RiskProNet News

 

Phone Calls Out, Text Messages and Postcards In

Postcards are effective. Texts are popular. Email continues to be an excellent way to communicate with clients. But when it comes to phone calls, 84 percent of clients would prefer their insurance agents choose another method.

Phone calls are intrusive, and calls usually go to voicemail. People want information, but on their own time – which is often weekends and after business hours for personal lines clients.

These are the statistics compiled by Agency Revolution, and the consulting firm’s David Morton shared them at this month’s Personal Lines teleconference. Morton himself is the son of an independent broker. Agency Revolution founder Michael Jans worked in the insurance business for a number of years.

“Studies show that 86 percent of consumers are dissatisfied with communication from their insurance providers,” Morton said. “This is a daunting statistic, but it presents an opportunity.”

People want to hear from their agents, but want personalized communications rather than generic information.

Almost every agency says it differentiates itself from others because of personal service, Morton noted. Yet most clients never hear from an agency unless they initiate the contact.

“If you actually reach out to people at renewal time, you’re setting yourself apart from the competition,” Morton said.

Communications should focus on three key messages:

  1. We are looking at your policy.
  2. We care about your situation.
  3. You have choices.

A Facebook survey, he noted, showed that the most common reason for changing insurance providers was a rate increase without an explanation.

Morton, as well as RiskProNet members on the teleconference, suggested setting up individual communications plans as each new client is onboarded. High-net worth clients often have a personal risk management contact who should receive some or all of the communications.

“Find out what the frustrations were that led them to switch to your agency,” one member suggested.

Among the other suggestions and comments were these:

  • Text messages are a good way to communicate specific information requested by clients. Ninety-nine percent of text messages are opened, compared to 50 percent of emails.
  • As an incentive for referrals, a donation to charity may be more effective than gift cards.
  • Postcards are coming back into style, particularly as direct mail often goes unopened.
  • Contact by mail may be important for E&O reasons.

Additional information about marketing campaigns is available from Morton. He can be reached at dmorton@agencyrevolution.com.