All signs point to retention.
A recent article points out that most sources report that acquiring a new client is 4 to 10 times more expensive than retaining an existing one. Not to mention, your clients are people you already know. You've taken the time to understand their wants and needs, and you've obviously delivered on those needs considering they're still a client. Why wouldn't you want to put effort towards retaining those people?
Arthur Middleton Hughes, Vice President of Database Marketing Institute, says there are two ways you can increase retention amongst your insurance clients.
Two ways to Increase Retention:
- Sell another policy.
- Communicate often with your clients.
How to Sell Another Policy
It makes a lot of sense that the more products a client has purchased from you, the more likely you are to retain them. But, there's also proof of it in the numbers (taken from Hughes's article):
(Image courtesy of Database Marketing Institute)
In this article about cross-selling, we explain that if you're maintaining your database well, it shouldn't be a daunting task to identify who you can sell more to. There are a couple ways we've identified that you can do it:
- Find the average number of policies per client in your book-of-business. This will give you an idea of how many cross-sell opportunities you'll potentially have and will be a good number to use to measure the success of your cross-sell efforts. This should be an easy number to find in your database - learn more here.
- Look for specific cross-sell opportunities that you can capitalize on where your clients might not be completely covered, are not covered as well as they should be, or where a possible upsell presents itself. AgencyBloc offers a Cross-Sell Report that quickly uncovers cross-sell opportunities throughout your database.
Hughes suggests this tactic:
- Offer a discount on your client's current policy if he/she buys another. Hughes suggests that you study your clients' purchasing behavior and figure out which types of products they're most likely to buy. You can also find these opportunities by running a Cross-Sell Report in AgencyBloc.
How to Communicate Often with Clients
It's so important to simply listen to your clients vs. trying to figure out the best "framework" for communicating with clients. The best way to know how much your clients want to communicate with you is to chat with them about it. Be upfront and ask exactly what kind of relationship they want to have with you. Do they prefer to only hear when they have a policy renewal coming up (hint: most don't), or do they want to receive educational information from you on a regular basis that helps them be smarter about insurance (like a monthly newsletter)?
Once you've identified the different groups of clients you have (those that want to keep in touch often and those that don't), you can segment them and start building some campaigns for both. Email is a really great way to stay in touch and stay top-of-mind without being overbearing. Be sure to still sprinkle in some calls, especially when there's a more complicated topic to discuss. Even texting your clients can make sense in certain situations.
Looking for some specific ideas of when to reach out? Here are some examples of how you could set up automated email campaigns that reach out to your clients for you.
The bottom line is that the quality of your relationships with your current clients should always be more important than increasing the quantity of your clients. And selling them more policies and keeping the lines of communication are two ways to work towards retaining clients.
Ready to learn more?
Schedule a live, 1-on-1 demo to see how AgencyBloc can automate your client communications.
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