29 Jul Churn & Return: Winning Back Former Customers
In the business world, “churn” often describes the rate at which customers stop doing business with an organization. You have likely put in a great amount of effort and care to build your client base. However, converting prospects is not a guarantee that you will keep relationships with those former customers. Insurance customers have a lot of options available to them and there is significant competition in the marketplace.
Top producing insurance agents are constantly focused on customer retention in addition to customer acquisition. Retaining customers is not only about the offer of competitive pricing and insurance solutions. This is heavily focused on customer service, communication and the establishment of customer loyalty. It can cost six times more to earn a new customer than retain a current customer. Set yourself up for continued success by making sure your sales strategy includes tactics to retain and win back former customers.
Understanding Churn: Why Did You Lose That Customer?
Before you can focus on sales strategies to re-convert disconnected clients, you need to understand why you may have lost your former customer. Here are some common reasons that could motivate a client to change their perception of your services and end their relationship with you. The customer:
- No longer needed your solution
- Needed to reduce their spending and minimize costs
- Did not take advantage of all of the benefits of your service
- Did not have proper visibility into the benefits of your solution
Strategies To Win Back Former Customers
Losing touch with a client is not the end of the relationship. There are ways to re-convert a lost customer and win back their business. Here are three ways insurance agents can win back lost clients.
#1. Promote Announcements On Upgrades & Improvements
If your team or corporate office is launching upgrades or improvements to the customer experience or enhancing insurance offerings, you cannot assume your clients are aware of the latest news. In addition to email updates, make sure you prioritize updating your customers on the latest improvements during your regular check-ins. Make sure your channels are consistent in their messaging from brokerage website to social media. Check your CRM to review who you have not heard from lately. Take the opportunity to call and email them and set up a time to review any improvements or upgrades to their service that they might not be aware of currently. If you have not had engagement from a client in more than 3 months, you should focus on reconnecting with them.
#2. Communicate & Acknowledge Any Problems
Don’t avoid issues. A core element of providing top-notch customer service is listening to your customers. You likely have scheduled follow up conversations booked with your customers. These conversations can be either email, phone, video chat or text. Make sure you take the time to ask you customers if there is anything they are concerned about, not happy with or would like you to be aware of during these interactions. Asking your customers to provide their feedback on negative aspects of their experience helps you to identity and rectify potential issues. You can try to take a customer’s experience and convert it from negative to positive. That creates a new opportunity for you to establish a deeper connection with them and could even lead to future referrals.
#3. Leverage Re-Engagement Campaigns With Incentives For Returning Customers
Depending on the reason that motivated your customer to break ties, you will want to review options for incentivizing their return. Maybe they could use more flexibility in their payment scheduling or maybe they were not having an ideal online experience. Ask you customers to return and present them with an enticing reason to come back. You might present the ask in a phone conversation, email, text or even via traditional mail. No matter where you are presenting the invitation, be sure your message is personalized and the call to action is clear. Creating dedicated campaigns focusing on win back opportunities can prevent you from losing a customer’s business entirely.
Always Prioritize Providing Stellar Customer Service
Taking action is important for creating successful customer win back strategies. Whether you are winning back lapsed client relationships or offering your services to new prospects, customer service is key to acquisition and retention. Insurance agents who provide a positive and memorable experience have the greatest opportunity to establish stronger connections with their clients. The team at ZipQuote knows how important a personalized approach is, and is committed to being agent-focused. When you partner with ZipQuote, you can expect top-notch service from a team of knowledgeable professionals who want to see you succeed. Click here to learn more about how ZipQuote can help you grow your business.