Simple tweaks that keep your customers loyal ― and your business profitable
Did you know that insurance has the highest new customer acquisition cost of any industry? It costs nearly 9 times as much to acquire a new customer as it does to retain one. And since high customer retention leads to sustained profits and new business, keeping the customers you have is a very cost-efficient sales strategy. Here’s how to improve customer retention with just a few tweaks.
Improve your onboarding process
A customer’s first experience with you directly affects renewals and referrals. A positive first impression makes customers much stickier and much more likely to refer you. Here are some tips:
- Follow up on paperwork sent — it shows you care.
- Create an info sheet that explains the claims process.
- Ask them if they have any questions and let them know you are always available.
- Invite them to follow you on social media to stay connected.
- Create a quick welcome video ― they will remember it!
Here are even more ways to improve the experience for new customers.
Maintain regular contact
It can take as many as eight touch points to convert a prospect, so it’s common sense that retaining customers also requires contact. If you wait until renewal time, you miss a lot of opportunities to demonstrate your attentiveness, knowledge and high service quality ― the very reasons they will stick with you and refer you. Here are some ideas:
- Send out a monthly newsletter full of helpful tips.
- Use video to connect in a variety of ways.
- Send a note on birthdays and anniversaries to your client.
- Ask them to help you improve your service with a quick survey.
- Communicate monthly for no particular reason ― just ask if they have questions.
Find out what customers want and deliver it
Knowing exactly what customers want helps you adapt your business to exceed their expectations ― which is key to long-term relationships and referrals. Send them a quick survey after they sign (or every few months) and let them know their feedback will help you improve. Ask them things like:
- How was my onboarding process? Was anything missing or unclear? What might be improved?
- What insurance needs might you have in the future? Do you have any questions about any of these?
- What are your preferred communications channels? Email? Phone? SMS? WhatsApp? Facebook Messenger? Other?
Give them the option to respond with a simple Yes/No or to elaborate in a text box. The more info they can give you, the better!
Keep track of your customers
If you don’t already use a good CRM (customer relationship management) software, start now! It will save you time, make you a lot more efficient and help you be more proactive and engaged with customers. Here are some things you can do with a basic CRM:
- Store contact info, birthdays, customer anniversaries, renewal dates, etc.
- Note potential cross-sell opportunities you identify.
- Log any emails or communications you have sent.
- Set alerts for future follow ups or any other actions.
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