Medicare Blog | Medicare News | Medicare Information

In 1898, Elias St. Elmo Lewis developed the AIDA sales funnel still used by marketers today. The layers originally created are awareness, interest, desire, and action. He used it to explain the selling process in the insurance field and break it down into the hierarchical structure that is easier to understand and keep the sales funnel flowing. Although the model remains just as relevant as it was when it was first created, it is important to allow for affects of new media on each of the steps. One way to do this is to create a fifth layer, the referral.

Here is how each layer is changing with new media:

• Awareness: Traditionally this has been through newspaper ads, billboards, radio and TV commercials. As the insurance world moves towards the digital age, it is important to take advantage of the arenas where people spend most of their time. Currently, that is in social networks like Facebook, Twitter, LinkedIn, and Google+.
  
  
• Interest: As an agent it has always been important to understand where your potential clients are and meet them there. Today’s marketplace shows an increase in consumers expecting brands to become a part of their culture. This means using informational graphics and videos as well as emotional stories to convey the importance of your product and what it can do to improve their life.
  
  
• Desire: Once you have their attention, you will need to explain why they need your products. What are the benefits? Create a desire for your product with your marketing and education of the product’s value to your prospective clients.
  
  
• Action: In many ways this was previously the last state of the selling tunnel. Once your customer is aware, interested, and has the desire to buy, you would encourage them to buy the product. Consumers these days are looking for an easy or intuitive buying process. As you guide them through the process you will be setting them up for the new fifth layer: the referral.
  
  
• Referral: This is the best tool in any agent’s marketing strategy. Once you have one happy customer promoting your service they can bring you several more. This is where social media can really help to positively promote your company. Positive comments on your Facebook wall, tweets reflecting your good service, or recommendations on your LinkedIn profile all work toward gaining new clients.

In many ways, social media is a set of bookends with the sales process in between, creating an effective sales cycle. You advertise via the networks and receive referrals based on your positive customer experiences. Interaction via Facebook and Twitter is increasingly becoming as affective in sales as a call between a sales rep and a client. By leveraging these new resources you can create your niche in the insurance sales market and target prospects accordingly. As the number of consumers turning toward the internet for insurance research and purchasing continues to increase, it is important to adjust your marketing concepts in order to adapt.

To read the entire article, please see InsuranceNewsNet's Why 'Funnel' Away Business (page 40).

Precision Senior Marketing will be closed Monday, May 28 for the Memorial Day holiday. Regular 8am-5pm CDT hours will resume Tuesday, May 29. We wish you and your loved ones a happy holiday. We appreciate your business and the opportunity to serve your needs.



Please give us your feedback!
Do you use social media in your sales cycle? How has it changed your business? Do you find the process easy to manage?

Source: InsuranceNewsNet

• Woodmen of the World Medicare Supplement Rate Increase for Oregon - Learn More

As an agent, your main focus is to educate your clients on the best Medicare Supplement plan to fit their needs and close the sale. Recent studies from CSO Insight’s, "Sales Optimization Management Key Trends" have shown that closing the sale has declined 12% in the last five years. This is mainly from forecasted sales resulting in "no decision," which have increased by 26% in the same time frame. If you find a lot of your prospects leading to "no decision," two questions to ask yourself are "Why are these 'no decisions' increasing?" and "As an agent, what can I do to reverse the trend?"

Here are three strategies to put in place in order to increase your closing rate:

• Sales target segmentation and qualification process – Spending the time to identify which prospects fit your agency the best will allow you to target that market and work toward catering toward their specific needs. Do you want to work with the aging in 65 market? Or older seniors who are looking to get a lower rate on their Medicare Supplement? Once you determine your agencies "sweet spot," you will be able to categorize your prospects into strong, neutral, or weak sections and focus your time on each one accordingly.
  
  
• Well-defined and documented sales stages – Once you have defined your prospecting stages and customer activity you will reduced the chance of your pipeline becoming deflated. These stages will also help you to see when your prospect goes from suspect to qualified status and reduce your "no decision" buyers. Be sure not to label a prospect qualified before they have identified they have an need and want to evaluate the plan you have proposed.
  
