The Insurance Soup Blog

 The Key to Building a Thriving Insurance Agency

Written by Taylor Dobbie | Jan 11, 2021 7:46:00 PM

 

Referrals, Retention, and Relationships

BuildingThe most successful insurance agencies share two major traits: a strong referral base and high client retention. Both stem from a common foundation—keeping clients happy. When there are gaps in communication, clients begin to feel neglected, leading them to shop around at the first sign of dissatisfaction. So how can you ensure your clients stick around and even refer new business your way? It’s all about staying engaged and proactive.

Start by Identifying Unhappy Clients

The first step in protecting your agency’s retention is to identify the clients who may be at risk of leaving. We’ve had great success implementing simple loyalty surveys that provide a clear picture of client satisfaction. With cumulative scores ranging from -100 to +100, it’s easy to see which clients are happy promoters and which may be quietly frustrated.

What’s great about these surveys is their simplicity—on average, agencies receive responses from 45% of their client base. This gives you valuable insight into who is happy and who might be on the verge of shopping elsewhere. By pinpointing those unhappy clients, you can take action before they decide to leave.

Put Out the Fires Early

Once you’ve identified the clients who are dissatisfied, the next step is to take action. A personal phone call can be the most effective way to close the loop and improve client retention. The goal? Convert detractors into promoters.

When reaching out to unhappy clients, keep these steps in mind:

 

  • Address the issues that led to their low satisfaction score.
  • Express your gratitude for their business.
  • Acknowledge their concerns and explain how you plan to resolve them.
  • Offer to review their coverage in detail to ensure it meets their needs.
Reassure them that you’re only a phone call or email away and that you’ll be reaching out more frequently moving forward.

This kind of proactive outreach not only will help you resolve immediate issues, but it also strengthens the relationship, showing clients that you truly care about their experience. By addressing their concerns head-on and offering personalized support, you greatly increase the chances of turning their dissatisfaction into loyalty. Over time, this effort can result in more positive word-of-mouth and referrals, as once-frustrated clients become advocates for your agency.
 

Nail the Renewal Communication

One of the biggest mistakes agents make is assuming that once a client is onboarded, their work is done. Unfortunately, this mindset leads to higher client turnover. To avoid this pitfall, agents need to be proactive in renewal communication—clients expect their agent to be on top of their needs, ensuring they have the right coverage at the best price.

Reach out to clients a month or two before their renewal date. Don’t be afraid that doing so will prompt them to shop around. In fact, failing to communicate often pushes clients in that direction. Instead, use this opportunity to gather information about any changes in their household or business that might affect their coverage. Analyze their situation to ensure they have the best possible protection and look for opportunities to offer additional products or discounts.

Automating aspects of the renewal process can help you stay organized and consistent. With the right systems in place, you’ll not only retain more clients but also open doors to cross-sales and other revenue-generating opportunities.

Small Gestures, Big Impact: The Power of Birthday Cards

In a digital age filled with automated emails and texts, a handwritten birthday card stands out. It’s a small gesture that shows clients you value them as individuals, not just policyholders. While an automated birthday email may feel impersonal, a card arriving a few days before or after their birthday shows that you’ve taken the time to recognize them personally.

Agents who have adopted this practice report higher client loyalty, improved survey scores, and an increase in positive testimonials. It’s an easy yet impactful way to foster deeper connections with your clients and remind them that their business matters to you.

Keep Clients Engaged Year-Round

Ultimately, keeping clients happy and retained boils down to consistent and meaningful communication. By implementing systems that ensure regular check-ins, personalized outreach, and thoughtful touches like birthday cards, you create an experience that keeps clients loyal.

Automation can help streamline this process, but it’s the personal touches that truly set you apart. Stay organized, stay engaged, and continue to look for ways to add value to your clients’ lives. Not only will you retain more clients, but you’ll also encourage them to refer others, helping your agency grow sustainably and successfully.

With the right strategy in place, your agency can turn satisfied clients into loyal advocates, creating a solid foundation for long-term success.