In tough economic times, retaining customers becomes a bigger challenge than ever. Consumers ask themselves if they are getting value from the relationship and if they can get something else that will satisfy their needs for less money. This is true in every industry, including insurance.

One study suggests that 1 out of 6 consumers is looking to change insurance companies. So what are you doing to retain your customers? With the right strategy in place from the beginning of the relationship, you can attract and retain clients for the long haul.

Price is Important – But Not the Most Important Factor
You might think that consumers choose a policy based on price alone. But studies have found that 90% base their decision on more than price. Instead, they base their decision on things like company reputation, brand identity, the agent’s knowledge of the policy options, general rapport with the agent, etc. The first two items are out of your control, but the other factors are completely up to you.

Listen Intently and Deliver What They Need
Listening, especially in times like these, is critical to an agent’s success. Insurance can be confusing, and consumers rely on agents to guide them into the right policy. Offering an initial quote is fine, but don’t stop there. Talk to the consumer, find out what they really need, and look for opportunities to save them money and/or offer policy options that can’t be compared with your competitors. They’ll appreciate your effort and will trust that you are looking out for their interests. In the long run, you’ll be rewarded with their loyalty.

Collect Personal Information Whenever Possible
Knowing some personal information about your clients (and logging that info into your notes!) will be beneficial to you when you contact them in the future. Do you know their kids names and ages? What sort of pets do they have? Do you have any common hobbies or interests? Building that rapport from the beginning and using that information when you contact your client will go a LONG way in showing that you know who they are and that you value their business.

Stay in Touch
Keep in touch with your client. Consumers are bombarded with messages from your competitors who would love nothing more than to steal your clients from you. Make it difficult on your competitors by staying in regular contact with your customers. Newsletters are nice, but don’t offer that personal touch needed to retain clients. Go out of your way to find reasons to touch base, even if it’s just to say hi – but make sure you personalize your communications by using their names, history with you, and a little bit of that personal info you’ve collected.

Re-Evaluate Their Needs
Show the consumer you care by re-evaluating their needs as it gets close to the policy renewal. Make suggestions for how you can help them save money, take advantage of new discounts, or how spending a little more will provide the additional coverage they need. But be sure that your recommendations aren’t perceived as you simply trying to sell them something new. Make sure there is logic behind your suggestion.

Customer loyalty has to be earned. Marketing to a client shouldn’t just be done at the policy renewal. It takes hard work and effort throughout the year. With the right strategies in place, you can ensure that your clients will stick by your side, even when tempted by financial woes and competitors knocking at their door.

Have other suggestions for how to gain customer loyalty? We’d love to hear them! Please call our Client Services Team at 1-866-892-4080 or clientservices@agentinsider.com.