05 Apr High Growth Agencies Assure Account Retention
A System to Assure Account Retention
As an insurance agency, one of your biggest liabilities is when a large account walks off. If you could buy insurance for that you probably would. But since you can’t, here’s what you can do to assure your chances of retaining your best accounts for a life time, short of it getting acquired.
Analyze the accounts in your agency based upon this rule:
- Print out a list of all your accounts in descending order, largest down to smallest.
- Draw a line when you get down to 80% of your revenue being represented. That will probably be 15-25% of your accounts.
- With that group of accounts you want to have a system to put them on a written service plan that is customized to their needs (not just yours).
It’s an age old argument that makes a lot of sense. There is no real use in writing a lot of new business if it walks out the back door just as fast. Instead of High Growth, you’d have high churn. The secret to High Growth is obvious. Have a good system to retain accounts. To do that you need to go beyond good reactive and friendly service and put your service plans in place.
Learn more about managing a high growth agency, contact The Wedge Group.
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