If we all had an infinite amount of money we could throw our marketing dollars to the wind – putting money into the fad of the moment or whatever happened to suit our fancy at the time. But if that were the case, would we really be working the business or would we be off lounging on the beach somewhere? Since it is safe to assume that money is not infinite and that decisions need to be made as to where to best spend your marketing dollars (any dollars really) the logical next step is to determine where and how to get the best return on your investment.
In a recent article published by ACT, Grow Your Agency & Improve Your Marketing by Tracking Key Metrics, Chuck Blondino, Northwest Region Marketing Director for Safeco Insurance makes a strong case for using metrics to track what is and isn’t working, where your best business is coming from and adjusting your tactics accordingly.
High growth agencies, he says, track metrics.
“While most agencies change little in size of their personal lines books, there are a select few high growth agencies consistently increasing their total personal lines books by 10 to 24%. (Safeco NW Region top 25 personal lines high growth agencies study in 2011) Comparing the commonalities of these agencies, it’s clear that they stand out in their sales methods, training, and support. One thing really was truly unique – these agencies tracked their marketing efforts and knew what was effective and what was not.”
Every effort needs to start somewhere. When it comes to tracking the effectiveness of your marketing campaigns, that start is as basic as they come. The first question that must be asked of every new client is “How did you hear about us.” The caveat is, don’t just ask it, track it. With this information at your fingertips, it all flows from there.
What makes this article really valuable is that Blondino not only tells you that you need to start tracking metrics… he gives solid examples of what to track and how to track it.
Some of the metrics he discusses are:
- Where each new policy comes from
- Close ratio by category
- Monthly close ratio by producer
- Average revenue per client