Captive P&C Agents: Simple Question. What is Your Close Ratio?

[Bertolinoins]

Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

I agree that major rate increases are a major challenge, those guys are scrambling and playing defense without a huge focus on new business. There is no value position that will buy you more than a 10-15% rate cushion.

Progressive has a extremely high retention rate for a company that has high rates... But their high rates never change. The customer gets used to paying $$$ per month and the rates don't change so the renewal is a non event.

 

[djs]

Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

I agree that major rate increases are a major challenge, those guys are scrambling and playing defense without a huge focus on new business. There is no value position that will buy you more than a 10-15% rate cushion.

Progressive has a extremely high retention rate for a company that has high rates... But their high rates never change. The customer gets used to paying $$$ per month and the rates don't change so the renewal is a non event.

Well said. The 10-15% is a solid number in my experience. It's also roughly the amount of savings someone needs to switch to a different carrier.

To me, selling value has very tight limits of what it is worth, when other things are equal. For instance, I'm sure its hard for a Farmers agent to sell a higher priced policy than the existing State Farm policy, since in rough terms, they are equal. Even if its 10% less, the odds of getting the business are slim.

Then the second part of your post is right on the money. People shopping their insurance requires a catalyst to make them think about it. This is usually either a life change (marriage, divorce, new teenage driver, etc) or a significant driving event, like tickets, accidents, DUI's, etc.

In todays economy, people are trying to stretch dollars a bit more than previously, so I actually disagree with Bob's view that creating value overcomes price. I agree, but with limits as mentioned above. Just a couple of years ago, I would have agreed a lot more with this opinion, but nowadays, the market has shifted quite a bit, at least from what I've seen.

I've been working with a lot of existing clients this year who have been stretching their budgets for to long and need to reduce their payments. We end up with long talks about reducing coverages, lower coverage is better than no coverage, but need to revisit every 3-6 months type of conversations. I used to almost never have those talks, but now, its a normal part of my day.

Dan

 

[Sales71]

Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

Well said. The 10-15% is a solid number in my experience. It's also roughly the amount of savings someone needs to switch to a different carrier.

To me, selling value has very tight limits of what it is worth, when other things are equal. For instance, I'm sure its hard for a Farmers agent to sell a higher priced policy than the existing State Farm policy, since in rough terms, they are equal. Even if its 10% less, the odds of getting the business are slim.

Then the second part of your post is right on the money. People shopping their insurance requires a catalyst to make them think about it. This is usually either a life change (marriage, divorce, new teenage driver, etc) or a significant driving event, like tickets, accidents, DUI's, etc.

In todays economy, people are trying to stretch dollars a bit more than previously, so I actually disagree with Bob's view that creating value overcomes price. I agree, but with limits as mentioned above. Just a couple of years ago, I would have agreed a lot more with this opinion, but nowadays, the market has shifted quite a bit, at least from what I've seen.

I've been working with a lot of existing clients this year who have been stretching their budgets for to long and need to reduce their payments. We end up with long talks about reducing coverages, lower coverage is better than no coverage, but need to revisit every 3-6 months type of conversations. I used to almost never have those talks, but now, its a normal part of my day.

Dan

Bob is all talk that is why he is no longer an agent. He sells net leads. If he was still in the Biz he would have not said what he said...easy for Bob to say sitting in his ivory tower with HomeTownLeads on the front sign.. Sorry Bob had to do it ... Bob we are in 2011 not 2005 when you were an agent..things have changed

 

[Guest]

Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

As an IA now...what was it with farmers?



at ST8PHRM if a customer called in for a quote through a referral or a direct piece of mail it may be 1 in 7

internet lead 1 in 20

When I quit, is was around 1 out of 20 (where is the throw up emicon?)

 

[Bob Klee]

Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

Bob is all talk that is why he is no longer an agent. He sells net leads. If he was still in the Biz he would have not said what he said...easy for Bob to say sitting in his ivory tower with HomeTownLeads on the front sign.. Sorry Bob had to do it ... Bob we are in 2011 not 2005 when you were an agent..things have changed

Thanks for the complement & I wrote my last policies in October 2006.

I can flat guarantee you that my methods still work. I talk to agents that use them today. Everyone has different methods that work for them. I've always been the type to try NOT to make Auto insurance a commodity, so my method of selling is on the value I add to the equation. I educate the client & let them make the choices.

My sales mgr is a guy I've known as I trained his brother back in '03-'05. He sold his $4 million BoB back in March. [took him less than 5 years] I know he says/does the same things I talk about here....plus you have to remember. I have the luxury of talking to many agents each week & continue to learn.

I like to find out what works & what doesn't. Much of course is based on the skill of the agent. Is he a student of the business. Does he know much about his competitors? One must be well armed to be successful & to me: the guy with the most information wins!

 

[dizzy]

Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

Wow this is great sounding board. I agree that convincing your agents that 30% is acceptable, is hard sell.

If you are loosing quality agents, that have a track history with your company, on a frequent basis, this might be a sign of bigger things. Closing ratios can be misleading if they quote 2 and place one it is a 50% ratio. That is still not enough take care of overhead expenses. Seasoned agents may feel there might be a change in the company's direction. Has the captive company reduced or cut commsions ? Is the company competing with the agents directly ? Are thoose same agent who have left been been asked to leave or have they left for greener opportunites? Sounds like the turn over has been fairly large if it is a mass exodus it must be more than rates and close ratios.
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Wow this is great sounding board. I agree that convincing your agents that 30% is acceptable, is hard sell.

If you are loosing quality agents, that have a track history with your company, on a frequent basis, this might be a sign of bigger things. Closing ratios can be misleading if they quote 2 and place one it is a 50% ratio. That is still not enough take care of overhead expenses. Seasoned agents may feel there might be a change in the company's direction. Has the captive company reduced or cut commsions ? Is the company competing with the agents directly ? Are thoose same agent who have left been been asked to leave or have they left for greener opportunites? Sounds like the turn over has been fairly large if it is a mass exodus it must be more than rates and close ratios.

 

[Guest]

Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

I must be drunk, cause I swear I read this last post twice!

 

[Bob Klee]

Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

Hallucination maybe?

Too early to be drunk

 

[djs]

Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

Bob - RBA in in Arizona. They have slightly different customs there. They view it as socially acceptable to start drinking after 2, or whenever the thermometer goes above 100 degrees.

It tends to hit 100 about 8 a.m.

Dan

 

[Guest]

Re: Captive P&C Agents: Simple Question. What is Your Close Ratio

Bob - RBA in in Arizona. They have slightly different customs there. They view it as socially acceptable to start drinking after 2, or whenever the thermometer goes above 100 degrees.

It tends to hit 100 about 8 a.m.

Dan

Dan is soooo right,

and it is 5 o clock somewhere!