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

[austin.mike28]

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.

I never said price does not matter. What I said was it's not the only thing. It is important, but it's not the most important thing.

My whole point was I wouldn't be able to survive on a 31% close ratio, and to not think of our industry as a commodity. If you like to sell and compete only on price that's fine, go right ahead it's your business you can sell as you like. I just don't run my agency that way.

 

[Bertolinoins]

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.

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.

 

[dizzy]

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

I would die for 31% Closing right now, much lower in the last 3 years. 2009,2008,2007 closing were much better 28-35%. It has been very interesting, in the p&c world as a captive agent. I have seen new agents ones come and go in less than 19 months, the small books are absorbed by management, they grow by attrition.
When carriers are shooting for 22 % nationwideplacement rate but the average is 16% closing, in our area, it is not lack of trying but more of we feel we do not want to grow in your area of the country ( SW) there fore we will adjust rates just out of reach of the mom and pop. We only want 760 and above credit scores, you have no control over. If you live and workin AS for Internet quotes a been a big disapointment, put your information you are bombarded with 3 emails from the lizard and Flo with in minutes. The quote is spit out in under 20 minutes, and you just get the information, and work with in your system. By the time you make first contact Flo and Lizard have emailed them thank you, estimates and replay for the best rate give us your soical so we can pull credit and other reports.

 

[infoe]

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

difference between bertolino and austin.mike is evident...bertolino young aggressive (much larger agency) and will continue to grow into a power house (trying to take in mostly good but some not so good squeeze in there) austin.mike probably a smaller operation but been an agent 30+ years with customers that have been him 29+years with 250/500 and plups, the works with probably a decent price just having had such a high insurance score for so long that don't even bother shopping around. Probably not growing much anymore. Austin.mike is probably the type of producer that Joe would "acquire" with a good sweet sunsettiers retirement deal.

The two probably rarely come across each other's clients.

I've learned this major difference seeing old time SF agents and the new ones. I was given a small book of business from a retiring agent, and my agency is a mix of what stayed (the old timers just out of custom) and the new gen y customer's.

Correct me if I'm wrong...

there are those out there that do just care about price...does not make them a bad customer, they probably just have never been in a total loss or been properly educated by the previous agent. It's funny how much coverage you can bump up after someone has a claim.

 

[Guest]

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

5,000 quotes a year, I call BS

You are spending your time trying to get quotes and not trying to get clients, and yes, there is a difference.

 

[Bob Klee]

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

5,000 quotes a year, I call BS

You are spending your time trying to get quotes and not trying to get clients, and yes, there is a difference.

Be careful on the BS part RBA. 12 months, 22 days/month = 19 quotes per business day on average. 2 support staff is less than 10 quotes/day each on average.

Been there, done that. But by myself..No way in %*%* and be able to service customers.

There is more than one way to work leads my friend & I prefer to have trained Staff work them vs. myself

 

[dizzy]

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