Waste of Time or Wasted Opportunity?
Who among us in the insurance industry hasn’t allowed a client relationship to lapse? A show of hands, please. (Yep. That’s what we thought.) While it can be a bit embarrassing for us BGAs and agents to admit, worse yet is the loss of potential future profit. So, how does this happen?
How does a client become an orphan?
As you know, “orphan” is insurance-speak for a policyholder whose primary agent (usually the person who initiated the policy) is no longer active on the account. Even when the agent has the best intentions to provide quality service, there are a number of ways a client can become an orphan.
- Becomes a company executive and no longer handles clients.
- Moves on to a different company and may be unable to fully service the client.
- May have changed jobs and terminated his agreement with the original insurer.
- May have left the insurance industry altogether.
Why service an existing client?
Fair question. After all, the real money made is in generating new business, right? That’s where you get the biggest bang for your efforts. And if you’re like most agents, you’ve been trained to pursue new accounts like a bloodhound.
However, if you’re neglecting an existing client, you are leaving money on the table…a lot of it! Existing clients are an important source of new revenue. Life changes bring new insurance needs. Career advancement, growing families, changing personal relationships—all these and more can lead to new business. It pays to have a program in place for dealing with existing clients and orphans or a business partner who will do the heavy lifting for you. There are numerous ways to help maintain your client relationships. These include:
- Engagement campaigns to foster client activity.
- Information outreach about new products and opportunities.
- Easy and efficient annual reviews.
- Email and snail mail blasts.
- Good old-fashioned giveaways.
The pay off? Old clients = New revenue.
Cultivating existing policyholders can be a fantastic source of annual renewal income, reducing acquisition costs while increasing commissions. Our experience at Insurance 360 has shown that existing clients often purchase several new policies over their lifetime.
So why pass up those opportunities? We all know that it is easier and less expensive to keep an existing client than find a new one. But to do that, you must keep in touch with your clients. In our upcoming articles, we’ll elaborate our proven methods for maintaining customer relationships, and where we fit in. If you would like to be notified of our new blog postings click the link on the top right side of this page to subscribe.
Let’s breathe new life into your existing book of business!