Retaining Customers Can Lead to Profitable Growth
Most insurance professionals, both new to the industry and experienced, put in a lot of time and effort in finding new customers. Insurance professionals will typically look for ways to get their name out in the community through referrals or through social media and will spend valuable resources such as time and money to acquire a new customer.
However, successful insurance professionals know that it is equally important to retain current customers due to high acquisition costs for new customers. According to The Independent Insurance Agents of Dallas, on average, it costs seven to nine times more to attract a customer than to retain a current customer. So, what is an insurance professional to do to keep customers from finding another company to work with?
- Stay Connected. Keeping insureds’ policies correct and up-to-date requires regular communication. Being aware of changes can help insurance professionals make coverage recommendations or provide loss prevention ideas. Connecting with customers can happen over the phone, through the mail with renewals or through social media. USLI University offers a variety of online resources to help improve communication skills and selling techniques.
- Sell Additional Policies. The more policies an insured has with one insurance company, the harder it is for the insured to find a new insurance company to work with. Many insurance professionals have found success cross-selling a USLI Home Based Business policy to their current book of homeowners business. There are millions of individuals nationwide who operate a business from their primary residence including classes such as direct sellers, DJs, photographers, wedding planners, teacher/tutors and tax preparers. Many of these people do not consider themselves to be running a business. Rather, they have a hobby that earns income.
- Find Ways to “Wow” the Customer. Providing a memorable customer experience helps to build loyalty between an insurance professional and an insured. This can be done in a variety of ways but the most effective way to “wow” customers is by being genuine and sincere. This can be as simple as thanking them for their business or responding to a customer after hours. When insurance professionals show customers that they care about them, this can build a bond that lasts a lifetime.
- Bring Value. Staying updated on what is new in the insurance industry helps to bring value to every interaction with customers. For example, knowing how identity theft protection or cyber liability coverage can help protect an insured and recommending these coverages to your customer can increase the trust level.
It can be easy for insurance professionals to focus on getting new customers, but successful professionals have the discipline to allocate time each day to finding opportunities to grow the trust and loyalty of their existing customers.
To learn more about products that can be cross-sold, like USLI’s Home Based Business product, please contact your Personal Lines Underwriter today.
As always, thank you for your support and business.
Contact Matt McShane,
Product Leader, Senior Underwriter | 888-523-5545 Ext. 2142
Written by Bill Peel
March 8, 2018