Closing Ratios and Techniques

[theinsuranceman]

I use a very simple formula to calculate my closing ratio. the only two factors that you cannot shuffle around, are the number of leads you get for example 25 and how many of those leads did you turn into a sale. I don't count the number of apps, that will skew the results. it is not uncommon to close more couples in one month, only because you saw more, then the following month when you see more single people. if you only count the number of leads you got and the number of leads you closed, that will give you a true closing ratio. if you follow that month to month you will see that your closing ratio will be pretty consistent.

That's the best way to compare apples to apples.

 

[Newby]

I'm not a big record keeper except the numbers in my bank account. I don't count me calls, my percents or any of that.

I only track when I have covered my lead cost when I start on new leads. I mentally note when my sales have covered the cost and then the rest will be my profit.

But if I was really a record keeper, I think selling a husband and wife would count as two sales to me. It's the same profit as two individual sales.

If you don't sell it, it was only one appointment. It didn't waste the time of two appointments. And it didn't cost two leads.

Keeps it simple.

 

[jasper99006]

I agree with you 100% Newby!!

 

[Norton]

I'm not a big record keeper except the numbers in my bank account. I don't count me calls, my percents or any of that.

I only track when I have covered my lead cost when I start on new leads. I mentally note when my sales have covered the cost and then the rest will be my profit.

But if I was really a record keeper, I think selling a husband and wife would count as two sales to me. It's the same profit as two individual sales.

If you don't sell it, it was only one appointment. It didn't waste the time of two appointments. And it didn't cost two leads.

Keeps it simple.

I agree with Newby, also -- with one clarification: If I write a policy on John with two apps instead of one policy, calling it one sale makes sense... But seeing John and Mary, and writing separate policy apps for both of them, should be two sales in my book! How would you count it if John and Mary lived with a housekeeper or their adult son and daughter-in-law, and they decided to write policies? 'One' sale wouldn't cut it for me.

 

[Newby]

I agree with Newby, also -- with one clarification: If I write a policy on John with two apps instead of one policy, calling it one sale makes sense... But seeing John and Mary, and writing separate policy apps for both of them, should be two sales in my book! How would you count it if John and Mary lived with a housekeeper or their adult son and daughter-in-law, and they decided to write policies? 'One' sale wouldn't cut it for me.

If you write four or more it's a fleet sale.

 

[Jake07712]

It doesn't matter whether I call it 1 ap, 2 aps, or 10 aps. All I have to know is that I spent $X on a batch of leads that brought in $Y in commissions. If the ratio is good, I'm a happy camper.
Which brings up a question: what do you consider a good ratio? What do you consider a bad lead, and what do you consider a returnable lead?

 

[WCMason]

It doesn't matter whether I call it 1 ap, 2 aps, or 10 aps. All I have to know is that I spent $X on a batch of leads that brought in $Y in commissions. If the ratio is good, I'm a happy camper.
Which brings up a question: what do you consider a good ratio? What do you consider a bad lead, and what do you consider a returnable lead?

Same here. Three numbers. Money spent. Money made. Pct. return.

I have an in my head count of apps written as week progresses.. No idea on close rate other than it's high.