Selling to the HNI

Say hello to Mr. Patel

• Mr. Patel is a businessman. He is a major distributor of Ayurvedic Drugs. He lives in the Cuffe Parade of Mumbai. He drives a Toyota Corolla. His children study in a Residential School.

• How much premium do you think Mr Patel can pay?

• Mr. Patel can pay ___________________

Who is a HNI?

• HNI stands for High Networth Individual.

• A HNI client is a client from can afford a regular premium of at least 1 lac.

• A HNI may be a businessman, an entrepreneur, or may be a well paid executive.

• Why is a HNI client different?

The HNI investment process.

• The HNI generally invests in consultation with a CA of some other professional.

• The HNI wants full information on various facets of the investment.

• He wants to know exact details of how his money will grow.

• The professionalism of the IA plays a very important role in HNI Sales.

Aiming HIGH

• What is the Average commission you earn per customer?

• How many customers will you have to sell so that you can earn 5 lakhs annually?

• If you can increase the Average commision to three times, will you be more successful?

• How can you do that?• Sell in the HNI market.

Advantages of Selling to HNIs

• Larger premiums mean more commission.

• The references of an HNI are generally strong references.

• The chances of a resale are high, once you have gained the trust of a HNI.

• The Indian HNI market is big and growing rapidly.

Where do I begin?

The HNI Search

• Ramesh, a BSLI agent wanted to sell in the HNI market. He was looking for some one who could refer him. When he was looking at his list of contacts he found a friend Kumar, who worked as secretary to the CEO of KBC Pvt Ltd.

• Krupesh was talking to his CA when he realised he had many small and medium sized companies as his client.

The HNI search

• Search your natural market to find contacts who can give references to HNIs.

• Look for HNIs who reside in your local neighbourhood

• Look for contacts who reside in HNI residential areas.

• Talk to other professionals like CAs, Accountants, Brokers, etc to find references to HNIs.

Begin Close to home

The HNI Search

– Successful Businessman• Distributors• Wholesalers• Retailers• Brokers• Importers• Exporters• Hoteliers

– Successful Entrepreneurs• Owners of Small and

Medium service / Manufacturing units

• Industrialists owning multiple manufacturing / Service units

– Successful Professionals

• Doctors / Surgeons

• Chartered Accountants / Financial Consultants

• Clearing and Forwarding Agents

• Consultants.• Architects• Interior decorators• Actors

– Successful Corporate executives• Managers earning Rs 10 lacs and

above.

• AVPs, VPs, CEOs, CFOs etc

You find HNIs amongst….

The HNI residential areas

• Most HNIs are concentrated in certain pockets of the city.

• The HNI residences are usually located in up market areas of the city.

• While prospecting for HNIs, we need to focus on these areas.

Where can I find HNIs

• Malls

• Premium restaurants

• Premium car dealers

• Premium Health clubs

• Pubs and Discotheques

• International Travel Agents

The First Approach

The first step…

• The first approach to HNIs must be through references only.

• Cold approaches must be strictly avoided.• The focus of the first approach must be to

get yourself referred.• Who can refer you?

– CAs, Doctors, Architects, Colleagues, Subordinates, Employees, etc

The power of the referrer• The referrer plays an important role in the

approaching the HNI.• Building a rapport with the referrer will go a long

way in helping you make the first approach effectively.

• The most effective first approach is when you have already been recommended to the HNI by the referrer

• Try to find details about your prospect from the referrer. This will help make the first approach effective

The first approach

• The main purpose of the first approach is to secure an appointment.

• One of the main challenges with HNI customers is to access them directly.

• Calls may be routed through the Secretary– If you have the Mobile number then this may be

avoided.

– The general procedure is to say that it is a personal call

What to say?• The purpose of the first approach is to fix an

appointment.• Introduce with your name and say you are calling from

BIRLA Sunlife.• Mention the referrer and how you know the referrer.• Use the interest / benefit hook

– The referrer can help you formulate a effective hook.– The generic hook will be to “offer financial solutions for the

customer and his family “.

