Making more money with renewals depends on your customer relationships. If you build long-lasting relationships, you will discover that renewals are an invaluable source of income. This is why it’s imperative that you don’t miss renewals as they come up.
One of the best ways to ensure that you stay on top of renewals is to invest in the right software. For instance, the right insurance agency management system will automatically notify you when accounts are due for renewal.
Here are more tips you can follow to ensure you’re making the most of your renewals.
Put Your Customer First
Putting your customer first will help ensure renewal success. If you take an interest in your customer’s life, they will be far more inclined to trust you with their insurance needs.
It’s always a good idea to stay in contact with your customers throughout the year to ensure they’re satisfied with their existing policies. At the same time, you can check with them to see if they need additional insurance products.
Of course, the phone call shouldn’t only be about selling more insurance. For instance, take the time to listen to how your customer’s business ventures are panning out and whether they’ve started building their new house.
You can also send out email surveys to determine customer satisfaction. Again, this is where an agency management system will prove invaluable.
Never Overpromise and Underdeliver
It should always be the other way around. When you start working on your renewals, you must have high-value products that you can offer your clients. At the same time, you should be planning on overdelivering on service.
In addition to excellent customer service, you should also provide incentives to loyal customers. You can offer free consultations, discounts, and loyalty programs.
Once you start giving out discounts and freebies, you should invest in software that will keep track of them. An agency management system will highlight which customers have received them and keep track of unsuccessful renewals.
Personalize Your Customer Service
AI has had a dramatic impact on the world, including the insurance industry.
Many agencies are should consider using AI for bulk emails about insurance changes or for a live chat function, but you must personalize most of your client communications.
You’ve taken a lot of time to get to know your client and their specific insurance needs. You don’t want to send them useless information about insurance products they’ll never need. They’ll start ignoring your emails and may miss something when you do send them something that relates to them.
Instead, you should craft personalized emails that introduce new insurance products that appeal to your client base. This way, you’ll have earned your client’s appreciation and retained his business for another year.
Don’t Overcomplicate the Renewal Process
An insurance agency management system is the easiest way to automate and simplify the renewal process for your customers. As you get to know individual customers, you’ll soon realize that some of them don’t need constant renewal emails and phone calls.
For these customers, an automatic renewal and payment system will be why they stay with your agency. This software can highlight insurance gaps and notify you of recommended coverage for specific clients.
Furthermore, this management system makes it a breeze to cross-sell to your customer base. If you use account rounding as a sales strategy, this system will show which of your existing clients haven’t yet received information about new insurance coverage.
Account rounding is beneficial to an insurance agency because it minimizes the risk of your client finding insurance elsewhere. It also allows you to hold smaller accounts with higher values.
Customize Your Overall Service Offering
While you’re building relationships with customers, always keep the ROI of renewal business in mind. If you work hard to gain a customer base that trusts you, renewals will become a core part of your business.
The longer a client does business with your agency, the higher the chance they will refer potential clients to you. This happens when customers trust a brand to the extent that they want others to enjoy the same products and client service. Word-of-mouth plays a massive role in new business, which is why renewals are so important.
The best way to build a lasting customer base is to offer customized services. People prefer personalized service, which many consider the future of the insurance sector. If you tailor your products and services to suit specific customer needs, you will increase your revenue and keep the renewals coming every year.
Customized insurance drives effective sales strategies, improves customer satisfaction, and streamlines your agency’s internal operations.
Conclusion
Renewals are crucial if you want your agency to thrive, even during difficult economic times. If you spend enough time building strong customer relationships, you’ll see the reward in renewals and referral business. It’s never too late to put the focus back on the customer and reap the rewards in the months and years to come.