1
V12
Why choose Florida, Arizona and Illinois?
• They asked me…
• In OKC we saw destiny now… but I thought we
might miss it
• That the marketing strategy, the branding and
marketing communication approach had moved
but unless the sales approach moved with it we
would not make the most of our opportunities
2
We have been actively
developing the brand from this…
3
to this…
4
We have never questioned the
selling system.
5
despite of all that has been done,
growth is not nearly what it should be
Our Product Has Wide Acceptance,
We Have 1.4 Million Members…
Q: Do you want
to buy what we
are selling?
…yet we
remain a long
way from
reaching our
potential!
Definitely
6
Probably
Maybe
Probably
Not
Definitely
Not
Maybe it’s time we adjusted the way we sell
• Observations on the direct selling industry
• Comparisons with mainstream commerce today
• Suggestions for modifying our approach
• The test results.
• Note… very little of what I am about to say is not
supported by data
7
Consider every single direct selling
company you have ever known.
What happens?
8
Product-based
Service-based
• Invite friends to a party
• Create a controlled social
environment
• Do a great demonstration
• Ask for the order
• Invite a guest to a meeting
• Create a controlled social
environment
• Do a great explanation
• Ask for the order
What makes this model work?
Product-based
Service-based
• Try before you buy
• Fun / social interchange
• Full explanation before
you buy
• Great if you are an unknown product or brand (you get 30 minutes to pitch).
• Yet it is not completely comfortable
• A sense of social obligation is created. (but our “you may or may not
be interested” positioning helps dilute this.)
9
• The sales pitch is controlled by the seller.
• There is a feeling if you don’t close the sale they are gone.
Associate research indicates that many
associates feel uncomfortable with the
process
• They sense some pressure as a seller
• They feel like buyer is under a little pressure too
• This direct sales environment has not changed for
60 years…what has changed is the world around us
10
In a world where, increasingly,
the customer is invited to serve
themselves, we retain control.
Think about vacations, restaurant
reservations, real estate, supermarket
checkout, airline check-in.
11
Let’s consider what we think
a great customer experience
feels like.
•
•
•
•
•
12
Amazon
Trader Joe’s
Netflix
Nordstrom
Publix
•
•
•
•
•
Southwest Airlines
Apple
For whatever reason,
FedEx
prospects like to buy
from these companies.
Costco
And people like to sell
UPS
for them.
CBS list published June 2012
Why do we like dealing
with Amazon?
As customers, we want to
control the experience
• I want to check it
out myself
• I want it in my timeframe
• And, I guess…‘I don’t
miss a sales assistant’
13
Yet we have Nordstrom,
Apple and Publix in the Top 10
14
•
Even with a salesman it has become more about customer
service and less about selling
•
Ask yourself, what would the following be like at Apple or Publix?
• A three-way call
• A luncheon
• A business briefing
•
How does the seller feel afterwards? I would suggest he always
feels happy because…he either advanced a sale or made a
sale.
Most new associates fear
3 things:
1. Fear of rejection
2. Not having the social skills to bring up
the product naturally
3. Not having the product knowledge to answer
customers’ questions
15
Where are these three fears in
the 21st century?
1. Does the Nordstrom assistant go home
feeling rejected?
2. Did the Apple assistant have the social skills to
approach you?
3. Did the Publix assistant feel miserable because
he did not know the ingredients of the soap
powder?
16
So why do our Associates
feel fear?
Our current focus is on getting each prospect to
a meeting or three way call ASAP.
• Sales lines
• Techniques
• Confidence builders
17
This does not come naturally to many associates, a
feeling that can translate to their prospects. They
see this as a personal failure
We seldom transfer to our
Associates the real magic of the
great sales people of LegalShield,
who constantly and patiently build
relationships.
18
Being Persuasive (Inc. magazine blog)
• Don't ask or argue… advocate (persistently)
• Listen and be receptive… to objections (or agreement)
• Be likeable and empathetic… wait for permission to
advocate
• Value strong opinions and they will value yours
• Give ground when you can
• Learn to be quite after you have asked a closing question
• Know when to back away, some sales are complicated and
require time. Nothing is more powerful than self persuasion.
19
What if we could make all that
associate anxiety disappear?
It would if we…
• Allow the Associate to engage naturally
• Encourage the Associate to focus on building
relationships more than sales
• Move patiently at the customer’s pace
• Embrace the 21st Century selling environment…
(allow the prospect to control the experience, check it out
for themselves, in their own time)
20
In OKC we took a small step for
that could be a giant leap for direct selling
• Moving the company into a digital
environment has created incredible
opportunity
• Going to a meeting, while preferred,
is no longer critical.
• Associates can take the time to establish
a relationship
• Your business is conducted in a way that
is completely expected, transparent and
not in anyway forced…
21
22
Five principals that you have to embrace
now about the new LegalShield!
