Sales Call strategy Report

Sales Call Strategy Report

Selling Strategically – AEB 3341 Spring 2015

Cody Creagan

Shadow Experience: 3/2/15

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Table of Contents

Summary of Shadow Experience……………………………………………………...2

Company Background……………………………………………………...................6

Business/Customer Profile……………………………………………………............8

Sales Call Strategy Worksheet……………………………………………………....11

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Summary of Shadow Experience

Sales Professional

For my project, I chose to shadow Michael Calamaro. Michael is a

Financial Representative at Northwestern Mutual in Fort Lauderdale, Florida.

Northwestern Mutual focuses on the sale of life insurance and other financial

tools.

Relationship/Introduction to Sales Professional

I found out about Michael’s job through my father. My father introduced

me to Michael, and he was willing to let me accompany him at his office for the

day to see what working as a sales professional entailed.

Lessons Learned

Over the course of the day I spent with Mike, I was able to learn many

lessons about the sales industry. The first lesson I learned is that building a solid

relationship with the customer is an essential part of selling life insurance. Mike

had notes on every one of his customers and made several calls throughout the

day just to check in with them. He told me that he also makes sure to call every

customer on their birthday and half birthday. He said that the half birthday call

was to inform customers of their “life insurance birthday” and to see if they would

like to purchase any additional products. Another lesson that Mike showed me is

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that you should never give up during a sales call when the prospect rejects you.

He said that people love to say “no” and will do so because they feel more

comfortable saying “no” than “yes”. You should always go to at least three

rejections and sometimes more until you decide to move on. He also told me

that you should phrase questions in a way that will give you a better chance of

booking a meeting. For example, I was told to ask, “what day would work better

for you, Wednesday or Friday?” instead of “are you available on Wednesday or

Friday”. By doing this, you don’t allow the prospect to simply say “no”. The last

thing that stood out to me was that Mike was very organized. He had all of his

meetings scheduled out, the specific products he was going to sell them ready

the day prior, and a written out summary of every meeting he has had with a

client or prospect. He said that if you don’t plan out your day, you are setting

yourself up for failure.

Things Done Well

Michael was a very friendly, upbeat person. You could also tell that he

believed in the product he was selling. He said that if you don’t believe in the

product that you are selling, that you are probably in the wrong business.

Believing in what you are selling makes the sale a much easier experience. Mike

also made sure to ask for referrals after every meeting. This is a vital element to

the sales cycle that allows him to build his business and make more sales. In

comparison to cold calls, warm leads or referrals are much easier to get a

meeting with and sell to.

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Things to Improve

One thing Mike could improve on is his punctuality. I noticed that we

arrived late to one of his meetings. The customer didn’t seem pleased when we

arrived. Mike can sometimes go on tangents when talking with customers as

well. He started to stray off track during one the meetings, and I could tell the

customer was getting a little bored.

Relevance to AEB 3341

Throughout my shadow experience, I saw many of the concepts we

learned in class put into practice in real life situations. There were times where I

saw Mike use rejection techniques to combat rejections that were taught in class.

When on sales calls he would never take no for an answer. He would listen to

the concerns the customer had, tell them that he understands how they feel, and

then address their concerns. It was taught in class that you are selling more

yourself as a sales person than the product itself. Mike made sure to build

rapport with every customer before even mentioning the product he intended on

selling. The first meeting he has with every customer is to build a relationship,

and find out the customer’s specific wants and needs, so he is able to match a

life insurance plan to him or her. As taught in class, he shows the customer how

a policy will add value. He said that customers would only purchase policies if

they feel it will provide them with something that they need. He likes to use a

metaphor when selling where he asks the customer if they would insure a

machine that prints money in their house and then goes on to explain that he or

she is the money machine.

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Cody Creagan 1803 NW 6th Ave

Gainesville, FL 32603 954-632-7234

March 2, 2015 Michael Calamaro Financial Representative Northwestern Mutual 500 E Broward Blvd Suite 2000 Fort Lauderdale, FL 33394 Dear Mr. Calamaro, I would like to thank you for allowing me to shadow you for the day. I really appreciate the time you took to show me your day-to-day activities. I had a wonderful time while at the office and in the field. Learning first hand what it is like to be in the professional field of sales was a very rewarding experience. I am especially thankful for you allowing me to see what a close looks like. The adrenaline rush that you get from seeing someone sign the papers and knowing you are helping people must be in credible. I had one just from being there. It was an experience that I will not soon forget. Again, I would like to thank you for taking the day to show me what you do. I have learned many things from my class, but nothing compares to witnessing the real thing. I hope everything is going well and you’ve closed that case you opened the day I was there. All the best, Cody Creagan

