It costs more to get new clients than to keep existing ones, therefore it is important to consider a retention strategy when drawing up your sales strategy. You can calculate your customer retention rate using a general formula provided by Business.com:
“Customer retention rate = ((CE-CN)/CS) x 100
Having a well thought out retention strategy will greatly impact the success of the agency. Here are a few tips on how to retain your customer base.
The more a client hears from you, the more they are likely to make a purchase. However, it is important to make sure all communication with your clients is valuable or engaging. This communication can be in the form of email, newsletters, policy reviews, surveys and gifts.
A client is more likely to stay longer with a company when they have bought from more than one policy. You can offer discounts to cross sell a policy that usually fits well with another, which in turn creates a sense of ease for the client and results in a higher retention rate.
Greenwood General Insurance Agency is staffed with seasoned Underwriters ready to assist you in your risk submissions 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.
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 tip when it comes to policy renewals is 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.
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.
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.
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.
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 lead Underwriter.
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