Super Agent

Posts Tagged ‘agreements’

Is Your Prospect Really a Prospect?

According to Inc. contributor Geoffrey James, “finding out who is not a potential customer is just as valuable a discovery as finding out who is one.” In fact, if you take the time to assess whether or not your prospect is truly a right-fit for your agency, you’ll avoid wasting valuable time and resources pursuing an opportunity that doesn’t exist.

So, where do you start? Consider this:

- Unless the organization is ready to do business with you within the next 90 says, then they aren’t a real prospect. If they’re dragging their feet and you don’t have a commitment after 90 days of assessment, it might be time to walk away.

- Are your business objectives aligned? For example, if they aren’t interested in a consultative and collaborative relationship remember that they are the commodity, not you. Don’t let a prospect take control of the sales process and move it in a negative direction. If it comes to a point where they are insisting on the lowest price or are unwilling to explore your process, know that there are plenty prospects out there that will.

- Do they have a need for what you can offer? And even further, are they willing to make agreements around what issues are most pressing and put in the work necessary to improve their outcomes?

The most effective producers understand the importance of gauging the long-term probability of engaging in a business relationship. Don’t be afraid to ask yourself: “Is my prospect really a prospect?” in order to make sure you’re not leaving too early or staying too long.

Use Action Plans to Manage “Initiative Overload”

A recent article from Bain & Company talks about the common problem that occurs when organizations are bogged down with initiative overload—they “are like swimmers buffeted by cross currents coming from every direction”, and the result is often fragmentation and unremarkable results for the company and the client or prospect.

As an agency owner, producer or service team member, you’ll likely relate to the problems that arise from “initiative overload”…maybe you have to tackle a surprise request from a client, address an unforeseen risk or scramble to deliver on promises made during the sales process.

The article provides a few great tips for overcoming initiative overload such as (1) managing your time to determine what your strategic priorities are, (2) clearly defining your responsibility for each initiative, and (3) determining your involvement by establishing distinct decision processes and maintaining open communication. But in order to avoid initiative overload all together, we would recommend creating action plans.

So, when and how do you create an action plan? Action plans are the culmination of agreements gained during the sales process, and depending on the size of the agency, the prospect and producer should agree to take on 1 to 2 initiatives per quarter or year. They represent the work that needs to be accomplished by both parties in order to strengthen and protect the client’s business.

In many ways, in order to retain accounts and grow your book of business, implementation of agreed upon initiatives is not only necessary; it also provides a big opportunity to differentiate. But, successful implementation only happens when there is a strong action plan in place. In today’s challenging marketplace, an action plan ensures that timelines won’t become hazy, promises won’t be broken, and both parties will get the most out of the relationship.

Gaining Agreements During the Sales Process

In our last post, Frank touched on the importance of gaining agreements during the sales process; it is the only way to establish mutual accountabilities and move the process forward. Implementation agreements are equally as important once a deal is in place to develop an action plan, establish a timeline, and measure success, but without clarity and agreement during the sales process, the producer has no way of knowing whether or not the prospect has the intention of making a commitment to engage in a business relationship.

According to an article on Inc.com “for successful businesses, the sales process has become a communications process that evolves through a series of decisions both you and your customer will be making. At each decision point, you will be achieving mutual understanding and establishing clarity about what you are saying to each other and how you will proceed.”

So, what should you and the prospect agree on before the deal is closed?

(1) The prospect should want to address the risks and threats to their business that were discovered and discussed during the sales process. They must be dissatisfied with their current situation before making the decision to change.

(2) There should be clarity and confidence in yours and your agency’s capabilities to reduce or eliminate the identified risks and threats. If they aren’t confident in your capabilities, they most likely won’t be ready to move forward.

(3) Finally, there should be clarity and confidence from both parties that a business relationship will be developed. If this isn’t the case, it probably means one or both of the first agreements haven’t been made.