Your producers work every day to sell policies, but the quotes that they give prospective clients don't always turn into revenues for your agency. It is important that you monitor your producers' results in order to hold them accountable and give mentoring where it is needed because a successful producer is a happy and profitable producer.
How to Calculate Closing Ratios
One of the best ways to determine how successfully your producers are doing their job is to monitor their closing ratios. To do this, you simply need to divide the number of policies bound by each producer by the number of quotes that individual gives. So if you have a producer who gave 100 quotes in a thirty-day period and bound 25 policies, then they would have a 25% closing ratio.
Policies Bound ÷ Quotes = Closing Ratio
Creating a Benchmark to Compare
Once you've done this for each producer in your agency, take all the closing ratios and add them together then divide them by the total number of producers you have to get your agency's average. It is this number that each producer should be individually measured against in order to evaluate performance.
When you see a producer falling below the average, it is time to set up a mentoring program or other system to help them learn how to close more successfully. It is important that you provide an environment of encouragement and learning so that these producers-who may have a lot of potential-are allowed to grow and evolve.
Unfortunately, while some low producing agents may just need some additional tutelage to get them on the right track, others might not be a good fit for your agency. If you find any producers who continually miss agency averages and don't seem legitimately interested in bettering their ratios, then you may want create a threshold that they must meet for a predetermined period of time in order to stay with the agency.
Celebrating and Learning from Top Producers
Don't forget to also recognize the success of your top producers. Be sure to congratulate them in a meeting and ask them to share some of the strategies that are and are not working for them. They can do this in an agency meeting for the benefit of all producers or privately. If they decide to share strategies privately, make sure to let them know that you are taking notes to share with the less successful producers.
Employee performance monitoring is an important part of any business, and that is no different in an insurance agency. By doing so, you not only work to proactively improve your agency's performance but you also help to better the careers of your producers.
How to Calculate Closing Ratios
One of the best ways to determine how successfully your producers are doing their job is to monitor their closing ratios. To do this, you simply need to divide the number of policies bound by each producer by the number of quotes that individual gives. So if you have a producer who gave 100 quotes in a thirty-day period and bound 25 policies, then they would have a 25% closing ratio.
Policies Bound ÷ Quotes = Closing Ratio
Creating a Benchmark to Compare
Once you've done this for each producer in your agency, take all the closing ratios and add them together then divide them by the total number of producers you have to get your agency's average. It is this number that each producer should be individually measured against in order to evaluate performance.
When you see a producer falling below the average, it is time to set up a mentoring program or other system to help them learn how to close more successfully. It is important that you provide an environment of encouragement and learning so that these producers-who may have a lot of potential-are allowed to grow and evolve.
Unfortunately, while some low producing agents may just need some additional tutelage to get them on the right track, others might not be a good fit for your agency. If you find any producers who continually miss agency averages and don't seem legitimately interested in bettering their ratios, then you may want create a threshold that they must meet for a predetermined period of time in order to stay with the agency.
Celebrating and Learning from Top Producers
Don't forget to also recognize the success of your top producers. Be sure to congratulate them in a meeting and ask them to share some of the strategies that are and are not working for them. They can do this in an agency meeting for the benefit of all producers or privately. If they decide to share strategies privately, make sure to let them know that you are taking notes to share with the less successful producers.
Employee performance monitoring is an important part of any business, and that is no different in an insurance agency. By doing so, you not only work to proactively improve your agency's performance but you also help to better the careers of your producers.
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