Customer retention is the key to an insurance agency’s ability to thrive. It costs much more in terms of time, money and effort to to add new customers than it does to keep those who are already in your book. If you’re looking for ideas to help you nurture long-lasting relationships with your clients, here are three secrets to improve customer retention at your agency.
1. Cross Sell
If you aren’t already doing this, you should start immediately. A great example of this is whenever you sell someone a homeowners policy, you should also ask about auto (and vice versa). Even if your customer is happy with their auto or homeowners coverage and aren’t interested in shopping it at the current time, don’t give up. Politely ask if they would like for you to reach out with your rates at the time of their renewal.
You can also mention and describe an umbrella policy, even if that person’s assets don’t make them a candidate…yet. It might not be the right fit now, but you’re planting a seed. Also, that customer may have friends or family members for whom an umbrella policy makes sense.
2. Annual Coverage Reviews
Check in with your customers at least once a year to find out what changes have happened or might be on the horizon. Ask about remodeling projects, when their teenagers will start driving or if they are thinking of purchasing a new home or car. It will feel less intrusive if you explain why you’re asking first and put it in terms of trying to save them the most money, choosing a more comprehensive policy and/ or taking advantage of available discounts.
A proactive annual coverage review is also an opportunity for you to solidify your relationship by establishing that you have their best interests top of mind. When you reach out to them before they’re even thinking about renewal, you show that you’re working for them throughout the year, not just when you’re collecting their money.
3. Make Regular Contact
This doesn’t mean once a week. But spend some time considering how you can bring value to them from time to time, then set up a contact calendar. If you have a CRM system in place, a customer relationship management system, you can automate all of those points of contact ahead of time, including creating responses that can be customized for each client and the timing of when each contact is sent. You can also reach out with several free or inexpensive digital methods.
One of the best reasons to contact a client is if you have good news or to offer a congratulations. Keep track of when a customer’s claim or accident will drop off their record and let them know that it’s a good time to requote. Take the time to write a thoughtful hand-written card after a big life event such as a birth, home purchase or if they’ve started a business. You’ll make an impression.
Courting and maintaining good client relationships takes attention. Providing good customer service takes time. But both will be well spent if they improve the long-term viability of your agency. When you invest energy in customer retention efforts, you’re investing in your own future.
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