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Collecting Customer’s Emails
On average, insurance agencies have about 10% of their customer’s email addresses*. This low number can be attributed to a number of items. Some customers have been around longer than 10 years or so where collecting emails wasn’t anything to think about. Many of the older agency management systems have never had a place to store email addresses or the agency never took the time to collect the email addresses.
Collecting email addresses can be very simple, but it may take some time.
When a customer is on the phone, submits something online or walks into your agency ask them for their email address. It will take a few extra minutes but over a couple months that 10% can easily jump to 20% or 30%.
Run a postcard promotion or contest (Requiring customers to give you their email address of course)
Privacy matters
When asking customers for email addresses explain to them how you plan on using their emails. (Email best practices)
Don’t spam!
Newsletters can be a very simple way to promote your insurance agency and to build your web presence. However, if a customer gives you their email address don’t assume that they are also interested in receiving your monthly newsletter. If you add them without asking first, they may opt-out, black list you or report your newsletter as spam. If they opt-out you should definitely respect their wishes and not send them anymore unsolicited emails. If they black list your email address then you will be unable to send them any more emails. (Even legitimate emails) If they report your newsletter as spam (All major web based email providers have this feature) your email address may be flagged as a spammer… (This is something that is very hard, if not impossible to correct).
Best practices – How to use email addresses
Now that you have your customer’s email addresses what should you do? There are many legitimate reasons to email customers. When you first receive an email address from a customer send them an email talking about ways your insurance agency uses emails and your website to communicate with their customers. (This is a good place to promote your monthly newsletter and let them opt-in)
Legitimate Reasons to contact your customers:
Catastrophe or claims updates – A good example of this is during hurricane season in the south or ice storms in the north. Email your customers before and right after the natural disaster happens to remind them that there is valuable claims information for them on your website and to get it now before the power goes out.
Financial Times – As we know, even the largest of companies can fall or be bought out by another company. In times like these, it is a good idea to inform your customers that one of the reasons you are an independent agency is that you represent multiple carriers and that their insurance policy is safe.
Significant Changes – New service offered, new company or an office move.
Confirmation emails – Confirm policy changes, annual reviews or quote requests.
Follow ups – After a service was provided follow up and make sure your service level was satisfactory.
*10% is based off of conversations I have had with various insurance agencies located throughout the country.
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October 13th, 2008 at 4:42 am
Good post, with a common sense approach to bulk email. But another good reason to have a customer’s email address is for one-to-one communications, and that is often overlooked.
One-to-one emails can (and should be) highly personalized: ‘how’s junior doing with the transition to high school?’, ‘are you enjoying your new car?’, ‘how was the transition to your new business location?’
Some insurance agencies require a minimum number of outbound calls to customers to offer annual reviews, advise of a new product/coverage (as noted in the post), or simply to thank the customer for their business. Too few agencies take this proactive position, often for fear of the amount of time that might be spent on the phone (or just fear of calling).
Email can be a good way of easing agency staff into contacting customers. Picking out 3 – 5 customers a day and sending some kind of email shouldn’t take more than 5 – 10 minutes; optional follow up phone calls can be placed to be sure the customer saw the email. Think about it: An agency service staff of 3, sending 5 emails a day will have reached out to 3,300 customers in a year. Don’t have time for that? Have more important things to do?
We all know that customers who hear from their agents during a policy term are more loyal and committed. Consider this: The 2008 JD Power and Associates Auto Insurance Study found that 86% of highly satisfied customers planned to renew their policies and refer an average of 7.7 prospects to their insurance provider. On the other end of the spectrum, 42% of ‘low satisfaction’ clients said they planned to shop their insurance. Where are your customers on the satisfaction continuum?
Email isn’t a substitute for every other kind of communication, it is not the be all – end all. But email is virtually free, and when used intelligently as a one-on-one tool and as a mass communication tool it will significantly improve your agency’s bottom line. What are you waiting for? Get the email addresses, formulate a privacy/use policy, and find a place for email in your communication mix. And get started now, before you lose more money.