Photo from StoryBlocks.
How Important is Customer Retention?
While it is great to gain new clients, it isn’t always guaranteed to be a steady stream. And even if you were to run a successful campaign to acquire new customers, customer retention is what creates real profit.
Customer retention for insurance agencies is sitting at 84%, which is impressive. When you scale these numbers, it could mean losing 150 clients out of 1000 every year. And those 150 people could equal a large amount of income for you and your agency.
Continue reading to learn a few strategies your insurance agency can implement to increase customer retention.
Maintain Focus on Current Business
A lot of energy goes into finding new clients, such as running ads, attending events, marketing emails and texts, and so much more. Are you putting that same energy into your current book of business? Every year your clients have the chance to work with a new agent if they have felt neglected by you in any way. So, it’s extremely vital that you continue communicating throughout the year and ensuring you are meeting all their insurance needs. Building those existing relationships pays off in the long run.
Remain Honest About Upcoming Changes
When it comes time to renew a policy, there might be a few changes that can come with the yearly renewal. It’s your job to be upfront and honest about those changes for your client. If the premium on their policy rises higher than last year, you need to explain why. Do not merely let them receive documentation pertaining to their policy modifications and be confused. You must be proactive in explaining the changes and why they are happening.
Everything always leads back to communication and transparency. Establishing moments of honesty can build trust, loyalty, and renewal rates.
Expand Your Product Offerings
While it remains beneficial to specialize in a specific product, that doesn’t allow you to offer full coverage for your clients. Many risks exist in the world, and the insurance industry provides help to protect against those risks.
When you expand the number of products you offer, you become a one-stop shop for your client’s insurance needs. Therefore, you avoid the risk of your clients moving elsewhere to receive insurance services.
Agents
We hope that this information on increasing customer retention is useful to you.
Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!
Give us a call at 888-539-1633 or leave a comment below if you have any questions.
Quick links:
Kayla is a graduate of Texas A&M University and joined the marketing team at Empower Brokerage in early 2021. She creates content for the company websites and assists with various marketing campaigns. LinkedIn Profile
