Account rounding—an account and agency growth tactic you’ve probably heard about a million times. We hear about it in blogs, in agency news stories, and in industry webinars. Surely, we all know what account rounding is, or at least we think we do. Most of us know that it’s something we should be doing more of.
Much like that morning coffee, account rounding is a key growth strategy that can jolt your insurance agency’s profitability and maximize ROI.
Why is account rounding so important? Consider this: Gaining a new customer can be 5-25 times pricier than keeping an existing customer. Why constantly chase after new clients while neglecting the loyal ones who have been with you for years? Account rounding techniques focus on tending to those existing relationships, ensuring each client has the ideal coverage for their needs.
Think of it as the ultimate win-win: Your clients get the protection they require, and your insurance agency reaps the benefits of account rounding. And there lie the ties that bind. Account rounding deepens your relationship with your client, which in turn, increases retention and your insurance agency’s profitability.
The main benefit of account rounding is its service rather than its sales function: it’s all about making sure your client has the right coverage.
So, how exactly can account rounding propel your agency to new heights? Let’s dig in:
- Maximize lifetime value: By optimizing each insurance account, you amplify the lifetime value of every client and transform your entire book.
- Create exit barriers: The more roots a client has with your agency (i.e., products and services), the harder it is for them to uproot and leave.
- Block the competition: If you don’t offer your clients additional coverage and services, someone else will. Don’t leave the gate open for competitors to swoop in and steal your hard-earned relationships.
- Serve your community: One of the great things about being an independent agency is the connection to the local community, and helping your neighbors can be incredibly rewarding. However, small, single-account clients, whether personal or commercial, often aren’t profitable. Account rounding offers a way to effectively and profitably serve these smaller accounts in your area.
- Boost income, minimize costs: Optimize your revenue with minimal extra costs through account rounding.
With all these potential benefits, what’s holding you back from embracing account rounding? Perhaps your staff is hesitant to sell, your management system isn’t capturing the right data, or departmental silos are creating obstacles.
Your agency’s reasons may vary. But the point is to find out what the barriers are and to go past them. You’ll need to adjust both your agency’s culture and processes.
Implement these steps into your agency to achieve success with account rounding efforts:
- Make it a priority: Leadership must support it to get results.
- Create a new agency culture: Everyone is involved in both sales and service.
- Change the language: Use “clients” or “customers” instead of “accounts.” Refer to “account rounding” and “sales” as “offering our clients the best protection options.”
- Set and track goals: It’s simple but holds true–what gets measured gets done.
- Offer the right incentives: Adjust compensation or incentives if needed. Include team and agency-wide incentives.
- Provide training for success: Use scripts, role-play, practice, and mentor agents.
- Equip staff with the right technology: In fact, whenever possible, use tech to handle non-service, non-revenue generating tasks. This will free up your staff who can focus on fostering relationships.
Examples of Account Rounding & Cross Selling:
Introduce new coverages within existing policies – Provide options like cyber liability, business income, and other valuable coverages.
Expand existing coverage – Recommend increasing liability limits or adding endorsements for specific risks.
Cross-sell across different policy lines – Offer commercial insurance to personal insurance clients or personal insurance to commercial accounts. Suggest life insurance or voluntary benefits to any client.
If you anticipate your customers’ needs and offer solutions before they turn elsewhere, you’ll keep more loyal, multi-policy accounts you’ll keep on the books. Typically, single-policy accounts stay with an agency for only three years. If they have two policies, they stay for seven years. Clients with three policies remain for an average of 11 years.
Of course, there are some account rounding success factors to keep in mind. Your clients need to be well-serviced, and you can ensure this, but you also need to bring reliable insurance solutions to the table—this is arguably the number-one success factor in account rounding. And that’s where NIP comes in.
Choose the Right Partner, Choose NIP Group
At NIP Group, we recognize the unique challenges and opportunities that agencies face across diverse industries, and especially when you’re trying to win a client’s trust. Whether your clients are in construction, healthcare, manufacturing, or any other sector, we can help you build relationships founded in trust and value. With comprehensive insurance account optimization resources, insights, and support you will easily nurture, and consequently maximize, every client relationship.
When you partner with us, you gain access to:
- Our dedicated team of growth specialists, who can provide expert guidance and support tailored to your agency’s unique needs
- Competitive incentives and recognition programs, designed to keep your team motivated and celebrate your client wins
- Comprehensive training and resources, including proven scripts, email templates, and best practices to help your team confidently identify and capitalize on growth opportunities
- Ongoing support and partnership, with regular check-ins, industry updates, and educational opportunities to help you stay at the forefront of industry best practices
Ready to watch your agency bloom like never before? Contact us today—NIP Group is here to help you every step of the way.
