Customers with affluent accounts are the perfect match for independent agents. Targeting these customers is key to growing your agency’s business.
Ask any independent agent what their dream customer would look like and they would probably describe someone who values protection over price, has multiple insurance needs and wants to build a loyal business relationship.
Looking for a demographic that fits this description? Customers with affluent accounts, especially those with homes whose replacement cost value is between $500,000 and $3 million. Affluent accounts offer unique benefits to independent agents, who are uniquely positioned to meet the needs of these customers.
Given this symbiotic relationship, here are three reasons why looking for opportunities to grow your business with affluent accounts is a win-win:
1) Affluent accounts have better retention rates. Unlike other demographics, the affluent account segment is less price conscious. Customers are seeking peace of mind and protection, not just low prices.
Lower price sensitivity also means that these customers are looking to develop lasting relationships with their agent. They want a trustworthy agent to help them find the proper coverage. And once they find that agent, they are likely to stick with them. Targeting affluent accounts can help you build a loyal client base and improve your retention rates.
2) Affluent customers value expert advice. These customers have unique needs. As a result, they benefit from the choice and advice an independent agent can offer.
For example, a customer may have a historic home that would require significant updates to bring it up to code if it needed to be repaired from a loss; the property may have landscaping that could be costly to replace or clean up in the event of a natural disaster; or, the customer may have personal property or furnishings that would benefit from robust personal property coverage or special personal property coverage.
A cookie-cutter homeowners policy will not provide the level of coverage to make sure they are protected in the event of a loss. This comprehensive level of coverage is best served by a product like Safeco Premier Home, which offers top-level protection. However, it can’t be sold on price alone—it requires the hallmark advice of an independent agent.
3) Affluent accounts bring cross-selling opportunities. Typically, affluent accounts have more than just a home and a car. They may have multiple homes or specialty vehicles and may need an umbrella policy.
This provides the perfect opportunity to cross-sell multiple policies, which can be a growth engine for your agency to sell more new business. This also solidifies the retention opportunity offered by affluent accounts.
Customers may also benefit from placing all of their business with one carrier, especially a carrier like Safeco that offers packaged discounts and a single loss deductible for customers that protect their home and auto with Safeco.
These customers may like to DIY their homes, but they are not looking to DIY their insurance protection. They need the ease, choice and advice offered by an independent agent to ensure that their lives have the holistic protection they need so that they can rest easy with peace of mind.