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Customer retention is a powerful sales strategy

Customer retention is a powerful sales strategy

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.

Want to expand your offering as an independent agent? Become a MacNeill Agent. We’ve been offering independent agents access to diverse admitted and E&S offerings for over 75 years. Our top-rated and exclusive carriers help your clients protect their assets — even in the toughest-to-insure markets. We help agents get comfortable, giving them expert teams of underwriters/producers and innovative tech tools that help them be successful with Admitted and E&S placements.

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