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Company Background

Northwestern Mutual is a holistic financial services firm that specializes in

life insurance, long-term care insurance, and disability insurance. Established in

1857, the privately owned company consists of over 350 local firms nation wide

and employs over 15,000 people. Their headquarters are located in Milwaukee,

Wisconsin. My firm is located in Fort Lauderdale, Florida. It is one of five offices

that belong to The South Florida Group. My company’s mission is to provide

clients with the piece of mind and satisfaction of knowing that their families will be

financially stable enough to maintain their standard of living in the event that he

or she dies or is unable to work. Northwestern Mutual offers many individually

tailored policies to every client to meet specific needs at an affordable price.

Northwestern Mutual is the leading insurance provider in the industry. They are

also the only company allowed to sell Northwestern Mutual policies. As an

employee of Northwestern Mutual, you are capable of selling in house products

as well as those offered by other insurance firms. My position as a full time

financial representative will consist of phoning, meeting with clients, presenting

policies, and maintaining relationships with clients, so as to achieve future sales.

I will be selling piece of mind in the form of insurance policies and other financial

products.

Competitors and Alternatives

There are many competitors in the insurance and financial services

industry, both locally and nationally. The major competitors consist of New York

Life Insurance, MetLife, TIAA-CREF Life, Liberty Mutual, and Prudential. By

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working for Northwestern, I am able sell exclusive polices only offered by my

company as well as policies offered by my competitors.

Territory and Market Share

My sales territory will be the Southeast portion of Florida. This is mainly

comprised of Broward, Miami-Dade, and Palm Beach County. Based on

research, Northwestern Mutual currently holds 8.2% of the market share.

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Business/Customer Profile

Business Contact

Mr. Harvey Bay 327 NW 8th Ave Fort Lauderdale, FL 33304 954-429-5827

Situation

Harvey is a 28-year-old upper class man living in the Rio Vista

neighborhood. He was married to his wife, Edna 2 years ago. Edna is 26 and in

good health. Harvey is also in good health for his age, but may have terminal

genetic disease that will appear in his late 50s. He still currently qualifies for the

best health rate. Both Edna and Harvey are non-smokers and do not engage in

any extremely dangerous activities that could put there life in danger more than

the normal person. They have one daughter named Charlotte who is one year

old and is also in good health. Edna is a full time stay at home mother. Harvey

is an entrepreneur that currently owns two restaurants and brings in an average

income $250,000 a year. The family lives in a two-story house that they are still

paying a 25-year mortgage on. They are also still making payments on their two

cars. After recently getting married and having a child, Harvey is worried about

what will happen to his family if he were to get injured or die. He wants to have

the piece of mind knowing that his daughter and wife will be able to continue their

standard of living and pay off the mortgage on their home without having to work.

He would also like to send is daughter to college. Harvey needs a life insurance

policy that will sufficiently take care of these needs.

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Qualification

Harvey currently meets all the qualifications of the NAME criteria. He

knows that he may die earlier than his wife and wants her and his child to

continue their lifestyles. He needs life insurance and disability insurance to be

100% certain that he can provide this luxury for his loved ones. Harvey is the

only source of income that the household has and is in control of his own

finances. He is also only buying a policy on himself. Controlling the money in

the household gives him the authority to spend money on protection plans.

Harvey has the means to do this because he is a successful entrepreneur that

sees an average income of $250,000 a year. He is also eligible to purchase

policies because he is a young, healthy male that has enough money to maintain

payments on the policy.

Key Contact Information

Harvey Bay is a 6’ 1”, 28 year old white male with brown hair and a

slender physique. He and Edna have a one-year-old daughter named Charlotte.

Harvey is a successful entrepreneur that brings in roughly $250,000 a year. He

is a very active man that still makes sure to spend time with his family. His

hobbies include golf, hunting, and tennis. He is very outgoing and loves to meet

new people. He is also a very analytical person who wants to know the numbers

behind anything he invests in and likes to be in control.

Harvey’s main hot button is when people try to strong-arm him into a

decision. Being an entrepreneur, he has always been the one in charge and has

never had to answer to a boss. He has made all his own decisions and does not

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like to be pushed into anything. In doing business, he likes to build new

relationships. Not building rapport is another hot button for Mr. Bay. Harvey’s

last hot button is dealing with people that don’t know what they are selling. He

likes for people to know every aspect of what they are selling, so he knows

exactly what he is buying. He wants all the numbers in black and white. Harvey

is known to purchase products based the physical qualities of the product and

how much he likes the person presenting it.

