Why Retention Is So Important To The Future Of The Insurance Agent
Retaining customers is important in any business, and the world of insurance is no exception. The impact of keeping your customers around is immeasurable to the longevity and prosperity of your business. That’s why you should be working from day one to stand out and to give your customers a reason to never jump ship. The longer your customers stick around, the happier they likely are. And not to put a number on it, but they’re also more valuable. If you would like to know why customers with staying power are so important, here are a few quick reasons.
One: Longstanding customers become brand evangelists almost 100 percent of the time.
The word “evangelist” is often used in religious circles to describe purveyors of a certain faith. In essence, their beliefs are working for them and they believe they can work for someone else. This is what you want each customer to become — without the fiery sermons, high-dollar suits, and pleas for money, of course. No, a longstanding customer who becomes a “brand evangelist” will sell you better than you sell yourself. That’s because they have a close, personal relationship with the people they are talking to, and when those people — often family members — have insurance needs, they’ll be more than happy to refer them to you, provided they feel you’ve looked out for them over the years.
Two: Happy customers no longer shop for cheaper prices.
Price can be a major selling point when it comes to getting a customer in the door, but it’s value that keeps them around. If you’re going the extra mile to serve your customers (i.e. making sure their coverage is up-to-date with life changes, serving as a source of answers and communication for their questions/concerns/etc.), then they will no longer be one of the two-thirds that shop for new insurers every two years. That means their ongoing business will be your business.
Three: Customers with longevity are more valuable monetarily.
We alluded to it above, but now we’ll go into a little more depth. The longer that your customer stays, the more revenue they will generate. That’s because as people get older, they get married, have children, upgrade cars, own homes, and buy things. All of these needs warrant some type of insurance protection. So if a customer comes to you looking for auto insurance, your chances of selling them home insurance, life insurance, and other insurance products, are exponentially better the longer they stick around.
Four: A happy customer is often something you can control.
As an insurance agent, your customer’s satisfaction with his insurance products is within your scope of influence. That’s because customers don’t usually buy insurance to get the cheapest price. Yes, that’s often an initial criteria they use, but what they’re really looking for is a relationship that will take care of their needs and the needs of their family over time. One hundred percent of the time, an insurance customer has never had a relationship with a low price. They’ve had a relationship with the men and women of the insurance profession. People who know what they need before they do. People who can explain the intricacies of a policy in terms they understand. People who can advise the best coverages for the best value.
Retaining insurance customers isn’t easy, especially as the digital age makes it easier for said customers to request quotes, compare rates, and engage in independent research on a given coverage. If it was easy, the turnover rate wouldn’t be so high. Nevertheless, it’s something that an insurance agent can help fulfill through expertise, openness, and caring.