Captive P&C Agents: Simple Question. What is Your Close Ratio?
- Thread starter vegasjones
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Re: Captive P&C Agents: Simple Question. What is Your Close Ratio
Only if the client wont drink with you!
We used to have a guy come in at 5:00 every month, to pay his bill, he would walk back into our kitchen grab us some brews and spend an hour or 2 BSing with us....
Who says I dont treat my clients right?
Only if the client wont drink with you!
We used to have a guy come in at 5:00 every month, to pay his bill, he would walk back into our kitchen grab us some brews and spend an hour or 2 BSing with us....
Who says I dont treat my clients right?
austin.mike28
New Member
- 4
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio
No wonder I'm taking so much business from Captives
As an Indy agency our close ratios on personal lines HO/Auto/etc are more than double your 31%. Price does have a little to do with it, but it's not everything, hell it's not even the most important thing. If you take a step back in the begining of sales process and gain a pre-close for the proper coverage, then price becomes pretty much a non-issue at that point.
All most everyone we get from a captive or little lizard company is not properly insured or can be improved upon. I know which carriers are good for each type of client and am not trying to fit a square peg into a round hole though.
If you view yourself as only a commodity salesman, then all you have is price. Change your view on what you do and you'll change your close ratio.
It takes too much time/enegry/money to quote the whole world if you're not going to close them.
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No wonder I'm taking so much business from Captives
As an Indy agency our close ratios on personal lines HO/Auto/etc are more than double your 31%. Price does have a little to do with it, but it's not everything, hell it's not even the most important thing. If you take a step back in the begining of sales process and gain a pre-close for the proper coverage, then price becomes pretty much a non-issue at that point.
All most everyone we get from a captive or little lizard company is not properly insured or can be improved upon. I know which carriers are good for each type of client and am not trying to fit a square peg into a round hole though.
If you view yourself as only a commodity salesman, then all you have is price. Change your view on what you do and you'll change your close ratio.
It takes too much time/enegry/money to quote the whole world if you're not going to close them.
No wonder I'm taking so much business from Captives
As an Indy agency our close ratios on personal lines HO/Auto/etc are more than double your 31%. Price does have a little to do with it, but it's not everything, hell it's not even the most important thing. If you take a step back in the begining of sales process and gain a pre-close for the proper coverage, then price becomes pretty much a non-issue at that point.
All most everyone we get from a captive or little lizard company is not properly insured or can be improved upon. I know which carriers are good for each type of client and am not trying to fit a square peg into a round hole though.
If you view yourself as only a commodity salesman, then all you have is price. Change your view on what you do and you'll change your close ratio.
It takes too much time/enegry/money to quote the whole world if you're not going to close them.
- - - - - - - - - - - - - - - - - -
No wonder I'm taking so much business from Captives
As an Indy agency our close ratios on personal lines HO/Auto/etc are more than double your 31%. Price does have a little to do with it, but it's not everything, hell it's not even the most important thing. If you take a step back in the begining of sales process and gain a pre-close for the proper coverage, then price becomes pretty much a non-issue at that point.
All most everyone we get from a captive or little lizard company is not properly insured or can be improved upon. I know which carriers are good for each type of client and am not trying to fit a square peg into a round hole though.
If you view yourself as only a commodity salesman, then all you have is price. Change your view on what you do and you'll change your close ratio.
It takes too much time/enegry/money to quote the whole world if you're not going to close them.
Last edited:
- 1,076
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio
How much new business did you write in the past year with that approach?
I am not saying that price is the only thing that matters but there are very few clients that only care about coverage and service or are even willing to dig into that conversation unless they know it is going to be worth their while. Unless you are based in a very high end area and are networked into the folks that have not been affected by the current recession, I don't think that is a viable way to write a significant amount of business. I also question anybody who claims to close more than 60%... it is like a guy that is a skier who never falls... which only tells me he doesn't push through his comfort zone. If you wrote over $600K in personal lines premium doing it your way then I would eat my words and ask for your secrets.
No wonder I'm taking so much business from Captives
As an Indy agency our close ratios on personal lines HO/Auto/etc are more than double your 31%. Price does have a little to do with it, but it's not everything, hell it's not even the most important thing. If you take a step back in the begining of sales process and gain a pre-close for the proper coverage, then price becomes pretty much a non-issue at that point.
All most everyone we get from a captive or little lizard company is not properly insured or can be improved upon. I know which carriers are good for each type of client and am not trying to fit a square peg into a round hole though.
If you view yourself as only a commodity salesman, then all you have is price. Change your view on what you do and you'll change your close ratio.
It takes too much time/enegry/money to quote the whole world if you're not going to close them.
How much new business did you write in the past year with that approach?
I am not saying that price is the only thing that matters but there are very few clients that only care about coverage and service or are even willing to dig into that conversation unless they know it is going to be worth their while. Unless you are based in a very high end area and are networked into the folks that have not been affected by the current recession, I don't think that is a viable way to write a significant amount of business. I also question anybody who claims to close more than 60%... it is like a guy that is a skier who never falls... which only tells me he doesn't push through his comfort zone. If you wrote over $600K in personal lines premium doing it your way then I would eat my words and ask for your secrets.
