Sales Metrics- The Moneyball of Insurance
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Transcript of Sales Metrics- The Moneyball of Insurance
MetricsMetricsInsurance Sales & MoneyBallInsurance Sales & MoneyBall
Todd R. EwingTodd R. Ewing President, InsuranceMined President, InsuranceMined
Executive Insurance ConsultingExecutive Insurance Consulting
“If it was Easy, Everyone would do it” 178 Players* all time (ever!) have hit over .300
Conclusion: Hitting .300 must be very, very Difficult!
It’s like the MDRT or Top Producer of Life Insurance.
(A little levity- for Pete’s sake!)
Difference in Numbers?
Based on 600 season AB’s, the actual difference in hits between a .300 Legend and .270 (Above Average) hitter is….
18 Hits per Season!
That’s 3 Percent- fouling off a tough slider, taking a Walk rather than swinging at a bad pitch, getting ahead of the count, beating out an infield single, a bunt… Focus, Hustle.
Sales: “It’s a Game of Inches!”
10, 3, 2, 1- we all know that Equation(10 calls = 3 presentations = 2 “Sales” = 1 Paid
With D2C, multiply factors by 2 & add a ZeroSuccess is more that just upping the volume (not going to be a Legend making 1 more call!)
It’s about incremental Improvements (defined & measurable data points)
“Breakage”-The Industry Strike-out!Sales conversions continue
an industry slideExam completion rates are
flat to decliningCarrier Placement Ratios
are at all-time low25% of cases are AOTAPersistency of Non-Med
policies is Problematic
The Box-score: Know Your Numbers!
Marketing ReturnSales (Close) RateClient Completion %Carrier IssuancePolicy Paid Ratio
The ultimate measurements is Return On Marketing Investment. ROMI = dollars spent to Paid commission.
Level Set: Industry Metric “Averages” Conversion Measurement Success Ratios Leads – App Out *** 8% - 65%App Out – App Back 45% - 74%App Submit – Policy Approved 71% - 87%Policy Approved – Delivered 74% - 88%Policy Delivered – Paid 79% - 93%
Total Net Conversion: 1.5% - 33%
*** Varies greatly per Lead source, cost and Agent!
The “Triple Play” in D2CCAC- Customer Acquisition Cost
Ultimate Conversion- Leads to Paid %
Net Premium- Commission per Policy
Note: With an 8% net Conversion at $50 per Lead, your marketing cost alone for an INF policy is over $600!
Success: Win 2 out of 3!
Company ALead cost: $20Conversion Rate: 9% Premium/Policy: $500
CAC= $220Mktg/Premium = 44%
Company BLead cost: $50Conversion %: 17% Premium/Policy: $850
CAC= $280Mktg/Premium = 33%
Profitability = less than 35% spent on Marketing
Metrics: A Fancy Word for Math
A leading Direct Marketer “averages” 8% Conversion rate. Yikes!
With a Net 3% Increase:
Produces a 37% improvement in EBITDAGrows Staff; Expands Product Offering Makes Millions more in Revenue
Goal: 3% Improvement in 5 Buckets
Establish robust reporting mechanismMeasure Everything- conversion by lead
source, demographic, agent, premium…Ensure Validity of Data (no cannibalism)Create continual A/B testing methodology
with on-going study against baselineFactor Seasonality, Source Rates, Modality
Bucket 1: Marketing to Leads
Develop “Propensity to Buy” Scoring systemUse Comprehensive Mktg outletsBuild Social Media BrandThink UX & CX with every Touch Forget Middle-market: Focus on Forgotten
(Single Moms, Women in general, Truckers, Diabetics, Smokers, Professors, Age Wavers, etc)
Bucket 2: Leads to Sales
Most important- Perfect Presentation!Know your Customer- Customize everything!Website- must be interactive (most still suck) Make it easy- Allow for “Self Direction” Modality- response matches Customer entryNo Brainers- E signature, Call Timing,
ongoing touch-points, be Mobile, Sell Spouse
Bucket 3: App Out to App Back
Eliminate Exams- Sell more Non-MedBind Cases- Money makes it StickyCreate Urgency- Backdating is lost artEmails- don’t be Pest; Provide ValueTouchpoints- Mobile & Texts Beneficiary- Key to Completion
Bucket 4: App Back to Approved
U/W- Write the right company, upfront!Reduce AOTA’s- set Proper ExpectationsClient follow up- employ best case mngrs!
(CM’s are the glue & key for success)APS tracking- be aggressive & enlist PIReduce Cycle Time- “Speed Thrills” %’s! Micro Every case- approx 10% of all apps
“die on the vine” (never Carrier finalized)
Bucket 5: Approved to PaidAOTA’s- Master this “new” sale; Huge upside!
(100% of smaller premium beats 0% of large $) Delivery Requirements- Elicit Client UrgencyE Delivery- Make it Fast and Easy Beneficiary- Critical at last stage (emotional) Monetize Declines- Sell Final Expense/AD&D Inforce- Perfect time to sell more; referrals
Metrics: Means More than Money
You’re Already Really Good .270 Hitters make Plenty of Money
You’re consistently “Above Average” You get “Hits” most of your times up
You’re Regarded on Your Team Can Count on your “Production” in the 6 Hole
Metrics: Immortality Manifested
Want to Make the All-Stars?Are You Game for the Hall of Fame?
Ready to Become a Legend?
Play (Money) Ball!!!
Todd Ewing is the industry’s leading D2C Consultant and helps Producers radically improve their Sales and Metrics.
Call Your Shot: Todd EwingTodd Ewing
InsuranceMined.com
[email protected]@InsuranceMined.com
(916) 275 – 7843 (916) 275 – 7843