InsuranceNewsNet Magazine January 2011 : Page 54
LIMRA INSIGHTS | BY PATRICK T. LEARY The Power of a Sales Team Productivity » Revenue » Success I n today’s financial services sales prac-Teaming to Earn; basic needs, while the senior advisor can tice, it’s not only about the person, Teaming to Learn focus their attention not only on clients but it’s also about being in an envi-Leveraging business support or embrac-who have more complex needs, but also on ronment with the greatest potential for ing a collaborative sales model will result managing the practice. Over time, junior success. The level of support insurance in higher net income for sales representa-reps grow within the practice through and financial services sales representa-tives. Representatives operating in formal increased responsibilities and learning tives have at their disposal is an impor-team structures make 72 percent more the business. Ultimately, they will be in a tant predictor of that success. Leverage than their solo counterparts and collaboration are two related sup-make. Yet the solo model is port models that organizations can use most prevalent in the finan-Leveraging business support or to improve retention, increase produc-cial services industry, and embracing a collaborative sales tivity and lay the groundwork for succes-few representatives operate as sion and continuity planning. part of formal teams (Figure 1). model will result in higher net Building support strength through “Teaming to earn” may seem income for sales representatives. leverage and collaboration evolves over counter intuitive in a histori-time, based on the increased needs of the cally competitive profession, position to succeed the senior advisor and sales professional. As an agent or advisor but formal team structures will not only become practice leaders. increase productivity, but they Mentorship programs have a significant also will enhance the value of impact on a learning rep’s success. Nearly the practice. Figure 1 -Support Strength vs. Median Net Income nine in ten sales professionals believe their (percentage of sales representatives) While “teaming to earn” is mentors have had a positive impact on their proving to be a successful 49% income. More than two-thirds indicate that $137,500 approach to drive revenue, men-these programs have strengthened their loy-torship arrangements (“teaming $104,000 alty to their organization or firm. Mentor-$99,500 to learn”) are a type of collabora-25% ships have the greatest impact on profes-$80,000 tion that addresses other critical sional development. More than half of all issues facing the industry: reten-13% 13% sales professionals feel mentorships have had tion, sales leadership and continu-a significant impact on their development; Solo Basic Advanced Team ity planning. Collaborative sales few feel they have had little or no impact. Source: Embrace Success, LIMRA, 2010 models are desired by college Organizations invest heavily in new seniors and younger job hunt-sales representatives, hoping to see a ers -the advisors of tomorrow -return on their investments in the form looks to increase sales to new and existing and they help foster a mentorship culture of profitable performers today and indus-clients, there are demands on the business within the firm, which is so crucial to the try leaders tomorrow. As the financial ser-that cannot be handled without infring-success of a new sales rep. An effective on-vices industry looks to new business mod-ing on their ability to sell and ultimately boarding strategy must provide new reps els to improve retention and productivity, grow the practice. As such, a natural evo-the opportunity to learn the business in and lay the groundwork for succession lution takes place within a rep’s practice an environment that gives them the best and continuity planning, support strength to form a business model that not only opportunity for sales—and career—suc-(leverage and collaboration) can be part of meets the specialized needs of today’s cli-cess. Developing future sales leadership the solution. ents, but also increases sales capacity and depends on identifying potential candi-grows the practice. By “leveraging” basic dates and, most important, keeping them. Patrick T. Leary , MBA, is associate administrative support and advanced As part of the evolution of a practice, a tmanaging director, Distribution support (such as product and technical sales representative can take on a junior Research, for LIMRA. He may be contacted at Patrick.Leary@ specialists, tax accountants and attor-rep or advisor to handle those clients with innfeedback.com. neys), sales reps can markedly increase their productivity. Advanced support models ultimately provide the building Over 850 financial services companies in more than blocks that lay the groundwork for for-70 countries turn to LIMRA first to help them build mal team-based structures. their businesses and improve their performance. 54 InsuranceNewsNet Magazine January 2011
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