What gets measured gets done
The key here is to decide what you are going to measure in your business to drive success.
Measuring however, is only part of the solution. You also need to undertake some action to improve the numbers you are measuring. Trend lines are a great tool to track the results of your activity – it doesn’t matter what your numbers are right now, what’s important is that the actions you undertake move the trend line in a positive direction.
Thankfully, when running a successful broking business, there are only a few critical numbers you need to watch – renewal retention, average commission, new business income, fee income and premium finance penetration to name just a few. All too often many brokerages are “flying without dials”, they are running their business with little insight into the results of their activity from one month to another.
If you take the time to measure something, then take the time to improve the result and watch the benefits arrive at your door.
It’s just numbers
How does this apply to winning new clients?
Easy. Winning new clients is a numbers game. The quality of your activity will change the required numbers, but its numbers none the less.
Let’s assume your new client’s annual commission target is £100,000 and that your average policyholder commission is £1,000.
Orders – 100
In order to reach £100,000 annual commission, you need to win 100 new clients per annum.
Quotes – 250
Unfortunately, you don’t win all that you quote, assume your quote conversion rate is 40%. You’ll need to do 250 quotes to win 100 new clients.
Reviews – 325
Not every new client meeting should proceed to a quote. You may not get the right buying signals. If you assume you quote on 70% of the new clients you meet, now you need 312 new client meetings.
Leads – 1,000 – 3,000
How many calls does it take to get a new client meeting? The best might achieve one in three but more likely to be one in 10. If you’re brilliant at this you will need to make around 1,000 calls, if you don’t have as much experience, you’ll need to make 3,000 calls per year.
Missed any of the other 12 Days of BIBA blog posts?
Day 1: Why winning new clients is critical to the survival of any broking business
Day 2: The importance of leadership
Day 4: Standing out from the crowd
Day 5: Tactics to win new clients & insurer relationships
Day 6: Sources of Opportunity & Personal Qualities
Day 7: Barriers & Objections
Day 8: You appeals
Day 9: Teamwork & Favours
Day 10: Terms of Reference (TOR)
Day 11: Review & Learn