3 Core Focuses To Massively Grow Your Insurance Business
“Growth” can be a scary word if you don’t have a foothold on how to bring it about. In the insurance industry especially, the emphasis on growth and the rise of new business models — like Google’s foray into insurance, for example — has many needlessly running scared. The truth is that Growth can be your friend provided you are focused on the right ways of bringing it about. To do so, there are three core focuses that need to serve as the foundation of your business moving forward. They are:
1. New Client Acquisition
Resting on your laurels isn’t a good idea when it comes to the world of insurance. That’s because customers are smarter and savvier than ever before, and they know how to use the Internet to find rock low prices. What they’re not particularly good at is finding value on their own — more on this in a bit — and that’s precisely why there is so much turnover. The typical cycle goes something like this: a client finds the lowest price on his auto insurance (for instance). He signs up. He has little help and feels pretty good about his purchase until the first time his rate goes up — either due to basic adjustments, traffic incidents/accidents, or both. At this point, he starts shopping around again and repeats the process until someone finally steps up and gives him a reason to stay. The whole process takes three years or less, according to the data. That means someone is always shopping around. There are clients to be had and clients to be replaced. You can’t afford to neglect this aspect of your business.
2. Higher Revenue Per Client
How do you keep a client past the three-year mark? Well, we’ll get into it a bit further with the next item, but part of it is by maximizing the revenue that you get for each client. When you turn your auto insurance lead into an auto insurance customer, your next move should be to find out other areas where they may be underserved. Maybe they’re buying a home and need homeowners insurance. Maybe they’re renting and need renters insurance. Maybe they have a family and need life insurance. All of these legitimate needs require attention. You can be the one to give them that attention, earning them discounts across the board in the process.
3. Client Retention
While maximizing revenue is part of client retention, it’s definitely not the only part. Yes, clients who purchase two or more policies from the same agent have shown a propensity to stay put, but if you allow your understanding to stop there, you’re setting yourself up for a fall. In most if not all of these cases, clients are staying put not just because they’re “in too deep,” but because the level of service they get from their agent is second to none. Agents who are showing their appreciation to clients, checking on them after an accident, helping them through a claim, and helping them obtain the right amount of coverage at the best price, are offering value worth sticking around for. And the data shows that if you are able to keep a client on board past the seven-year mark, then you’re probably going to have them for life.
The three areas listed above are where most growth-oriented agencies and agents focus their efforts. How are you doing in each of these areas? Share some of your struggles, challenges, or opportunities with us in the comments section below.