Study 2 - Sales - Narrative Questions

Question 1

Describe five (5) methods of sourcing prospects. (5 marks)

Answer 1

Methods of sourcing prospects (any five of the following)

• Referrals: Because existing clients have referred them, new prospects are generally from the
same target segment—usually family members, friends, or colleagues of an existing client;
people from the same geographical area; or industry prospects in the same business as an
existing client.

• Online marketing: A growing number of prospects are now shopping online during non-business
hours at times convenient to them.

• Advertising and walk-ins: Advertising in the local media, online, on billboards, or at sports events
can generate clients who are attracted by the advertisement. The advertisement can include information for these prospective clients to contact the agent or broker by phone, by email, on a website, or by coming into the office.

• Cold calling: Making contact with an unknown person to introduce the agency or brokerage and its services
• Tracking of expiry dates: One way to form a database of prospective customers is to track the expiry dates of policies—the date on which an insurance policy expires, which is also known as an “X-date”.
• Upselling: Selling an upgraded version of an existing policy to an existing client or improving the existing coverage of a new prospect—providing more comprehensive coverage than the previous intermediary

• Cross-selling: Can be both selling insurance to new clients (friends or family members of existing
clients) and rounding the insurance plans of existing clients (selling them policies to cover other
exposures, such as adding a personal umbrella to an existing client’s homeowners and automobile insurance package)

Question 2

What five (5) recommendations should you make to a client to help them mitigate host liquor liability?
(5 marks)

Answer 2

Recommendations to help a client mitigate host liquor liability (any five of the following)

• Monitor alcohol consumption—either be the bartender themselves or hire a professional
• Cease serving alcohol at least one hour before the end of the party
• Provide non-alcoholic beverages and snacks one hour before the end of the party
• Encourage guests to have a designated driver
• Offer guests the option of overnight accommodation
• Provide alternative transportation for anyone who is unable to drive

Question 3

What are five (5) methods to counter sales opposition? (5 marks)

Answer 3

Ways to counter sales opposition

• Ask if there is anything the client is unsure about
• Comment on the overwhelming nature of the information provided
• Offer to repeat some items in another way to simplify the material discussed
• Offer the client time to consider the written quote
• Be prepared and aware of what is happening in the industry so you can answer objections