Insurance Client Acquisition
As an insurance agent, you probably know that the insurance industry has the highest acquisition costs of any industry.
And on average, it costs 7-9 times more to attract a new customer than to retain an existing one. (Independent Insurance Agents of Dallas)
That being said, it's important that you're being smart with your acquisition efforts and dollars.
Part of making sure your acquisition efforts make a difference is retention.
New customers won’t affect your agency growth unless you’re also retaining your most profitable customers.
"High customer retention rates consistently and positively correlate with high profits.” - IIAD
Customer Satisfaction ≠ High Retention Rates
Multiple studies have shown that mere satisfaction isn’t enough to keep your customers around - especially in today’s economic climate.
That’s why we’ve done research to find all the different factors that go into giving your customers an exceptional experience with your service - thus increasing retention!
1. Proactive Communication
It’s important for you to stay top of mind with your clients - not just your leads. (Talage)
The more positive interactions with your agency that bring value, the “stickier” your clients will be.
Here are some things you can do to stay top of mind:
Social media updates
Mail (birthdays, thank you notes, holidays, congratulations, etc.)
Just make sure that these contact points always add value - too many touch points that don’t seem relevant to them can actually detract from their experience.
Having multiple channels of communication with your clients also gives them more avenues to reach you when they have a question or concern. (Talage)
2. Proactive Servicing
Being proactive when it comes to servicing your clients increases their trust in you as their insurance advisor.
Educate Your Clients
Educating your clients on their potential risks and coverage does a few things:
Arms them with information necessary to make decisions
Gives them confidence in their decision making
Establishes you as a trusted advisor - not a salesperson
Shifts the focus from price to value and protection
Regularly Review for Discounts - and make sure they know about it!
A discount doesn’t actually add value to their experience if they don’t know they’re getting it. (Insurance Splash)
Multi-lined customers are much more likely to stick with your company for a longer time.
Bundling also usually makes more discounts available to your customers.
One Simple Way to Do it All
It might seem like a lot of different things to worry about, but holding regular customer insurance review meetings (Simple Conversations, FFRs, IFRs, PPRs, etc.) with your existing customers helps you to cover all those bases!
Reaching out to your current customers to invite them in for a review gives you the opportunity to:
Get to know them - deepen the relationship
Get to know their needs and educate them about their risks
Educate them about their current coverage - show them the value you provide
Educate them about other coverage options
Review for discounts
Finding potential gaps in their coverage
Multi-line their coverage
If you’re not already holding regular customer insurance reviews or if you’re not confident with your current process, check out the FREE AgencyThrive program.
AgencyThrive gives you all the tools you need to implement an effective customer insurance review plan for your agency. It’s 100% free and you’ll have lifetime access to the videos and worksheets.
You can also learn more about customer insurance reviews in this blog post: