All of us want to grow our businesses, and we all face the same problem: adding customers only produces growth if we are keeping them. If we lose customers as fast as we attract new ones, we don’t actually grow. This is what we call a “leaky bucket.”
The leaky bucket problem is particularly important in a relationship business. In the beginning, each client relationship is treated like gold. As we start to grow, our focus can shift from relationships to transactions. Clients don’t feel the same passion that they felt when we desperately needed them. The unfortunate result is customer attrition.
The Leaky Bucket Problem
Most growing businesses initially respond to this dynamic by trying to increase sales, only to find out that the hole in the bucket is too big. The solution is to return to relationships. Building and maintaining a relationship of trust with an insurance client takes an investment of time, resources, and care. We have to commit to a number of things such as: Promoting Brand Awareness.
Clients need to engage with your brand often enough that when they hear the word “insurance” they automatically think of your name. We also have to commit to Driving Retention. Prevent attrition from consuming your sales efforts. We must continue Meeting Face-to-Face. Nothing is as effective as meeting with client on a regular basis. Top agents do this every 12-18 months, or whenever a life event warrants it. Always keep Upselling because you believe in the importance of being covered.
They need to understand why they should stick with you versus shopping elsewhere. When there is no differentiation, businesses are left to compete on price. Competing only on price makes a business extremely vulnerable to factors outside of its control.Don’t be shy about insurance. The proactive conversation about increasing life insurance is easier than the reactive conversation about why there was not enough life insurance. Keep Building Relationships. Growth must not cause transactions to trump relationships. Clients must feel that their relationship is worth more to you than the next sale. Continue differentiating your agency. Clients need to know that makes you special.
Keep creating stickiness. By providing value above and beyond a simple transaction, you can provide motivation for customers to stay. The most effective is multi-lining. Other ideas include educating customers, making things hassle-free, and providing a personal touch.
Here are 4 retention strategies to implement in your business to keep your clients. Taking the time to implement these simple retention strategies will make all of the difference in how your clients view you and your agency and keep your relationship solid. The added bonus? Many of these retention strategies can also result in increased word of mouth referrals. It’s a win-win!
Pivot Your Insurance Agency Towards Sustainable Growth Are you an insurance agent who feels that your agency is stuck? Is your team grinding new leads each month yet your agency never seems to grow? Client Focus has worked with thousands of agents over the past 15 years just like you. Our purpose is to help your insurance agency pivot onto a path to sustainable growth.
