Closing Requires Prospecting!

Closing new business requires that you do your homework before ever setting foot in a prospective account. It requires that you be capable of clearly and concisely communicating the numerous benefits of doing business with your agency to every prospective dealer. How will doing business with you… help them?

It also requires that you organize your time and have a game plan. But as every successful agent knows, the main requirement for closing new business… is that you call on new accounts!

One of the most important aspects of closing new business is the development of qualified leads. Prospecting is necessary to build your list of prospects and to fill your pipeline with potential business. Prospecting can take several forms, but the two most effective are referrals and telephone prospecting. As an agent, there are numerous sources you can approach for a referral, including:

Current Dealers:

This source of prospects is by all means the most effective. Obviously, the only way a dealer will take his time and place his reputation on the line for you and your agency is if you have proven your ability to increase income within his or her dealership. You have to make sure your agency is seen as partner in the success of their F&I department.

Every current dealer is also a prospect for other products your agency offers. You need to be prepared to cross sell your other products in these accounts every time you’re in the dealership.

Current Relationships:

Most agents have numerous companies and product providers they work with, as well as other agents they know through those companies. Menu software companies, DMS and product providers regularly get inquiries regarding F&I products that could mean a referral to your agency.

They also have relationships with individual dealers that are part of a larger dealer group, as well as clients that are signed up but that are not actively selling their product. Helping them improve their performance with one product creates an opportunity to talk with them about your other products, and how your agency is different from their existing product provider.

Dealer Associations:

Dealer associations and 20 Groups can be an excellent source of referrals. Most dealers belong to their state or local dealer association or an NADA 20 group that meets regularly to discuss ways to improve their dealership’s performance and profits. Being active in your state and local dealer associations, and attending their meetings, is a tremendous opportunity for you to meet dealers in a market area.

A simple introduction by one of your dealers to another dealer at one of their meetings will often turn into a conversation that results in an invitation to come by the dealership and discuss what your agency has to offer.

F&I Managers:

F&I managers frequently leave one dealership and move to another dealership. Often, based upon your relationship with the F&I manager, he or she will gladly refer you into their new dealership. This is especially true if the F&I manager was formerly at a dealership that sold your products, you helped them obtain their position, or they were initially trained by one of your product providers.

Your F&I managers are also a good source of information about other dealerships whose F&I departments may be struggling, or dealerships that may be considering making a change.

Other dealer's F&I managers will also occasionally refer you into their dealership if they are dissatisfied with their current carrier. Always use caution when, talking to F&I managers at dealerships that are not currently clients, as often the reason for the F&I manager’s dissatisfaction with their current carrier/management company is because of their own poor performance!

F&I managers are best utilized as a source of leads, NOT as a source of referrals!

Sales & Service Managers:

Sales managers and service managers at your existing accounts can also be a good source of referrals, especially when you have developed a good rapport with them. Any person working in the auto industry knows someone else in the industry. Networking with these people is essential to develop new leads and grow your prospect base.

Credit Unions, Local Lenders And Banks:

Local lending institutions that dealers use as finance sources can be a fair source of referrals, but only if they know you! Visit the local office and meet the branch manager, their paper buyers, the people that handle collections, as well as their field representatives.

Make sure that they know they can contact you personally if there is an issue with one of your products. Check with them on a regular basis to answer questions or assist in resolving any claim problems. Often, claim/refund/cancellation problems with other carriers may even prompt them to refer you into an account.

Telephone Prospecting

Properly used, the telephone can be an effective prospecting tool, both in terms of cost and time. Without a referral into the dealership, it enables you to gather enough information about the dealership to allow you to make a creditable contact.

Always speak to the receptionist first. The receptionist can give you the name and address of the dealership and the name of the manager you want to talk to.

Next, speak to the F&I manager, sales manager, general manager, or office manager - anyone except the dealer! At this point, you are merely attempting to gather information, so there is a reason for you to talk to the dealer. Some of the information you want to find out before you attempt to meet with the dealer includes:

• The dealer or dealers’ name and title
• Name and number of F&I managers / time at dealership / previous F&I training
• Names of other managers at dealership / time at dealership
• Current franchises and volumes, and how that compares to last year
• Years in business and other dealerships and locations (if any)
• Current F&I product providers / menu software provider / time with each
• Does the dealer have his own re-insurance company?

Once you have gathered enough information about the account and you feel adequately informed about the dealership and its operations, then and only then, are you ready to call on the dealer! It’s critical you know how you can help that dealer, so you have a reason to see him, before you ever walk in the door!