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Accu agency management tips


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Accu agency management tips

  1. 1. Welcome Management Tips ‘n Tools
  2. 2. A Dream Come True? Live Video Chat with Clients & Prospective Clients Atlanta Insurance Live ! Atlanta Auto, Home, Life, and Business ... Chris Jordan is the host of Atlanta Insurance Live ! He is changing it all by using a web cam to provide auto, home, life, and business insurance. www. /
  3. 3. How to create a Virtual Insurance Agency <ul><li>Get a Web-Based Agency Management System that integrates with a Web-Based Comparative Rater </li></ul><ul><li>Hire Commission Only Producers </li></ul><ul><li>Buy new Pajamas & Slippers </li></ul>
  4. 4. Important Features for Virtual Agency Management <ul><li>Retrievable Application / Photo Storage </li></ul><ul><li>Payments, Receipts & End of the Day Report </li></ul><ul><li>User Messaging </li></ul><ul><li>Document Conversations </li></ul><ul><li>E-Mail Clients & Prospects Capabilities </li></ul><ul><li>Monitor & Track Producer Activity </li></ul><ul><li>Agent / Agency Level FAQ Storage </li></ul>
  5. 5. <ul><li>3 Forms of Communication </li></ul><ul><li>Where Do You Find Potential Superstars? You never get a Second Chance to make a First Impression: </li></ul><ul><li>Should You Hire Your Friends / Relatives? </li></ul><ul><li>Should You Hire Competitors’ Employees? </li></ul><ul><li>Should You Hire Someone with No Sales Experience? </li></ul>How to Hire a Virtual Producer
  6. 6. Golden Rules for Virtual Producers <ul><li>The Greatest Ability is Dependability </li></ul><ul><li>Kindness is a hard thing to give away </li></ul><ul><li>Gratitude is a Great Attitude </li></ul><ul><li>Always give more than they expect </li></ul><ul><li>To your customers – YOU are the Agency and the Agency is the Company : </li></ul>
  7. 7. 6 R’s: Clear Directions & Setting Expectations <ul><li>Finding True North... </li></ul><ul><li>Where are you going? </li></ul><ul><li>Why are you going there? </li></ul><ul><li>How will we get there? </li></ul><ul><li>Why should I follow you ? </li></ul>
  8. 8. <ul><li>Provides Clarity: </li></ul><ul><li>Aligns the Organization </li></ul><ul><li>Improves Performance </li></ul><ul><li>To Know Who’s on Your Team </li></ul><ul><li>Failure to Communicate: The Little Red Hen </li></ul>Failure to Communicate
  9. 9. Setting Direction & Expectations Most people want to do the right work and do it well. However, good intentions or motivation are not enough… Your employees must have a clear understanding of: <ul><li>What is expected of them </li></ul><ul><li>What they can expect from you. </li></ul>
  10. 10. Ensures Accountability and Ownership <ul><li>Jointly setting expectations as far as what needs to be done and how it should be done establishes clarity in terms of expected results and performance measurements. </li></ul><ul><li>Allows everyone to approach their work with an ownership perspective and accept accountability for the results they achieve. </li></ul>
  11. 11. Questions that Matter <ul><li>Questions That Matter </li></ul><ul><li>These factors are key to determine whether people </li></ul><ul><li>are: engaged, not engaged, or actively disengaged </li></ul><ul><li>Do I know what is expected of me at work? </li></ul><ul><li>Do I have the materials and equipment that I need in order to do my work right? </li></ul><ul><li>At work, do I have the opportunity to do what I do best every day? </li></ul>Source: First, Break All the Rules, Marcus Buckingham
