As an agency one of your main goals is always to find new customers and build relationships with them in order to help your agency prosper. However, while finding new customers is crucial, retaining current ones is just as important for the growth of your company. What good is your agency if you’re writing insurance policies for customers only to have them leave your agency within a short amount of time? Customer retention is a primary goal of all businesses—large and small—and this can be done with effective account rounding practices.

Account rounding is the practice of increasing the policy count per customer and thus increasing premium, profit and customer retention while also referring your services to others. Account rounding can have a much greater effect on the growth of your business than simply only going after new customers and is an important skill to acquire for your agency to prosper. Customers who maintain multiple policies with your agency are much more likely to refer you to new customers.

Benefits of account rounding include:

• Increased retention rate
• Increased premiums
• Increased profits
• Increased referrals

While account rounding definitely benefits your agency, it can also benefit the customer when done correctly. Customers like to feel they are getting a personalized approach to their coverage needs and in addition to getting advice about a new coverage option, they also want a trusted advisor that can guide them toward good protection at a reasonable cost. Most customers do not appreciate getting lumped into the masses and will appreciate your dedication at handling their situation.

Account rounding is an aspect of your business that must be dealt with seriously if you want to increase customer retention as well as the amount of referrals coming to your agency. We hope you find this information helpful in improving your agency for the future!