Keeping the fox out of the hen house: Protect and grow your book of business

By Todd Villeneuve

A solid book of business is an advisor’s lifeline. But while most advisors understand the work it takes to build their client list, few put significant thought into how to protect and nurture their book of business for organic growth.

That can be a costly mistake considering that the typical insurance agent loses 16% of clients every year. And with the average cost of acquiring a new client higher than in any other industry, agents who actively work to retain clients will give themselves a considerable advantage over those who do not.

There is no single rule for reducing client churn, but there are some best practices that I found can help improve client satisfaction and make it harder for clients to look elsewhere. Here are four steps agents should take to keep the fox out of the hen house and protect their book of business.

Find additional opportunities to serve clients. A client list is more than a record of people you do business with. It is a list of people whose trust you have gained and who reliably open the mail you send or answer the phone when you call. Repaying that trust by expanding offerings to better serve client needs allows you to increase revenue from your book of business and deliver efficiencies and peace of mind for clients. Health insurance – both individual and Medicare – is a great place to start as you look to expand, but you can also tailor offerings based on the needs of your specific client base. For example, personal insurance clients may be interested in long-term care insurance, while business clients may want products that help them attract and retain employees.

If you’re not sure what your clients want or need, a simple, 30-second questionnaire can help you better understand what you can and should be offering. If you find that you lack expertise in a specific area or aren’t sure your agency is bringing in enough business to hire additional agents, you can partner with another local agent who specializes in that area or reach out to a local or national insurance marketing organization to borrow the talent until you increase your experience in a particular product category.

2. Enhance client education. Most people don’t want to spend a lot of time thinking about insurance – that's why they hire you – but that doesn’t mean they don’t want to be informed. However, statistics show that only 44% of clients have been in touch with their agent in the past year. I see this as a golden opportunity, because communicating with and educating clients is easy, and it’s a perfect way to build relationships.

Start by establishing a variety of communication channels with clients. That could include an occasional lunch-and-learn session or a simple, topic-driven email newsletter that allows clients to easily scan headlines and click through when they find something they want to learn about. Keep an eye on emerging trends, both good and bad, and keep education going back and forth with clients.

3. Make yourself easy to work with. The easiest way to alienate clients is to be difficult to work with. Clients are quick to leave if they feel they are not being treated well. In fact, an estimated 61% of clients will jump to a competitor after only one negative experience, and 76% will leave after two bad experiences.

Make sure your service model is attentive and responsive to inquiries, and that you consistently look for ways to remove roadblocks that may keep clients from finding the information they want or adopting new coverage. Providing training to fine-tune your team’s customer service skills will equip them to better respond to client requests, while investing in new technology will make it easier for clients to work with you. You may also consider looking for outside help to enhance your ability to serve clients.

4. Be present in the community. Staying top of mind for your clients is key to protecting and growing your book of business. Active communication helps with this, but it’s also beneficial to be visible in the community you serve. Whether that means volunteering, supporting local sports or arts activities, placing ads in local media outlets, or another activity that better suits your client base, find ways to get your name out there without giving the impression that you’re always trying to sell something.

Marketing can be challenging if you don’t have the background or resources to create ads or other collateral, so you may benefit from working with an IMO that can provide design resources and expertise.

Building a solid book of business is only part of the battle for insurance advisors. Protecting against churn – whether due to the competitive landscape or changing consumer attitudes – is key to building and maintaining a successful agency. By taking a few proactive steps, advisors can build and maintain a thriving business.

Todd Villeneuve is managing partner of IFC National Marketing. He may be contacted at [email protected].