When An Average New Business Hit Ratio Isn’t Enough
During a recent Beyond Insurance workshop, we met George, an agent for a mid-size firm in the Northeast. George told us that he worked hard to grow his business. He is responsive, responsible, and spends time building relationships with his prospects, carriers, and centers of influence.
However, he shared a myth that was derailing his success. George said that he’d always heard that if he was achieving a 26% new business hit ratio, he was doing extremely well.
He explained that he and his organization delivered a great experience for every one of their 30 prospects. They communicated with them; invited them to educational workshops; reviewed their insurance policies, claims data, and employee handbooks; collected data; and prepared their recommendations for solutions.
As a result, George proudly reported that he and his agency successfully added eight new customers to their respective portfolios. However, 22 opportunities never resulted in a sale.
It’s important to note that they provided each prospect the same outstanding experience. They also delivered an accurate analysis of the prospects’ insurance and risk management needs.
And each prospect was then given a proposal that made an exceptionally compelling case for why they should partner with George and his firm.
What went wrong? Why did George miss over 70% of the time?
22 out of the 30 opportunities George put into his sales funnel weren’t qualified prospects.
In the program, George learned that if win-loss results are tracked, he could predict his expected hit ratio over a given time period, as well as financial predictions for sales, revenue, and cash flow. He could also make sound investment decisions, delegate the time and support needed to increase sales, elevate his productivity, and improve his work-life balance.
George decided to change his mindset – he wanted to go beyond the average hit ratio and set a goal for getting to 85% by the end of the year.
What difference can increasing your new business hit ratio make for you and your firm?