2 Major Factors Insurance Agents Need To Know To Tell Whether Their Growth Is Sustainable
Success can sometimes be a bit of a mixed bag. On the one hand, who doesn’t like the extra revenue, the larger profits, and the ability to pay your bills without worrying about where the next meal is coming from? On the other hand, it’s really easy to get trapped in a web of success without seeing the flesh-eating spider creeping up on you. In other words, getting too comfortable can blind you to problems on the horizon. For instance, say you run your own agency, and you have one top producer and several bad to mediocre agents that you’re keeping on because you’re too nice. You may be a successful agency based on what one salesperson is doing, but what happens when he quits for another company, leaves the profession altogether, or gets hit by a bus?
Answer: you can go from living the good life to destitute almost overnight. Fortunately, there are factors you can use to tell whether your growth is sustainable, and once you learn what they are, you can take the necessary action to plan for the unexpected. Let’s look at each one a little closer.
1. How many policies you have per client.
Increased revenue is good, but it’s not the only — or even the largest factor — you should be looking at when it comes to sustained growth. No, instead you should be looking at the number of policies that you have sold per client. Here’s something you probably already know. The more policies that an individual client buys — life, home, auto, etc. — the less likelihood they will ever go shopping for cheaper insurance. And when they do go shopping for cheaper insurance, nine times out of 10 they’re not really looking for cheaper insurance, even if they think they are. What they’re really looking for is the best value. If you fail to deliver on value, then you’re probably going to lose them inside of three years. But by selling more than one policy, you can qualify your clients for more and more discounts. By offering quality customer service on top of that and making them feel taken care of whenever they need you, you’ll have a customer for life. Customers for life don’t have to be worried about; in fact, they usually bring you more business.
Moral of the story: focus less on jamming your marketing funnel full and more on maximizing the revenue out of each customer that you currently have. That’s not to say you shouldn’t seek new clients, of course; but you also don’t need to think the work is over the minute someone says, “Yes.”
Retention is important both on the customer side and the team-building side. You need your customers to stick around and refer you to people, who trust them. We talked at length about that in the above example, because, yes, selling multiple policies per client is about the best retention strategy that you can find. But employee or team-building retention is equally important.
A team that sticks together buys in to the vision of your company. They work well together, understand vital processes, and offer better customer service. They also save you from the pain of constantly having to find new candidates to fill positions, and they help your business move forward instead of stagnate.
As lists go, this may not have been a very long one, but we cannot emphasize the importance of these two factors enough. If you really want your business to keep growing and sustain its successes, you have to look beyond overall revenue and make sure the factors that power that are in place.