When it comes to increasing insurance revenues, make sure you pick the “lowest hanging fruit” first. The perfect opportunity exists to cross-sell or up-sell your present customers. All you need to do is implement a tactic called account rounding.
What is account rounding? It’s one of the most effective, but underutilized sales and marketing tactics available to every insurance agency. It takes your accounts, whether personal lines or commercial and convinces them to use more agency services. This alone accomplishes two objectives.
- It immediately increases your overall revenue with that particular account.
- You increase the customer lifetime value (CLV) of the account which comes as their use of your services deepens.
The Process of Account Rounding
So where do you start? By taking a long and hard look at the data contained in your agency management system. This job is easier if you have invested time in labeling and segmenting data. If you haven’t, you can still get started by segmenting these account types:
- Current Accounts – Both Personal and Commercial
- New Accounts – Both Personal and Commercial
This job is made even easier if you can run reports that show specific lines which are being purchased – or not. Try to determine when those purchases occurred and the policy expiration dates. Are you insuring the customers personal and commercial business needs? What other types of insurance might they find beneficial?
Once you’ve gathered this information, you just might start to see potential sales hiding in your database. The next question, of course, is how to reach out to these clients and generate additional revenue from them.
Building Insurance Customer Relationships
The best way to sell something to someone is to identify their need (or problem) and show them how you can meet their need. How many times do you walk into a store for one thing and leave with several. You didn’t even know you wanted or needed those extra items until you SAW them. Email campaigns put your insurance products in front of your customer’s eyes. Show them what they are missing.
They’ve already established a relationship with you with their prior business. You are just watching out for them, letting them know about other opportunities.
Account rounding can successfully increase your insurance revenues over the short and long-term, but you must be consistent. Let us show you how to build an effective email campaign that keeps you in touch with your clients. Transform them into Customers for Life.
[…] Last year I wrote about the importance of Account Rounding to increase insurance revenues. […]