While it is satisfying to attract new customers, it can come at a higher cost than what you would have spent on retaining existing customers. With almost 65% of companies' business coming from repeat customers, retention is key to success. P&C insurers looking to maximize results with cost efficiency should consider implementing the following tips.
The best way to retain a customer is to ensure that they are completely satisfied, and staying connected is a great first step in that direction. Consistently maintaining communication with existing customers, helps keep them updated on changes in policy benefits or any issues related to their coverage. It also keeps you top of mind as someone who’s got their best interests at heart.
You can also send marketing information about other products that could suit their needs. If, for example, you have a customer with an auto insurance policy, you can let them know that you also have insurance plans that can cover boats, RVs, motorcycles, and other vehicles. Doing this will keep them in the loop on what’s available and help make sure that they don't start looking for coverage elsewhere. With statistics showing that returning loyal customers typically spend around 33% more per order than others, this strategy will help ensure that you get the most out of your existing business.
Make sure that you provide your customers with extra support, assistance, or incentives to keep them happy. Turn your agency into more than just a place where they get their insurance by giving them exceptional customer service and making sure that they leave each interaction with a sense of joy.
Strive to know your line of business to the absolute best, as it is a good way to stand out in a market full of competition. Being a product expert means you will have added value to your customers.
Dedicate enough time to reading industry publications and policy forms. Be sure to attend industry seminars as well as educational conferences. You can also talk to experts in the field. Customer retention demands you efficiently provide information about different types of plans in the P&C market.
Remember that business is built on relationships and networking will help seed new relationships. Gain local visibility by investing in community events – as an active participant, sponsor, and general supporter. Use your relationships to help gain net new business, and when the time is right, seek referrals from your customers. This strategy takes time to take root, but it bears the seeds of long-lasting success.
Providing customers with a positive customer experience is important to maintaining and growing your customer retention rates, so you want to make sure that your customer service team is up to the task. You will also want to make sure that the team has a good sense of your brand values and how you want to be portrayed. Customers need to know that when they need your help you’ll be there to help them – make sure contact information and business hours are very visible on your website and social media pages, as well as business cards and any other passalongs you might share with them.
As with any campaign, you need to know how effective your efforts are to glean which tactics work best. You can use data-gathering tools such as CRM software to effectively measure results. In addition to data gathering, these tools will also automate much of your work, saving you both time and money.