For most of you Life Insurance is not in your wheelhouse.
The Thompson Agency is offering this program to our P&C Partners in recognition of that fact and because it doesn't get much easier than this. The program facilitates proactive offering of Life Insurance as a value-added service to existing Personal & Commercial Lines clients who already know and trust you, and a simple 3-step process to pull it all together.
Challenges facing Independent Agencies . . .
Most of our Priorities Include:
- Acquisition of new business
- Retention of existing business
Most of our Competition Concerns include:
- Carrier Direct Sales (now claiming over 60% of the individual auto market)
- Online Quoting Services
- Carrier Web Sales and Call Centers
Most of us are set up for new customer acquisition. Acquisition is easy to measure. You can count the new customers on your database.
Customer retention is harder to measure. How can you prove that, as a result of your efforts, X-number of customers did not drop their coverage last year? Not easy to prove.
At the same time, retention can be very cost effective. Many studies have shown that $1 paid towards customer retention increases profits by more than $5 spent on new customer acquisition.*
Two strategies are simultaneously employed in this “3-Step” program to achieve the twin goals of increasing customer acquisition and retention. They are:
- Selling Additional Product(s) to Existing Customers
- Communicating Consistently with Existing Customers
* “Increasing Insurance Customer Retention” — by Arthur Middleton Hughes Database Marketing Institute — August 2012