How Long Do You Keep Your Insurance Clients?
Do you believe in long term relationships? While some insurance clients might be fleeting, the basis of an insurance business is your long term relationships with clients. These relationships can grow and change over time as your clients' needs change, but your overall goal is client retention. When you're considering your insurance marketing goals, think about how you can encourage your existing clients to meet their insurance needs within the context of your existing business.
When you're looking at client retention, what is the standard? The turnover of customers in U.S. businesses is surprisingly high. The Harvard Business Review states that "on average, the CEOs of U.S. corporations lose half their customers every five years." The statistics are a little less grim in the insurance industry. In a J.D. Power and Associates 2013 U.S. Insurance Shopping Study, 33 percent of insurance customers were shopping for new insurance in 2011. But, on average, 90 percent of customers stay with the same insurance company year after year. Not all of those who shop will switch, although those who do are often highly motivated by price. How can you ensure that your clients who are shopping choose to remain with you?
Developing a true relationship with your clients is the path to client retention. Reach out to existing clients to see if they have questions about their insurance products. Encourage clients to contact you with concerns, and be ready to answer in a prompt and thorough manner. Open dialogue can help you see where your organization may be weak. Identifying weaknesses through discussion with your clients allows you to take action to become a better company and, with this response and improvement, can come better client retention as well.
Develop a Convenient Experience
Today's clients look online to comparison shop for insurance. Your business should be visible to new clients online, but it should also be convenient for your existing clients to interact with you online. Make sure that your existing clients can get their account information, look for new insurance products, and answer their questions about their insurance easily, so that they don't decide to switch to an insurance company that offers easy online registration.
Offer Discounts and Perks
To improve client retention, reward your clients for staying with you in the long term. Rewards might include incentive programs such as discounted auto insurance for excellent drivers. They could also include invitations to exclusive events, such as a workshop, webinar, or resource kit that focuses on how to disaster-proof your home. Show your clients how their insurance can add value to their lives year after year.
Look to Your Core
Who are your core clients? When you're thinking about client retention, consider who you are really speaking to when you're developing your insurance company products. Is there a niche where you're particularly successful at satisfying clients and developing longstanding brand loyalty? Who are your most lucrative and long term clients? When you know who you're speaking to, you can target your client retention strategies accordingly.
As you work to develop your brand, the American Agents Alliance can help. We're a group of independent insurance agencies working to connect, educate, and advance together in the insurance field. Contact us today to learn more about our wide variety of membership benefits.