  12. 12. Exercise: What Do Employees Want? <ul><li>Rank these items 1-10 as you think employees ranked them … (with 1 being most important). </li></ul>Source: Survey from George Mason University in Virginia 2 minutes What Do Employees Want? My Answers Manager Answers Employee Answers Loyalty to employer Job security Full appreciation of work done Good pay Good work conditions Interesting work Promotion and growth Feeling of being in on things Tactful discipline Help with personal problems
  13. 13. What’s the Impact of this Disconnect? 1. Good pay 2. Job security 3. Promotion and growth 4. Good work conditions 5. Interesting work 6. Tactful discipline 7. Loyalty to employer 8. Full appreciation of work done 9. Help with personal problems 10. Feeling of being in on things Manager’s View Employee’s View 1. Interesting work 2. Full appreciation of work done 3. Feeling of being in on things 4. Job security 5. Good pay 6. Promotion and growth 7. Good work conditions 8. Loyalty to employer 9. Help with personal problems 10. Tactful discipline
  14. 14. Questions to Consider… <ul><li>Are you, as an owner, happy with the financial results of your agency? </li></ul><ul><li>Do you have written goals & objectives for all producers, including owners? </li></ul><ul><li>Are you positive that your producers are profitable? </li></ul><ul><li>Do you have a system for monitoring your production / commission monthly with your companies? </li></ul><ul><li>How would you like to learn how to increase your agency income by 32%? </li></ul>
  15. 15. Three Ways to Increase Top Line Revenues... <ul><li>Attract New Customers </li></ul><ul><li>Highest customer acquisition costs of any industry </li></ul><ul><li>8X more to attract a new customer than to retain one </li></ul><ul><li>Improve Retention </li></ul><ul><li>Average retention rate is only 84% </li></ul><ul><li>2% improvement is equivalent to cutting costs by over 10% </li></ul><ul><li>5% annual improvement can double profits in five years </li></ul><ul><li>Sell more to Existing Customers </li></ul>
  16. 16. The Retention Challenge... 100 Customers 34% Loss
  17. 17. The Value of Setting Expectations
  18. 18. Increase Closing Ratio How do you calculate your Closing Ratio? Closing Ratio = # Sales / # Quotes How many quotes do your CSRs give monthly? How many quotes are converted into policies? e.g. 35 policies sold / 150 quotes = 23% 45 policies sold / 150 quotes = 30% Action Item : Set realistic Closing goals with each of your CSRs (and yourself), and measure results. e.g. “ Close one more quote each week ”
  19. 19. Increase Closing Ratio <ul><li>Calculate Each CSRs Closing Ratio </li></ul><ul><li>Set Realistic Goal </li></ul><ul><li>Close only 1 more quote each week </li></ul><ul><li>That’s 50 more per year </li></ul><ul><li>$600 premium </li></ul><ul><li>$90 commission per policy </li></ul><ul><li>Additional $ 4,500 per year! </li></ul>How can your CSRs improve their Closing Ratio?
  20. 20. Cross-Sell “ How many times does your phone ring each week from existing clients?” “ Why do they call?” Your best Customers are the Customers you already have… Cross-Selling can turn Service call Expense into Sales Call Revenue Action Item : Set realistic Cross-Selling goals with each of your CSRs (and yourself), and measure results. e.g. “ Cross Sell one client every hour ”
  21. 21. <ul><li>$500 average premium </li></ul><ul><li>20% commission = $100 per policy </li></ul><ul><li>CSR selects only 1 client per hour </li></ul><ul><li>40 Clients in a 40 hour work week </li></ul><ul><li>Cross-sell only 2 of the 40 </li></ul><ul><li>100 sales per year </li></ul><ul><li>$10,000 per year! </li></ul>Cross Sell Example: What experience have you had with Cross-Selling? What products lend themselves to Cross-Selling?
  22. 22. <ul><li>14 little words that can generate an extra $25,000 per year income </li></ul>Cross-Sell How will you record / track it?
