Customer Retention: Integrating Community with Tradition

By Jim Groninger
InsuranceNewsNet

When it comes to growing your business you have to take a step back and revisit your roots. Where did it all begin? Where did you get your start?

It’s been said that the most valuable clients are those who have stuck by you from the beginning—those who choose you because they recognize your keen attention to detail and genuine interest in their well-being. Paying tribute to those first few clients who put their trust in you and helped jumpstart your business is crucial—and something that we at Groninger Insurance have come to recognize and expand upon over the years.

Customer retention seems to be a trending topic lately. Agencies are always looking for new ways to evolve their business without losing sight of their current customers. From promotional give-aways to loyal customer discounts, there are many routes you can go—but something we've found most successful is the integration of community and tradition.

As a local Pennsylvania insurance agency we want those within our tight-knight community to feel the love—we appreciate them, we value them and we want to keep them coming back for more—which is exactly why we have implemented a Referral Rewards program.

Word of mouth is certainly one of the most successful promotional tactics in this era of social marketing. Our current client base is the best source of advertising we can get, which is why we encourage them to spread the word about the personalized treatment and competitive rates they receive from us. However, it’s important to realize that we don’t just put our customers to work for us; we reward them with various incentives that keep them both interested and motivated.

Our Referral Rewards program gives clients three chances to “Win Big”. Upon referring a friend to Groninger Insurance, each customer is eligible for a series of prizes. From monthly “Dinner for Two” drawings and free lottery tickets, we keep the energy level high and our clients excited. To strengthen the success of the program we have formed a special relationship with our local Applebee’s allowing us to reward clients monthly with a gift certificate from the restaurant chain.

We follow up these monthly drawings with our annual Grand Prize—here’s where tradition really comes into play. Out of all the qualified entries, we reward an overall winner with “Christmas Cash” each December. In the past we have also given out a 27” flat screen TV as well as a “Grill Big” package consisting of all your BBQ necessities. It’s all about keeping them active within the referral process.

Besides rewarding clients with highly-coveted prizes, what’s the real purpose behind our Referral Rewards program? One word—engagement. Consistently interacting with your client base is essential. It goes far beyond saving them money on their auto insurance—you have to understand your clients, build a repertoire with them and quite honestly, make them feel special. Overall, to truly be successful in regards to customer retention, an agency must always strive to remain at the forefront of their clients’ minds.

Jim Groninger is president & co-owner of Groninger Insurance Agency.