Why Insurance Agents Need to Be Proactive Upon Renewals

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Most insurance agencies want to grow their business but fail to focus on one of the most critical aspects: renewals. Phone calls, emails, re-writes, and more to bring in new customers. 

But what are you doing about your current customers? Letting customers fall through the cracks can undo much of your hard work trying to get new customers.

It’s also a pretty pricey growth strategy: signing a new customer costs the average insurance company $500. Maintaining a client, on the other hand, costs about $25 a year. To have the highest profit, keeping your customers is critical.

Renewals are your time to maintain these valuable customers. A proactive process will help ensure that they keep coming back to your business. Some agents don’t have efficient processes in place or lack the necessary data to prioritize their customers who have a high chance of churning. However, agents who are proactive enjoy many benefits:

Benefit #1: Improved Customer Experience

Customers cite feeling unappreciated as the number one reason they switch to a different company. Once you have their business, it can be easy to take customers for granted, and they can sense it. The renewal process is your chance to make them feel noticed and appreciated to reduce the possibility of churning.

The customer experience doesn’t end after the onboarding process. Your customers choose your agency over again every time they renew, so the customer experience during this time is critical. Satisfied customers are 80% more likely to renew their policies than unsatisfied customers.

A proactive agent that shows that they care enough to reach out to clients and proactively ask about their new needs and circumstances will help improve how the customer experiences the entire process and will contribute to higher retention.

Benefit #2: Better Brand Reputation, Ratings, and Reviews

Most of the time, companies have no idea when a customer is upset. In fact, only 1 in 26 unhappy customers actually take the time to complain to the business. That doesn’t mean it’s not hurting your business, though. The same study also found that 13% of unhappy customers will share their experience with six or more people.

That means that your business could be suffering from a terrible reputation and not even know it. The good news, though, is that happy customers are even more likely to increase your reputation: 72% of customers will share a positive experience with six or more people.

If you’re not sure if your customers are unhappy, don’t wait for them to come to you: they won’t. Proactively reaching out to your customers during the renewal process will give you the chance to get feedback, show your clients you care about them and protect your reputation.

Benefit #3: Enhanced Communication with Clients

Although customers like using other means of communication, a phone call is still vital to the customer experience. According to one survey, 83% of customers believe that speaking to someone on the phone for customer service will always be crucial. The renewal process gives you the chance to enhance your relationship with customers with personal communication.

The renewal process is a chance to reach out to customers that might otherwise get forgotten. When customers know their agent is paying attention to their needs and is on top of finding them the best insurance, it provides them with significant peace of mind. Enhanced communication can create stronger relationships and ensure customer loyalty.

Benefit #4: Control Over the Conversation

When a customer reaches out to you first, it’s easy to get caught off guard. However, proactively reaching out to your customers gives you the chance to review the data first and control where the conversation leads. This personalization is critical: 33% of customers will leave a business that fails to personalize their customer service.

Customers’ needs are dynamic, and they will likely change throughout your relationship. The renewal process is the chance for you to catch their changing needs and enables you to offer better coverage. Whether purchasing a home, having a child, or going through any other major life event, having the right data in place to catch these changes is critical.

Benefit #5: Stand Apart from Direct-to-Consumer Brands

The biggest competitor agencies face right now is not each other. It’s the D2C companies that provide digital and fast service. Your company has something they do not, though: the ability to offer personalized service.

Personalized service is an incredible edge over the competition. In fact, 88% of insurance customers demand more personalization from their providers. Agents fail to take advantage of this, though, when they don’t take the time to help their customers with the renewal process proactively.

Stand out from D2C by creating a personal touch during renewals and guiding customers through choices that will best identify their needs. You will be rewarded with customers loyal that won’t chase a lower price.

Benefit #6: More Referrals

Referrals are the lifeblood of any business. They offer valuable marketing that money can’t buy: 70% of customers stated that consumer-created reviews and peer recommendations are more credible than professionally-written reviews. It’s difficult to build that kind of trust with other traditional marketing methods.

Proactively reaching out and helping your customer with the renewal process automatically puts you in the kind of positive position that allows you to request a referral. Creating a standard procedure and taking the time to make the request will help you grow your business.

According to the National Association of Professional Agents (NAPA), referred customers have higher margins than non-referred ones, and they tend to be more loyal. Proactively reaching out not only helps you keep the business you have but allows you to find more loyal customers.

Grow Your Business with Proactive Renewals

Most agents spend a lot of time getting new customers to grow their business. Maintaining customers with a proactive process is just as critical for growth, though. Not only will it help ensure happy customers and an excellent brand reputation, but it also is the perfect chance to collect valuable referrals. 

Clients expect a proactive and personalized service from their insurance agency. That’s why Agentero uses smart algorithms to streamline renewals, scan for coverage gaps, and customize policy recommendations so you can provide a superior customer experience to your clients.

Independent insurance agents use Agentero to boost their revenue, save time, and deliver a superior customer experience. We integrate with your current technology to modernize your operations and position you for growth. Check out our website to learn more.

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