Customer experience is a crucial part of customer retention, and the secret to providing a great customer experience is simple. (Photo: Shutterstock)
If you want your agency to be a success, making customer acquisition your top priority is a mistake. Customer retention is a far more profitable priority because keeping an existing customer is much cheaper than going out and finding a new one. The average retention rate for the insurance industry is 84%, but the top companies in the industry are beating that average by 10% or more.
According to The Independent Insurance Agents of Dallas (IIAD), insurance has higher customer acquisition costs than any other industry. Insurance agents can expect to spend seven to nine times more money acquiring a new customer than retaining an old one.
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