Most independent insurance agencies are looking to increase their profitability. In reality, this may require better planning and an evaluation of many business processes. The following are four points to consider that can help your agency to increase profitability:
Focus On Cross Selling
Cross selling to existing clients can actually be easier than selling to new prospects. Review all of your commercial accounts and personal lines. Then, determine if you are selling the most possible lines each month to your clients. Finally, contact your carriers and tell them that you have started the process because most companies may have supplemental selling tools.
Use Technology and Stay Current
Keeping up with changes in software and digital marketing can take effort, but it’s necessary to stay competitive and efficient. Your insurance company should have a website that highlights the agency’s services and employee’s qualifications. Once the site is getting plenty of traffic, social media can be used as a marketing tool.
Seek Development Opportunities
By seeking out professional and business development opportunities, you can help to ensure that your agency will keep growing. To boost your annual sales, you could enhance your sales and business development skills by attending a local advertising class. Most courses will cover key lessons that will benefit your insurance agency, such as buying trends and local demographics.
Beyond marketing, your agency should focus on constant sales improvement. Your agents can learn to better communicate with various prospects in a manner that closes more sales and also benefits the client.
Write Profitable, Quality Business
To ensure quality services, you should seek to balance the loss ratio by maintaining multiple personal lines of coverage. Rate the risk with the appropriate classification and rate. If possible, relocate your marginal accounts to other companies that offer proper benefits. By working with reputable carriers who provide reasonable rates, you can avoid financial issues down the road.