• Then use alternative times close to fix the appointment.

• Handle objections with the FFF and AIR approach.

Specific Challenges during the first approach

• He asks you to send across the documents / brochures.– Highlight the need of customized solutions

based on the customer’s needs.

• He asks you to meet his CA– Highlight the need of his presence. Try to fix an

joint appointment with the CA and the customer.

The First meeting

Preparations for the first meeting

• Try to gather as much information as possible about the prospect– Gather as much information from the referrer.

• Make your self upto date with current stock market and debt market scenarios

• Revise all your basics about various investment instruments (Mutual funds, PPF,etc).

• Finally look at BSLI plans and see how you can offer them as SOLUTIONs.

On the day of the meeting• Dress in an appropriate professional attire.• Wear a tie • Shoes must be polished.• Keep a mint or a mouth freshener handy.• Check your sales kit if the following are there

– All brochures

– Fact Find sheets

– Current Investment Report of BSLI

– Application forms

– Notepad

– Laptop (with AMS) if available

• DO NOT reconfirm the appointment on phone.• Plan your travel so that you can be there for the

appointment at least 15 minutes before it is scheduled.

• If you are meeting at the office, wait in the visitors area till 5 minutes before the appointment

• If you are meeting at the prospect’s home, ensure that you reach there only five minutes before the appointment (Spend some time at a nee by eatery or café)

On the day of the meeting

Etiquette

• When asked to meet the client (you will usually be ushered in by some one else), first greet the client.

• Then offer him a firm handshake.

• Sit only when asked to do so.

• Compliment some aspect of the surrounding.

• Follow the BSLI sales process and scripts.

• Don't forget to ask for referrals

Specific Challenges during the first meeting

• Comparison with Mutual funds or stocks– Emphasize on the risk-return relation. Also stress on

the security that life insurance offers to his family.

• Customer is from the financial sector / has deep knowledge of finance– Emphasize on the benefits and not on the features.

– If you feel you don't have enough knowledge about a certain issue, tell the customer you will get back to him with clarification in the NEXT MEETING

Specific Challenges during the first meeting

• “Let me discuss with my CA”– Try to fix an joint appointment with the CA and the

customer.

• “I will call you back”– Thank him for being so gracious.– Offer him two alternate times for the next meeting– If the customer still doesn’t agree, Thank him– Ask either your AM or BM to call up the customer as if

to check out customer satisfaction.– That will be another opportunity to fix up the second

appointment.

The Second Meeting

The preparation…• Analyze the fact find sheet and decide on

the SOLUTION.

• Prepare illustrations for the solution.

• Personalize the illustrations by mentioning the clients or family member’s name. (Solution for Riddhesh’s education, Solution for Reema’s Marriage)

• Don't speculate on the premium paying capacity of the customer. Just prepare a comprehensive solution.

The second meeting

• Present the solution on the whole, not individual plans

• Use STEPPING STONES.• Handle any objections with the FFF and

AIR methods.• Close the deal• Take the cheque and fill the form.• Ask for references.

Some important tips…

• While filling the form, the part where the customer decides his fund where his investment will go, must be filled carefully after discussing with the customer.

• The documentary requirements must be made clear to the customer , preferably in writing.

The follow up…

• He follow up is the one of most important part of the HNI sales process.

• Ensure all the documentation is proper.• Arrange for medical examination in good

centers.• Explain to the customer clearly as to the

type of tests that will be done.• Any clarifications must be addressed ASAP

Post Sales Service

After the sale, What is to be done?

• After the customer has received the policy document, visit the customer and appraise him of the contents of the document.

• Remind him the you will be in touch with him regularly and keep him posted his fund value, NAV etc.

• Remind the customer that you will be available to him to answer any queries or to solve any problems that may arise with the solution.

• Seek references to help Build your business.