In the insurance industry, retaining clients is just as crucial as acquiring new ones – and is typically more profitable. While the fluctuating "hard" insurance market can naturally reduce client turnover, relying solely on market conditions is not sustainable. Instead, insurance agencies should develop proactive measures to enhance client retention. Instead of disjointed efforts that may lack a cohesive strategy, taking a collaborative team approach can safeguard your agency against client churn and foster long-term loyalty.
With Kelly Donahue-Piro, the Chief BFF Officer of Agency Performance Partners, we discussed how insurance agents, managers, and retention specialists can work together to improve client retention.
Understand the Client Journey
Begin by mapping the client journey from the initial inquiry to policy renewal. Identify all touchpoints that clients interact with throughout their lifecycle with the agency. This will help you understand their needs and expectations at each stage.
“This process allows you to identify the actual client experience, not just what is easy and simple for the team,” adds Kelly.
Personalized Onboarding
First impressions matter. Kelly says, “Clients need to be educated on where to go and how to get the best experience. If the person who sold them is not their point of contact, the first step is a solid introduction.”
Ensure your onboarding process is seamless and personalized. Assign a dedicated account manager who will introduce clients to your services and be their point of contact. This fosters trust and sets the tone for a positive relationship.
Regular Check-Ins
Don't wait until renewal to communicate with clients. Schedule periodic check-ins to gather feedback and address any concerns. And as Kelly notes, “You can even automate parts of this experience! Clients love a quick survey, birthday email, and even a handwritten thank you note.” These interactions demonstrate your agency's commitment to customer satisfaction and help you stay informed about client needs.
Don't miss a chance to have a valuable touchpoint with your clients!
Cross-Department Collaboration and Communication Planning
Encourage collaboration between departments – sales, customer service, claims, and underwriting – to ensure a unified approach to client retention. Regular inter-departmental meetings can help align goals and improve communication.
Your teams can then help develop a strategic communication plan that outlines how and when each team member should engage with clients. Tailor communications to individual clients based on their preferences and needs to maximize impact.
How can you further develop this communication and collaboration? Kelly recommends “scripting” for these interactions: “We strongly recommend adding scripts and email templates to your processes. Your tone and how you say things really does matter.”
Use Technology to Enhance Interaction
Leverage CRM systems and automation tools to streamline communication and track client interactions. Ensure team members can access up-to-date client data to provide timely and relevant information. Utilize retention management tools like ReFocus AI to provide insights on your client data and help with predictive insights on renewals and at-risk accounts.
But don't just use them separately. As Kelly describes, the integration of these processes and data is critical. “We all need to use technology to support our efforts,” she continues. “In insurance, we are often slow to adopt things, even when they can result in massive improvements to the customer experience. We must get through new ideas and integrate them into our workflows.”
Encourage Feedback
Create an open environment where team members feel comfortable sharing insights and suggestions for improving client retention strategies. Encourage feedback loops between team members and leadership to drive innovation.
Kelly recommends developing a good base before feedback leads to immediate changes: “When team members provide feedback, ensure they have done the new process 10 times to get all the feedback. One wrinkle out of 10 is a 90% approval rating.”
Proactive Renewal Strategy
Initiate renewal discussions well in advance of the renewal date. Review the client’s current policy, assess their changing needs, and present tailored options that provide the best coverage and value. Identify potential issues that could lead to client dissatisfaction before the renewal period. Address these proactively to prevent them from escalating.
“Renewal reviews are like penicillin for insurance,” Kelly describes. “You create relationships, get updates, bring your service to them, get to cross-sell, improve coverage, protect from E&O claims, and earn your renewal. It saves time when done well.”
Improving client retention requires a strategic, coordinated effort across all levels of your insurance agency. By developing a comprehensive client journey, fostering open communication, empowering your team, and using tech like CRMs and ReFocus AI, you can bolster client loyalty and further secure your agency's continued success.
For personalized advice on enhancing your agency's retention strategy, consider consulting with industry experts like Kelly or leveraging specialized training programs for personalized advice on enhancing your agency's retention strategy. Start building a stronger, more loyal client base today.
