Why Do Agency Customers Complain?

JackNordhaus

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Customers Complaining The No. 1 complaint from customers almost invariably involves communication . . . or lack of it.

According to industry statistics, more than two in three clients who leave an agency (68%) do so simply because they have been ignored!  What’s more, even clients who leave due to poor service do so because of lack of communication from agency personnel.

At a seminar for its top 700 agencies, Travelers consultants recommended taking these six steps to improve agency/client communication:

  1. Use your agency management system to generate professional, standardized communication practices.
  2. Provide annual protection and renewal reviews to round out accounts and upgrade coverages.
  3. Complete coverage checklists/templates when reviewing client coverages.
  4. Have clients sign off on coverages that they decline.
  5. Document all changes and requests for endorsements.
  6. In explaining All Risk coverages, make sure that the client understands the exclusions.

I’d add a seventh point: Establish a regular, organized communications program that includes a positive contact with every client at least four to six times a year.

The more effectively you communicate with your clients, the higher your retention rate and the stronger your bottom line.

Dr. Jack Nordhaus, managing editor of IMMS, can be reached at (800) 753-4467, ext. 940, or e-mail [email protected].
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