To be the most effective salesman as possible, I intend on using a mix

between an analytical and emotive communication style. I will first have a

meeting with Harvey exclusively to build rapport and find out exactly what he

needs. Then I will have a follow up meeting where I discuss exactly what the

policy entails, the benefits able to be received, and the costs associated with it.

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Sales Call Strategy Worksheet

Opening

Today, I will be selling life insurance to 28 year-old, recently married, and

new father Harvey Bay. I will start this meeting by greeting Harvey. I will give

him a firm handshake, while making sure to maintain eye contact. Then, I will

ask him how his family is doing, how he likes being a father, and how work is

going. We will have a good conversation that will build trust and make Harvey

more comfortable with me. Once this conversation has progressed, I will have

successfully developed good rapport with Mr. Bay. I will continue on with my

sales pitch by demonstrating my company’s credibility. I will tell him how we

have been around for over 150 years, that after 9/11 we were the first company

to respond to claims by flying out a task force to ground zero, that we paid out

claims for that event even without death certificates, that we are the only

company able to sell our products, and that we were essentially unaffected and

thrived in the 2008 financial crisis. Once I have developed the company’s

credibility, I will develop my own credibility. I will do this by informing Harvey

that I have a Bachelor’s degree in finance and 12 years of experience in the

financial services industry, all of which at Northwestern Mutual. After I have

established credibility, I will begin to assess Mr. Bay’s needs. I will begin to ask

him personal information regarding his finances, when he plans on retiring, what

he wants for his child and wife, and what his family would do if he were to die

tomorrow. After I have a good idea of what Mr. Bay needs and know my

company can suffice them, I will receive his compliance and transition into my

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sales pitch. I will do this telling him that I’d like to show him what products we

have to offer.

Presentation

Selling Point #1

One of the greatest features of a whole life insurance policy is that you

will to begin to build cash value and interest off of the premiums you have paid.

The building of cash values on your policy has many benefits. You can actually

take out this cash as a lone if you are short on money at any point. Another

benefit is that once you build enough of a reserve, you will no longer have to

make payments towards your policy. The interest on your cash reserves will pay

for you policy, while adding value to your policy. I will prove this true by showing

him other policies that are no longer being paid for and still gaining value.

Trial Close #1

Once I have given him this information, I will attempt to close. I will ask

Harvey “After hearing this information, are you comfortable enough to proceed

with a purchase?” Harvey will think for a moment, but then indicate to me that he

would like to hear more before making a commitment. Once he has told me this,

I will begin my second selling point to convince him to buy.

Selling Point #2

In addition to building cash reserves on your policy, another feature that

our whole life insurance offers is an “accelerated death benefit”. There are many

benefits of the “accelerated death benefit”. First, it allows you to receive cash

advances against the death benefit that your policy offers under the condition

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that you become terminally ill. I know that you may have a genetic terminal

illness, so this could be very useful to you. You can use this money to pay for

expenses that may come from treatment, or to support yourself, so you can

spend your remaining time with your family. I will show Mr. Bay proof of these

benefits using a value analysis. The analysis will compare the cost of our policy

compared to our competitors and other benefits. After showing him the value

analysis, I will obtain conviction from Harvey. I will ask him “Do you agree that

the added benefit of the accelerated death benefit is worth the higher premiums?”

If he agrees with that question, I will ask, “Do you believe that Northwestern

Mutual will provide you will the most value and satisfaction compared to other life

insurance companies?” Once he has given positive feedback to both these

questions, I will attempt to close for the second time.

Value analysis

Company Northwestern Prudential MetLife

Monthly Premium $60 $37 $48

Accelerated Death Benefit

Yes No No

Overall satisfaction (10pt scale, 1 worst – 10 best)

9.3 6.5 7.4

Rate of Return on Cash Value

5.9% 5.8% N/A

While Northwestern may not have the lowest rates, it is the only company

to offer the “accelerated death benefit”. This can be as major selling point

because of the benefits it adds. Northwestern also has the highest satisfaction

rating and rate of return on the cash value out of all the companies.

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Trial Close #2

After Mr. Bay has made a clear indication that he is ready to buy and

thinks that Northwestern Mutual will provide the best life insurance policy, I will

ask him “After all that I have shown you, are you ready to make a final decision

on your life insurance policy?” Although I have given him many different reasons

on why to buy and the added benefits he will receive, Harvey is still unsure. He

will respond by saying “I am still not sure that Northwestern Mutual’s policy is

right for me. I’d like a little more information about the policy and to explore my

other options before making a final decision.”

