If there is one aspect that is very heard to manage in a company, it would actually be the sales force. This is because there are just so many aspects to consider here. But when you place this into context of insurance companies, then the task becomes all the more confusing and daunting. Thus, you can expect to have a bit of difficulty when you are plotting your sales insurance scorecard. And this scorecard would be comprised of KPIs or key performance indicators.
Now, a lot of people do not really think that a scorecard is really needed when it comes to measuring sales in insurance companies. But if you really think about it, it is inevitable to measure the sales performance of any company. And what more if this particular company belongs to the industry of insurance companies? After all, insurance companies do sell policies and packages to individuals and corporations all over the world. Thus, it would really make sense to measure how the insurance company is performing in terms of sales.
However, just like in any other industry, it is not really that easy to come up with a scorecard that measures the sales performance of insurance companies. The better way to do this is then to find the appropriate KPIs to use. Make sure to choose a few relevant KPIs to include on your scorecard. This way, you can effectively avoid the presence of too many KPIs, since this would just make interpretation and analysis more confusing.
These KPIs can be grouped into four perspectives, and this is actually the common practice of a lot of insurance companies. These four perspectives include Financial, Operational, Customer Service, and Education and Training.
The financial perspective is actually helpful in the evaluation of the financial aspects of the insurance company. The commonly used KPIs here include incentives as salary percentage, annual salary, percentage increase in training costs, and increase in profit per sales executive.
The operational perspective, on the other hand, focuses on the operations of the sales force. All aspects pertaining to operations would be grouped under this particular perspective. The commonly used KPIs include percentage of policies sold, percentage of policies renewed, percentage of policy lapses of missed payments, percentage decrease in employee turnover, and number of sales targets achieved.
As for the customer service perspective, KPIs can include the number of customer-focused products developed, the percentage decrease in customer complaints, the percentage of policies upgraded, and the number of referrals that are generated from existing customers.
The education and training perspective, meanwhile, pertains to the steps that are taken by the insurance company towards the improvement of the sales force’s efficiency. Of course, you cannot expect an insurance company to forego investing on educating and training their existing employees. This is because all employees do need supplemental training from time to time. The commonly used KPIs here include number of motivational training sessions, number of training sessions, number of brainstorming sessions, number of feedback initiatives introduced, and so many more.