Owning an insurance company can be exciting and challenging in today’s fast-paced business environment; measuring the metrics of your company is crucial to confirming the performance of your company overall. The outcome of metrics will either inform a need for improvement or confirm the current sales and marketing efforts. Either way, this insurance business plan will offer structure for growth in your company, as well. Let’s examine the metrics that will indicate how well your company is performing and how much profit your company is generating:
1. Sales Revenue Metric.
This foundational metric is one that will reveal the level of revenue for the company. It also indicates the performance of your company within the marketplace. Determine the measurement by subtracting any canceled policies from the sales income during any 6-month period. The resulting amount is your sales revenue.
2. Net Profit Margin.
Narrowing the scope to that of the net profit margin requires that sales expenses, including salaries, are subtracted from the sales revenue. The result is the net profit margin. If the profit margin is low, revise it by either lowering the costs of sales or increasing the pricing of revenue.
3. Customer Acquisition Cost.
This crucial metric measures how much money is spent to acquire an active customer. Marketing expenses are divided by how many clients were acquired in the same period of time. If the expenses are high, re-examine the marketing tactics to lower the costs, creating additional profit on the plus side.
4. Employee Satisfaction Metric.
Every six months, survey your employees to determine how satisfied they are and make improvements accordingly.
Metrics define the progress of your company, just as people and policies do. Continue measuring the performance of your company to retain healthy profit levels for long-term growth.