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In an effort to improve my persistency and generate more referrals, I am seriously considering hand-delivering each of my new client's policies. Here's what I think would be the benefits:
Improved Persistency: Let's say I have a 75% persistency having policies mailed directly to the policy holder. I sell an average of $3600AP each week. Now I meet each client for 10 minutes, discuss the policy, and review it.
I'll catch some that were considering cancellation -- maybe I'll get those that would cancel to keep the policy at a lower price.
Let's assume it's feasible to improve persistency to 85%. At the $3600AP average weekly, that's a $1440AP improvement monthly. A big difference for a little added effort.
Opportunity to Cross-Sell: When you come back to seal the deal and deliver the policy, you could come prepared to sell some additional coverage. Grandkid coverage seems logical to do -- you could ask the policy-holder at the time of the interview about her grandkids and their age; then come back with the policy in hand and some figures run ahead of time. When you show them $5000 in G'Kid coverage for a buck and quarter a week -- who would balk at that, even some of our lowly FE clients?
Out of every 10 new clients asked for grandkid coverage, imagine converting only 2 of them. Let's say the average commission is $125 each (logical as most grannies have multiple grandkids). If you're writing 25 FEs a month, that's 5 of them now with grandkid coverage, increasing your commissions another 625AP each month (and probably improving persistency that much more).
Referral Power: Naturally, you could increase your referral and lead base this way pretty easily, reducing dependency on direct mail leads.
Looking at this way, it is possible to increase commissions by thousands of dollars, improve persistency, and decrease direct mail costs. Sounds like a winner to me!
My question for you who hand deliver policies is -- do you schedule a time to deliver them? Or do you drop in? How much time do you take to spend with each new client on average?
Thanks for your input.
Improved Persistency: Let's say I have a 75% persistency having policies mailed directly to the policy holder. I sell an average of $3600AP each week. Now I meet each client for 10 minutes, discuss the policy, and review it.
I'll catch some that were considering cancellation -- maybe I'll get those that would cancel to keep the policy at a lower price.
Let's assume it's feasible to improve persistency to 85%. At the $3600AP average weekly, that's a $1440AP improvement monthly. A big difference for a little added effort.
Opportunity to Cross-Sell: When you come back to seal the deal and deliver the policy, you could come prepared to sell some additional coverage. Grandkid coverage seems logical to do -- you could ask the policy-holder at the time of the interview about her grandkids and their age; then come back with the policy in hand and some figures run ahead of time. When you show them $5000 in G'Kid coverage for a buck and quarter a week -- who would balk at that, even some of our lowly FE clients?
Out of every 10 new clients asked for grandkid coverage, imagine converting only 2 of them. Let's say the average commission is $125 each (logical as most grannies have multiple grandkids). If you're writing 25 FEs a month, that's 5 of them now with grandkid coverage, increasing your commissions another 625AP each month (and probably improving persistency that much more).
Referral Power: Naturally, you could increase your referral and lead base this way pretty easily, reducing dependency on direct mail leads.
Looking at this way, it is possible to increase commissions by thousands of dollars, improve persistency, and decrease direct mail costs. Sounds like a winner to me!
My question for you who hand deliver policies is -- do you schedule a time to deliver them? Or do you drop in? How much time do you take to spend with each new client on average?
Thanks for your input.
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