5 Insurance Customer Retention Strategies
Customer retention will be pivotal to the survival of insurance agents in the digital age. Recent studies have shown that most customers are already shopping for new insurance within two years of purchasing a policy, and it’s mostly because companies are not doing enough to keep them once they’re in the door. As the person closest to the customer in the insurance process, you the agent are one of the greatest resources for delivering a value-based experience that will not only make the customer want to stay, it will make him want to tell his friends. But to get to that degree of loyalty, there are several strategies that you’ll need to employ.
- Selling Multiple Policies
Few insurance companies, if any, fail to provide discounts to customers, who purchase more than one policy. If you can get a customer to bundle their life, auto, home, renters, etc., with your company, then it’ll be tough for another company to pry them away. That’s why the purchase of a second policy is so important to keeping the customer for the long haul.
- Make Yourself Easy To Find
Many agents feel like they don’t need a website, personal blog, or social networking presence. They don’t give customers any way to reach them other than the phone. This is a mistake. Customers want to feel as if they’re being taken care of wherever they are, and they’d like to know that the person they’re transacting with is knowledgeable and has their best interests at heart. By setting up a multi-channel online presence, you make yourself incredibly easy to find. That gives the customer peace of mind and more confidence that they’ll get an answer to their specific question whenever they have one without getting lost in the mix. Of course, the other part of this is that you have to respond, so make sure that you’re active on all your online platforms.
- Outsource Anything That’s Not Customer-Focused
Servicing the customer, staying on top of what their current and future needs are, and providing an experience that feels more like family than business, are all great utilizations of manpower that you could be putting to use if you outsourced some of the more mundane things that clog up the day. Do you really need everyone entering orders and customer information into a computer system? Don’t let outsourcing be a dirty word. You can use it to make your employees’ jobs more fun and fulfilling by eliminating the busy work.
- Make Time For More Annual Coverage Reviews
Customers are notoriously bad at updating their coverage limits, and since life circumstances change with each passing year, they’re setting themselves up for a rude awakening should they ever have to file a claim. Coverage gaps can leave a family feeling devalued, and as an agent, you can help avoid them. By focusing your efforts on improving the number of annual coverage reviews that your company conducts, you can help customers feel more involved in their own financial decision making, and also help them realize that they’ve bought more than just insurance. They’ve built a relationship.
- Strive For An Educated Customer
The angriest and most demanding customers are the ones who don’t know how the business works. Period. The more that a customer can be educated on how their products and coverages work, the less likely they’ll be to fly off the handle and jump ship. By explaining each policy thoroughly at the time of purchase and following up with your customer to show how any changes in circumstance might affect them, you’ll send the message that their well-being matters.
Over the next several years, you’re going to see a trend strengthen that is already in motion, and that is this: customer retention rates and company success will be direct correlatives. Yours won’t be able to survive without strong retention, and the five methods above will help you get there.