Have you lost customers because of raised premiums? Don’t fret; here’s what to do.
“You raised my premiums and I’ve never even filed a claim!”
It’s a common reaction you and your service staff hear from frustrated customers. You see the irritated reviews of customers on your website. Some customers get so upset that they seek a less expensive rate through another insurance provider and leave. Rate increases by your company are out of your control but you have the power to prevent customers from leaving while still gaining new business. Here’s what can you do:
1. Be the Expert
You need to educate customers on the circumstances surrounding the raised rates. Has your area seen an increase in crime or uninsured drivers? What about the weather and other natural disasters like last year’s California Campfire? These are all reasons why auto or homeowners’ premiums may be on the rise. Being the expert in your field gives you credibility as a trusted advisor, just like a doctor becomes more credible when he or she understands and can explain medicine.
Stress to your service staff that they should practice empathizing with customers. Also, point out to your customers that you deal with many local people like them who are feeling the same way. You can even explain that you too are frustrated that your own rates increased. If you relate to your customers with empathy and expertise, they’ll appreciate you being their trusted advisor. The more they appreciate you, the less likely they’ll be to make a rash decision and leave for a competitor.
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3. Maximize Your Time
Still losing homeowners customers to other providers because of raised rates? Sell more of what already have. Take a cold call list or cross-sell list and hit the phones. To reach more sales opportunities in a short amount of time, use an autodialer to easily triple the call productivity in your office. Spend you and your staff’s time wisely to produce maximum results and drive new business.
4. Win Back Past Clients
Many agents tend to forget about the customers they’ve lost as they gain new ones. Over time you build up past customers you’ve lost. However, you should reach out to them again. Why? It turns out that you have a 20-40% chance of gaining back a past customer. This is an opportunity many agents often don’t take advantage of, but it’s one, if done correctly, that can really grow your book of business. How exactly do you do it correctly? Develop a smart strategy.
5. Use Smart Strategies
As you develop a list of your past customers, make sure that you’re reaching back out to them to offer a requote. Don’t have time? Schedule emails to be automatically sent on your behalf. A virtual office manager like Blitz can even schedule reminders for you to call lost customers. That way, you’re always in front of them. These simple tasks also keep your business relevant in the mind of the customer so you’re not forgotten. When their rate with a competitor goes up, it’ll be the customer’s turn to reach out to you! It’s all about successfully nurturing the relationship that will allow your agency to scale.
Increase the effectiveness of your sales and marketing efforts at your company with our easy-to-use follow up software! Blitz is reasonably priced, and is packed with the tools your agency needs! Contact us to learn more!
Lost customers can get you down, but you’ll rest more soundly at night knowing you have a strategy to win them back. Click here to schedule a free one-on-one demo of Blitz and develop your customer win-back strategy today!