There’s an adage that getting new customers is expensive, but keeping them is profitable. Insurance agency owners know this conundrum. Yet, owners continue to struggle with investing in their insurance agency marketing.
A 1990 study by Bain & Company and Harvard Business School’s Earl Sasser famously showed that increasing customer retention rates by 5% can increase profitability by 25-95%. A recent Invesp infographic backed up the case for customer retention, showing it costs five times more to attract a new customer than to keep one.
For insurance agencies, customer retention is especially important: personal and commercial policies can take two to three years to show profit based on commissions paid. Keeping customers around for those two or three years becomes important.
Digital Marketing: Your Customer Retention Boost
Digital marketing allows you to communicate with your customers more effectively and at a lower total cost per impression than ever before. Plus, digital marketing lets you capture information on customer engagement and preferences to continually improve your tactics.
Take a digital newsletter, for example. With today’s technology, you are easily able to write, mass distribute, and collect information on exactly how your customers are interacting with that newsletter. You quickly pull a distribution list from your management system, create the newsletter using agency blog posts, and track interactions through your newsletter distribution platform.
That same newsletter content can be posted to Facebook, Twitter, LinkedIn, Google+, and other areas where your customers engage with your agency. This helpful content can be customized per channel, and all serve to help drive pertinent information to your clients, directing them back to your site for more.
And you know what’s happening every step of the way. Through this simple process, you can capture what’s working and where your customers are going. You’ll get stats on who’s visiting your website, accessing your blog, and leveraging your self-service portal among other information.
With this information, you can reach out via phone to touch base. You’ll be armed with the knowledge of what they viewed, giving you insight into what they need, and inviting to help them with more.
It beats the heck out of sending a postcard.
Get Connected through SIS
If you aren’t fighting for space in your customers mindshare – no matter how small that space is – you are essentially surrendering it to your competition. The best way to fight for that space is to get the right tools and tactics. At SIS, we work with our partners at NuGrowth Digital to stay up to date on industry marketing trends, providing solutions through our marketing arm Agency Marketing Partner. And, we continually collaborate with the Partner XE community to integrate the Partner XE agency management system with the latest marketing tools.
It may not be what it’s always been – and it may surprise you how preferences have changed. Advancements in insurance tech and changes in purchasing patterns mean your current and prospective customers may be looking for something more. Though you’ll have variation among different generations, there are commonalities within what your customers are looking for to get excellent service.
Next in our series on what’s behind our Partner Platform insurance agency software community is the management and operations consulting group, Eisenhart Consulting Group. For over ten years, we’ve been lucky to work with owner Mary Belka and her team.
Mary Belka, CEO and founder of Eisenhart Consulting Group, has been part of the Partner Allies team for more than a decade. When she was first introduced to the Partner Platform system, she was impressed by the hands-on, personalized service the Partner Platform team provided to one of her clients. Since then, a mutual dedication to personalized service has made Partner Platform and Eisenhart Consulting the perfect team for our independent agency clients.
I spoke with Mary to talk about how she came to meet the Partner team, the unique and transformational service she brings to Partner agencies, and how she prepares agencies for the future.