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Growing the Small Commercial Segment Presented by Sharon Cunningham Business Management Group Established in 1983. Dedicated to the insurance industry. Goal is to enhance the growth and profitability of our clients. Partner for the long term. BMG History BMG Services Business Plans

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growing the small commercial segment
Growing the Small Commercial Segment

Presented by

Sharon Cunningham

Business Management Group

bmg history
Established in 1983.

Dedicated to the insurance industry.

Goal is to enhance the growth and profitability of our clients.

Partner for the long term.

BMG History
bmg services
BMG Services
  • Business Plans
  • Operational Reviews
  • Small Accounts Set-up
  • Department Reviews
  • Compensation Plans
  • Marketing Plans
why small accounts are unprofitable
Why Small AccountsAre Unprofitable
  • Compensation
  • The Way the Jobs are Designed
  • Duplication of Effort
  • Too Many Companies
  • Too Many People
small accounts today
Small Accounts Today
  • Has Become a Step Child
  • Considered an Undesirable Necessity
  • Repository of Problem Accounts
  • Weaker Staff Struggle with Workloads
  • No Producer Involvement
small accounts potential
Small Accounts Potential
  • Fastest Growing Segment
  • New Industries are Germinating Small Businesses
  • You Can Sell them Anywhere
  • A Small Account Can Become a Large Account
  • Who Else Has the Expertise?
small accounts departments
Small Accounts Departments

Less than $1,250,000 14.0%

$1,250,000 to $2,500,000 54.0%

$2,500,000 to $5,000,000 73.5%

Over $5,000,000 81.8%

keys to successful small accounts management
Keys to Successful Small Accounts Management
  • Picking the Right Accounts
  • Picking the Right People
  • Complete Automation
  • Streamlined Procedures
  • Aggressive Lead Generation
productivity ratios
Productivity Ratios

Revenue per CSR

Average $100,000 to 150,000

Best $200,000 to 250,000

Producer New Business

Average $30,000

Best $60,000 to 100,000

characteristics of the new csr
Characteristics of the New CSR
  • Willing to sell, ask for referrals
  • Enjoys using automated system
  • Motivated by bonus compensation
  • Open to change
small accounts and automation
Small Accounts and Automation
  • Imaging, full use of system
  • Headsets, rotate calls
  • Automated procedures
  • Non-standard forms in computer
  • Transactions handled first call
  • Management reports
common procedure problems
New Business

Endorsements

Claims

Follow-ups

Renewals

Documentation

Billing

Web Sites

Common Procedure Problems
using a customer center
Using a Customer Center
  • Productivity Improvements
  • Profitability Improvements, Expense Reduction
  • Frees up Resources for Sales
  • Cross-selling, Lead Generation
steps to facilitate the transition
Steps to Facilitate the Transition
  • Indicate service center business on screens
  • Route the calls directly to the service center
  • Via download, maintain policy detail
  • Discontinue all transactions for service center business
after the transaction to the customer center
After the Transaction to the Customer Center
  • Changes in Job Descriptions for CSRs
  • Changes in Procedures
  • Customer Management
where do you find producers
Where Do You Find Producers?
  • Agency staff and their families
  • Sales people from other industries
  • Recent college graduates
  • People in retail, telephone sales
  • Professional and civic networks
small accounts sales management
Small Accounts Sales Management
  • Sales Plan is Activity Plan
  • Follow-up is Frequent
  • CSRs are Lead Generators, Cross-sellers
sample producer sales plan
Sample Producer Sales Plan

January 2003 - December 2003

2002 Small Accounts Commissions $500,000

Probable Attrition Rate - 10% $ 50,000

Probable Commission Income $450,000

Commissions Needed to Replace Lost Business $ 50,000

New Commissions Needed for 2003 - 10% Growth $ 50,000

Total New Commissions Needed for 2003 $100,000

Total Commissions Needed for 2003 $550,000

small accounts sales plan
Small Accounts Sales Plan

Small Accounts Producer $50,000

Referrals from Producers $25,000

Call-ins $ 5,000

CSR Referrals $10,000

Other Departments $10,000

CSRs - 4 $50,000

Cross-selling $12,500

lead generation
Lead Generation
  • The Referral Method
  • The Target Marketing Method
  • The Program Method
marketing ideas
Marketing Ideas
  • Cross-selling
  • Networking with producers
  • Creative mailings
  • Centers of influence
  • Other lines
customer contact
Customer Contact
  • The Rule of Four
  • The Annual Review
  • Other Contact Points
slide24

Business Management Group

1-800-772-0208

860-547-3541

www.bmgconsulting.com