Building any business, even setting up an independent insurance agency, involves monetary investment, effort, time, and worry. You have to maintain consistency in your marketing and advertising efforts and look for different ways to attract new clients. While these are crucial aspects, it’s also imperative to focus on client retention.
It’s an often-repeated saying in business that retaining a client is far more cost-effective than acquiring a new one. Although it is generally true, it leaves out a small but vital factor; retaining a high-revenue, less time-intensive client is more cost-effective than acquiring a new one. That said, focusing on client retention should be a key component of your business growth strategy.
Evaluating Each Client
Before you sign a client, you always want to ask yourself, “Is this going to be a profitable relationship?” A client who will demand a lot of your time but is only going to hold a single policy may be more costly to you than they are worth. It is okay to say no to a client! You want to spend your time efficiently. The more policies per household, the more likely a client will stay with you for the long run.
Client Retention and Agency Growth Go Hand-In-Hand
There is a co-relation between client retention and business growth. Some of the things you can do to ensure the former include:
- Improve the level of customer service you provide as that will build trust with your clients and assure them that they are dealing with professionals that care about their interests.
- Personalize the overall insurance buying experience and show your clients that you value them.
- Understand their needs, lifestyle, work, as well as hobbies. Having this information will help you provide them the best coverage options and full service for all their insurance needs (life, car, home, and business.)
Other Ways You Can Retain Clients
Providing appropriate information about insurance plans and helping clients make the right choices for their situation and needs is only the first step. However, good customer service has to extend far beyond the basics. Another way to make a positive impact and a great impression is to help your clients avoid insurance claims.
You can do this by giving them advice on preventing injuries, accidents, and theft. Show that you have their best interests in mind and that you care about more than the sale. Once they are sure that you are working for them, they will stay with you for their future insurance needs.
A happy client can also be your best marketing tool. One happy client can get you many others by word-of-mouth, and referrals. Word of mouth is free advertising, essentially saving you on the cost of signing any new clients your current clients are bringing.
Feel free to contact us for more information on how you can become an independent agent, set up your agency, and retain clients. We are here to guide you and support you in making your agency a success.