Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

A Key To Customer Retention | Business Tips for Insurance Agents

Published on June 15, 2017

business tips for insurance agents | wholesale insurance broker abram interstate CA

A few months ago I received a piece of mail from Southwest Airlines. I thought it would be a credit card offer, or some piece of advertising, but instead what I found inside was a letter from the company head thanking me for being a Southwest customer. Also included were 4 free drink coupons for my future flights with an expiration date almost a year later.

No gimmick. No sales pitch. Just a letter saying thank you, and a simple, but enjoyable gift to use next time I traveled with them.

I recently had to book flights for a trip and several airlines were in a comparable price range. I used to be a Southwest Airlines traveler almost exclusively, but since then, their prices have come up, and other airline’s prices have come down (especially if I don’t need to check luggage, because the other airlines do charge for that). I hadn’t flown with them in almost a year. But because of their rewards program, and because of their outstanding customer service and their sweet, (albeit generic) thank you letter and coupons they’d sent me were enough to persuade me. I ended up spending a little bit more money to go with the convenience of the service and the company that appreciates me and values my time and my needs in their business models.

But really, if it hadn’t of been for that letter and coupons, I probably wouldn’t have spent the extra $30 to fly with them. I would’ve gone with whoever was cheapest.

I see this in my own choices and purchasing patterns as a customer, and it shows statistically as well. Hint: Your Insurance Agency is not exempt from this concept.

Here are a few statistics that illuminate this, via slideshare.net’s article on customer retention:

  • 68% of customers leave you because they perceive you are indifferent to them
  • Companies that prioritize the customer experience generate 60% higher profits than their competitors
    • (Sources; Gartner Group and “Leading on the Edge of Chaos”, Emmett C. Murphy and Mark A. Murphy)
  • A commitment to customer experience results in up to 25% more customer retention and revenuethan sales or marketing initiatives
    • (Sources; Gartner Group and “Leading on the Edge of Chaos”, Emmett C. Murphy and Mark A. Murphy)

Customer retention is not just about your product, it’s not just about your marketing, and it’s not just about your customer service overall. It’s also about how appreciated you make your customers feel.

Whether it’s through some hand-signed thank you cards, a coupon or gift card, an incentive or loyalty program, or even just some fresh snacks in your office for your insurance customers when they come in — customer appreciation goes a long way. Especially as an Insurance Agent — your potential for gained revenue from happy customers who feel appreciated is endless. Everyone needs insurance. And most people need several different kinds of insurance. Insurance Agents can’t afford to have all of their new business come from all new people — referrals and repeat customers are available and should be sought after. Thanking your existing customers is a great place to start.

And, once you have the business, you can quote your potential insurance risks online with Abram Interstate Right HERE.

Abram Interstate Insurance Services, Inc. is a California wholesale insurance broker (CMGA) that has licensing and expertise to place business in both admitted and non-admitted markets for personal lines insurance and commercial lines insurance in California and surrounding areas.

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