Why is Customer Retention Crucial for Insurance Agents?

Written by Sarah Lewis

July 19, 2022

Why is Customer Retention Crucial for Insurance Agents?

An insurance agent will dedicate countless resources in marketing, prospecting, client reviews, and more to convert prospects into clients. But oftentimes, once an insurance agent turns a prospect into a client, their efforts will diminish, and they fail to follow up with their clients. The goal of gaining new clients outweighs the necessity of contacting existing clients. It has been shown to be 5 times more cost-effective to maintain current clients over bringing in new clients. There are many different strategies an insurance agent can use to increase client retention by boosting brand awareness, improving client relationships, and keeping their agency top-of-mind for their clients.

Insurance Agents should Advertise to Their Current Clients as well as Prospects to Improve Customer Retention

People are subjected to more advertisements now than ever before. In the past, advertisements were expensive and focused mainly on tv and radio ads; now, ads can appear all over the internet in multiple different forms. While this makes it difficult to stand out, it also means buying advertisement space is far more affordable. Social Media and internet advertising are valuable tools for insurance agents to get their message out in front of a local market. Learn how to grow your agency and effectively use social media for your agency here.

An insurance agent’s existing clients often aren’t looking to switch, but instead looked at an interesting ad from one of your competitors and clicked on it. Keeping your agency top of mind for your clients is the biggest factor in retaining them as clients. Additional activities an insurance agent can use to increase their client retention include:

  • Birthday & Anniversary Cards
  • Newsletters
  • Souvenirs (Pens, Magnets, notepads, etc.)
  • Client Surveys
  • Invitations to local events

Use Birthday & Anniversary Cards to Improve Client Relationships

Personal communication can go a long way in improving client relationships, which is vital for insurance agents. Sending celebration-style cards lets clients know they are more than just another sale, and they are appreciated. Insurance agents can use these ‘feel good’ communications to further their client relationships and increase client loyalty. Agent Pipeline’s marketing is equipped to provide agents with pre-approved mailers and more. Click here to find out more about the marketing services Agent Pipeline can provide to contracted insurance agents.

Create a Newsletter to Keep in Touch With and Educate Your Clients

Much like any personal communication, a newsletter can be utilized by insurance agents to keep in contact with their current clients. A newsletter is a place an insurance agent can directly offer Medicare information to their clients all at the same time while still feeling personal. Educate your client’s on topics like Medicare FAQs, differences in coverage types, seasonal health concerns and topics, and personal articles (employee spotlights, hometown highlights, etc.). Newsletters should be sent out either monthly or quarterly.

Insurance Agents Should Use Souvenirs for Advertisement in the Home

Souvenirs and gifts not only improve client relationships but also can act in an insurance agent’s favor as a passive form of advertising in their homes, increasing brand recognition. Utilitarian leave-behinds and gifts are more likely to be used by clients and stay in their peripheral vision for longer. Pens, magnets, notepads, and the like are all gifts clients are likely to use. Souvenirs like these can be ordered from a local or online print shop at varying rates and can be given at nearly any type of face-to-face interaction (Any souvenir must be given in accordance with the MCMGs rules on gifts)

Use Client Surveys to Review Your Performance in the Eyes of Your Clients

Insurance agents should use customer surveys and reviews to get an idea of which of their actions are well received and which are not working. A customer survey is a great way to both get a lot of feedback from your existing clients and make them feel heard. A survey is a way insurance agents can tell their clients their opinion is important and will be taken into consideration, improving the overall client relationship. Better client relationships result in a higher level of brand loyalty and makes it less likely the client will go elsewhere for service. To learn more about utilizing the information an insurance agent may receive from an online survey or review, click here.

Hosting Local Events Further Develops Brand Awareness and Gives Insurance Agents an Opportunity for Face-To-Face Contact

Hosting a local educational event is one way to reinforce brand awareness and add value to your agency. Insurance can be hard to understand, and establishing yourself as an educational source will promote trust from clients. Meeting in person also will show clients their insurance agent isn’t just someone over the phone but a real person invested in helping find the best insurance options to suit their needs. Other examples of local events are local retail booths and chats at restaurants or cafés.

However, before scheduling an event, insurance agents must make sure they fully understand the CMS marketing guidelines. Educational events should be used to inform in an unbiased way, and marketing or sales events could push prospects towards a specific plan or set of plans. Events should also never be in a one-on-one setting. An insurance agent should familiarize themselves fully with the CMS guidelines before scheduling an event.

Keeping up with regular communications with clients will help insurance agents keep their agency top-of-mind and reinforce the value to their current clients. Check out additional ways to keep your agency top-of-mind here. If you have been losing clients, look at “Reasons why Clients Leave Agents and How You Can Prevent Your Clients from Leaving You” to help understand why and how to prevent client loss in the future.

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