There is a lot to be said about “new” marketing methods that rely on inbound tactics versus the “old” methods of outbound marketing - especially when it comes to tracking metrics. Fortunately, if you’re using an agency management system or marketing automation system you should be able to easily track the success (or failure) of all of your sales and marketing efforts. Knowing what is working and what isn't can help you spend money and use resources where it makes sense for the growth of your agency.
Improving your sales process comes down to the numbers. A lot of sales reps stick with what they know and have always been doing without looking at the data. This is a mistake that results in stagnant growth (if any at all). In order to always be closing, you need to always be improving - and that's only possible by knowing what works well and what doesn't.
Below are some basic marketing and sales metrics that all insurance agencies should be tracking.
Marketing metrics for insurance agencies:
Before you can sell any policies and generate revenue you need to bring in a consistent flow of new leads. This is the #1 function of marketing. No matter where you’re getting your new leads (inbound or outbound) you should be able to easily track how many new leads are coming in. In your agency management system, you can use a “Lead Date” field to keep a list of all new leads. This will allow you track on a per month basis and start to see trends. Using a saved search that's automatically updated in real-time will allow you to keep a running list of all incoming leads.
Putting together a marketing campaign or piece of content can be very time consuming (which is why it gets put off so often). When you run a campaign and/or create a piece of inbound content it's important to understand how well it's performing. For example, if you create and promote an ebook you're going to want to know how many leads it generated and how many of those leads converted into paying customers. Using an online lead form to collect leads will allow you to track these conversions in your agency management system. With some simple tracking and reporting you will know what content and campaigns are bringing you ROI.
Tracking your lead sources is probably the most essential metric to track in marketing. Knowing where your leads come from gives you insight about what is working and what isn't. This helps drive business decisions that ultimately affect revenue. A good lead source isn't necessarily the one that produces the most leads. Leads are worthless if they aren't producing revenue either directly or indirectly. The graph below (from an AgencyBloc dashboard) shows which lead sources are producing actual policies - not just contacts in your database.
Sales metrics for insurance agencies:
Lead Conversion Rate
Lead conversion rate helps you understand the quality of your lead sources and/or the effectiveness of your sales process. If you find that your marketing team is delivering qualified leads then you know that your sales process needs some tweaking. The most basic way to find your lead conversion rate is to run a report of all of your leads in a specified time period and see how many of those leads are now listed as clients. A basic equation of # of clients divided by the total # of leads will give you your conversion rate. Once you begin tracking this you'll be able to watch for changes and make adjustments as necessary.
Top Commissions Received by Agent
The bottom line for insurance sales agents is commissions. You could have a high conversion rate but if those conversions aren't adding up to a significant amount of commissions then it might not be too valuable to the agent or the agency. Of course, the easier it is to see this data the better. AgencyBloc puts this exact metric right on your dashboard for easy access. Don’t just process commissions - learn from them.
In-Force Policy Saturation
This metric is a great indicator of how well your agency is cross-selling. It's a well-known statistic that it's about 50% easier to sell to an existing client than to a brand new prospect. The combination of this metric (displayed on a dashboard graph) and a report we call the "Policy Cross Sell Report" in AgencyBloc leaves no excuses to ever have low policy saturation. Running campaigns against this report which include automated reminders and emails makes it simple.
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