4 Ways Insurance Agents Can Improve Their Customer Retention Rates
Let’s say you followed the “5 insurance sales tips for new insurance agents” and have been thriving since then. You’ve been acquiring a lot of clients; business is prospering. But did you know that the average retention rate for agents is less than 84%?
For every 100 clients you bring every year, at least 16 of them leave. The 16 people that depart might not sound like a big number. But cumulatively, you will be losing a lot of present and future business from these clients.
There are instances where you are powerless in terms of customer retention. When someone sells their home and cancels their home insurance, you can’t really do anything. However, some cases are in your control.
So, here are four ways how you can improve your retention rates:
Offer the right product
As generic as this might sound, offering the right product is the first step to retaining a customer. The product you offer must fulfill the needs of your clients. If you provide a good product and make the client feel valued, you will enjoy higher retention rates. Your clients will always come back with higher loyalty if you provide them with the product that best suits their needs and pockets.
Set up a referral benefit program
Customers who refer you to others are usually going to stick to you in the long term. Encourage such practices. A simple referral benefit program can inspire more referrals. Something you can consider is offering referrers a small portion of the first-year commissions you earn through their referrals.
Make procedures easier
To survive in the current market, as an agent, you need to make efficient use of available tools. Delayed payouts that occur due to mistakes on your part will lose you customers without doubt. So, it’s essential to make your process more comfortable.
Set up an autopay option
Most of your clients are busy with their everyday jobs. They might forget to pay their premiums, which can result in the cancellation of their policies. This can be a significant reason for client turnover. You can set up an autopay option so that clients can make payments easily.
There you go! These are four effortless ways to improve your customer retention rates. Feel free to ask questions and share your experiences by commenting below.
