A high retention rate correlates with high profits. If your policyholders stay loyal to your agency, you can generate revenue through renewals and referrals.
Unfortunately, there is a lot of competition in the insurance industry. Customers are constantly bombarded with offers from other insurance providers. So, it can be hard to maintain a loyal customer base.
If your agency’s retention rate is low, these strategies may help:
Anticipate Your Customer’s Needs
You don’t have to wait for the customer to take the initiative and talk with you about changes in their insurance requirements. You can use timely data to anticipate what your policyholders will need and offer them personalized solutions. Doing so will let them know you are looking out for them even after they purchased a policy.
An insurance agency management system from a trusted provider will offer a single location for all of your customer information. So, employees in your agency can easily find the data they need to anticipate your client’s needs.
Always Communicate With Your Policyholders
Building a relationship with the customer is essential in the insurance industry. To reinforce an existing relationship, steady and effective communication is needed. Make sure to stay in touch with your clients. Keep them updated on any new services or products that are relevant to them. But it does not mean the communication should revolve around insurance. Make it personal – send birthday greetings or advise them on topics you are an expert in.
Constant communication will assure your clients that you haven’t forgotten them. It may be difficult, especially if there are many policyholders. In this case, you can take advantage of insurance agency software that allows you to send texts, emails, and snail mail automatically from the platform.
Make Your Customers Feel Valued
If you want to gain a competitive edge in the industry, focus on building solid relationships with your customers. Another way to accomplish this is by making them feel valued. When clients feel that they are more than just a policy number, they are more likely to listen to your renewal proposal.
Provide a Great Onboarding Experience
There are many strategies you can adapt to ensure an outstanding onboarding experience. For example, you can automate emails to ensure the customer receives all the necessary information.
Sell on Value, Not Price Point
Selling policies at a low price can be tempting because it attracts more leads. But if you want to increase your agency’s retention rate, selling on price point isn’t a smart move. When a customer buys a policy because of the low price, what will happen when you increase the premium? Chances are, they will not renew but shop around for cheaper options.
So don’t just sell on price. Emphasize the value of the policy first. When customers are satisfied with the value they receive, they are less likely to look for other options. It will result in increased retention rates for the insurance provider.
Always Give Your Clients a Heads-up When There Is a Premium Increase
Inflation makes it impossible to keep prices the same. And if you want to keep your customers, always give them a heads-up before higher premiums take effect. Clients who are not informed about a premium increase may feel blindsided. As a result, they may be more likely to look for alternative insurance providers.
Make sure to communicate the increase clearly and explain the reason behind it. Clients are more likely to understand and appreciate transparency. You can also take this opportunity to offer options to help clients manage the increase, such as adjusting coverage levels or payment plans.
Cross-Sell Policies
Customers are more likely to stay if they have purchased more products from you. If you want to try this tactic to increase your retention rate, you can look at cross-selling.
But you cannot call your client and offer them new products out of the blue, right? There is a right time to sell another policy, and you can identify an opportunity by setting up an email campaign that utilizes cross-sell triggers. You can also search your book of business to find chances for cross-selling.
Don’t Forget to Offer Human Touch
While there are tools with features that enable customers to access and manage their policy anytime, anywhere, providing human assistance will still be helpful. For example, a customer may want to talk to you if there are complex policies they cannot understand. By making yourself available to answer any question, you are making their experience better.
Final Thoughts
If you want to generate more profit, don’t just focus on acquiring more customers. Make an effort to keep your existing customers happy, so they don’t switch providers. Doing so can lead to renewals, more clients, and, eventually, more revenue.