January 10, 2020

AZ Big Media

Abraham Khader offers 5 customer retention strategies in the insurance industry

When it comes to building loyalty from customers in the insurance world, Abraham Khader knows a few things as a three-time recipient of an Agent of the Year recognition from New York Life Insurance.

But even if you offer strong products and rates, there’s no guarantee that a customer will stay with you for life. While you can’t take out an insurance policy to guarantee you’ll have continued business, there are some effective retention strategies you can try to not only keep the clients you have, but also potentially grow your base.

1. Focus on a Niche

Many insurers offer a wide range of products, but may have a limited amount of knowledge about each one. One way you can stand out from the crowd, says Abraham Khader, is by focusing on a niche that you can become an expert in.

For example, you could become very knowledgeable in the niche of insuring boats or farming equipment. Whatever niche you choose, learning it inside out can help build trust with a client for a longer business relationship. Additionally, if you are an expert in the field, your clients might recommend their friends and colleagues to you if they are also looking for an insurer in that field.

2. Communicate More Often 

Insurance agents tend to connect with their customers at two key points – when they’re choosing an insurance policy, and when they’re making a claim.

However, this doesn’t really do anything to add value, as that’s what all insurance agents do on a regular basis. If you have built an email list, try sending out a newsletter or a blog that presents useful information and updates (as long as you’re not spamming.) You can also invite people to subscribe through your website.

This strategy will help keep your name front and center – and if the content is valuable it might be shared and generate new leads.

If you’re more about face-to-face connection than emails, then call your customers from time to time to determine if their needs are being met. Whatever method you choose, reaching out to your customers and learning how to effectively communicate is important for continued success, says Abraham Khader.

3. Connect In Person

Meeting with clients to give them a handshake and an opportunity to ask questions is ideal, but not always feasible due to time constraints.

Why not host a meet-and-greet event at your office or even on the sidewalk (with the right permit if needed)? Invite people for coffee and cake, giving community members a chance to meet each other while you catch up with current or past customers.

Put a post out on social media about the event or drop an invite into mailboxes if you’re looking to grow your guest list.

4. Create a Referral Program

Referrals are like gold in the insurance industry. It means one of your existing clients thinks you’re trustworthy enough to direct their friends and family your way.

While positive word of mouth is great, you can encourage people to look you up first by creating an incentive. For example, you could give a client a gift card to a local restaurant for referring someone new.

Abraham Khader emphasizes that the important thing in this scenario is to make sure your clients know there’s a referral program through your marketing strategy.

5. Encourage Clients To Sign Onto Multiple Products

If you have a range of insurance products but most of your clients are only signed onto one policy, then you need to give them a reason to buy more. For example, if your client uses you for home insurance, talk to them about the advantages of your life insurance or disability insurance too.

Customers are more likely to stick with you if you’re handling most or all of their insurance needs. You could even consider giving clients a “package” discount for having multiple policies through you.

Using these strategies from Abraham Khader can not only help you form better connections with your clients, but also improve your client retention rates.