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Management Tips ‘n Tools

A Dream Come True?

Live Video Chat with Clients & Prospective ClientsAtlanta 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.atlantainsurancelive.com/

How to create a Virtual Insurance Agency

1. Get a Web-Based Agency Management System that integrates with a Web-Based Comparative Rater

2. Hire Commission Only Producers

3. Buy new Pajamas & Slippers

Important Features for Virtual Agency Management

• Retrievable Application / Photo Storage• Payments, Receipts & End of the Day Report• User Messaging• Document Conversations• E-Mail Clients & Prospects Capabilities• Monitor & Track Producer Activity• Agent / Agency Level FAQ Storage

•3 Forms of Communication

•Where Do You Find Potential Superstars? You never get a

Second Chance to make a First Impression: http://youtu.be/7WIwxQjvfFI

•Should You Hire Your Friends / Relatives?

• Should You Hire Competitors’ Employees?

•Should You Hire Someone with No Sales Experience?

How to Hire a Virtual Producer

Golden Rules for Virtual Producers

• The Greatest Ability is Dependability

• Kindness is a hard thing to give away

• Gratitude is a Great Attitude

• Always give more than they expect

• To your customers – YOU are the Agency and the Agency is the Company: http://youtu.be/JZU94rLRcb8

6 R’s: Clear Directions & Setting Expectations

Finding True North...

• Where are you going?

• Why are you going there?

• How will we get there?

• Why should I follow you?

• Provides Clarity: http://youtu.be/1fuDDqU6n4o

• Aligns the Organization

• Improves Performance

• To Know Who’s on Your Team

•Failure to Communicate: The Little Red Hen

Failure to Communicate

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:

• What is expected of them

• What they can expect from you.

Ensures Accountability and Ownership

• 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.

• Allows everyone to approach their work with an ownership perspective and accept accountability for the results they achieve.

Questions that Matter

Questions That MatterThese factors are key to determine whether peopleare: engaged, not engaged, or actively disengaged

• Do I know what is expected of me at work?

• Do I have the materials and equipment that I need in order to do my work right?

• At work, do I have the opportunity to do what I do best every day?

Source: First, Break All the Rules, Marcus Buckingham

Exercise: What Do Employees Want?

What Do Employees Want?My

AnswersManagerAnswers

EmployeeAnswers

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

Source: Survey from George Mason University in Virginia

Rank these items 1-10 as you think employees ranked them… (with 1 being most important).

2 minutes

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

Questions to Consider…• Are you, as an owner, happy with the

financial results of your agency?• Do you have written goals & objectives

for all producers, including owners?• Are you positive that your producers are

profitable?• Do you have a system for monitoring

your production / commission monthly with your companies?

• How would you like to learn how to increase your agency income by 32%?

Three Ways to Increase Top Line Revenues...

Attract New Customers•Highest customer acquisition costs of any industry•8X more to attract a new customer than to retain one

Improve Retention•Average retention rate is only 84%•2% improvement is equivalent to cutting costs by over 10%•5% annual improvement can double profits in five years

Sell more to Existing Customers

The Retention Challenge...

100Customers

34%Loss

The Value of Setting Expectations

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”

Increase Closing Ratio

Calculate Each CSRs Closing Ratio

Set Realistic Goal

• Close only 1 more quote each week

• That’s 50 more per year

• $600 premium

• $90 commission per policy

• Additional $4,500 per year!

How can your CSRs improve their Closing Ratio?

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”

• $500 average premium• 20% commission = $100 per policy

• CSR selects only 1 client per hour• 40 Clients in a 40 hour work week• Cross-sell only 2 of the 40• 100 sales per year• $10,000 per year!

Cross Sell Example:

What experience have you had with Cross-

Selling?

What products lend themselves to Cross-Selling?

14 little words that can generate an extra $25,000 per year income

How will you record / track it?

Cross-Sell

Converting Leads to Sales

• 50% of leads are never called a second time• 40% of leads close eventually, with consistent

long term follow-up• 90% of leads have no activity after 30 days

• Why not turn them over to a Virtual Producer?

Increase Income per Sale

• Add – On or Ancillary products– Good for your Customers– Good for your Business

• Suggestive Selling• Bundled Offering

• Calculate Average Income per policy• Up sell when explaining coverages• Automatically include coverages

Increase Income per SaleProduct Premium Commission % Auto $600 $75 - $90 12.5% - 15%

RoadsideAssistance $48

AD&D $20

Total $668 $_______ ____%

SuggestiveSell at leastOne Add-OnPer 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”

How has your business benefited from selling Add-on Products ?

How do you motivate your CSRs to sell them?

Increase Income per Sale

Get More Referrals

• Referred customers have the lowest acquisition costs

• Referred customers average 92% retention over the next 2-3 years

• Other customers average 67% retention

27%Increase

Get More Referrals

When do you ask for referral?Set Realistic GoalsAsk for one per day (250 per year!)

– Referral Closing Ratio typically 1 in 6– + 42 customers at $100 commission– That’s an additional $4,200!

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 ReferralEach day

Do you require your CSRs to ask for referrals?

How do you motivate your customers to provide referrals?

Get More Referrals

Add it Up

1 more close each week = $6,000

2 more Cross-sells each week = $10,000

1 more referral each week = $4,200

= $20,000+ more per year per CSR

Keep them 4 years = $80,000

SuggestiveSell One Add-On

Per policy

Close one more quote per week

Cross-Sell one clientPer Hour

Ask for oneReferral

Every Day

How can you make this happen at your agency?

How can you track your results?

The Value of Clear Directions & Setting Expectations

Evaluate, Buy & Sell Tips

• Rule of Thumb Evaluation• 99 point Self – Evaluation Checklist• Carrier Approval• Employee Non-Compete / Confidentiality / Non-Solicitation• Class of Business Written – Nonstandard Auto Only or Full Lines• Niche Markets• Leases: Transferable or Unbreakable• Licenses: Current or Non-existent?• Agency Operation? Manual or Automated?

Automate or Evaporate

• ACORD Forms• Document & Image Storage• Letters• Client Follow-Up Reminders• Client Notes• Payments, Receipts & End of the Day Report• E-Mail Capabilities• Customizable Lines of Business• Commissions

Put me in, Coach! Let’s play ball!

“You got to be careful if you don't know where you're going, because you might not get there.”

Yogi Berra