  
• Implement a strict sales pipeline management – Most of the time "no decision" prospects come about when a sales cycle goes past your usual timeline and goes cold. If this happens, you should either restart the sales cycle or call in a loss. By keeping your sales pipeline conservative you will also be keeping it accurate and your numbers strong.

If you find yourself faced with more "no decision" prospects than usual, it might be a good time to reevaluate your sales cycle. Be sure you are focusing on those prospects in your target demographic and determining their interest the first time you speak with them. This way you can cultivate the clients who are interested rather than wasting time ones who are not going to result in a sale. If you would like more tips and strategies with your sales process, give your PSM marketer a call at 1-800-998-7715.

Please give us your feedback!
Have you seen a rise in your prospects leading to "no decision"? What do you do to prevent them? Do you currently have a pipeline management system in process?

Source: LifeHealthPro

• Assured Life Medicare Supplement Rate Increase for Louisiana - Learn More

As the Boomer generation reaches retirement and Medicare eligibility a survey done by Nationwide Financial shows not only is health care costs their top fear but they have underestimated what they will have to pay. John Carter, president of Nationwide Financial Distributors adds, "Americans — even those who have diligently saved for their golden years — are not prepared for the reality of health care costs in retirement and don't really understand how Medicare works."

Half of those who have at least $250,000 in household assets fear rising health care costs will deplete their retirement savings. The survey showed that those that fear health care costs estimate their annual payments will be $5,621, a drastic underestimate. A 2011 study done by Nationwide shows that those out-of-pocket expenses will be more like $10,750 a year. One major cost most pre-retirees assume Medicare covers is long term care. Also, they do not realize eye care, dental, and hearing are not covered under traditional Medicare.

Issued last month, a government trustee report showed that Medicare as it is now will be exhausted by 2024 and Social Security by 2033. This has more people planning on working longer, in order to save enough to retire with enough to cover all of their expenses.

It is important to educate your aging 65 clients to prepare for their future health care costs. Especially in this election year, fear runs high as statistics are cited between candidates and plans are proposed. By suggesting Medicare Supplements that help your clients to budget their health care costs in easy to manage monthly payments you will help them ease into their retirement years knowing they are secure in their health care.

Please give us your feedback!
What questions do your turning 65 prospects ask? Do they seem worried about saving enough to cover their health care during retirement?

Source: USAToday

• Gerber Life Medicare Supplement Rate Increase for NV & SC - Learn More
• Plan "G" - Increasing Sales for many PSM Agents - Learn More

Medicare Supplement figures from MFA’s Medicare Supplement Market Data, Health Coverage Portal show a continued growth in the number of new policies being issued. New policies issued in the last three years increased by 7.5% in 2011 when compared to the previous year’s data; resulting in 9.9 million seniors being covered by Medicare Supplements as of December 31, 2011.

Med Supp carriers increased from 124 in 2010 to 129 in 2011, with one carrier no longer reporting new policies and another six reporting new policies. The plans earned a combined $21.359 billion in premiums and had $17.028 billion in claims. This was an increase of 4.1% and 5.4% between 2010 and 2011 respectively. The aggregate loss ratio, or incurred claims as a percent of earned premiums, returned to 80% in 2011 after decreasing slightly to 79% in 2010.

Plan F was chosen by 47% of consumers with Medicare Supplement coverage in 2011, increasing from 43% in 2010. Plan N gained 265,854 enrollees since it was introduced in June 2010.

UnitedHealth Group, including AARP, dominated the market share with 31% of the business. Mutual of Omaha ranked second with 11%. The Top seven companies have not changed in the last three years. Also, the study showed most companies are diversifying their Medicare offerings to include Med Supp, Med Advantage, and Plan D in order to have more opportunities as the senior market grows.

The senior market is constantly growing, especially now that the Boomer generation is entering the market. The Med Supp landscape continues to grow and change and exciting new products continue to enter this dynamic market.

Please give us your feedback!
Did you see an increase in your business between 2010 and 2011? Which product do you find you sell the most of?

Source: Mark Farrah Associates

• Plan "G" - Increasing Sales for many PSM Agents - Learn More
• Gerber Life WI Guide to Health Insurance for People with Medicare - Learn More