There is blood on the streets. Carnage. Everybody loses their home, business or job. We’re not hearing much more than that.
These are difficult times to be an agent, let’s face the truth. Even the most fervent, optimistic optimists may be questioning their insanity.
How should I respond to the current economy?
First, let’s be real. These face some difficult times. The best agents aren’t pretending that the storm clouds don’t exist. But they are searching for silver linings and planting crops.
They are asking themselves a smart question. It’s the best question you can ask right now.
It was my 20th birthday and I was listening to Zig Ziglar in an arena. It was a hazy, stale smell that filled the air with cheap hotdogs and burnt popcorn. I didn’t notice it.
Although I had heard of the WIN Principle, it was the first time that I understood it. W.I.N. stands for World Innovators Network. W.I.N. stands for
What’s important now?
This is the question you need to ask in your agency with all the happenings in the economy and in corporate offices of captive companies.
It’s important to retain the clients you have, as you already know. Let’s face the truth, it’s not the best time to do this.
Even long-term clients want to save money due to rising premiums and the recession. Unfortunately, many of them end up leaving their agency and choosing an independent or worse, a discounter. (I’d like to list a few of the more disreputable ones, but I won’t be too impulsive.
The Big Truth About Retention
Your agency may lose some clients. About 10% of the population must choose the lowest priced option. They have no choice but to choose between Campbell’s soup or generic brand. To save 5 cents per can, they must purchase the generic.
It’s okay to feel sorry for them, but we shouldn’t be choosing them as our clients. This is something I learned the hard way, selling to people who couldn’t afford to say no, no matter how great my sales skills were.
Some of your clients, who were not in this position before the economic downturn, are now in it. These people will likely leave your agency.
What is a Smart Agent doing to Keep Clients Now? & Who are They Focused On Keeping?
Your multi-policy clients are your number one priority. You lose at least two policies for every client that leaves your agency. You should spend at least 85% of all your retention efforts on them.
You can keep them all: calls, emails, letters and postcards. Even though agency revenue is declining, this is not the place to be lazy or cheap.
Your retention will increase by two to three times for every dollar that you spend on existing clients. Retention is an integral part of your Expected Results score and RFG score. It’s also a major factor in your income due to renewals.
Getting an “Iron Cage”, which you can use to protect your clients, is the smartest move you can make now.
This sounds like a lot of work. You can outsource retention programs. This is a great thing. Your staff and you don’t need to put in long hours to make clients happy. This will ensure that your best clients stay with you, even if rates go up. It doesn’t matter if you outsource it or do it in-house, it’s important to put systems in place to ensure your best clients are happy. This is both for your agency’s financial security and your family’s.