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Tuesday, February 21, 2006
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Issue 31
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VOLUME 2
ISSUE 31
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Tip Of The Month
Don't Gamble With Your Agency ...
Know where you are going, and how you are getting there.
One of the most common requests we get from agencies is for ways to improve accountability in order to measure agency success.
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An important maxim for agency growth is - "If you can't measure it, you can't change it". This is especially true as your staff moves from a "Processing" to a "Protection" mentality.
Here is a simple formula to provide daily goals for pro-active contacts with clients to encourage Account Rounding and Annual Reviews.
Start with your Personal Lines 2006 growth goals for new business from existing clients, let's say the goal is $100,000 in premium. Next, determine what an average policy premium might be. For simplicity, let's say $1,000 premium per policy. This means that the agency needs to write 100 new policies in 2006, or about 9 new policies per month.
Next, determine how many proposals need to be presented in order to write 1 new policy, let's say it averages 5. If you determine that it takes 10 phone calls to your existing clients to present 1 proposal, then this is a goal that can be measured.
Based on this example, for every 5 phone calls that are made, 1 proposal is presented and for every 5 proposals, the agency makes 1 sale. This means it takes 25 (5 X 5) proactive phone calls to write a new policy. In order to write 9 new policies in a month, then 225 calls need to be made.
If you had 3 staff making calls, and you need to make 225 calls per month, that is 75 calls per month, per staff person or an average of about 19 calls per week or roughly 4 calls per day!
Whether the numbers above actually fit your agency is not the point. This simply give you a way to develop a “trackable” daily or weekly goal that should help you accomplish your annual objectives. |
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