Three Ideas to Improve Client Retention
by Seth Groff
Sell! Sell! Sell! A common characteristic of the insurance industry is to focus on new sales. Insurance companies incentivize writing new business, and selling is the primary focus of most insurance company-sponsored training. Existing clients becoming a second thought and your book of business quickly becomes a revolving door, forcing you to constantly find new clients as your existing clients find a new agent.
Successful insurance professionals do not make this mistake. They recognize the importance of client retention.
Focusing on client retention is much more profitable than ignoring existing clients. How do you find your clients? Do you buy leads, purchase advertising, or invest in networking? Prospecting for new clients takes time and money. Most agent compensation starts when someone purchases a policy, then the compensation only continues while the policy is in force. In simpler terms, you won’t get paid if your clients drop their plan.
Happy clients are more likely to refer a friend or family member. People talk. A current customer is more likely to talk about the benefits of working with you. Make sure they know the services you provide and that you are willing to help the people they know.
Insurance is a relationship business. The stronger the relationships you build, the more successful you will become. Some benefits are not measurable. However, if you do what is right for the client you are more likely to realize the investment with a long and prosperous career.
Whether you are a one-person shop that does all aspects of the business or you have a team dedicated to client retention, here are three ideas that work!
Set Expectations – Client retention starts with the sale. Make sure the client knows that you will be reaching out to them periodically to see if their situation has changed and make adjustments if needed.
Communicate – One reason clients leave an agent is due to lack of communication. Develop a communication plan for your existing clients to ensure they know the benefits of the policies you sold, other problems you might be able to help them solve, how to use the plan if something happens, you care and you’re willing to help them solve other problems if you’re able to. They might not respond to every communication, but it is important that they know you are there for them when needed. Once they do reach out, be ready to listen and help them through their problem.
Provide Additional Value – Your competitors probably have access to the same products and carriers that you are selling. What differentiates you from your competitors? Successful agents find ways to add additional value. This can be something simple like helping your Prime DVH customer find an in-network provider or educating them on other areas where you might be able to help with their insurance needs.
Allocate time for client retention every week. Develop a client retention plan and start executing it. Listen to your clients, and if one leaves, try to find out why. The answer will help you better serve your remaining clients.46926e-C-0121