Whether you need help with insurance marketing or to grow into entirely new markets, the American Agents Alliance can help.
Some accounts are more profitable than others. But what makes an account profitable? Is it possible to increase the profitability of your accounts? If so, how? Understanding account profitability and how to increase it is important to both insurance marketing and the maintenance of existing accounts.
Take a look at some helpful strategies for increasing account profitability.
Understand the Costs of Service
Increasing profitability isn’t necessarily about attracting new accounts. Some accounts are more profitable than others. Some accounts cost more to serve than others. In the long run, having a smaller number of high-value, long-term accounts will serve you better than having many accounts that require a higher cost of service and yield less profitability.
Analyze your accounts: after deducting all of the costs related to each account, see where profit was earned. This can help you visualize where profit is being lost and how to make pricing decisions that make sense.
While sometimes it makes sense to make certain concessions in order to keep a customer happy, repeatedly giving in to unreasonable requests to keep an account often results in a loss of profitability.
Increase Your Understanding of Your Accounts
It’s easier than ever to do a deep dive to understand your customers and discover what account services will benefit them the most and provide you with the most profitability.
Customer data is more accessible than ever before, and it allows agents to do a sophisticated analysis of a customer’s needs and what products and services they’ll get the most value out of without decreasing your own profitability.
Whenever possible, it’s best to take a more personalized approach to each account. Putting accounts into a one-size-fits-all strategy not only creates waste but also frustrates customers, which leads to a loss in profit.
Use advanced analytics to gain strategic insights into your accounts and help you predict future behavior. This will help you tailor your services in ways that will be most beneficial for your client’s customers and most profitable for you.
Adopt Better CRM Strategies
Inefficiencies in customer relationship management can lead to losses that are preventable. Using digital tools to boost performance and connect with customers is an easy choice from both an account management and insurance marketing perspective.
Not only will these tools allow you to provide a better customer service experience that makes outreach and onboarding easier for prospective and new customers, but they will also help you collect and analyze information about existing accounts, which will help you plan and strategize your customer service and marketing efforts.
What’s more, today’s digital-savvy customers appreciate a technologically-integrated approach that makes account management easier and more pleasant on their end. This can encourage customers to consolidate services or add more products to their current account, further increasing your account profitability.
If you’re looking to increase your account profitability and improve your customer satisfaction and account services, the American Agents Alliance is here to help. Contact us today.