In the current insurance market, customers continuously have ads and offers in front of them from multiple insurance agencies. Because there are so many options, it is risky to base your agency growth strategy solely on new business. Insurance has the highest customer acquisition cost of any industry, so keeping your clients happy and building a solid retention strategy makes far more sense.
The average agency retention rate is 84%, but the top performing agencies maintain a retention rate upwards of 95%. A 5% improvement in retention rate can double your agency’s profit over five years. That’s a lot to take in. But working on your retention strategy isn’t as complicated as it sounds.
Here are some ways to improve your retention and increase your profits.
Improve Onboarding
First impressions count. Your agency onboarding process shapes a customer’s view of how you will continue to service them through the lifetime of their business. If their first experience with you goes wrong, the next issue will send them running.
Review your current onboarding process and look for any outdated procedures or complicated steps. Onboarding should be easy and efficient for both you and the client. Be sure to ask customers for feedback after onboarding is complete and incorporate improvements whenever possible.
Up-Sell and Cross-Sell
Retention rates are higher among customers with multiple policies. Customers who hold two or more policies with your agency are more loyal than those who have just one. In fact, the retention rate for multiple policy holders is 95%. When you sell an additional policy to a customer, you are adding more lifetime value than the revenue from the original policy.
As you get to know your customers, take time to offer additional products that add value to their lives. Leverage data to look for coverage gaps or offer pricing options. When a customer feels like you’re looking out for them, that appreciation translates into loyalty and better retention rates for you.
Reach Out Often
Being proactive with regular customer communication builds goodwill and trust – don’t wait for customers to reach out to you. Customers are most likely to leave an agency within a year of purchasing their first policy. That number decreases significantly after four years. This demonstrates the importance of creating a good customer experience through regular communication.
Reach out to your clients any time you have news to share or value to add to your relationship. Policy changes and upcoming renewals are examples of opportunities for proactive communication. Keeping in regular contact with your customers strengthens your relationship and increases loyalty.
Reward Renewal
Policy renewal periods are a great opportunity to acknowledge your return customers and thank them for their business. Sending a personalized thank you card lets your customer know you appreciate them. Invest in branded merchandise like pens or calendars to share with clients and increase visibility with potential new customers.
Incorporate Technology
Customers have come to expect businesses to be available on mobile platforms. To offer convenience and improve the customer experience, use tools like an insurance agency mobile app so clients can handle basic tasks like checking policies or making payments. Not only will customers appreciate the convenience, but the mobile service tools will also save you time.
In addition to technology for the customers like an insurance agency mobile app, consider investing in technology for the agency. Insurance CRM tools offer many features for end-to-end relationship management. Not only do these tools make it easier to track your leads and sales funnel, but they also help you create workflows for better upselling and client servicing.
With an insurance CRM tool, you have one centralized place to carry out all agency activities. Accounts can be marked when there is client contact and you can set notifications for follow-ups and future tasks. These reminders keep valuable business from falling through the cracks and give your customers confidence that you will keep your word.
Insurance CRM tools are also able to analyze customer and policy data to find potential gaps in coverage or other policies that might interest the client. When you contact customers for renewals or check-ins, you will be equipped with information that can help up-sell or cross-sell additional policies, which, as we know, helps boost retention rates.
InsuredMine – The Best Insurance CRM for Boosting Retention
If you want help implementing a tool to boost retention rates in your agency, count on InsuredMine for a top-of-the-line insurance CRM. Our all-in-one insurance insurance CRM is everything you need to elevate your customer experience. Try InsuredMine for free today.