Point/Counterpoint: New Business vs. Client Retention

In personal lines, should you spend more time on developing new business than retaining current clients?

YES.

The answer is easy—yes, you should spend more time developing new clients. But there’s a big caveat: not at the detriment of retaining your current clients.

Whenever you sign a new client, the systems in your agency should be set in motion to connect with that client three or four times a year. In personal lines, clients do not come to you until they absolutely need you. Those moments are opportunities that will either make or break your relationship.

To ensure a positive outcome, you must make sure your personal lines clients understand how your agency works and who, besides yourself, they can turn to in times of need. You can start by introducing them to the rest of your agency’s staff.

Knowing more than one capable person at the agency can help your clients feel comfortable, ensuring they will not be solely reliant on you when they need to reach someone.

Producers too often forget an insurance agency is a team. Unless everyone is on the same page, systems break down. Clients are smart enough to realize when failure happens.

At the end of the day, clients can get the same product for the same price elsewhere. It’s the level of service you and your agency provide that makes the difference. If your agency runs smoothly and efficiently, your time should be unrestricted to develop new business, while still being present and available for you current clients when it matters.

You know what they say: “If you’re not growing, you’re dying.”

—Colin Vaughn, producer, Tru Insurance Services in Overland Park, Kansas

NO.

If you do it properly, retaining current clients can help develop a large amount of new business opportunities.

Generally, most agency owners and producers would agree on the importance of new business sales and growth. But I would argue that you don’t have to go seek it out as much as many people believe. Taking excellent care of your existing book will not only boost your retention, but also lead to plenty of referrals and growth.

Referrals are key for independent agencies in all lines of coverage, but especially in personal lines. Even with excellent resources like TrustedChoice.com, it’s difficult to compete with the enormous advertising budgets of large direct writers.

What better place to gain referrals than from your current clients? If you provide your current personal lines clients with premier service, rest assured you will be hearing from their family, friends and co-workers.

There’s not just one “right” way to grow and maintain a personal lines book, and I applaud anyone who is making it work by doing something different. Don’t get me wrong—my agency has a robust sales culture, and I’m always looking for new business in my community. But personally, I find that most of my new business comes from referrals from existing clients who are happy working with me and my team.

We’re all looking for that perfect balance between retaining clients and growing new business. I’ve grown my book of business on the premise that good service leads to good referrals.

—Robbie Moore, executive vice president, Blanchard & Calhoun Insurance Agency, Inc. in Augusta, Georgia