We all know that the insurance industry is built on relationships – new relationships and old that all require time and resources to create a bond that can last an entire career.
But, if being time- and cost-effective is a priority, retaining customers already on the book can generate greater profits in the long run than finding new business. In fact, it can cost five-times more to attract a new customer than to maintain an existing one, according to Invesp, which is why renewal campaigns can be an essential tool for agencies looking to build their existing relationships – and business.
“Today, you will be hard-pressed to reach a client by phone, let alone in person,” says Henna Javed, AgencyBuzz coordinator at Insurance Technologies Corporation (ITC). “The next best thing is cost-effective and convenient for you and your client, as well; it’s email. You can create a single email to remind clients it’s time to renew, or you can create campaigns that reach clients at predetermined times. This way clients can be sure about exactly where they stand in their policy timeline.”
For example, if a client’s policy is dated to expire in 60 days, an email renewal campaign will trigger an email to the client with the appropriate reminder, Javed explains. In addition, agents can use the same campaign to cross-sell policies, capturing more business from clients.
“As every agent knows, bundling policies means big savings for the insured. This, in turn, increases your retention rate. And, don’t forget to get their EFT authorization. Automatic payments also lead to higher renewal rates,” she says.
Ultimately, sending renewal emails puts a spotlight on an agency. It builds trust, loyalty and the relationship between the client and their agent.
“If a client is unsure about a policy, such emails can welcome them into contacting you. Clients are also more likely to refer your agency to friends, family and colleagues if they trust you as not just an insurance contact, but also a friend,” says Javed. “The bottom line is renewal email campaigns can be beneficial to your clients and you. Your clients get a sense of security knowing their insurance needs are taken care of [and] you will earn your client’s trust, loyalty, continual business and referrals.”