Why a Focus on Client Retention Could Transform Your Year
How is your year going? Whether it's the beginning of the year or closer to the end, you've won some and you've lost some. You've probably gained a number of new clients, and other clients have said goodbye. By focusing on client retention, you won't break that cycle, but you could change it to make this year a happier one for your business. Why could a focus on client retention make your year? You'll keep clients who have been part of your consistent group of clients throughout the years.
Client Retention is an Outstanding Marketing Strategy
Consider the work that you put into marketing to new clients, making them feel comfortable, and answering their questions? It's a lot of work to find a new insurance client. It not only takes time: it also takes money, because you need to invest in creating a website, developing blogs, creating brochures, sending out emails, and placing ads in the newspaper. According to Invesp, "It costs five times as much to attract a new customer, than to keep an existing one." If you could keep your existing clients for even a little bit longer, you'd need to do less marketing to stay where you are, and you could move ahead.
Your Existing Clients Are Brand Ambassadors
You spend time working on customer personas, trying to find the people who are the right fit for your insurance agency's products. Not everyone out there is the perfect customer, but you've found some: your existing clients. Not only are your clients the right fit for your current products, but it's likely that they're in a number of demographics that are also a fit for your products. You can leverage those existing clients as brand promoters for your insurance company the next time you want to market; use them as an entry point to their specific demographic group, whether it's seniors who want to find new auto insurance or young families who are starting out in their first rental apartment.
Your Current Insurance Clients Can Expand Their Insurance Horizons With You
That family who is moving into their first rental: what happens when they buy a home? Do they have a vehicle as well? According to Humanity, "You have a 60-70 percent chance of converting an existing customer into a repeat one, while your chances of converting a new lead are usually in between five and 20 percent." You can build on your relationships with your existing customers. They trust that you're going to take care of them as customers, and they are more willing to expand into new insurance product purchases with you.
How Can You Focus on Client Retention This Year?
According to the BT Technology Journal, "70% of customers choosing to leave a company do so because of bad service." This year, focus on building your customer service abilities. Whether that's through new and more efficient software, a plan to return calls within a certain period of time, or employees with new training to answer customers' questions in depth, you can improve your client retention by improving your clients' trust in your business.
At American Agents Alliance, we want you to grow your business. That's why we've created an insurance agent association that you can count on for networking opportunities, job postings, and more. Take a look at the many membership benefits that we offer and contact us today.