An ideal client profile is a detailed outline of the kind of companies your insurance agency wants to do business with. It's not a description of the decision maker or buyer within an organization, but rather a description of the organization itself.
Not all clients are ideal
To a business interested in revenue, growth, or even just survival, it may feel like any new client is good for business. But this isn’t always the case. And when it comes to insurance agencies, it’s definitely not the case.
Have you taken a close look at your book of business lately? We have. Well, maybe not your book specifically, but we’ve evaluated many. And here’s what we find:
In any given book of agency business, the bottom half of accounts generally bring in 6% - 7% of total revenue. Yes. You read that right. 50% of accounts = 7% of revenue.
Meanwhile, the top 5% of accounts generate approximately 30% of total agency revenue.
What kind of clients do you want to work with?
A lot of clients that bring in very little revenue? Or a few clients that bring in a ton of revenue?
It’s not rocket science, here. But in order to get the kinds of clients you want, you have to know who you are looking for.
Here’s another way to think about it:
If you could have 10 more clients exactly like one of your current clients, who would that be? And what would it mean for your business?
Once you’ve examined your current client base and thought about who your best clients are, take a moment to do the opposite.
If you could give your competitor 10 of your most challenging and least profitable clients, who would they be?
Doing these simple exercises will give you a good idea of what kinds of companies are the best fit for your agency and which companies you can confidently pass by.
To maximize results, you’ll want to expand on these thoughts to create a detailed Ideal Client Profile that clearly identifies your target market. One you’ve defined who you want to work with, it will be much easier for you to start looking for those kinds of prospects.
Not sure how to create your Ideal Client Profile?
There’s an article for that.