Most agents I speak with know that there is untapped revenue within their existing database. Typically this discussion focuses on rounding out existing clients. However, there are two other segments within the database where an insurance agent can drive revenue. I’ve never run into an agent yet that has a 100% client retention or close rate. A good percentage of your lost clients and unsold prospects in our database can easily turn into new leads with little effort.
Lost Customers
Every time you lose a client, you should determine two things. First, can you win the account back? Some accounts are lost due to death, moving to a state where you don’t write, closed businesses, etc. These accounts should be marked as unable to be rewritten so that we do not spend time chasing them. Second, you should determine if you want to win the account back. We have all had clients that have us doing a little dance when we get the cancellation for non-pay or LPR from the new agent (even if we feel a little bad for the new agent…). We should also mark these so that we do not pursue them.
For the other clients, we should make at least one phone call when we receive the cancellation request (if we haven’t already spoken to them). Whether it is an inbound call or we are proactively making the call to the client, we should ask them why they are leaving and try to save the account. If not, we should ask them if it is okay to check-in with them at the renewal. Not only will this help set up the prospecting call for the renewal, but it is a better customer experience to have a positive exit call and will help you determine if you have a service issue that needs to be addressed.
Unsold Quotes
When we do not close a sale we should be making a similar decision. Is this someone that we can and want to write? If so, we should let them know that we will be contacting them at their next renewal. Setting up this call helps not only so that they know that you will be calling but it may also help you understand why you did not get the sale the first time around. If the person balks at you calling them again, identify why they don’t want to speak with you again. This will help you improve your sales process by determining where you may have lost the sale.
Sales Process
When the renewal comes around, you should have a sales process set for these two types of leads. We recommend at least 3 calls and 2 emails at a minimum. The ideal time to contact them is around when they have received the renewal but not the bill yet. If you contact a client too early, they aren’t focused on it yet. If you contact them too late and they’ve already paid the bill, they are unlikely to want to revisit it.
When you do get them on the phone, be sure to rebuild rapport with them. Treat them as an individual and remind them of the benefits to working with you and your agency. If you know why they left you or chose not to go with you the previous renewal, address this directly to remove doubt. Once you’ve reestablished the relationship, you can quickly move into the quoting process right on the phone as you should already have most of the information that you need to quote in your database. Determine if anything has changed and present the quote right there. This will be one of the best quoting experiences that they will have as they don’t have to go through a full “insurance interrogation” to obtain it.
Prospecting is an important part of the sales process, but can be time consuming. In our AppX Sales program, we review how prospecting within our existing database is less time consuming and can result in a higher close ratio due to the prospect’s experience.
