Top 5 Reasons Your Customers Are Leaving
The insurance world is a highly competitive one, made doubly so by the fact that customers have access to so much information nowadays that it’s easy for them to compare prices and research policies on their own. But when you look at the statistics, around 69 percent continue to prefer buying through an insurance agent, and that’s a percentage that has remained consistent through countless studies over the last five years.
In other words, customers know what technology can do for them, and they still prefer the expertise and guidance of an insurance agent. However, that doesn’t mean it’s a done deal once you get them signed up. In fact, many customers leave for a competitor within two years. Here are some of the top reasons they choose to do so.
- They found a better price.
It is an unavoidable fact that many insurance customers hop around based on the lowest price — for a while. Eventually this type of nomadic behavior has negative effects on customers over the long haul because they don’t completely understand the implications of what they’re buying. They price everything individually and miss out on package discounts due to the piecemeal mindset. They also don’t have the knowledge of what they’re buying and often end up underinsuring themselves in some aspect of coverage. While there’s not a lot you can do to stop customers from shopping around, you can be there when it backfires. You can also offer personalized coverage as a disincentive to shop around and make sure the customer is educated on the benefits of packaging insurance products.
- You failed to up-sell.
This is an area where, as an insurance agent, you have absolute control. If your first order of business isn’t to discuss other insurance needs with a customer once they’ve signed up and you’ve had a look at their situation, then don’t be surprised when they jump ship at the first better price they find.
- You aren’t staying involved with their insurance needs.
Every insurance customer experiences life changes, and as their agent, you often have the data you need to stay involved in what’s going on in their lives. Whenever there is a marriage or the birth of a child or the purchase of a new home, you have the chance to capitalize. But you can’t depend on them to come to you. You have to go to them, or at least be willing to.
- You’re scattered and unorganized.
This point piggybacks on to number three in that if you’re scattered and unorganized, it’s harder to stay involved in what’s going on with your customers. You must have a system in place for tracking customers and reaching out to them, and that system must balance with your efforts to acquire new customers.
- You’re not doing enough to stand out.
Selling insurance still means you largely must contend with regional competition. Yes, there are mostly national companies serving each market, but customers still prefer dealing with agents, and so that means your competition is largely flesh-and-blood, and they’re in the same boat you’re in with regard to outreach and acquisition. It’s vital that you strategize and think of ways that you can get your name out there and stand out from the rest of the pack. One of the best ways of doing that in today’s market is to capitalize on the Internet. Make sure when someone runs a search for insurance in your market, you’re one of the first results to come up. An informative website, a frequently updated blog, and a robust social media presence can help you score points.
You can’t win them all, says the old expression. While that’s true, you can give yourself a stronger fighting chance by being aware of the top reasons your customers are leaving and forming a plan to address the things you can control. Good luck as you work to build stronger customer retention rates.