Starting an insurance agency is a thrill, as well as huge dose of anxiety. For most agents, the income for the first few months is a pittance compared to the work they've put into the business. To make matters worse, as you see your cherished checks come in, you realize that most, if not all, of your paycheck goes right back into the business! Sometimes it’s a wonder people choose to be an insurance agent.
However, between six months and one year, you get the sweet, sweet satisfaction of seeing renewals roll in on top of your new business commissions.
I like to golf. I’m pretty much terrible, with most of my time spent deep in nature instead of on the fairway. However, every round I hit about five shots that make me think, “I can do this!”, and I keep playing, always hoping that I’ll get better. Hitting those rare good shots helps me see the light, and it keeps me going through all the bad shots.
I’m kind of like the guy in the video below, at 1:56 through 2:15:
You’ve set up processes to ensure that you’re setting reasonable expectations with each client, and you have a simple program in place to follow-up with your clients throughout the year. Now, what kind of resources should you put into your retention plans? Here are three that will help:
Aside from basic customer service, much of what we have discussed deals with “customer experience.” We will have an article on this later, but the simple truth is this: Customer service is reactive – customer experience is proactive.
Agents generally hire employees to help with the reactive stuff. For your retention program, either you or someone else will need to monitor it and make sure that bad boy is running smoothly. Even when programs can automate a lot of the grunt work, you have to check on them to make sure everything is working properly.
In the end, if you can have an employee manage the program, even if it’s just online software (we’ll get to that in a minute), it will allow you to prospect, sell, or do whatever creates a profit for your agency. However, be certain that someone is sending out letters, texts, e-mails, etc., to your clients at those specific touch points.
Our previous post discussed the importance of retention, and three ways to increase your retention. They are:
According to Taxi Digital Marketing, Insurance has one of the highest costs of customer acquisition in any industry, coming in at around $300 (!) per client. At such a high cost, how are the best agencies making such a killing?
There are two main ways:
Marketing is lots of fun, and we have ideas for advertising and marketing schemes that we'll share in the future. Today, though, let’s talk about retention.
First, why is retention important?
IHT is a multi-state insurance agency with dozens of branches across the eastern and central United States.