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In January of 2007 Jack McMahan of Crossing
The Chasm conducted a study of over 100 Group
500 member agencies that have had above average results in
nearly every benchmark category. Here is what the study revealed
-
Results
- 80% of Agencies are growing at a rate of less then
10% annually
- 53% describe “lack of growth” as the leading obstacle
to profitability
- 85% have a personal lines account penetration
of less then two policies
- 43% have a commercial lines account penetration
of less then two policies
- 83% don’t have a specific marketing plan
- 77% don’t
have a system to identify, track and retain targeted clients
- 86%
say they are looking for marketing programs
Conclusions
- Agencies are concerned that their growth and profitability
are far below expectations
- Sales and Marketing plans are almost
non-existent
- Most agencies are looking for
help
- Agencies feel they are too busy with the daily grind
to worry about sales and marketing
- The complexities of developing
a sales and marketing program is over whelming
- Deciding where to begin is a daunting undertaking
OTHER STUDIES HAVE SHOWN
From a Client Perspective
The implementation of a consistent client policy
review process brings value to the agent/client relationship.
Studies continue to show that there is no other activity that an
agency can become involved in that will produce a greater impact
on performance, revenue and profitability.
Cross-line Selling has a Dramatic Impact
on
- Increased Income can often exceed 20% to 25%
- Expense Control - Acquisition Cost is minimal or
next to Zero
- Increased household penetration is a potential gold
mine
- Average agency account penetration
- Average policies
per household
- Someone else is writing the balance
Client Expectations – The “One Stop” Concept is REAL
- 70% of your existing clients are not aware of
all of your products and services
- Of the clients that did purchase
additional policies from other agencies, 50% say that they
would have considered their primary agent if they only
knew.
Frequency
of Client Contact (Agency Survey)
- No Client
Contact Program 22%
- Upon Client Request 34%
- Annual Renewal
31%
- Every Other Year 11%
- Every 6 Months
2%
Participating agencies admitted that 29% of the client
contacts that were made were made because of a Company
Request
Life & Financial Services
- 15% of your clients will purchase some form of life
insurance or financial services from someone else in the next
12 months
- 100% of your clients will buy some form of life and
financial services from another agent in the next 7 years using
the rule of 72
It isn’t “if” your client will buy from someone else, it’s “when.”
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