Back in 1984, I responded to a help-wanted advertisement from a carrier whose claim to fame at the time was disability protection for the working American. After watching the carrier's recruitment video about the value of protecting the income of working Americans, I proceeded to the interview, where I learned that I would be selling products that did not cost an employer anything but would help reduce its worker's comp premiums and create more productive employees.
As I drove home, I was incredibly excited about entering what was then called payroll deduction selling. As I embarked on my new career, the voluntary sale appeared to me to be incredibly easy. It turns out, however, I was completely wrong. As I'm sure other insurance salespeople have learned, the voluntary sale is far more difficult than virtually any other insurance sale.
The voluntary benefit sale is unlike any other in that there is no direct link between employer need and the products sold. In the group health sale, the employer is typically focused on reducing or getting control of cost. In the executive benefit sale, the employer (who is also an executive) is seeking ways to attract and retain highly skilled employees. In the retirement sale, the employer will ultimately be a beneficiary of the plan purchased. But in the voluntary sale, the employer rarely purchases any of the products sold and often sees the enrollment process as an imposition on his company's operations.
The first challenge that any voluntary benefit professional must deal with, then, is how to fill the calendar with high-quality appointments. Back in the 1980s, the Section 125 premium-only plan was a great door opener. It was easy to tell an employer that you had an idea that could reduce his payroll taxes as well as increase the take-home pay of his employees, because they could pay their share of insurance premiums on a pre-tax basis. Moreover, this could be done at no cost to the employer.
Unfortunately, the great majority of employers today have already adopted a POP plan, so that approach is no longer very productive. And because the biggest carriers all offer online enrollment and benefit communications, your challenge is how to motivate an employer to offer voluntary benefits through you while not sounding just like your competitor.
Creating a full calendar is about putting into action a cohesive marketing plan that incorporates several marketing approaches. The most common include door-to-door cold calls, direct mail, telemarketing, networking, public speaking, referrals and advertising.
Historically, insurance agents entering this arena were encouraged to focus on the door-to-door approach almost exclusively. But this is not the most efficient use of your time. I recommend that you identify at least 3 marketing approaches to incorporate into your plan. In my own marketing, I have incorporated telemarketing (done personally as well as outsourced), cold calls, synergistic relationships and direct mail.
Step 1: Create a list of ideas. People do not buy products and services; they buy what those products and services do for them. For example, no one buys cancer insurance; they buy the potential cash that would provide the freedom to seek all available treatments regardless of whether their health insurance pays for it. Employers do not care about employee benefit communications; they care about the improved employee morale and reduced turnover that comes from a communication program. Employers do not open their doors to you because employees need the coverage; they allow you in because more benefits improve their ability to attract high- quality employees.
This point cannot be overstated. You absolutely must spend some time converting what you do into why an employer or HR executive should care about it. Without this knowledge, you cannot develop effective scripts or effective questions. A great marketing program is based on an idea beyond simply offering to stop by to introduce yourself to the prospect.
Step 2: Choose your marketing tools. If you hate making cold calls, then don't make them the cornerstone of your marketing program. Try to identify those tools that resonate with who you are and that are within your marketing budget.
Marketing is divided into two categories: farming tools and mining tools. Mining is focused on generating prospects today, while farming is a more long-term approach. A good marketing plan uses both.
Mining tools include cold calls, telemarketing, direct mail with either telephone follow-up or with business reply cards. Each tool can quickly generate appointments with high-quality prospects.
In creating your scripts for cold calling and telemarketing, remember always to begin with an idea to grab attention. In my current telemarketing campaign for employee wellness, for instance, I open with an idea about how an employee wellness program can improve the company's bottom line at little or even no cost to the employer.
Farming tools include electronic newsletters, drip mailings, public speaking, professional articles and networking. Just as a farmer systematically prepares the soil and cares for the crop, in selling our goal is to create an organized way to keep our name and services in front of the prospect. Our aim is to create a steady flow of ripening prospects who are ready to allow us into their businesses to offer our products to their employees.
While worksite marketing may be a difficult sale, it is also amazingly rewarding. We provide products that employees really need and often do not otherwise have access to. The voluntary benefit professional can play an important role in a group's employee benefit planning. When we begin from the perspective of how our ideas can help an employer, we enter the relationship more as a partner than as a vendor.
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