Building a Case for Account Rounding

Too often, independent agents spend a lot time and money trying to lure new business. It’s expensive, and new customers are less loyal than current customers. The real gold is already on your books, with the customer base your already have!

• Rounding current accounts costs five to six times less than writing a new account.
• According to financial industry studies, the more accounts or policies you have with your customers, the less likely it is that they will move their accounts. A customer who has at least three accounts with your agency will stay with you for an average of 11 years. Once they have three accounts or more in your agency, you have a customer for life.
• A 5% improvement in your customer retention can improve your profits by 35-50%.

Why aren’t more accounts rounded?
Research confirms that there is a substantial opportunity to expand your business. Here are the top reasons for accounts not being rounded:

In many cases, when price was cited as a reason for not rounding, it was because proper credits and discounts had not been applied. If these discounts had been applied, the insured would have saved money on their policies.

What are the benefits to your agency?
Not only are multi-policy customers more loyal, monoline customers are more likely to move their accounts to your competition!

Your loyal customers benefit you in so many ways.

• They are more likely to refer you to their friends and family.
• They are more tolerant of mistakes.
• They develop a strong personal bond with your staff.
• They are more open to advice on additional type of coverages.
• They trust you and appreciate your input.
• They maintain a lower loss ratio.

What are the benefits to your customer?
Your customers expect more than a good price. They expect you to help them make the right decisions about their insurance coverages. Customers want a tailored approach to their needs. By offering them “insurance packages” you deliver many benefits:

• Many discount and credits are available when accounts are rounded. You save them money.
• By placing coverages with one company, you consolidate billing, bookkeeping and paperwork.
• You provide them with more peace of mind because they trust you have their best interests at heart.

Make it priority in your agency to develop and implement an account rounding program today! And stick with it. It’s a win-win situation – your customer feels more valued and trusts your judgement. It generates additional profitable business for your agency and develops strong, long-term relationships that will support you for years to come.