No matter what industry you’re in, client attrition is a fact of life. It becomes a progressively more painful fact of life when the economy is facing uncertainty. Luckily, there are simple strategies you can use to improve client retention and build more security in your business.
Consumer expectations are growing, and if you can’t meet these demands, you’ll fall behind. Modern buyers are looking for a streamlined experience that gets them results quickly. They want 24/7 support and are accustomed to instant gratification.
This is where insurance technology solutions can be your ace up the sleeve. With the right tools at your disposal, you can not only meet these expectations but exceed them. And when you start consistently impressing your clients, you’ll see a dramatic improvement in retention.
Why is Improving Client Retention Important?
It may seem obvious: no one wants to lose business. But let’s break down the numbers. Every client that leaves needs to be replaced, and there’s a cost to acquiring new business. In fact, the cost of acquisition is 5X greater than the cost of retention. This means that business growth will stall or even go backwards when clients decide to go elsewhere.
On top of that, existing clients already have an established level of trust which makes them easier to sell to. Investing in retention often ends up costing less overall than acquiring new clients and can accelerate revenue growth long term.
Why Do Clients Leave?
When it comes down to it, most clients don’t leave because of a pricing issue. They take their business to the competition when there is a lack of personalization, limited outreach and communication, or an overall poor experience.
In other words, they start shopping around when they begin feeling like just another sale instead of a unique individual.
So, what actionable steps can you take to address these issues and retain more clients?
1. Emphasize value over price
Offering the lowest price isn’t always possible, and many consumers now view it as a red flag indicating poor service. Instead, showcase your value and help your clients understand how irreplaceable your services are.
This means communicating with your clients more often than just during renewal season or if there is a claim. Build regular positive touchpoints into your communication strategy to keep clients engaged with your business.
These positive touchpoints could come in the form of educational pieces that help clients stay up to date with regulatory changes, relevant market impacts, compliance updates, and opportunities to save money.
Ultimately, that’s the bottom line. Everyone wants to make sure they’re getting the most out of every dollar. If you can offer your clients simple ways to save money and explain cost drivers affecting their premium while strategizing solutions for bringing those costs down, you’ll prove your value and secure more renewals.
2. Become a trusted resource
Advice is free, but the value it offers to your clients is priceless. When you can help your clients recognize and strategize ways to save money, you’ll position yourself as a trusted resource that’s too valuable to ever do without.
Additionally, setting yourself up as a resource in the industry keeps you top of mind with prospects and can make it easier to bring in new business. Offering information in the form of content, newsletters, or guides can help differentiate your services from your competitors and build a foundation of trust with existing clients and potential clients.
But creating this content is time consuming. In fact, reps report spending 31% of their time searching for and creating content rather than selling. This is where an insurance technology solution like Zywave’s Content Cloud can make all the difference and help you build your reputation as a trusted resource.
3. Build stickier client relationships
The more you can offer your clients, the more difficult it will be for them to leave. Give your clients exactly what they’re looking for through regular communication and self-servicing options that make things easier for them and you.
Providing more positive touchpoints outside of renewal season keeps you top of mind with clients. Do this through automated marketing, industry education and updates, and time-sensitive notifications. This regular communication shows your clients that you care about their success.
Additionally, help clients get the solutions they need quickly by enabling self-servicing. In our increasingly digital world, it’s essential to build a strong online presence featuring tools and apps that clients can use to find answers and information exactly when they need it.
71% of employers report that a lack of prompt and effective service is a main factor that would lead them to change brokers. Fulfill this need and improve stickiness with regular communication and self-service options so your clients are never left in the dark.
4. Exceed expectations
Clients are always looking for additional value, and it may seem impossible to meet their high expectations with only 24 hours in a day. But in reality, a few simple tweaks are all it takes to wow them, and with the right insurance technology solutions in your back pocket, it’s easy.
In the end, it boils down to having a deep understanding of your clients and proving you are fully invested in their success. You can accomplish this by addressing concerns specific to their industry and their unique pain points.
When you not only meet but exceed the high expectations of today’s consumers by showcasing your value and becoming a trusted resource, you’ll easily build stickier client relationships and have positive renewal conversations year after year. Improve client retention and accelerate your business growth.
How can the right insurance technology solutions help?
Accomplishing all this may seem like it will require a lot of time and energy. And we all know there are only so many hours in the day. If you’re already feeling stretched thin, that’s when it’s time to invest in insurance technology solutions to carry the load and save you time.
If you’re ready to enhance your attraction and retention strategies, Zywave is here to help. And if you want more actionable insights into improving client retention, check out our on-demand webinar, Boosting Client Retention with Zywave’s Client Cloud.