  23. 23. Converting Leads to Sales <ul><li>50% of leads are never called a second time </li></ul><ul><li>40% of leads close eventually, with consistent long term follow-up </li></ul><ul><li>90% of leads have no activity after 30 days </li></ul><ul><li>Why not turn them over to a Virtual Producer? </li></ul>
  24. 24. Increase Income per Sale <ul><li>Add – On or Ancillary products </li></ul><ul><ul><li>Good for your Customers </li></ul></ul><ul><ul><li>Good for your Business </li></ul></ul><ul><li>Suggestive Selling </li></ul><ul><li>Bundled Offering </li></ul><ul><li>Calculate Average Income per policy </li></ul><ul><li>Up sell when explaining coverages </li></ul><ul><li>Automatically include coverages </li></ul>
  25. 25. Increase Income per Sale <ul><li>Product Premium Commission % </li></ul><ul><li>Auto $600 $75 - $90 12.5% - 15% </li></ul><ul><li>Roadside </li></ul><ul><li>Assistance $48 </li></ul><ul><li>AD&D $20 </li></ul><ul><li>Total $668 $_______ ____% </li></ul>Suggestive Sell at least One Add-On Per policy Action Item : Set realistic Suggestive-Selling goals with each of your CSRs (and yourself), and measure results. e.g. “ Suggestive Sell at least one product per policy ”
  26. 26. <ul><li>How has your business benefited from selling Add-on Products ? </li></ul>Increase Income per Sale How do you motivate your CSRs to sell them?
  27. 27. Get More Referrals <ul><li>Referred customers have the lowest acquisition costs </li></ul><ul><li>Referred customers average 92% retention over the next 2-3 years </li></ul><ul><li>Other customers average 67% retention </li></ul>27% Increase
  28. 28. Get More Referrals <ul><li>When do you ask for referral? </li></ul><ul><li>Set Realistic Goals </li></ul><ul><li>Ask for one per day (250 per year!) </li></ul><ul><ul><li>Referral Closing Ratio typically 1 in 6 </li></ul></ul><ul><ul><li>+ 42 customers at $100 commission </li></ul></ul><ul><ul><li>That’s an additional $4,200 ! </li></ul></ul>Action Item : Set realistic Referral goals with each of your CSRs (and yourself), and measure results. e.g. “ Ask for one referral per day ” Ask for One Referral Each day
  29. 29. <ul><li>Do you require your CSRs to ask for referrals? </li></ul>Get More Referrals How do you motivate your customers to provide referrals?
  30. 30. Add it Up <ul><li>1 more close each week = $6,000 </li></ul><ul><li>2 more Cross-sells each week = $10,000 </li></ul><ul><li>1 more referral each week = $4,200 </li></ul><ul><li>= $20,000+ more per year per CSR </li></ul><ul><li>Keep them 4 years = $80,000 </li></ul>Suggestive Sell One Add-On Per policy Close one more quote per week Cross-Sell one client Per Hour Ask for one Referral Every Day
  31. 31. <ul><li>How can you make this happen at your agency? </li></ul>The Value of Clear Directions & Setting Expectations How can you track your results?
  32. 32. Evaluate, Buy & Sell Tips <ul><li>Rule of Thumb Evaluation </li></ul><ul><li>99 point Self – Evaluation Checklist </li></ul><ul><li>Carrier Approval </li></ul><ul><li>Employee Non-Compete / Confidentiality / Non-Solicitation </li></ul><ul><li>Class of Business Written – Nonstandard Auto Only or Full Lines </li></ul><ul><li>Niche Markets </li></ul><ul><li>Leases: Transferable or Unbreakable </li></ul><ul><li>Licenses: Current or Non-existent? </li></ul><ul><li>Agency Operation? Manual or Automated? </li></ul>
  33. 33. Automate or Evaporate <ul><li>ACORD Forms </li></ul><ul><li>Document & Image Storage </li></ul><ul><li>Letters </li></ul><ul><li>Client Follow-Up Reminders </li></ul><ul><li>Client Notes </li></ul><ul><li>Payments, Receipts & End of the Day Report </li></ul><ul><li>E-Mail Capabilities </li></ul><ul><li>Customizable Lines of Business </li></ul><ul><li>Commissions </li></ul>
  34. 34. Put me in, Coach! Let’s play ball! <ul><li> “ You got to be careful if you don't know where you're going, because you might not get there.” Yogi Berra </li></ul>