An ideal client profile is an outline of the kind of companies you want your insurance agency to do business with. It's not a description of the decision-maker or buyer in an organization, but a description of the organization itself.
An insurance agency needs clients. However, before picking up the phone and calling every client on your prospecting list, you need to define what is called your ideal client profile--a detailed outline of the type of organizations that need the services your agency provides.
The clients an agency needs
To a business interested in revenue, growth, or survival, you need specific clients. It seems that working with everyone would be the best choice, but that is not always the case. After evaluating many books of business, we have found that
In any given book of agency business, the bottom half of accounts (50%) generally bring in 6% - 7% of total revenue.
Meanwhile, the top 5% of accounts generate approximately 30% of total agency revenue.
What kind of clients do you want to work with?
To get the kinds of clients you want, you have to know whom you are looking for. Here is another way to think about it:
If you could have 10 more clients exactly like one of your current clients, who would that be? What would it mean for your business?
Once you have examined your current client base and thought about your best clients, 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 agencies are the best fit and what agencies you can pass by.
Creating an ideal client profile
To maximize results, expand on these thoughts to create a detailed ideal client profile that clearly identifies your target market. Once you have defined whom you want to work with, it will be much easier for you to start looking for those prospects.