Consistent engagement can maximise sales

09-Feb-2016

By Kristen Crawford

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A ‘buy or die’ philosophy when marketing financial services products, including risk insurance, could produce a significant increase in sales for advisers, according to an independent financial services association.

Speaking at the Million Dollar Round Table Australia Down Under Tour 2016 in Sydney yesterday, the association’s zone eight (United States) chair and Pinney Insurance Center vice president of sales and marketing, Ryan Pinney, said risk and advice businesses would miss out on business if they gave up on the consumer too soon.

“Through research we found that amongst consumers we spoke to, there was a universal theme that about 3 per cent would buy anything you want them to, at any time, while another 7 per cent would buy your service because you made a compelling argument or good impression,” Pinney said.

“There’s about 20 per cent that will never buy from you, either because they don’t like you, they don’t trust you or there’s something wrong about your company.

“Then there is that 70 per cent in the middle that would initially say no or ask to let them go home and think about it.”

Through continuing to engage that middle percentile, risk advice businesses could increase their long-term sales outcomes, he said.

“Research found that 84 per cent of this 70 per cent would actually convert to a client or buy a product or service over the next 24 months,” he said.

“At the time we found this statistic out, we had a marketing cycle of about 90 days.”

The company had subsequently adopted the ‘buy or die’ philosophy, continuing to engage consumers until they either bought a policy or requested to be unsubscribed from marketing materials, which rarely occurred, he said.

“We use a two-year rotating marketing calendar which has two years of content called ‘evergreen’ content, meaning it’s generic enough to always be good [and] doesn’t change – most consumers can’t remember what you sent them yesterday, let alone two years ago,” he said.

“There have been instances that we’ve marketed to someone for 10 years and then they turned around and bought a product.”

He added it was important the content had to be viable and educational in nature in order to softly lead the consumer to an understanding of what they might need, rather than to just sell.

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