G
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Re: Captive P&C Agents: Simple Question. What is Your Close Ratio
it was so important on your first post, that you had to post it twice?
it was so important on your first post, that you had to post it twice?
austin.mike28
New Member
- 4
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio
We're probably marketing to completly different people. I'm not marketing, nor do I want the internet lead person who's only goal in life is to have everything as cheap as he can. He can keep his state minimum limits. If you're entire book is built around price though your rentention ratio will be really low...why go through the work to close the same customer twice if his premium goes up and he shops you again.
I don't think you give the clients enough credit if you think they don't care about coverages and service. Most people, I think, want proper coverage..expect great service, and will pay a fair price for it.
It's like your Medical Dr, CPA firm, attorney or Financial Advisor. Those guys aren't "commidity", there are different qualities of Dr's, CPA's, etc. I'm sure I could find a cheaper Dr, and I know I could find a cheaper CPA but I want someone that knows what they are talking about. It's the same in our business too.
We're probably marketing to completly different people. I'm not marketing, nor do I want the internet lead person who's only goal in life is to have everything as cheap as he can. He can keep his state minimum limits. If you're entire book is built around price though your rentention ratio will be really low...why go through the work to close the same customer twice if his premium goes up and he shops you again.
I don't think you give the clients enough credit if you think they don't care about coverages and service. Most people, I think, want proper coverage..expect great service, and will pay a fair price for it.
It's like your Medical Dr, CPA firm, attorney or Financial Advisor. Those guys aren't "commidity", there are different qualities of Dr's, CPA's, etc. I'm sure I could find a cheaper Dr, and I know I could find a cheaper CPA but I want someone that knows what they are talking about. It's the same in our business too.
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio
You probably are not doing enough quoting if you are at over a 62% close ratio on your quotes. Don't care if you are captive or independent.
Also, on price, my experience is most people will let you get by with about 10% higher premium, if they see value in it. Over 10% higher than the next guy, the value trade-off diminishes pretty rapidly. Price should never be the only factor, but it will be in almost every ones top 3.
Dan
No wonder I'm taking so much business from Captives
As an Indy agency our close ratios on personal lines HO/Auto/etc are more than double your 31%.
You probably are not doing enough quoting if you are at over a 62% close ratio on your quotes. Don't care if you are captive or independent.
Also, on price, my experience is most people will let you get by with about 10% higher premium, if they see value in it. Over 10% higher than the next guy, the value trade-off diminishes pretty rapidly. Price should never be the only factor, but it will be in almost every ones top 3.
Dan
- 1,581
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio
I'm captive and my closing ratio is 8.8%.....however....we quote over 5,000 people a year.
It really depends WHAT your quoting.
referral business - 95% (referrals from mortgage companies or realtor's raise that number as client referrals tend to be slightly less.)
in house telemarketed leads - 25% (over time)
telemarketing lead companies - 10% (junk, recycled leads)
internet leads (junk) -- 15% (habitual shoppers)
direct mail - who cares
For captive agents who are quoting MACHINES, their close ratio will drop. My closing ratio is crap compared to the old goof up the street closing 90% of 3 quotes a month....
I'm captive and my closing ratio is 8.8%.....however....we quote over 5,000 people a year.
It really depends WHAT your quoting.
referral business - 95% (referrals from mortgage companies or realtor's raise that number as client referrals tend to be slightly less.)
in house telemarketed leads - 25% (over time)
telemarketing lead companies - 10% (junk, recycled leads)
internet leads (junk) -- 15% (habitual shoppers)
direct mail - who cares
For captive agents who are quoting MACHINES, their close ratio will drop. My closing ratio is crap compared to the old goof up the street closing 90% of 3 quotes a month....
austin.mike28
New Member
- 4
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio
Well I'm not very smart and computers aren't my "thing"! It's a wonder I get any business at all.
Well I'm not very smart and computers aren't my "thing"! It's a wonder I get any business at all.
- 1,076
Re: Captive P&C Agents: Simple Question. What is Your Close Ratio
You didn't answer my question, how much new business revenue did you generate this year?
I don't do internet leads, don't have a single client with minimum limits and my average commission per household is $379. I cross sell my commercial clients, get referrals from realtors, CPA's, etc and market to parents of teen drivers in 27 high school newspapers. As much as we like to pretend price doesn't matter... it does to 90%+ of the population including those that have money. You are spouting the company line like a Chubb or Fireman's Fund marketing rep... and not like an agent that is fighting it out every day. I don't skimp on coverage or deal with those that are strictly price driven... but you must provide a great value to your customers to get them to move. They are not going to leave another good company to come to you for no reason.
You didn't answer my question, how much new business revenue did you generate this year?
I don't do internet leads, don't have a single client with minimum limits and my average commission per household is $379. I cross sell my commercial clients, get referrals from realtors, CPA's, etc and market to parents of teen drivers in 27 high school newspapers. As much as we like to pretend price doesn't matter... it does to 90%+ of the population including those that have money. You are spouting the company line like a Chubb or Fireman's Fund marketing rep... and not like an agent that is fighting it out every day. I don't skimp on coverage or deal with those that are strictly price driven... but you must provide a great value to your customers to get them to move. They are not going to leave another good company to come to you for no reason.
