Business gained isn’t business guaranteed. While an effective insurance agency sales campaign will net you new customers, it’s your retention strategies that will continue to turn your new business into profit.
The average customer retention rate for insurance agencies is roughly 85% but while that sounds like a high figure, when looked at in scale it could mean losing more than 150 customers out of 1000, every year. Those 150 clients can amount to well over six figures in profit margins.
Here are the top 5 strategies you can integrate into your insurance agency sales efforts today that will increase your customer retention rates for tomorrow.
While most insurance agencies are based on the concept of honesty, many fail to follow through. When it comes to retention, honesty is crucial. If your customer files a claim regarding an auto accident she was in due to no fault of her own, you have an ethical responsibility to be honest about what types of compensation may or may not be possible. This honesty will go a long way towards improving your customer retention rates.
Grow Your Current Business Like You Do New Business
What sets apart the best insurance agencies from the rest is their unwavering focus on customer retention. No matter how many new customers you bring in, if your goal isn’t to grow your current business, you’re not doing what it takes to be successful. Growing your current client relationships and having an insurance agency sales strategy that focuses on growing their life, home, or auto insurance needs is crucial to long term success.
Specialize Your Product Offerings
Specializing your product offerings can help you to target specific customer demographics. When working with targeted customers, you’ll be able to provide more personalized service and cement the relationships you have with them.
Growing your agency around specialized product offerings will help you to create a niche. If you’re the only agency in town that offers certain types of policies or you know your product offerings better than any other agency, your customers will stay with you. This is both a great insurance agency sales and insurance agency management strategy.
Stay Updated on Insurance Trends and Legislation
While the insurance industry will always have its ebbs and flows, there are certain trends that you need to know about in order to stay effective in your insurance agency sales. When it comes to understanding what legislation is on the horizon, staying updated will ensure that you’re providing your clients with the most up to date information. If one of your clients is trying to purchase a new auto or home policy, she’ll want to know if the price of insurance will go up in the near future.
Recognize the Needs of Your Customers
Staying connected with your customers is the key to long term insurance agency sales success. The easiest way for you to do this is to recognize how you can best serve their needs. While you have certain products that are meant to attract new customers, knowing the ones that can positively impact the lives of your current customers is a great insurance agency sales play.
The Right CRM for Your Insurance Agency
An extension to this list of customer retention strategies is to utilize the right CRM for your insurance agency. With a robust offering of automated features that allow you to stay in constant contact with your prospective and current customers, as well as the insurance agency management tools you need to track revenue and team member workflow – InsuredMine is that right CRM. Schedule your demo and try InsuredMine for free today.