Handling Objections

Handling Objection #1

The first objection that Harvey will give me is that he is not willing to spend

that much money on a life insurance policy. After I listen to his objection and

understand what the problem is, I will restate his objection using my own words.

I will ask him “So from my understanding, you believe this policy is out of your

price range”? After I have gotten approval that this is his concern, I will handle

his objection using the feel, felt, found technique. I would tell him “Mr. Bay, I

understand your concerns and know how you feel. Many people have felt that

our prices are a little high, but found that the added benefits of the higher rate of

return and the accelerated death benefit make our policies much more appealing

and useful. The price may be higher, but the additional benefits you receive will

make you much happier with your policy”. Once I have told him this, I will verify

that I have resolved his concern.

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Handling Objection #2

The second objection Harvey will present is that he believes he can have

the same benefits of a life insurance policy by just saving money in the bank. I

will listen to his concerns to make sure I fully understand his objection. I will

then restate his objection saying “From what I’ve heard, you believe that there is

no added benefit to investing in a life insurance policy and that it would be better

just to put money in a savings account?” After I have confirmed this is his

concern, I will handle the objection implementing the compare or contrast

technique. I will tell Harvey the following: “Mr. Bay, I see where you are coming

from, but life insurance policies have many benefits that make them better

investments then simply saving. Life insurance policies offer you a 5.9% return

on investment, while a bank account gets less than 1%. Life insurance policies

also disperse to your beneficiary tax-free. There is no other legal way to do that

other than a life insurance policy.” After I have verified that Harvey feels

satisfied with my answer, I will proceed to close.

Closing the Sale

I will begin my close by asking Mr. Bay if I have answered all the

questions and concerns he has in regards to the life insurance policy. Once he

has confirmed that I have adequately answered his concerns, I will ask him if he

is still troubled with any of the objections he had earlier. To be completely certain,

I will ask if he thinks the policy is fairly priced and if it adds more value then

simply saving money. Once I have confirmed that all his oppositions have been

resolved, I will review his needs. I will ask him, “Correct me if I’m wrong, but

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from what I’ve gathered, we are meeting her today because you want to make

sure that your family is taken care of financially if you were to die. You would like

a solution that makes sure they will not have to change their standard of living,

will pay off the mortgage, put your daughter through college, and suffice the car

payments.” After that, I will summarize the solution. I will tell Harvey, “With

this policy, your monthly payments will be turned into cash value. You will also

have the accelerated death benefit. The policy will disburse your death benefit to

your beneficiary tax-free.” Then I will inform him of the key benefits of the

solution. I will do that by saying “Your family will be financially taken care of in

the invent that you die. The tax-free disbursement will put more money into the

pockets of your family then just saving money for them. In the event that you are

diagnosed with a terminal illness, you will be able to use your death benefit to

pay for any expenses you may have.” If he agrees with the stated benefits, I will

proceed to ask for the sale. I will employ the specific closing strategy. I will

say, “Are you prepared to purchase this Northwestern Mutual life insurance

policy Mr. Bay?” He will then sign the paperwork and the sale will be made.

SMACT

The sales pitch is considered specific because I am presenting Mr. Bay

with a particular life insurance policy that meets all his needs. The pitch is

measurable because Mr. Bay will be required to complete a satisfaction survey

that Northwestern Mutual disperses every other month. Mr. Bay makes roughly

$250,000 a year, so the $60 monthly payments that the policy asks for is well

within his budget. This indicates that the policy is attainable. The pitch can also

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be considered a challenge. Mr. Bay was surveying other companies, their policy

benefits, and prices. I had to convince him that ours was the best on the market

because of the benefits it provides. The matter was timely because the longer

that Mr. Bay takes to commit to a policy, the more expensive it will be, and he

may not get the same rate if any health concerns develop. Also, if he dies before

getting a policy, his family will be financially unstable.

Ensuring Customer Satisfaction

After I have completed the sale, I will have take the paperwork back to my

office to make sure everything is approved. Upon approval, I will deliver the

completed policy to Mr. Bay. At that point, I will make sure everything is in order

and that he is satisfied with everything before finalizing the policy. I will then call

Mr. Bay on his birthday and half birthday every year to make sure that he is still

satisfied with his policy and if he wishes to make any additional purchases. I will

also leave him with my business card, and instruct him that he may call me at

any time if he has any questions.