1. You are never going to be rejected…ever.
2. Your prospect is unlikely to have any clue who you are
or what you are selling and you need to be prepared for
that reaction
3. When you are recruiting and you say ‘our company
needs direct sellers’ you mean it more than anyone
else.
4. When you show a video, people will want to know more,
most of the time.
23
5. You have the option to sell in the real world and on line.
1. You are never going to be
rejected…ever.
•
You begin with a
good chance of
making a sale —
50/50
•
Your goal: How can I
help them find out if
it’s for them?
•
Your time limit:
As long as it takes.
Q: Do you want
to buy what we
are selling?
Definitely
24
Probably
Maybe
Probably
Not
Definitely
Not
2. Your prospect is unlikely to have any
clue who you are or what you are
selling and you need to be prepared
for that reaction.
Credibility is an issue
Unknown Company
• 94% have never heard of the
brand name
Q: Do you know
anyone who
sells anything
like this?
Unknown Product
• 60% have never heard of a
service like this
Video is important
• Credibility and explanation
25
LegalShield
Yes, but
could not
name them
No
3. When you are recruiting, and
you say ‘our company needs
direct sellers’ you mean it
more than anyone else does
• No competing infrastructure
visible to them
• There is no way that they will
understand the product from
competitors
• Unless you encourage them to
watch the overview video they
will never find the product
26
Don’t Know
Maybe
4. When you show a video,
people will want to know
more, most of the time
27
•
They are liked…overall rating 84% and
89% (excellent/good, 4 point scale)
•
They create interest in knowing more…
64% and 61% (definite/probably 5
point scale)
•
We can put a ‘complete’ product
experience in a customer’s hands to be
viewed on their terms
Our Product Has Wide Acceptance,
We Have 1.4 Million Members…
Q: Do you want
to buy what we
are selling?
…yet we
remain a long
way from
reaching our
potential!
Definitely
28
Probably
Maybe
Probably
Not
Definitely
Not
4. When you show a video,
people will want to know
more, most of the time
29
•
They are liked…overall rating 84% and
89% (excellent/good, 4 point scale)
•
They create interest in knowing more…
64% and 61% (definite/probably 5
point scale)
•
We can put a ‘complete’ product
experience in a customer’s hands to be
viewed on their terms
5. You have the option to sell
in the real world and on
line
In fact, we suggest it may be a more natural
selling process to work in the virtual
world
than the real world.
• Make contact
• Build rapport
• Sense if there is interest
• Hand off to technology
30
and follow up! (think Nordstrom; think Apple,
think Trader Joe’s)
…on line is the new
neighborhood
‘My generation uses
twitter to ride share the
way the way other
generations used to share
cups of sugar’
Heard on PBS on august 15th
31
If you are going to
connect on line don’t
leave a cup outside of
every door, knock…
and go away
32
Make each on line connection a
personalized campaign
• Don’t connect with too many—5 per day, max.
• Think carefully what you want to say.
• Customize it for them; why are you writing?
• Customize it for you; does it sound like you?
• Think about your follow up: what and when would
it be something you would like to receive?
33
The danger and the opportunity.
is that we will settle for small-percentage returns
• Mass techniques like mass (leafleting, e-blasting,
text blasting, etc.) can only capture a few
• The prospect doesn’t know who or what you are!
And the brand will suffer!
• We don’t want to be competing with window washers,
car washes, 10-minute lube, etc.
• We have a responsibility to keep the market open
and preserve brand integrity for everyone
34
The danger and the opportunity.
is far too big for us to mess it up for
each other.
“No direct seller has principles
three and five working in their favor like
LegalShield!”
• 3: “no competing infra-structure”
• 5: “as real communities get fragmented,
virtual communities get stronger”
35
Does this mean the end of the LegalShield
system as we know it? No…
but we need to look at it from a customer’s point of view
‘It’s not what we want to say that’s
important; it’s what they need to
hear! (I’m sure glad you asked that)’.
36
How important are the 3-way
call, business briefing, luncheon,
and Super Saturday?
To a prospective member…
Who wants to…
• Trust you
• Explore the product
• Have their questions answered
• Is it a reliable company?
• Is it too good to be true?
• Do I need it?
37
There’s no problem
with traditional
direct selling
methods, if they are
handled like 21st
Century customer
service
High tech meets high touch.
“Think about your role at the beginning and the end”
Where do you prefer to get information?
• 72% from the insurer’s website
• 61% by asking friends and family
• 55% from exclusive agents’ website or comparison sites
Where do you prefer to obtain a quote?
• 43% website
• 26% via phone
• 26% in person
38
Where do you prefer to set up and pay?
