Getting to the Basics: Knowing your Numbers

It is important in any industry to understand the basics, which is true for insurance. Having a grasp on commonly used terminology and understanding what statistics will help you evaluate your success, will only make your agency more profitable.

Defining a lead

What is a lead?  A lead is someone who you have not yet quoted, or they haven’t agreed to let you quote them.  Depending on the marking source, a lead may have high intent or very low intent.  

High Intent and Low Intent

High intent means that a person has a higher level of interest in a quote than someone of low intent. For example, someone calling into your agency asking for a quote has extremely high intent, and your likelihood of closing that sale might be very high.  

Referrals can also yield a high closing rate; getting business from existing customers has historically always been a reliable lead source.  Agent referrals from agencies that handle other lines of business can also be very beneficial.  

Also, let’s face it: times - they are a-changin’! Social media is a valuable tool in generating leads and shouldn’t be underestimated. There are many ways to generate leads for your business, and a quick Google search can get your creative and intellectual juices flowing!

Lead-to-Quote Ratio

To ensure you are getting the best ROI for your marketing dollars, you need to be tracking your numbers.  You not only need a system to track the leads that come through your agency, but also one that tracks your closing rate.  Your “Lead-to-Quote” ratio will tell you your percentage of turning a lead into a quote.  Take your number of leads and divide by the number of quotes from that marketing source.  

You will find that your Lead-to-Quote ratio will vary across different marketing channels.  Diversification is the name of the game, and the only way you will truly know if a marketing source is effective is to track your numbers.

Setting goals for your agency is not enough.  If you never evaluate those goals and never take a serious look at your numbers, you will not have a comprehensive picture of what is happening with your business.  Therefore, having a system to help you track your numbers is downright essential. 

Remember the Fundamentals

While it may be true that times are changing, there are still some core fundamentals to success in business that are tried and true.  If you’re wondering how to convert your quotes to sales, always keep in mind that you are dealing with people, not robots.  Not just numbers on a page.  Studying classics like “How to Win Friends and Influence People” by Dale Carnegie and “Think and Grow Rich” by Napoleon Hill (to name just two) can really open your mind to discovering how to appropriately service the leads you have.

Identify what lead sources you have, service those leads using relevant industry software, track your numbers, and convert your leads into happy customers!

For more information on insurance sales, check out our podcasts at Insurance Agents Think Tank.