Persistency pays off

The following is based on one of The Covenant Group’s clients. All of the names and telling details have been changed.

Like all financial advisors, I have lost numerous cases that I thought were sure things. On the flipside, I have won a fair number of cases that I, and everyone around me, had figured were non-starters. Winning those cases has meant a lot to my career, and in fact, at times, my career has hinged on my ability to pull something out of the fire. I attribute my success in these ‘lost-cause’ cases to one particular strategy. I’d like to show you a case I finally closed last year to illustrate this strategy.

One evening at an annual Robbie Burns dinner, a client of mine introduced me to Neal Becketts, CEO of GolfArc, a private corporation that made $30 million a year producing graphite shafts for golf clubs. Neal had grown GolfArc from a fledgeling company with less than a million a year in revenue to an international player in the premium golf club market. And, as GolfArc’s fortunes had risen, so had Neal’s personal net worth. Through a series of wise investments, Neal had accrued a sizable estate over the past ten years. At only 44, he was in an enviable position — young, healthy and very rich. He was an ideal client. But before I could get too excited, my client warned me that Neal had a ‘challenging’ personality. Nonetheless, my client was gracious enough to introduce me to Neal. He told Neal that I was an expert in the insurance business and that Neal should sit down with me and listen to my ideas. I greatly appreciated the warm introduction. Unfortunately, Neal’s immediate reply took the wind right out of my bagpipes.

“I hate insurance,” Neal said. I was a little shocked at his almost rude response, but, having been in the business for over 30 years, I had seen every kind of bizarre reaction a prospect can have to an insurance agent. I knew he was trying to scare me away. Instead of retreating, I stood my ground, determined to use this opportunity to gain the information edge. I asked him casually if he had any insurance? His only reply was a gruff, “Yes.”  I laughed and said, “Well, you can’t hate it that much then.”

My response seemed to loosen Neal up a little. He started to reveal some of the details of his situation to me. He said that his insurance was all cheap term insurance, the cheapest he could get — and he begrudged every penny that went toward it. Neal’s conversation then dried up. He shook his head and wandered off into the crowd. As I watched him go, I realized that he must have a colossal need for insurance and my services, and I decided then that I wanted him as a client. Actually, I decided then that he would one day certainly become my client.

That initial meeting with Neal had taken place six years ago. A few days afterwards, I had called Neal to follow up on my client’s introduction. I wanted to set up a meeting to discuss his insurance needs and how I could help him. Unfortunately, I ended up calling every month for the next ten months, with the same result. His secretary would tell me he was out of the office. Even I, a man is known for his perseverance, was beginning to get frustrated.

I was downhearted but refused to give up. I wasn’t trying to make Neal’s life hard, I wasn’t trying to talk him into buying something he didn’t need. From what he had told me about his current situation, I knew he needed what I had to offer and I was determined to show him why.

In the eleventh month, my persistence finally paid off. I called his office at 6:30 one evening. Neal’s secretary had left for the day and he was answering his own phone — obviously expecting a call from somebody else. When he heard my voice, Neal’s defences immediately went up. “You’re a pesky bugger!” he said. Without hesitation, I replied, “Neal, no man has endurance like the man who sells insurance.” Once again the ice was broken. Neal let out a curt laugh and then told me, “Your timing is actually pretty good. I can’t talk right now, but my CFO is tendering the insurance for our buy/sell agreement. I’ll make sure you get a call.”

True to his word I got a call from Neal’s CFO two days later.

Once I got into the case I quickly discovered that Neal was adamant about considering only term insurance. All the other brokers and advisors bowed to this dictate and a price war on cheap term insurance ensued. My belief was that you might win the battle with the lowest price, but you’re sure to lose the war in the end. I stuck to my guns. When it was my turn to propose the insurance solution I presented an array of permanent insurance plans that called for a premium considerably higher than the inexpensive term quotes Neal had been seeing. I told Neal and his decision-making entourage that it was folly to try to fix a permanent problem with a temporary solution. Neal’s estate was a tax liability. It was only a matter of time before the government would want their cut of his wealth. I argued that he should opt for permanent insurance now while he was young and healthy.

My argument cost me the case.

Despite the loss, I continued to keep my tabs on Neal — calling occasionally and making the effort to speak to him at any engagements we both happened to be at. A year ago, I ran into him at another dinner. I knew that it had been almost five years since he had purchased the insurance and that the renewal, along with the precipitous rate hike, was fast approaching. I wanted him to keep me in mind on his renewal date, so I approached him and asked him if he still had term insurance. He answered yes. I told him, “Neal, term insurance is like bed-wetting. Someday you have to wake up and change the sheets.” He laughed.

My remark worked. A month later I got a call from Neal. The ultimate cost of term insurance was beginning to dawn on him. He was now close to fifty and the rates would continue to rise dramatically until the term expired. Neal asked me to come and see him.

My meeting with Neal was the beginning of a large case for me. We eventually converted his term to permanent as well as adding considerably to the sum insured.

When I asked him why he called on me, instead of his original advisor, he told me he did so because over the years I was the only one who had told him he had the wrong insurance. And that I was right.”

Lessons Learned

The strategy that won the Neal case for me was persistence. Persistence, of course, means never giving up. The trick in the financial services business is knowing when you should stick with a case, and when to fold. Too many of us hang in on the wrong deals and drop the cases we should pursue. Most of the people in my office figured I was hare-brained chasing Neal. They saw his irascible personality as the ultimate obstacle. To me, his personality, while a factor, was not the deal-breaker. I knew he was a smart man and I knew he needed me. I also knew that it was only a matter of time before he knew that he needed me. I tell the young advisors that come to me for advice that persistence is not aggression. I was not aggressive in my pursuit of Neal. That would have turned him off. The first step to persistence is to extend your time horizon. Sometimes a case takes two, or three, or even five years to close. But that’s far better than no close at all, especially if the case is large and rewarding. Taking a longer-term view allows me to relax and put the right amount of pressure on my prospects. My strategy is not to browbeat, or plead with my prospects, but to consistently deliver the same message again and again. And that message is — I am here to help you make the right financial decisions. In the end, that is the message that turns prospects into clients.

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The Covenant Group is referred to by many as the place entrepreneurs go to become Business Builders. They are considered to be thought leaders and have authored the best-selling books, The 8 Best Practices of High- Performing Salespeople, The Entrepreneurial Journey, and The Business Builder.