As an insurance agent, landing new clients is so important. But while many insurance agents focus on new leads, client retention is equally important. Sure, landing a new client is great, but the job doesn’t stop there. Insurance agents who focus more time into new clientele and let their existing clients fall by the wayside almost always have low retention levels. But what factors are the leading contributors to clients saying “goodbye”? Here are three ways agents reduce client retention without even realizing it.
1. They’re only focused on finding new clients
New clients are essential to growing and maintaining your business, but it’s so important to remember to focus on the clients you already have too. One of the biggest contributors to poor client retention is only focusing on new clientele and forgetting those you’ve already charmed. Not only does poor client retention cost you the money you’d make from a renewal, but it can cost you in other ways too. In fact, studies show that it costs between 5 percent and 25 percent more to acquire a new client than it does to retain an existing one.
2. They think good customer service is the only link to high retention rates
Good customer service is important, but it’s not the only factor that influences retention rates. The American Society for Quality found that 68 percent of customers defect through perceived indifference. Ultimately, customer service matters to clients, but clients also want to feel like their insurance agent and agency truly cares about them.
3. They don’t invest time outside of renewals
It’s true that most insurance agents receive a higher commission for new policies than they do for renewals — but investing time solely outside of renewals isn’t the best practice. Studies show that the No. 1 reason clients get upset with their insurance agency is that they never hear from their agent outside of claims and renewals.
Learn More About ASI
ASI is one of the largest homeowners insurance carriers in the United States. Through a network of independent agents, the company offers home, condo, renters, dwelling fire, and flood insurance in more than 40 states. Find out more at AmericanStrategic.com.