How Insurance 360 unlocked recurring revenue!
Every agent knows that searching for new prospects can consume a great deal of your energy and resources. Insurance 360 began prospecting for new clients with direct mail advertising many years ago. At the peak of our direct mail campaign, we were sending term life insurance flyers to 300,000 professionals a month. It was a wonderful time to be in the life insurance business. If you wanted more business, you simply sent out more mail… It was that simple. However, nothing stays the same forever and markets change. Our direct mail leads went from costing us $100 per lead at the beginning to over $1,000 a lead at the end.
Something had to change. We reluctantly entered the new generation of insurance marketing which included internet leads, banner advertising, email campaigns, pay per click, Google Ads etc., etc., etc. We went from working with Physicians and Attorneys, who were the ideal clients, to the purchased Internet leads which included people who didn’t have a checkbook, let alone a bank account. It didn’t take long for us to figure out the markets change and so must we.
Fortunately, over the last 35 years we had sold a ton of clients and these clients continue to grow older and their needs changed. Although, we expected that these existing clients were going to be a great source of revenue, we never realized it would become the core of our business.
Last year our existing policy holders accounted for over $2 million of first year premiums. That’s right, over 95% of our business currently comes from all the people who bought policies 10, 20, and even 30 years ago.
Once we decided to get more out of each of our policy holders our first issue was “how to begin.” As we all know, give a client enough time and all the contact info you have for the client is fairly useless, especially with the migration to strictly mobile numbers. One of our most effective campaigns is our mail campaign in which we inform the client we need updated contact info simply because “If we can’t get a hold of you, how likely will it be your beneficiaries will be able to get a hold of us?” This basic letter generated a flurry of inbound calls from our clients.
After establishing the initial contact, we found it was easy to keep the client engaged and connected simply with one annual call and a few email/letter campaigns every so often. One of our most successful campaigns is simply our “free candy” emails where we send an email to all of our clients, telling them to click on a link for a chance to win a box of Lammes candies.
What does all of this mean for you? As agents and BGAs, we all need to realize that our existing block of business is a potential goldmine. The same clients who had incomes of $35,000 twenty years ago now make $150,000 – $250,000 and perhaps have more expensive homes, a vacation home, a business, and a change in their family (i.e. second marriage).
We can assure you that if you are neglecting your existing clients (or orphan clients) and still focusing all of your efforts and resources on new business, it’s a costly mistake. Think about it… All you really need to do is contact the clients once a year and keep the line of communication open. If they have term insurance, what can go wrong during the policy review? Their term insurance premiums are guaranteed and there are not a lot of moving parts within their policies. So you simply need to stay in touch, keep them happy with your great service, and wait until the policy gets more expensive at the end. Remember, you are most likely the only agent that they have known for the last 10, 20, or 30 years. WHY WOULDN’T THEY DO BUSINESS WITH YOU AGAIN, IF YOU JUST STAY IN TOUCH?
So, if you’ve kept in touch and serviced your clients over the years you should be proud. However, if you haven’t, we have good news… Not all is lost. Our next Insurance 360 blog will tell you how easy it is to reestablish the relationship with your clients that was lost many years ago. Trust me, it’s a fantastic source of new revenue and we look forward to sharing our experience and success with you.
Let’s breathe new life into your existing book of business!