As Insurance Agents, it is extremely important to find simple cost effective ways to make an impact on your retention. Your current book of business is what brings in over 85% of your agency’s revenue and it is imperative to keep a close eye on it. We’ve worked with hundreds of insurance agents across the country and here are our 4 simple ways to retain more business.
1. Call Your Current Policyholders
I know this seems extremely simplistic, but we are here to tell you THAT IT WORKS! We recommend calling them up to four times each year, simply because that is what all the case studies say work to optimize your retention. In most cases, agencies that call their current client base 4 times each year have a 3-5% higher retention amount than those that don’t. Our rule of thumb is do 3 happy calls and one deliberate call. Here are our recommendations:
- Happy Birthday Call
- Thank You For Your Business Call (Summer and Holiday)
- Annual Review (see number 4)
Keeping with set plan with reap great rewards.
2. Speaking of Rewards
Enticing your current book of business to refer you business or give you their most recent contact information is a great customer experience. Something as easy as running a Facebook contest where you will draw for a $100 gift card for a referral or if your client provides an updated phone/email address goes a long way and let’s customers believe that are a part of your agency. When we run these campaigns, we typically see hundreds of responses for our insurance agency clients.
3. Reinforce The Sale
Most people hate paying for insurance because it is one of the rare products where you pay money and you don’t get anything UNLESS something happens. We’ve all heard it before, “man, I pay all these premiums and you guys just keep jacking up the price every year…” For obvious reasons, you didn’t increase their prices, but this type of client does not understand the importance of what you have sold them. It is your job to remind them why purchasing insurance is such a great decision for them, their family and loved ones and how it properly protects them from damage and liability. The easiest way to do this is through email. We know everyone hates to get a ton of emails, but emailing your client base once a month can make a big difference on someone shopping this year vs. staying with you b/c they know you took care of them.
4. Offer an Annual Review
Offering a review is imperative to keeping business on the books. Notice the emphasis is on offering and not actually doing a review. Studies have shown that policyholders that are offered a review renew at the same percentage as those that actually do a review. The simple act of offering makes a positive psychological impact on the policyholder. The ones that want to review their policies, do it and always try to sell them another policy; but for the rest, the simple offering of a review will suffice and won’t keep your staff bogged down. NOTE: do not remind people that their insurance policy is coming up for renewal, as you don’t want to give people the thought to start going and kicking tires. However, offering a review about a month before renewal will yield great results.
These 4 simple tasks will have a large impact on your current book of business. Don’t believe us? Take our quiz to see how much money you are missing out on each year by not having a retention strategy.
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