What does E=M2C mean to a successful insurance agency?
No that isn't a misprint on Einstein's Special Theory of Relativity proposed in 1905. Nor am I saying 100 percent of scientists are wrong.
For the successful insurance agent E does equal M2C. This is my Insurance Agency Theory of Relativity proposed in 2016.
Running a successful agency takes a lot of energy. If that energy is not focused, then it's wasted. Your focus should be on your goal. What is happening in your agency will determine if you reach that goal.
What are your revenue generating activities? How many leads did you get this week? Month? Year? How much business did you write this week? Month? Year? How many policies renewed this month? Year? This is data that can be easily extracted from your agency management system.
What about leads? Are you asking for leads source? Every time? What about email addresses? Which companies are you quoting? With a good comparative rater, you can measure these and other important metrics.
Measuring is good, but monitoring and measuring is great. Those two Ms working together are exponentially more valuable.
How do you compare to last month? Last year? Are you moving in the right direction? Are your people moving with you?
By consistently monitoring and measuring, you can determine if your agency is directing energy where it needs to be.
Measuring performance (sales, closing ratio) and actionable items (calls made, referral sources farmed) for your staff can give you the information you need to see if they are moving with you. If they aren't, you'll need to coach them.
Coaching is crucial. It's not discipline. It's encouragement. Your staff needs feedback to know if they're pointing their energy in the right direction.
Monitoring and measuring performance against agreed upon standards will show you how they're using their energy.
Reward the behavior you want repeated. Reprimand the behavior you want removed.
Tell them what they need to do, why they need to do it, and how it benefits them. Then show them. Simple.
Being a successful agency isn't rocket science, but it is a science.
Remember E=M2C (energy equals monitoring, measuring and coaching) for success.
Learn more great formulas for success at ITC Agent Conference on April 21-22.
About the Author
As Vice President of Sales, Don Hobdy Jr. is responsible for ITC's revenue growth through product sales and strategic partnerships. While he doesn't promote any one sales philosophy to his team, he does incorporate a range of techniques from Sandler to Challenger in his methodology. Don, a licensed P&C agent, travels the country speaking to agents on digital marketing and agency efficiency as well as teaching continuing education classes. When he's not on the road, he enjoys firing up his smoker to cook amazing bar-b-que, watching his Dallas Cowboys, writing, and taking his three kids to amusement parks around the country.More Content by Don Hobdy Jr.