MARKETING their client referrals are closing around 70 %, while other agencies know they close client referrals at 35 %. Digging further , those with the higher close ratios are only considering true client referrals to be those where the person referred is calling for a quote . Agencies with the lower close ratio are accepting any name and phone number given by a client as a referral , but this means that the prospect may or may not be ready to look into insurance at the time you call , and the agency is spending resources to continue to contact and follow up on each lead . Both methods can work , and several agents say that they want to encourage giving any referral . But if you are tracking everything , at least you ’ ll know which ones are most effective .
Item 4 : Monthly close ratio by producer This is an excellent training tool . If you know your agency closes referrals at 55 % but that your three producers are closing referrals at close ratios of 70 %, 50 %, and 35 %, then you ’ ll know where you should focus your sales training internally . Sounds easy , but you can ’ t do this if you don ’ t track close ratios ! things you should do is a big cross-sell effort throughout your book . Cross-selling boosts both new business and retention , so if your average policies per client are 1.6 or less , you should focus your marketing efforts here first .
What is the high-end ceiling for average policies per client ? Very few agencies average three or more policies per personal lines client . It is challenging to move your book one-tenth of a point in this category . But if you track it monthly and see growth over three months of 1.72 , 1.73 , and 1.74 , you know you ’ re making solid progress on cross-selling . If not , you may want to do some cross-selling mailings with phone call follow-ups . Or it may show a need for you to do more internal sales training on cross-selling to protect your clients properly .
AVERAGE REVENUE PER CLIENT
Item 5 : Total premium This needs to be done for all personal lines in the agency , not just by the carrier , so compile the totals and read on .
Item 6 : Total policies Also easy to track by totaling all of your policies by carrier into one agency number .
Item 7 : Total number of clients This equates to total households . Pull the total number of addresses from your agency management system to get this tally .
Item 8 : Average number of policies per client Divide total policies into the total number of clients to get this number . This is one of the most useful statistics you have to tell you how your team is cross-selling your book . A rough average of the number of policies per client to use is 1.6 . If you ’ re averaging 1.4 , you know that one of the first
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