Welcome to our mega-series of eight ways that insurance agencies make money, where we cover a different topic every day. Today’s topic is crucial, and it’s retention.
“The higher you can get your retention, every new piece of business you put on top can mean potentially a lot more.”
Here’s the deal: insurance retention drives growth. The higher you can get your retention, the more valuable every new piece of business becomes. Here are some things to focus on when it comes to retention:
What are the drivers of retention?
It’s important to identify what exactly drives retention. Proactive renewal calls do so much good for agencies, and contrary to popular belief, they don’t cause reshopping, or cause people to leave, but instead, cause people to stay. If your strategy is “don’t poke the sleeping bear,” then you don’t have a strategy. Waiting for people to call us is not a great strategy, and we need to be more proactive than that.
Track your retention
A great way to boost your retention is to start tracking it. You need to master your management system. It’s not an option. You also need to commit to taking courses and finding a trainer and getting numbers accurate, so you can run your business. Retention percentage points make a huge difference, even just a percentage point or two.
Grade yourself on your retention
Another great way to start focusing on your retention is to grade your own retention performance. Do you know your number? Do you have a strategy? What would be a good goal to hit? All of these questions make up your retention performance, and how you should be grading yourself.
The bottom line when it comes to retention is that insurance retention drives growth. By focusing on retention, you’re ultimately going to have clients that are more valuable, and have a more successful business.
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