With customers exposed to messages every day telling them to go online for a quote or to make a quick 15-minute phone call to shop for insurance and save, there's no doubt the property-casualty industry is a highly competitive marketplace, with consumers looking to save without compromise. They expect the best products and service for their money, and why shouldn't they?
With studies showing the vast majority of consumers checking out many products online before making a purchase, it's clear insurance buying habits are changing. In fact, many consumers interested in auto insurance research the product online first.
Understanding these consumer buying tendencies provides agents with key insights to effectively connect with and retain today's customer. However, agents must make a choice–either the agency views the evolving shopping and buying habits as a threat, or recognizes this evolution as an opportunity to be the consultative resource more informed customers are looking for.
Agents who recognize this opportunity must find ways to distinguish themselves, identify ways to compete, and then implement new processes to sustain long-term growth.
Independent producers must take a holistic view of their agency and use a variety of tactics to successfully get and keep customers. That can be easier said than done, but part of the execution lies in building a solid partnership with insurance carriers that are committed to helping agents grow, while providing the tools and resources agencies need to evolve and succeed. Some carriers provide such tools to enhance the customer experience, yielding growth and retention for the agency.
By developing a solid partnership with insurance carriers and understanding the resources they provide, the producer will discover the resources to help the agency achieve its goals. Agents will then need to decide which customer service and marketing tools will be most effective.
When they find these tools, should they concentrate on focusing on acquiring new customers? Or winning back old ones? Or improving service for the current customer base? The answers here are yes, yes and yes.
Using a systematic approach to measure where business originates can help identify winning strategies and missed opportunities. The next steps are testing new tactics, measuring the results and then rolling out a new approach in the customer relationship.
Different marketing tools establish the agent as a resource and go a long way to attracting new customers who feel they do not know what coverage they need to be sufficiently protected.
o Online lead generation tools can provide an agency with the ability to follow up with an online shopper.
o Targeted print advertising or direct mail can help refine marketing efforts so agents can deliver the most bang for the buck.
o Positioning the agency as a valued partner with personal interaction for anyone needing insurance helps the firm compete against those promising a tremendous cost savings with a short phone call or Web visit.
Most consumers value the personal relationship that develops when working with an independent agent. Indeed, significantly more customers walk away satisfied with their insurance transaction when dealing with an agent as opposed to an impersonal online transaction.
This is partly because an agent gets intimately familiar with an individual's needs and values, and provides individualized attention a Web site cannot.
Consumers like to walk into an insurance agency informed with background information from Web sites. They then can rely on the agent to fill in the gaps.
The agent's expertise creates value for customers by giving them a better understanding of the differences in coverage and price. It also provides the customer with guidance to the right product to protect their assets and families.
But how do agencies find time and creative ways to stay connected with customers after the sale?
Agents need to partner with carriers that help to increase the number of touch points with customers. Policyholders appreciate receiving information from insurance providers, and often report they are grateful for receiving a personalized communication regarding their situation. In fact, there can be a greater retention rate among customers who receive a notice with an explanation of a rate increase than those who receive minimal notification.
Consumers believe their insurance agent should have the customer's best interests in mind. They appreciate an agent who takes the initiative and reaches out to learn about any changes in their life that would necessitate updates in coverage.
Agents can deliver a higher level of customer satisfaction by contacting customers more often with effective messages that impact each customer's personal circumstances.
While today's consumer shops to validate the fact that they have the right price for their specific coverage, customer satisfaction plays a larger role in their decision to actually make a change.
Another aspect to improving retention is the relationship between agent, insurance carrier and consumer. While carriers are responsible for many aspects of service, the agent can make a significant difference with a consistent effort to best serve the customer. To create a superior customer experience, insurers and agents must rely on each other to give every customer the service they demand.
For example, when a customer has a claim, it's the carrier's responsibility to provide great claim service. However, the agent can enhance that experience with timely follow-up communications, instantly exceeding a customer's expectations. This is the agent's opportunity to show they care. It is these ongoing interactions that help agents retain customers by building good rapport.
Many producers may think the goal of agency growth is only related to acquiring new clients, but considering the number of customers lost each month might help agents gain a new perspective. The more policies a customer has with an agent and carrier, the higher the rate of retention.
However, it is not only about products but about follow-up. This is an important process for an agent to help solidify the customer relationship, and making the personal connection is the value the independent agent brings to the table.
There are many opportunities to get in touch with a customer throughout the year. For new customers, it's important they receive information that welcomes them, provides contacts and requests referrals. Remaining in touch during a claim and being aware of life changes is an opportunity to round an account and potentially add policies.
Finally, it's a fact that many customers shop just before it's time to renew a policy. Contacting the customer with an annual coverage review tells them the agent is aware of them and ready to help. For past customers, win-back programs provided by some forward-thinking carriers tells them it's okay to come back to the agency.
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