MetricsMetricsInsurance Sales & MoneyBallInsurance Sales & MoneyBall

Todd R. EwingTodd R. Ewing President, InsuranceMined President, InsuranceMined

Executive Insurance ConsultingExecutive Insurance Consulting

“If it was Easy, Everyone would do it” 178 Players* all time (ever!) have hit over .300

Conclusion: Hitting .300 must be very, very Difficult!

It’s like the MDRT or Top Producer of Life Insurance.

(A little levity- for Pete’s sake!)

Difference in Numbers?

Based on 600 season AB’s, the actual difference in hits between a .300 Legend and .270 (Above Average) hitter is….

18 Hits per Season!

That’s 3 Percent- fouling off a tough slider, taking a Walk rather than swinging at a bad pitch, getting ahead of the count, beating out an infield single, a bunt… Focus, Hustle.

Sales: “It’s a Game of Inches!”

10, 3, 2, 1- we all know that Equation(10 calls = 3 presentations = 2 “Sales” = 1 Paid

With D2C, multiply factors by 2 & add a ZeroSuccess is more that just upping the volume (not going to be a Legend making 1 more call!)

It’s about incremental Improvements (defined & measurable data points)

“Breakage”-The Industry Strike-out!Sales conversions continue

an industry slideExam completion rates are

flat to decliningCarrier Placement Ratios

are at all-time low25% of cases are AOTAPersistency of Non-Med

policies is Problematic

The Box-score: Know Your Numbers!

Marketing ReturnSales (Close) RateClient Completion %Carrier IssuancePolicy Paid Ratio

The ultimate measurements is Return On Marketing Investment. ROMI = dollars spent to Paid commission.

Level Set: Industry Metric “Averages” Conversion Measurement Success Ratios Leads – App Out *** 8% - 65%App Out – App Back 45% - 74%App Submit – Policy Approved 71% - 87%Policy Approved – Delivered 74% - 88%Policy Delivered – Paid 79% - 93%

Total Net Conversion: 1.5% - 33%

*** Varies greatly per Lead source, cost and Agent!

The “Triple Play” in D2CCAC- Customer Acquisition Cost

Ultimate Conversion- Leads to Paid %

Net Premium- Commission per Policy

Note: With an 8% net Conversion at $50 per Lead, your marketing cost alone for an INF policy is over $600!

Success: Win 2 out of 3!

Company ALead cost: $20Conversion Rate: 9% Premium/Policy: $500

CAC= $220Mktg/Premium = 44%

Company BLead cost: $50Conversion %: 17% Premium/Policy: $850

CAC= $280Mktg/Premium = 33%

Profitability = less than 35% spent on Marketing

Metrics: A Fancy Word for Math

A leading Direct Marketer “averages” 8% Conversion rate. Yikes!

With a Net 3% Increase:

Produces a 37% improvement in EBITDAGrows Staff; Expands Product Offering Makes Millions more in Revenue

Goal: 3% Improvement in 5 Buckets

Establish robust reporting mechanismMeasure Everything- conversion by lead

source, demographic, agent, premium…Ensure Validity of Data (no cannibalism)Create continual A/B testing methodology

with on-going study against baselineFactor Seasonality, Source Rates, Modality

Bucket 1: Marketing to Leads

Develop “Propensity to Buy” Scoring systemUse Comprehensive Mktg outletsBuild Social Media BrandThink UX & CX with every Touch Forget Middle-market: Focus on Forgotten

(Single Moms, Women in general, Truckers, Diabetics, Smokers, Professors, Age Wavers, etc)

Bucket 2: Leads to Sales

Most important- Perfect Presentation!Know your Customer- Customize everything!Website- must be interactive (most still suck) Make it easy- Allow for “Self Direction” Modality- response matches Customer entryNo Brainers- E signature, Call Timing,

ongoing touch-points, be Mobile, Sell Spouse

Bucket 3: App Out to App Back

Eliminate Exams- Sell more Non-MedBind Cases- Money makes it StickyCreate Urgency- Backdating is lost artEmails- don’t be Pest; Provide ValueTouchpoints- Mobile & Texts Beneficiary- Key to Completion

Bucket 4: App Back to Approved

U/W- Write the right company, upfront!Reduce AOTA’s- set Proper ExpectationsClient follow up- employ best case mngrs!

(CM’s are the glue & key for success)APS tracking- be aggressive & enlist PIReduce Cycle Time- “Speed Thrills” %’s! Micro Every case- approx 10% of all apps

“die on the vine” (never Carrier finalized)

Bucket 5: Approved to PaidAOTA’s- Master this “new” sale; Huge upside!

(100% of smaller premium beats 0% of large $) Delivery Requirements- Elicit Client UrgencyE Delivery- Make it Fast and Easy Beneficiary- Critical at last stage (emotional) Monetize Declines- Sell Final Expense/AD&D Inforce- Perfect time to sell more; referrals

Metrics: Means More than Money

You’re Already Really Good .270 Hitters make Plenty of Money

You’re consistently “Above Average” You get “Hits” most of your times up

You’re Regarded on Your Team Can Count on your “Production” in the 6 Hole

Metrics: Immortality Manifested

Want to Make the All-Stars?Are You Game for the Hall of Fame?

Ready to Become a Legend?

Play (Money) Ball!!!

Todd Ewing is the industry’s leading D2C Consultant and helps Producers radically improve their Sales and Metrics.

Call Your Shot: Todd EwingTodd Ewing

InsuranceMined.com

Toddewing@InsuranceMined.comToddewing@InsuranceMined.com

(916) 275 – 7843 (916) 275 – 7843