Although most businesses within the insurance industry have made great strides in their planning, the sales planning of producers often falls short. Most producers consider sales planning a numbers game. They try to predetermine what “number” will make the boss happy, while still allowing enough leeway for producers to make their goals and achieve their bonuses. Unfortunately, that is not planning. That is merely gamesmanship for personal advantage.

Producers are generally action oriented. They really don't like to plan. As a result, most producers fly by the seat of their pants. They work the prospects (good or bad) that appear before them due to agency advertising, a referral from a client, or just plain luck. They assume that existing accounts are happy and will keep their businesses with them and the agency. They focus on making sales rather than developing strategically planned books of business. They sell their futures short by focusing on the short-term gains of the next accounts they write. Wouldn't it be far better to focus on key prospects and long-term account stability? You can do that with a little bit of planning.

Maximize existing clients

Strategic sales planning requires imagination, memory, possibility and thought. That's what we're going to take a look at–the process of planning for success in sales.

The first step is to look at your existing accounts individually and ask yourself these questions:

o What are this account's expectations of me (you might need their input)?

o Are there additional coverages that I am not supplying this account? Is it a matter of cross-selling, or is there a relationship with another agent involved?

o How can I improve this relationship (perhaps the most critical question)?

o Is this a good account for me and for the agency? Sometimes you have to fire accounts.

o Have I protected this account from theft by another agency?

o Do I take this account for granted?

Once you have gone through that regimen with your existing clients, begin putting together an action plan to maximize retention and cross-selling opportunities. Should you be visiting them more often than once a year at renewal? Do you need to participate in association and organizational gatherings within their industry? Is there information beneficial to their operations that you could be providing to them? Have you done a recent risk analysis for them? Is there any entertaining that would be beneficial?

Now, and only now, can you assemble some revenue projections from your existing book of business.

Develop a dream list

The next step is new business, which takes more time and effort than the maintenance of an existing account. Before we get into the specific thought process of building this plan, I have a critical question for you. Do you have a list of your “dream prospects”–those accounts that you would do anything to get? If not, why? Unless you target these dream accounts and develop a specific sales plan to approach them and begin building rapport, they will remain forever a dream instead of a reality.

The plan for such dream accounts may require greater and more targeted marketing. For instance, I just received a “dream prospect” package from the Broadmoor Hotel in Colorado Springs, Colo. I opened a fairly substantial box to find a card inviting me to register to win an in-home dinner for eight, prepared by the hotel's executive chef, anywhere in the world. As I dug deeper, there was a commemorative dinner plate picturing the hotel complex with a display stand. Considering the contents and shipping, there had to be a cost of at least $25 to $30 for the package, aside from the contest prize.

Similarly, an agency in the Northwest cracked the trucking fleet market with a series of specialized audio programs. Over a period of several months, they mailed four audios, each providing information and advice on solving major concerns of fleet owners. Due to the value of the information and the interest expressed in their business, the fleet owners were soon calling on the agency to provide their insurance.

Planning for new business

Once you have your dream list completed, the planning process should include:

o A marketing plan for your dream list

o Determine any new niches you might want to go after (what are you passionate about and is there a niche for you)

o A marketing plan for such new niches (direct mail, advertisements, industry events, e-mail campaigns, personal visits)

o Review your existing niches to determine current prospects

o Update the marketing plan for existing market niches

o Review trade associations for associate membership to build relationships within your identified niches

o Update of your unique advantages and identification of competitor's strengths/weaknesses

o Consider new ways to “crack an account.” Are you using work comp as the door-opener, a more competitive program, better coverages, or cyber insurance?

Planning for referrals

Before doing a consolidation of potential revenue from new and existing accounts, I'd like to make one more suggestion: maximizing referrals.

Although everyone will deny this, I believe that most producers don't ask for referrals because they are afraid. Perhaps they think it's an imposition, or perhaps they don't have enough confidence in the relationship. But the reality is that they don't ask on a regular basis. Clients shove referrals down producers' throats–definitely a reactive process rather than a proactive one.

Here's an easy way to get referrals from both clients and prospects. Break your dream list into business categories. Before leaving a client/prospect's office, simply say, “Oh, by the way, we're always looking for companies such as yours. I have a list of some potential prospects. Could you take a quick look to see if you know any of them?”

As clients/prospects review your lists, you'll be amazed how many they might know and the information and potential endorsements/referrals that can result from that exercise. The key is that they don't have to suddenly come up with names for you; they are merely looking at your lists. You, in turn, are not asking for “referrals,” but seeking their help in gaining access or information. And if they like you, they'll be more than happy to help you.

Planning for you

Every sales plan should include ongoing motivation and training.

o Have you planned to attend at least one motivational event per year? More is better, but one is better than none.

o Do you need to sharpen your sales skills? Consider registering for a refresher for a prior sales training class, or register for a new one. Everyone needs reinforcement and nobody is as good as they could be.

o Set aside time for practicing your craft. If you're calling on a major prospect, do a little role-playing with a colleague beforehand. From musicians to athletes, the best of the best are continually training, practicing and rehearsing.

Review and update

Finally, there is truth in the old saying that “the only constant in life is change.” Take time to review and update your plan on a quarterly basis, and share these updates with your owners or partners. Being transparent with your plans will result in accountability and higher performance. Plus, by sharing, you are expanding your plans to new ideas and suggestions that can be beneficial to your growing success.

Plan for the future and the future will be yours!