• 76% with an agent
• 58% via web (this may be a subset of the 76%)
Source: Accenture study on auto
and home insurance
How important are the 3-way
call, business briefing, luncheon,
and Super Saturday? Critical
To a prospective associate…
who wants to…
• Share the product
• Enjoy the social opportunity
• Gain recognition
• Develop themselves
• Create independent income
• Build a career
39
Social contact
is a critical
prerequisite for
recruiting
Focus: Florida, Phoenix & Illinois test markets
40
The objectives were happiness, fulfillment
and productivity…and don’t get them out of order
41
The test was a 5 part play
42
1. We eliminated fear of rejection by setting
realistic expectations
2. We eliminated fear of inadequate product knowledge
by explaining the videos
3. We reduced fear of social interaction by providing a
3 hour training
4. We asked participants to document activity
(initiating and following up)
5. We asked participants to form teams
(for initial learning and support)
1. We eliminated fear of
rejection by setting realistic
expectations
“Help each prospect
find out where they are
today.” (50/50)
Definitely Probably
43
Maybe
Probably Definitely
Not
Not
2. We eliminated fear of
inadequate product knowledge
by explaining the 5 videos
“Have at least enough
knowledge to understand what
each video does.”
44
a. Intro to LegalShield video
(two minutes)
Answers: “Can I have
a quick overview?”
• It’s a real company
• The unique
service model
• The scope of the service
• The benefit to you
45
b. About Us video (three minutes)
Answers: “I’ve never heard
of the company.”
• We are a real company,
with history, scale, and
stability.
46
c. Provider System video
(four minutes)
Answers: “It’s too good
to be true.”
• Why the paid-in-advance
provider network creates
• Quality service
• Quality lawyers
• Very affordable plans
47
d. Membership video (4 minutes)
Answers:
“I don’t need an attorney.”
•
•
•
48
We provide attorney services
when you need an attorney
We provide attorney
services when an attorney’s
advice would be useful
We provide knowledge that
you have access to an
attorney if you need it
e. Opportunity video (4 minutes)
Answers: “Why would I want to be
recruited?”
• It’s fulfilling to sell a
great product
• I have made friends
• I have developed personally
• I have my own business
• I have a career
49
3. We reduced fear of social
interaction by providing a
Three-hour training
Patrick’s training covers:
• Success Triangle
• Contact Management
• Contemporary Communication
• Social Selling Skills
50
4.
We asked participants to document activity
Where they were with each prospect
51
Report in weekly and complete a questionnaire at the end of the 6 weeks
5. We asked participants to
form teams (for initial
learning and support)
a. Workout partner…Daily (or as much as you like)
b. Team of 6…Weekly
c. Regional calls…Weekly
52
Focus Florida, Arizona, Illinois
Topline Results
July 2013
Study #20130261
53
Methodology
Study Design And Sampling
This survey was conducted over the Internet among LegalShield Associates who attended the
Florida, Arizona, or Illinois Focus Presentation or Training in May 2013.
LegalShield invited these Associates by email to participate in the survey hosted on Decision
Analyst’s DAISurvey™ website.
A total of 200 surveys were completed, as follows:
• Florida: 91
• Arizona: 64
• Illinois: 45
Dates Of Data Collection
54
Start
End
July 16, 2013
July 25, 2013
Overall Ratings
Alan Fearnley's new sales strategy
presentation
79%
Patrick Hodges' new sales strategy training
82%
LegalShield's new sales strategy overall
Social Media Starter Kit
17%
76%
38%
Excellent
55
21%
21%
40%
Good
Fair
17% 5%
Poor
Goal Fulfillment
66%
To eliminate fears related to lack of product knowledge
64%
To reduce fear of meeting and interacting with new…
39%
57%
To keep a record of follow-up activities to these new…
41%
52%
To eliminate the fear of rejection
46%
50%
To make Associates productive
46%
To form small teams for weekly learning and support
44%
To have a Workout Partner for daily learning and support
38%
To make Associates fulfilled
38%
Fully Achieved
56
35%
61%
To keep a record of new contacts and new prospects
To make Associates happy
34%
44%
6%
48%
36%
40%
52%
Partially Achieved
7%
21%
22%
10%
Not Achieved
Appeal Of Sales Strategy Elements
Stop thinking rejection—start thinking customer service
98%
Constantly and patiently build and expand your networks of contacts and…
95%
5%
Follow-up is one of the keys to success
94%
6%
Have enough product knowledge to understand the LegalShield videos
94%
6%
Move patiently at the prospect's pace—don’t rush or try to force a sale
90%
9%
Avoid e-blasting and mass mailing of leaflets or flyers
89%
6% 5%
Don’t try to explain or sell the service yourself—let LegalShield’s videos…
85%
Associates must operate in the real world and the virtual world
