The consumer who seems to like what we're doing has said they want to have approximately six contacts with us before making a commitment to buy. That might be working on the computer a couple of times, talking to someone, going to a seminar, coming back and giving you a fact finder, then looking at your proposal and then making a decision to buy. Schmitt says sales results so far are hard to gauge because Principal did not have a big presence in the Nashville market before the opening of the retail center last October. Sales have been about equally divided among life insurance, mutual funds and home loans. To have the center work as planned, Schmitt says, each sales person ultimately should produce at least three sales a week.
Principal seems to be learning a lot about the elusive middle income market.
Everyone in the industry seems to be chasing baby boomers, but we find the 'Generation X' people who are very computer literate are attracted to the center. Principal knew from the its market research focus groups that the success of its retail center would depend on educating middle income buyers about financial planning products in a nonthreatening way. Their insurance typically is with their employer. An atmosphere that encourages questions Schmitt recalls one woman in a focus group, made up of consumers who were not Principal customers, before the opening of the retail center. She said she asked an advisor what an annuity is, and the person laughed at her.