Did You Know That It Costs More To Get New Clients Than to Keep Existing Ones?
Successful Broker Tips
Hot tips from the Greenwood Marketing team
“Customer retention rate = ((CE-CN)/CS) x 100
- CE = Number of customers at the end of period
- CN = Number of new customers acquired during period
- CS = Number of customers at the start of period”
How The Number 1 Brokers Retain Their Clients
Retaining clients is essential for any business and can have a significant impact on the success of an agency. As it costs more to acquire new clients than to keep existing ones, it is important to develop a retention strategy that will help you maintain and grow your customer base. Here are some effective strategies that can help you retain your clients:
More Communication
The more a client hears from you, the more they are likely to make a purchase. Keeping in touch with your clients is key to maintaining a good relationship. Make sure your communication is valuable and engaging, whether it be through emails, newsletters, policy reviews, surveys, or gifts.
“48% of consumers expect specialized treatment for being a good customer.”
Cross Selling
Another tip is to encourage your clients to purchase multiple policies from your agency by offering discounts on additional policies that complement their existing coverage. This will create a sense of ease for the client and increase the chances of them staying with your agency.
Greenwood General Insurance Agency is staffed with seasoned Underwriters ready to assist you in your risk submission to ensure all the necessary information is provided. The Underwriters at Greenwood specialize in providing our brokers with everything they need to ensure their success.
Inform Clients On Premium Increases
In the case of rising premiums, brokers / agents can use this as an opportunity to show the client that you have their best interest at heart. A tip is to get in contact with your client when you know they are about to receive a premium increase, and let them know what is causing the increase. Here you can offer changes in coverage or identify additional discounts to reduce the effect of the premium increase. Clients will not only appreciate your honesty, but they will also see more incentive to stay with your agency.
“A 5% increase in customer retention can produce 25% more profit.”
–Bain
Pre-Renewal Contact
Additionally, when it comes to policy renewals, it is advised to call up your clients long before their policy expires and thank them for their loyalty and trust. This is the time to answer and address any concerns the client may have and allows you to ensure your “flight risk” clients are on the road to renewing with you instead of looking elsewhere.
Hire Someone For Retention
By the way, client retention can be a full time job, why not make someone responsible for this strategy. Putting someone in charge of developing strategies to increase retention and deliver results will only have a positive impact on your book of business.
“89% of consumers have switched to doing business with a competitor following a poor customer experience.”
-Nextiva Blogs
Improve Customer Service
Of course customer service plays a huge role in client retention. If you are investing in strategies to retain your clients, but not improving your customer service, your investment and time spent can all go to waste.
Customer service is more than just the touch points where the client and agency come into contact, it is also about the relationship the company chooses to have with its clients.
You can build stronger relationships with your clients by remembering their names, sending them birthday cards, mentioning a client’s business on your social media and even simply remembering your clients children’s names.
Promote Loyal Customers
Client testimonials are a great strategy to get new clients, but they can also be used as a retention tactic. Showing your clients how you have helped other clients, boosts their confidence and supports their decision in doing business with you.
“72% of consumers say that when contacting customer service they expect the agent to know who they are… ”
Stay Available
Although this may be a no brainer tip, making sure you are available when the client needs you is extremely important for client retention. If a client is unsuccessful when trying to get in contact with you, they are more likely to consider other options.
Clients want transparency, accessibility and the ability to learn from your expertise. Answering the phone is the easiest step in retaining clients.
Here at Greenwood, we focus on fast communication and easy applications, which is what makes our brokers so successful. Get started by booking a free demo with our best Underwriter.
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