Say something—prospects will never know about LegalShield unless you…
81%
18%
81%
16%
Confer with your Team at least one a week
74%
21%
5%
Create a file on each prospect
73%
23%
5%
26%
4%
Record sales activities and track prospects
70%
Use email to reach out to prospects
66%
Use email to remind and follow up with prospects
66%
Email templates are provided by LegalShield as guidelines
64%
Touch base daily with your Workout Partner
63%
Use social media as a sales outreach tool
57
14%
60%
Very Appealing
30%
26%
4%
8%
34%
30%
30%
Somewhat Appealing
7%
10%
Strategy Elements Recalled From
Presentation or Training
Move patiently at the prospect's pace—don’t rush or try to force a sale
Record sales activities and track prospects
Stop thinking rejection—start thinking customer service
Don’t try to explain or sell the service yourself—let LegalShield’s videos…
Follow-up is one of the keys to success
Avoid e-blasting and mass mailing of leaflets or flyers
Constantly and patiently build and expand your networks of contacts and…
Create a file on each prospect
Associates must operate in the real world and the virtual world
Use social media as a sales outreach tool
Confer with your Team at least one a week
Touch base daily with your Workout Partner
Have enough product knowledge to understand the LegalShield videos
Use email to reach out to prospects
Say something—prospects will never know about LegalShield unless you…
Email templates are provided by LegalShield as guidelines
Use email to remind and follow up with prospects
58
98%
97%
96%
95%
95%
95%
95%
95%
93%
90%
89%
86%
78%
77%
75%
69%
67%
Adopted Sales Strategy Elements
Stop thinking rejection—start thinking customer service
94%
Move patiently at the prospect's pace—don’t rush or try to force a sale
93%
Follow-up is one of the keys to success
92%
Have enough product knowledge to understand the LegalShield videos
91%
Constantly and patiently build and expand your networks of contacts and prospects
90%
Don’t try to explain or sell the service yourself—let LegalShield’s videos explain the…
86%
Avoid e-blasting and mass mailing of leaflets or flyers
85%
Say something—prospects will never know about LegalShield unless you tell them
81%
Associates must operate in the real world and the virtual world
80%
Create a file on each prospect
72%
Use email to reach out to prospects
70%
Use email to remind and follow up with prospects
64%
Record sales activities and track prospects
63%
Use social media as a sales outreach tool
62%
Confer with your Team at least one a week
Touch base daily with your Workout Partner
Email templates are provided by LegalShield as guidelines
59
56%
39%
34%
Social Media And Social Media Starter Kit
% Who Used Social Media As
Sales Outreach Tool
Before Mid-May
Total
Florida
Arizona
Illinois*
60
43%
35%
% Who Received
Social Media Starter Kit
85%
% Who Implemented
Any Element Of
Social Media Starter Kit
61%
85%
47%
53%
89%
80%
68%
47%
67%
Extra Memberships Sold As Result Of New
Sales Strategy
Extra Memberships Sold
Over Past Two Months
Extra Memberships Expected To Sell
Over Next 12 Months
(Average: 1.7 Extra Memberships)
(Average: 8.7 Extra Memberships)
None, no extra memberships
37%
One extra membership
20%
Two extra memberships
16%
Three extra memberships
Four extra memberships
61
12%
7%
None, no extra memberships
4%
One extra membership
2%
Two extra memberships
0%
Three extra memberships
2%
Four extra memberships
1%
Five extra memberships
3%
Five extra memberships
Six extra memberships
2%
Six extra memberships
4%
Seven extra memberships
2%
Seven extra memberships
2%
Eight extra memberships
2%
Eight extra memberships
2%
Nine extra memberships
0%
Nine extra memberships
1%
Ten or more extra memberships
1%
Ten or more extra memberships
8%
76%
Florida
350
350
300
300
250
250
200
200
150
150
100
100
50
50
0
0
4 month membership sales indexed from march 1
62
Membership sales indexed test period only
Illinois
200
200
180
180
160
160
140
140
120
120
100
100
80
80
60
60
40
40
20
20
0
0
4 month membership sales indexed from march 1
63
Membership sales indexed test period only
Arizona Group – memberships per week
250
250
200
200
150
150
100
100
50
50
0
0
AZ Membership
Natl. Trend
4 weeks post test
(still 50% up on national)
64
Test starts
Test officially ends
60/60 fast start pilot
• Objective
• Allow new associates time to build
relationships
• Encourage activity early on
• Get the ‘raving fans who were motivated to
pay $149’ paid, promoted, engaged and their
money back
65
60/60 fast start pilot
•
•
•
•
•
Enrollment fee $149
Go to basic training
30 days to make a sale (or sale and recruit)
We give you back $89. ($60 net fee)
Additional 30 days (60 days in total) to fast start
qualify
• No up line bonus but, if recruiting, engagement and
fast start qualifiers double… everyone will be good
66
File v8 – 21st century direct selling