What Is Conversion Ratio in Insurance Sales?
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A conversion ratio is the share of your chances that reach the next step.
What it is
Conversion ratio = what came out ÷ what went in × 100. Each step of a sale has its own:
| Ratio | Formula | What it tells you |
|---|---|---|
| Lead-to-quote | Quotes given ÷ leads received | Are you reaching people? |
| Quote-to-close | Policies written ÷ quotes given | Are you closing? |
| Lead-to-close | Policies written ÷ leads received | How well the whole path works |
Lead-to-close is the other two multiplied together. On its own it tells you how many leads become customers, but not where the rest were lost.
A worked example
Example. A producer gets 100 leads, quotes 50 and writes 15 policies. Lead-to-quote is 50 ÷ 100 = 50%. Quote-to-close is 15 ÷ 50 = 30%. Lead-to-close is 15 ÷ 100 = 15%, which is 50% × 30%.
If lead-to-quote is low, look at the leads and how fast they are called. If quote-to-close is low, look at the selling.
Why it matters more than total sales
Two producers each write 40 policies a month. One used 200 leads and the other 400. The first converts twice as well, so more leads to the first producer mean more sales.
How Producify works it out
For quote-to-close, Producify divides the policies written by the quotes logged for the same period and shows the result as a percentage.
For lead-to-close, the Leads page shows Lead conversion %, which is leads converted ÷ leads billed.
Producify does not record quotes by lead source, so it has no lead-to-quote figure. See See your quote conversion.
Frequently Asked Questions
How is conversion ratio different from close rate?
"Close rate" usually means quote-to-close. "Conversion ratio" can mean any of the three, so ask which one is meant.
How many leads or quotes do I need before the ratio is reliable?
Enough that one sale more or less barely moves it. With 20 quotes, one extra policy moves quote-to-close by 5 points; with 200, by half a point.
See conversion for your own team
See quote-to-close for each person on Team and lead conversion for each source on Leads.
See our page on sales and production tracking for insurance agencies.