Do you feel remarkets (aka reshops, rewrites, alternative quotes and maybe a few four letter words we don’t know about) are taking over your office?
Do you see everyone really busy all day but the retention seems to be lagging?
Tired of the stress?
In a time when some major national carriers are making significant rate increases how can we maximize retention, reduce stress on our team and reduce remarketing?
Well I have a plan!
Let’s start with the why.
Why has remarketing suddenly been creeping up? What we have found in our agency travels is that there are a few drivers of reshops:
- The automatic reshop: We see the rate spike and re-reshop it before we hop on the phone, because we want to only deliver good news. However, we don’t have updated quality information to be competitive.
- The account manager’s personal sensitivity to price: Too many times we look at a price and think it’s too high for us personally. We miss that the client may like the carrier or other details that we don’t know about so we inflect our personal finances on to the client.
- Customers have been brainwashed to think we are all paying too much and we need to pay less.
What has to happen is the team has new tools and resources to handle new challenges. For many account managers we have seen their roles and responsibilities change without much training. Now is the time to arm them with some new tools and resources to compete.
We have compiled the top 5 Ways to Reduce Remarketing & Increase Retention:
Proactive Renewal Call
If you can master this, you will win. When we install this program into agencies it’s difficult at the begining and then gets dramatically eaiser in 2 months.
However taking back control of the renewal 100% reduces cancellations and decreases reshopping.
When the account manager can control the call, the plan and the recommendations they tend to not recommend reshops as a strategy.
Let’s face it, a good reshop takes about 40 minutes for a package.
Most account managers when they can control the call won’t make the recommendation to reshop them.
Now, when the client calls in and they are spicy, it’s very difficult to control the call and most people want to solve the problem that they are being presented with.
Staying In Touch with Clients
You need to have a plan to market to your current customers just as much as prospects.
Remember customers are sold money and the more we retain, we can sell more too and generate referals from them.
Why aren’t we spending our energy marketing to them?
When we launch renewal calls we see a higher connecting ratio of call to speaking with someone when the agency is marketing to current customers.
It’s really easy to cancel when you can’t remember your agency’s name.
Don’t Reshop Without Multiple Lines
Yes this can take some effort. However, why are we reshopping a monoline policy? Carriers are rasing rates the most on monoline policies, so next year they will face the same thing.
In addition, in most states they are missing the biggest discount by not combining policies.
Why reshop when the bigger discount for the client and better option for the agency is to pull the other line of coverage in?
No Reshops Without A Full New Application
We can no longer take old information and expect to compete.
A 5 year old application is no longer a good representation of the person’s lifestyle and what we need to protect.
If we are going to take the time to reshop let’s review everything, find new opportunity and take the time with the clients.
If we spend more time with the client they are less likely to have time to shop with other agents.
Require a Manager’s Review To Reshop
Make it a requirement to review any proposed reshop for your 2 cents.
Sometimes you find people really need more training.
They need training on carrier features, the system or quoting. When you review it you can start tightening the bolts.
Bottom line you can reduce stress, increase retention while reducing reshops.