Best Customer Retention Strategies for Insurance Agencies
Customer retention is one of the most effective areas that insurance agencies can focus on to grow greatly and generate more revenue. The cost of customer acquisition is very high in the insurance industry as it costs almost 7-9 times more for an insurance company to attract new customers than retain existing ones. That’s why experts suggest focusing more on insurance agency retention to sell more. Just as you set annual production goals for the sales department, you should also set customer retention goals to skyrocket your sales throughout the year.
In this article, you can find some proven customer retention strategies for insurance agencies to get started effectively and retain more customers to generate more sales.
Understand who your Customers are and what attracts them
An insurance agency cannot think about retaining existing customers until it knows what is important to customers and what their insurance needs are. For instance, when you are selling funeral insurance plans, you should understand your ideal customers and find out their expectations regarding the products they are looking for. Customer segmentation is superb way to categorize your customers based on different characteristics like price-sensitive customers or prospects that are service sensitive. This will help your sales and marketing teams to create and send personalized offers based on their interests and expectations.
Sell Value not Product
If you want to retain more insurance customers, make sure you understand the needs of customers and offer a product that adds real value to their lives. Find customers who prefer you over your competitors for the expertise and value you deliver. Not just the customers who choose lower premiums. According to industry experts, low-price buyers are not considered for loyalty but they are the bottom feeders of the business. So, design products that deliver value because customers, who buy your product for value, are more likely to refer more.
Be an Expert Communicator
For insurance agents and companies, it is important to stay in front of customers all the time to build strong relationships. Having chances of regular interactions is the most important aspect of staying in touch with customers through several communication methods like calls, texts or emails. In this digital world, insurance providers should be using advanced communication methods and tools like live chat, social media, and chatbots to be easily accessible and available 24/7. Signing on new customers without having a proper communication process at a place is a common mistake insurance companies make these days.
Check the Relationship Pulse with Insurance Customers
To retain more insurance customers, an agency must build a workflow using several touchpoints throughout the policy year. This helps them interact with customers after every 30 or 60 days after closing sales to collect feedback and inquire if they need anything else from you. Make it easier for them to share their honest feedback with your agency so you can resolve the issues if any and recognize the customers with higher levels of satisfaction.
Upsell and Cross-sell
The more bonds you have with your customers, the stronger the relations with customers and the more difficult for customers to move business to your competitors. Satisfied customers are more likely to refer their friends and family to help you generate team. Furthermore, working with your account management team for upsell and cross-sell could be a great way to increase your sales while keeping old customers coming back for more.
Personalization is the Key
All the insurance services you provide in general are the same as those offered by your competitors in the market. You need to find smart ways to stand out and personalization is the best way to do so. You can set yourself apart from competitors by offering highly personalized products and services based on individual customer needs and expectations. This will give your customers a good reason to choose you over the other agencies in the industry and build long-term lucrative relationships with your agency. Insurance agency retention in life insurance and other types of insurance usually depends on how well you present your product in the best way possible. You should take time to communicate with customers often to understand their needs and how your product can fit their insurance needs.