Game-changing tools for boosting retention at renewal time

Retention is the cornerstone of agency growth and sustainability.

Even the best sales strategy can’t ensure profitability or expansion without strong customer retention. Not only is it easier to keep existing customers than to attract new ones, but it is also more cost-effective.

Insurance has the highest customer acquisition costs of any industry and that it costs seven to nine times more for an insurance agency to attract a new customer than to retain one, according to 21^st Century Management Consulting.

That statistic is enough for anyone to take a second look at their retention strategy.

One of the most critical times to focus on this initiative is right before the client’s renewal. Renewal time is when many insureds receive that increased premium price in the mail and immediately go shopping for new policies. We want to get ahead of that by implementing and using insurtech.

The right insurance technologies will boost effectiveness in many areas of agency operations that impact retention. Let’s explore the top four types of technology that can help your agency thrive and bolster retention efforts during renewal time.

Automated renewal quoting technology

There’s nothing more vital to your retention strategy than software that enables you to identify at-risk clients so that you can prioritize them. Your agency can concentrate on customers, particularly those considering other options, by utilizing automated quoting around the time of renewal. This technology employs analytic risk models to identify policies at risk then automatically quotes at-risk renewals with alternative carriers, saving you the effort of manually comparing policy details.

Policy comparisons help you to immediately provide clients with a side-by-side view of their previous and upcoming premiums before they even ask. Investing in automated renewal quoting technology not only makes clients feel like you’re looking out for them with transparency and personalized service; it also saves your agents hours and leads to increased efficiency.

Text messaging communication

Before you get to renewal time, offering the level of service and communication that clients prefer helps foster client loyalty, making customers more likely to stay with your agency even when premiums are going up. One way to offer this service is through text messaging. Many insureds now prefer to communicate with your agency via text instead of over the phone or email.

In fact, 90% of consumers prefer text messages over direct phone calls, according to SMS Comparison. When you can give clients relevant policy information via text, your agency stands out as a business that understands the way its clients communicate, further demonstrating your position as a trusted advisor.

Texting integration offers an instant and convenient point of contact that can send policy information, documents and even quotes to customers directly from within your agency management system. The right texting technology can also help your agency capture leads by obtaining client contact details, risk information and quotes, and automatically inputting them into your agency management system, saving time rekeying information and speeding up the selling and servicing process.

Reporting and analytics software

Reporting and analytics software can be a game-changer for your agency during the critical renewal period. By integrating the right reporting and analytics software into your agency management system, you gain valuable insights into your customer’s behavior, policy performance, and market trends to guide decision-making and enable your agency to effectively tailor your renewal strategies. It can also identify patterns or factors that lead to policy renewals or cancellations, allowing you to better understand your clients, assess the risk associated with each policy, and take proactive steps to improve customer retention during the renewal process.

Incorporating reporting and analytics software into your agency’s operations significantly enhances the renewal process and customer retention. By offering valuable insights, this technology empowers your agency to make informed decisions, tailor effective strategies, and proactively address customer needs, making it a transformative tool for your agency.

Cross-selling technology

Cross-selling is arguably the most effective retention strategy because the more services your client receives from your agency, the more likely they will stay. That’s why it’s critical to have software integrated into your management system that helps you identify potential cross-sell opportunities.

The software’s ability to analyze customer data allows your agency to better understand and cater to your customer’s needs, thereby improving customer satisfaction and loyalty. The right cross-selling solution will analyze your existing book of business and quote data for potential cross-selling opportunities, providing the information you need to close the deal and maximize sales opportunities during renewal time. Investing in cross-selling software for your agency during renewal time is a strategic tool that can lead to increased revenue, improved customer satisfaction, and better risk management.

Your agency can be successful in your retention strategy during renewal through the implementation of insurtech. These top four technologies automate at-risk renewals, facilitate personalized communication, provide valuable customer insights, and uncover cross-selling opportunities that elevate your retention goals. By leveraging these tools, your agency not only optimizes the renewal process and improves customer satisfaction but also positions itself for sustainable growth and success.

Vijay Rengarajan is the director of product management at EZLynx, an Applied company.

Opinions expressed here are the author’s own. This article is published with permission from the author and may not be reproduced.

Also by this contributor: The benefits of breaking free as an independent insurance agent