Bringing new clients into your agency is vital, but it’s just as important to invest time and attention in those you already work with.
To succeed, insurance agents have to maintain a healthy pipeline of new prospects. Fresh clients allow your business to grow, in turn empowering you to expand your service offerings, bring on new talent, and provide a more all-encompassing insurance experience.
While agents may want to spend all of their time chasing new business, it’s just as important that they work to maintain and scale contact with the clients they already have. Indeed, research from Bain & Company underscores just how valuable it is for agents to build long-term working relationships with clients. In the financial services field, for example, Bain estimates that a 5% increase in customer retention translates into a 25% jump in profits. In other words, clients who feel that they share a substantive bond with agents are more likely to come back to them for future insurance needs.
This sort of growth doesn’t come naturally, however. Insurance agents must nurture a true connection with their current clients in order to demonstrate how interested they are in their business. If you’re curious how you can begin nurturing long-term working relationships with your customers, try out these four strategies.
1. Keep in Touch
After a meeting or sale, keep in contact with your client. Whether it’s through email, text message, or social media, let them know much you value their business and how you’d be happy to answer any questions they have going forward.
Keep in mind that this type of outreach doesn’t have to be a sales pitch. Send them interesting articles on the current state of the economy or trends in the industry and how it may affect their insurance portfolio. This shows them you care about them beyond just making a sale.
2. Personalize Interactions
Your agency has probably collected an enormous amount of information about each client. Instead of sending out a general note to all of them, use that data to personalize your messages. If the client has a child preparing to go away to college, for example, you may want to reach out with information on new car insurance policies.
Tailoring your message to each client further strengthens relationships by demonstrating that you’re up-to-date on their insurance needs. Indeed, research from Epsilon shows that 80% of consumers would do business with a company if it offered personalized service.
3. Listen to Feedback
Even the most harmonious business relationships encounter an occasional stumbling block. When that occurs, listen to the client’s feedback and quickly address any issues. Assure them you understand their concerns and will strive to make improvements in how you do business with them. By listening to their feedback and resolving bottlenecks quickly and professionally, you’ll be demonstrating that you’re interested in working together — even if you have adjustments to make.
4. Be Aware of Major Life Changes
To maintain an ongoing connection with a client, it’s important that you stay updated on the risks they face at work and in their private lives. For example, clients who are getting older are going to need new products that protect their retirement income, as well as coverage that can help them in the event they need long-term medical care.
By connecting with customers on a regular basis, you’ll be better positioned to know about these developments. And, as their insurance needs evolve, your clients will naturally want to work with an agent who’s helped them in the past and who’s familiar with the type of coverage they need.Even in an increasingly digitized, anonymous economy, insurance agents can thrive by maintaining positive working relationships with their clients. Because insurance requires an intimate knowledge of people’s needs, agents are strategically positioned to offer insight that automated services can’t. So, while it’s always smart to be on the lookout for new prospects, don’t forget about the clients you already have who can still benefit from your expertise.