Does Your Agency Track Your New Business?

Over the years, while watching some of the most successful agencies across the country, I have noticed that those agencies keep a routine track of their business initiatives.  They always make note of where their new business comes from. As new business is written, the agency makes a notation in their management system of the source of the business.  Sources may differ from agency to agency, but the most used sources of business are:

  1. Website
  2. Client Referral
  3. Ads
  4. Cross Selling
  5. Business Referrals
  6. Walk-In Business
  7. Phone Book
  8. Social Media
  9. Other

By keeping track of this data, your agency can determine where most of your business is coming from.  With that information, your agency can determine which areas to keep funding for marketing, and which areas are not effective.  For example: if you find that traffic from your phone book ad is starting to dwindle, you might want to focus more on marketing over the internet.

Once you know where the business is coming from, you can also track closing ratios by source of business.  This can be accomplished by keeping a record of every quote and documenting each quote with the appropriate source of business: Each month, run a report on the total number of quotes, sorted by source of business.  Next, run a report on your new business policies, sorted by source of business.  For example: if your first report showed 40 quoted polices by client referral and the second report showed 20 policies written by client referral, you can determine your close ratio to be 50%. (This can be determined by using simple division.) Knowing your close ratio by source of business will enable your agency to focus on those marketing sources that have the highest and most successful outcome.

I encourage you to track this information for several months and then determine what areas you should focus on for growing your agency in 2014 and beyond.  For more information on how to run these reports or setup this tracking method, please give me a call at (336) 253-3618 or email me at


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