As the old saying goes, sometimes you have to spend money in order to make money.
Of course, this doesn’t mean that you can just throw cash at whatever problem you’re trying to solve and get good results.
However, by making smart investments, you can supercharge your insurance sales efforts and build a more profitable and resilient agency.
What is ROI?
Simply put, ROI—or return on investment—is a calculation that helps organizations determine whether investments are worthwhile. An agency, for example, might run several ROI calculations to determine which investment out of a handful makes the most sense.
To determine ROI, subtract the price of the investment from the ultimate value it returns, divide the difference by the investment’s original cost, and then multiply by 100.
The higher your returns on investment, the better off your insurance agency will be. By making the right investments, you can increase insurance agent productivity, reduce turnover, improve profitability, and ultimately enjoy better business outcomes.
What should agencies invest in? Let’s take a look.
How should you invest in your insurance agency?
No two insurance agencies are exactly the same. But, generally speaking, all agencies can benefit from investing in the following areas:
1. Necessary Insurance Tools
In today’s digital age, it is more important than ever to equip your agents with the tools they need to reach their full potential. In the world of insurance sales, one of the easiest ways to do this is by investing in a customer relationship management (CRM) solution that enables your insurance agents to work more effectively and productively. Believe it or not, one study found that technology solutions can help agencies achieve an impressive 1,200 percent ROI annually!
The right insurance CRM solution gives you access to a wealth of data and features that make insurance sales easier. For example, agents are able to nurture leads automatically and leverage real-time reporting capabilities to get a clearer idea of their funnel and find out what is working and what needs more attention.
With a robust insurance CRM solution in place, your agents will be able to focus on the right data—such as conversion rates, churn rates, and revenue—to continuously improve their strategies.
2. Insurance Marketing
Far too many insurance agencies treat marketing like an afterthought. But again, you need to spend money in order to make money, and the right marketing investments can go a long way towards helping you achieve your insurance sales goals.
However, you can’t just throw marketing spend into the ether and expect substantial results. What you should do is conduct marketing ROI calculations to determine which investments make the most sense for your unique circumstances.
When it comes to insurance agency marketing, evergreen content can be particularly helpful, as it can sell for you year after year. Let’s say that a piece of content initially costs $1,000, and after five years it has translated into $20,000 in sales. That ROI speaks for itself.
For more information on how you can maximize the impact of your marketing efforts, check this out.
3. Professional Development
These days, more and more professionals see jobs as opportunities for learning and development.
By investing in insurance professional development and embracing continuous learning, you can meet these employee expectations and cultivate a more talented and effective team over time.
As an added bonus, investing in professional development can also reduce insurance employee turnover, further increasing profitability.
It’s time to grow your insurance agency!
At the end of the day, great things can happen when you invest in your agency in order for it to operate with more intelligence and agility.
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