Five Tips for Improving Your Average Revenue per Account
As Beyond Insurance has the opportunity to interact with hundreds of agents and brokers throughout the United States each year, we often ask: What’s your biggest frustration with the insurance renewal process?
One recurring theme is the challenge of processing small accounts that generate minimal income and finding ways of increasing the revenue per account for larger clients. Although renewals are your agency’s bread and butter, do you frequently get caught up in the minutia of renewing smaller clients, leaving little time to prospect or cross sell new or larger ones? In order to free up time for these larger opportunities, we offer a few recommendations:
- Rethink your approach to day-to-day service needs. With technology today, it’s easier to stay in touch with these organizations through things like your firm’s e-newsletter, social media, blog posts, phone calls, and email. Consider utilizing your agency’s management system for reminders on key events, like birthdays or anniversaries, but establish a balance between assuring the client that you are there for them while entrusting your service team to handle the account management.
- Work with your team to develop cross sell strategies for your current small accounts. When you capture the P&C personal and commercial, employee benefits, and life/disability, the once-small account grows exponentially. Current clients are easier to cross sell than going after new ones, especially if you have already proven your value!
- Establish a networking system with your existing small accounts. Even though the income may be minimal, these long-term clients are a great source of referrals and testimonials and will connect you to larger prospective clients. Consider hosting a quarterly get together, like a networking breakfast or lunch-and-learn, to interact with these smaller accounts. This also provides an opportunity for you to give back to your clients by introducing them to prospective connections for their own businesses.
- Develop a compelling value proposition. It’s more important than ever to stand out in today’s crowded marketplace. How are you telling your agency’s story? Take a step back and write down what makes you different from your competitors. Be sure to rehearse your value proposition until you have it down pat!
- Each week, dedicate time to perform prospect research and qualification. Use a criteria filter to determine if the prospective client meets or falls below your standards. Your approach must be disciplined and strategic to eliminate wasted time on accounts that do not fit your wheelhouse.
By implementing the above recommendations, your average revenue per account and job satisfaction will improve substantially. Remember: every account, large or small, is an opportunity to cross sell and increase your book of business if you are viewed as a trusted risk consultant!