort which the consultative agency/brokerage must expend in the process. These organizations are constantly evaluating the future needs of the prospect, and ways in which they can provide solutions and information. This commitment must be maintained throughout the life of the prospecting cycle. This cycle can last for months or years.

Wait a minute . . . . Did you say that the prospecting cycle can last for months or years? It must cost a fortune in time and effort to develop consultative prospects!

It will cost a fortune not to develop Consultative Prospects. This is because the hit ratio of commodity based transactions are extremely low and costly. Most organizations can no longer afford the expense incurred in drilling the numerous dry holes. A properly developed Consultative Prospect will yield a much higher hit ratio, with significantly higher revenues.

In order to develop Consultative Prospects there are a number of techniques which should be employed. While some of these techniques are time consuming, the reward greatly outweighs the efforts. Remember, after a prospect becomes a Consultative Prospect, the agency/brokerage has a much higher probability of success. The relationship is no longer based upon price, but upon an information exchange between the two organizations. The chances of significant revenue creation is greatly enhanced.

Here are some of the steps which must be taken to develop Consultative Prospects and increase revenues:

1. Honestly evaluate the status of your current prospects. While most Brokerage/Agencies have a defined prospect list, a closer examination many times reveals this list to be flawed. In fact, in some cases this list does not contain prospects. Instead it consists of acquaintances, friends of the firm, X-dates, bid opportunities, and producer fantasies. Most of which do not meet the criteria of a Consultative prospect.

Ask these questions of yourself and your production staff:

What qualifies this as a prospect? - Determine whether this is a true prospect. You should analyze the basis of the relationship.

What steps need to be taken to develop a consultative relationship? - Analyze issues and ways your organization can become perceived as a valuable resource to the prospect.

What is the revenue potential? - Due to the effort involved, this prospect should yield a significant income to your organization.

What is the business style of the prospect? - Make certain the buyer will respond to consultative issues, and is not solely price driven.

2. Honestly evaluate the strengths and weakness of your organization. A consultative sale is a long tail process. In many cases, you will need to develop the prospect in stages. Each stage can involve the additional deployment of resources and information. In the event you move beyond the capabilities of your organization, the results can be disastrous. This will mean the loss of credibility and the waste of your previous efforts. You must know the limits of your organization, and its resources. You should constantly anticipate the needs of the prospect, and your ability to deliver these resources. Here are some questions you should ask regarding each prospect, as they relate to your firm:

What specialized resources will this prospect require as a client? - Determine whether your organization has these internally, or if you need to obtain them elsewhere.

Have we established the credibility of our resources? - Make certain the prospect has been educated concerning your capabilities. This demonstration should include ways these resource capabilities will benefit the prospect.

Does the prospect see value in our resources? - This is the most important question in determining the status of a Consultative Prospect.

3. Establish Spheres of Resources - The big 4 brokers (J&H Marsh, Aon, Willis, and Sedgewick) have created the perception of resources by developing specific resource teams, specialty programs, and international capabilities. An organization of any size can do the same things. It is simply a matter of establishing your own spheres of resources, and presenting the same capabilities. Spheres of Resources are services which can be delivered to your prospects/clients by organizations outside your company They are available to you and they can be packaged under your direction. Here are places to look for spheres of resources:

Some of your carriers have specialty resources such as ergonomics, claims analysis, specialty loss control, etc. If these specialty resources are properly utilized, they can add value to your ability of delivering consultative capabilities.

There are specific Wholesale Markets with specialized capabilities. These capabilities are in D&O, Energy, Municipalities, Marine, Aviation, the list goes on. Some of these wholesale operations are owned by the big 4 brokers. An astute Agent/Broker can directly access these resources, and deliver them to the prospect.

Global capabilities can be obtained by establishing relationships with London, and Bermuda Brokerage Firms. Many of these organizations control global retail operations, which can be deployed on your behalf. These relationships will allow you to mirror the global service capabilities of the major brokers.

4. Learn how to deploy resources. - The ability to deliver resources in anticipation of a prospect's needs is a key ingredient to Consultative Prospecting. By doing so, you differentiate your organization from other Agency/Brokerages. These resources must be introduced, and deployed, in advance of a prospects critical need. By anticipating the need, your organization is identified with the solution. Thereby, creating the perception of great value in the eyes of the Consultative Prospect. Here is an example of how it is done:

Lets say you are developing a large multistate employer as a Consultative Prospect. As part of your due diligence, your organization learns of deteriorating Workers Compensation experience.

After gaining access to the prior years loss runs and Interstate E Mod Calculations, you are able to predict the upcoming increased Modification.. You then review the loss runs with a claims specialist, who looks at the reserves on the largest 5 claims.

At an information meeting with the prospect, you show them the effect of the increased E Mod. Also, you demonstrate the positive impact of properly managing the 5 largest claims. This demonstration clearly shows your organization as one with superior capabilities.

You have now deployed your resources in anticipation of the prospect's problem. In the event the incumbent agent/broker does not address the issues, you have differentiated yourself as a Consultative Sales organization.

5. Set Goals and Timeframes for each Prospect - As we discussed, the development of a Consultative Prospect can be a long term commitment. In many cases, your organization will not see immediate financial gain from each prospect. This is due to the timeframes required to develop credibility based upon resources and issues. Yet there must be some type of quantifiable goals by which progress can be measured. Otherwise, you run the risk of chasing fantasies, or giving up on real prospects. Here are some things to remember:

Set a goal for the number of prospects by producer - Due to the higher level of resource expenditure, it is impossible to develop a unlimited number of Consultative Prospects. In the event that each producer in your organization develops some, you will have tremendous financial success.

Set a goal for the accomplishment of steps - These goals will involve obtaining meetings with various decision makers, identification of prospect issues, and deployment of firm resources. All of these steps are necessary in order to develop a consultative prospect.

Set timeframes for the accomplishment of these steps - While you may not see immediate revenue, it is important that you see progress of a quantifiable fashion. The best yardstick for this is time. In the event your organization is making headway inside pre-determined time perimeters, stay the course. In the event you are not, change Stratagies.

6. Learn and Practice Team Presentation Techniques - Effective team presentations are extremely important. This is one of the main ways a consultative prospect judges the depth of your organization. All members of the team should be well versed in presentation skills, including presentation technology. Here are some tips concerning team presentations:

Select a team leader as quarterback. - This person is usually responsible for initiating and executing all client contact. Also coordinating, and deploying the resources of your organization.

Develop a Presentation Strategy based upon prospect issues. - Your presentation will be best received if it focuses on the prospect. Your task is to discuss ways your organization can assist the prospect in achieving their goals.

Practice your presentation - This is very important. It will allow your team to become familiar with their roles. Also, you will be able to review your graphics and test the equipment.

Your ability to evolve into a consultative sales organization is critical in the event you intend to represent larger commercial clients. The expectations of the buyers have raised considerably in the past several years. Future prosperity as an Agency/Brokerage will depend on the extent your organization learns, and implements consultative brokerage selling techniques.

Rob Ekern has 22 years experience as an Agent/Broker. He owned an Independent Agency and later became one of the top producing international brokers in the United States. He is President of C. R. Ekern & Company a Phoenix Az. based firm dedicated to helping Independent Agents grow their large accounts. He can be reached at 888-602-670-1177

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