In prospecting, it’s often said that a “no” brings the advisor a step closer to a “yes.” By adopting a backup strategy, advisors can accelerate that yes.

Advisors seeking to increase their clientele should plan a backup strategy in case a prospect (potential client) rejects the initial approach, advises Stéphane Rochon, vice-president, marketing and sales, personal insurance, at La Survivance, a Quebec-based mutual insurance company.

Speaking at The Insurance Journal’s Insurance and Investments Convention held recently in Montreal, Mr. Rochon said such a strategy can prove to be a real advantage, as it provides the advisor with a trump card for the future – an ongoing link to the prospective client.

“This strategy is effective, because it ensures that the advisor constantly increases the number of prospects he or she has,” he stated during a speech at the convention.

During their very first meeting, advisors using a backup position offer clients simple products that complement the products being proposed, based on an analysis of their needs.

For advisors adopting this strategy, Mr. Rochon suggested that the best approach is to provide a capsulated description of products at the beginning of the meeting and come back to it at the end.

As part of the strategy, advisors would be well advised to present the prospective client with all simple and guaranteed issue products. Mr. Rochon recommends, among others, student accident insurance, extended medical coverage, accidental fracture insurance, and other accident-health insurance or creditor insurance products.

“The best idea,” he continued, “is to present an option that protects the entire family. Fathers tend to think more about their wives and children than about themselves.”

In conjunction with the backup strategy, a sure way to make inroads is to maintain frequent contact with clients and prospects.

Mr. Rochon believes that to effectively manage their clientele, advisors should write to, or at least communicate with, each client a minimum of four times per year.

He downplays any additional costs related to multiple contacts with clients. “You need to earmark three to eight per cent of your revenues for this type of solicitation,” Mr. Rochon emphasized, adding that this approach holds particular potential for brokers with a large client base.

Target by region

He also strongly advocates targeting solicitation by region, referral, existing client or common characteristics. These common characteristics might include seniors clubs, sport federations or professional associations.

To maximize the benefits gained from mailings, Mr. Rochon suggests that the advisor send prospects a letter making reference to a future contact. This leaves the door open for the advisor to follow up with the client or prospect.

During another speech at the 2005 Insurance and Investments Convention, an accomplished salesman presented his own vision of customer service.

Robert Carrier recommends a service approach involving not four annual contacts with the client…but 12! “You don’t need to make face-to-face contact each time,” he stated. “You can also communicate through an assistant or by fax, e-mail, letter, or other means.”

For this lifetime member of the Million Dollar Round Table, frequent contacts constitute one of the major keys to his success. “Almost 90% of my new business comes from my existing clientele,” said Mr. Carrier.

This is no small achievement, as Mr. Carrier currently has some 200 “client units” (families, businesses), representing more than 1,200 policyholders.

He went on to say that the updating of client files also presents a solicitation opportunity. “In this era of compliance, 50% to 80% of my appointments are generated by updating risk profiles for my clients with investments – so know your client rules.”

He added that this process has been greatly facilitated through the use of a financial planning software application.

During the same convention, Yvan Fournier, financial planner, reiterated how important it is for brokers to listen carefully to their clients.

“When I meet a client to talk about my mandate and fees, I keep quiet afterwards and simply listen,” he explained.

He also pays close attention to the preparation phase. “Sales are 80% preparation and 20% presentation,” said Mr. Fournier.

Among preparation elements, he particularly recommends sending the client a personalized information package. “It’s this kind of attention that establishes a relationship of trust with the client, while promoting our professional image,” he concluded.

Marie-Josée Boucher and Alain Thériault