The fact that every business needs your product is one of the great mainstays of the agency and brokerage business. So, many agents and brokers have prospered based upon having great relationships, a long-term business reputation, and highly-skilled technical people.
Unfortunately, these mainstays will not support your revenue stream on larger accounts in this new economic reality. Why? Because your best and largest buyers will be forced to look for the providers that can help them reduce costs and improve their financial outcome.
In short, every broker and agent must provide and prove an ROI.
Your biggest question right now should be: “How do we go forward in this changing world and maintain relevance and grow?”
Here’s your answer: Know your ROI on each and every important account. We’re not talking about the generic list of features you have provided under the banner of “value-added services” or a catchy brand name. We’re talking about YOUR REAL ROI, quantified and measured.
Here’s how to Calculate your Real ROI:
- Create a list of all the deliverables you provide clients. These include risk control, claims management, and other third-party offerings that your firm subscribes to.
- Take your top-tier commercial accounts and ask the question on each account: What have we provided this client in the past two years? Include everything from your specialized risk control and claims services to your third-party offerings.
- Determine the actual value of these offerings (in dollars) to the buyer. In short, these are services and projects that you provided that the client did not pay for. Remember, these offerings came from your overhead, at no cost to them. This is your actual ADDED VALUE.
- Once you have determined the amount of your value, you must embed it inside your client’s financial statement. The best way is to translate it to EBITDA margins or other KPI’s. That’s the TRUE measurement of ROI.
This may sound difficult to some of you, but it isn’t. You just need to think differently and see yourselves as more than simply an insurance provider. Become part of the financial solution. Then, you need to make the effort to learn what your financial outcome has been for all your top clients.
So, if you’re looking to attract new business and are willing to determine and demonstrate your ROI, that’s GOOD NEWS! If you’re looking to keep existing relationships without showing an ROI when the post-COVID-19 economy takes shape, GOOD LUCK! You’ll likely find the ground has shifted beneath you.
All the best to Analytic Brokers,
The Analytic Brokerage Team
Want to go deeper? Join us for our FREE upcoming sales webinar, “Finding Gold in a Storm: How to Prosper in a New World of Brokerage” on May 12th @ 12 Noon EST. It’s FREE to join!
This webinar presentation will outline the 5 Most Important Steps that P/C and Group Benefits brokers must take right now to get moving during the COVID-19 pandemic:
- Understand the critical issues that top clients and prospects will be focusing on for (at least) the next 18 months.
- Create a sales message that will IMMEDIATELY resonate with buyers.
- Link your sales (BOR) message to actionable results, outcomes, and proof.
- Create an overwhelming sense of urgency using the buyer’s financial data.
- Maintain your revenue stream in a falling economy.
We hope that you’ll take this opportunity to attend this important webinar. Also, please forward this invitation to those in your firm who might be interested in learning meaningful ways to stay relevant and gain market share during these challenging times.Register Now to Reserve Your Spot (Free Sales Webinar)
About the Analytic Brokerage™ Platform
Leading brokerages and producers across North America choose the Analytic Brokerage Platform to maximize their large account profits, revenues, and growth.
Utilizing the latest KPI’s, client metrics, and business intelligence, the Analytic Brokerage Platform is the only system in existence that helps brokers:
- Quantify a buyer’s financial leakage and true Total Cost of Risk
- Deliver consistent and meaningful reports
- Attract and retain larger accounts
The Analytic Brokerage Platform is currently embedded inside many of North America’s leading brokerages who control over $2,000,000,000 of annual revenues.