Many IFAs are yet to recognise the diversity of communication channels used by their clients. Phil Calvert concludes his guide to promoting protection with technology
Last month we looked at how IFAs could use technology to build protection sales and, in particular, the benefits of email marketing. This month we examine how IFAs can apply this knowledge.
We all know the industry could be about to undergo major change, and the IFAs that thrive will be the ones that have been quick to do three things:
• Become much more proactive in their relationships with existing clients.
• Become more reactive to clients' discrete needs.
• Become more proactive in their use of technology for marketing.
• was recently talking to an IFA in the Midlands while conducting a survey on IFAs' industry concerns, and he was happy to help. I asked if I could email the form to him. His reply?
'We have the technology in the office and I know which button to press, but we are not comfortable using it to communicate. Please put the questions in the post.'
I also received a letter from another IFA asking for information on a forthcoming seminar. It was typed on headed paper, and cost 27p to post. The notepaper made no mention of an email address, let alone a website.
At the other end of the scale, two respondents completed and returned the survey by text message ' one of five reply options we provided.
Modern times
Even if you do not have a website, email has been with us for some years and is firmly established as a preferred method of communication.
Email is here to stay, but our industry has been slow to adopt it in communications with clients, or as part of the marketing mix. Too many IFAs make false assumptions. Just because you are not using email as a key communication medium, do not assume your clients are not. Likewise, do not think anyone over the age of 55 does not use email regularly, or that clients who are not using email now are not keen to learn.
Email is fast, cheap and can elicit almost instant replies from clients ' as result response rates can be exceptional, when compared to traditional direct marketing techniques. Response rates of 50% are not unheard of.
E-marketing
So how specifically can we use email to market protection products and services?
First, send out a newsletter featuring real examples of how other clients have benefited from protection. Include true stories of how your service has helped clients. Stories in email inform, create interest and motivate. People become absorbed in the message and will often read the entire piece ' unlike direct mail. Well written stories can enable the benefits of protection products to be put across without readers noticing or objecting.
Another trick is to email clients when they are approaching their birthday and show them the benefits of buying cover now before prices start to rise.
Draw clients' attention to new features on your website, or new services you provide and encourage traffic to your website (via a link in the email) that will enable them to obtain quotations for term assurance and critical illness.
Providing clients with breaking news such as relevant financial information can also help generate traffic. Why not send a short weekly e-bulletin? Once you have all the email addresses in your system, all you have to do is write the copy. It is amazing to think you could send a weekly communication to 1,000 clients or more at virtually no cost. This provides real opportunity to regularly stress the need for adequate protection.
Actively communicating with clients will help you gather more information about them. If you have 1,000 clients, it simply is not possible to conduct regular proactive review meetings with them all. Before you know it, years will have passed without you having any meaningful contact. Email questionnaires can help you keep up-to-date on clients' circumstances and create the perception that you are providing a regular service.
In your email communication, you may wish to include surveys to supply you with data on which you can base a series of protection seminars. Seminar selling is a proven method of building sales and enhancing your image as an expert ' and clients only want to deal with experts. But clients will not come to your seminar unless you have something that provides solutions to their problems. A great way of finding out what their problems are is to ask them in an email survey.
However, keep it short ' two to three questions maximum, and give them an incentive to respond, like a draw for some book tokens. And remember; don't forget to give them the chance to unsubscribe.
When you know the main problems faced by your clients, design the solutions and put on your protection seminar. Next month we'll give you tips on how.
Phil Calvert is the proprietor Training Strategies
