I agree with you, I think alot of agents (captive) are pushed to close sales and meet the numbers than worry about retention.
My previous career was in banking management. That career did teach me about keeping the existing client is as important if not more important than meeting the sales goals.
I try to be sure to do both.
For me the business retention aspect alone is the whole reason to stay in the insurance business. Building a client base and getting renewal commissions is the payoff for woking hard, hangining in there during the tough times, and doing right by the customer.
Those in the insurance business chasing advances are really only chasing their own tail. _________________ Thinking about becoming a health insurance agent or just getting started out as one?
I agree with you, I think alot of agents (captive) are pushed to close sales and meet the numbers than worry about retention.
My previous career was in banking management. That career did teach me about keeping the existing client is as important if not more important than meeting the sales goals.
I try to be sure to do both.
I think a lot of insurance agents sometimes get frustrated by unrealistic sales goals that are set by a sales manager or an insurance company.
As professional agents, we should be more concerned about meeting our own personal goals. We should start by establishing an annual income goal. So, if our personal goal is to make $100,000 this year and we know the average commission per sale, we have the number of sales we must make to reach our goal.
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For me the business retention aspect alone is the whole reason to stay in the insurance business. Building a client base and getting renewal commissions is the payoff for woking hard, hangining in there during the tough times, and doing right by the customer.
I agree 100%, but this job is getting much tougher. I have made a lot of friends, who are policyholders, but let's face it, in today's economy, people are concerned about premium dollars.
You are right about customer loyalty, but I will take all of it I can get, and I do my best to earn it. I would rather have a customer know that they call me with a problem than their first option to be calling someone else.
We all know that health insurance premiums are not getting any lower and if a customer signs up for something cheaper they are most likely losing benefits. I think it is important to let them know to call me before changing anything.
I had a customer who was considering changing from a catasrophic ppo to a limited benefit plan to save $40 a month. He had no clue that this plan had no network, no provision for any type of preventative care, or that it only covered up to the first $25000, and would only do that once per lifetime.
All he knew was that the plan had a $1000 deductible and was an 80/20 plan. I had sold them a catastrophic ppo plan with a $2000 deductible and a $5000 stop loss provision that would cover up to $1,000,000 per incident $5,000,000 max lifetime. The policyholder had also developed a health problem since his policy had been issued (this is why the limited benefit plan was not that much cheaper.)
If he had not called me first, he would have given up better benefits and would have never been able to get them back for even close to the same rate. He ended up just slightly reducing his prventative benefits to get the cost down with my help.
Needless to say, he will probably be a lifetime customer. It is as important to your customer as it is to yourself. I just wish more customers realized this...
Mac _________________ Thinking about becoming a health insurance agent or just getting started out as one?
Needless to say, he will probably be a lifetime customer. It is as important to your customer as it is to yourself. I just wish more customers realized this...
This is a hard lesson to learn both for the insurance agent and the customer, sometimes.
Many customers never reach that point of realizing that some of us actually have their best interests at heart. Sure we have to make a living, but if we continue to do the right thing for the cusomter, then our income will always take care of itself.
Many agents go into a home or place of business with dollar signs in their minds and whatever they can do to get the most dollars, they will do.
On the P&C side we too are seeing things change. We are requoting and rewriting alot of customers who have been with us for 20+ years. Although I am capitive we also write for 5 other major carriers. This does help us with retention.
I believe the customer loyalty is there somewhat but with the way the economy is today most of the time its the bottom line price that they are looking at, for us anyway on the P&C side.
Yes, the auto and home insurance side of the business is probably being affected more than any other type of insurance.
I actually have one P & C carrier who is sending postcards to my existing customers offering them a savings of $300 if they will buy "direct" online.
Needless to say, I don't place much business with them anymore.
Some customers will change auto insurance at the drop of a hat, others are loyal to their original agent or agency.
Then, we have "cut rate" companies out there who want to "Keep You Legal For Less".
Insurance is just like anything else we buy. We get what we pay for, usually.
I am bringing on a new agent. He was in sales in a non-insurance related field and they simply closed down in the state he lives. Rather than relocate he has elected to go into insurance. I think it's one of the very best fields anywhere for the right person. Their are just so many great benefits. _________________ Arizona Insurance Broker
I originally entered because I was in a dead end job after bouncing around from several jobs over several years, and MetLife surprisingly hired me. I was so grateful to have the job and I worked my tail off. It's been a good ride as I found my niche. _________________ Arizona Insurance Broker
I joined insurance because I was sold a Dream, lol Too bad that dream was through A.L. Williams (for those of you who know who that is). Well my dream was shot down very quickly with is company...
I went independent and never looked back...
Insurance can be the hardest $35,000 per year or the easiet $100,000. That is so true. _________________ Ramiz A. Hakim
Independent Insurance Broker
5697 Charlesgate Rd.
Huber Heights, OH 45424
866.497.4014 Office
206.203.4602 Fax
