Sales are the backbone of your business. Yet, it takes time and effort to get just one new customer. While you are trying to increase revenue, it is crucial to be working on retention at the same time. With every renewal, you want to be sure all the new customers you brought in the door will stay for another year, and ideally much longer. Otherwise, it is much like spinning your tires. The relationship with your MGA is invaluable for brokers and agents who are working on improving their customer service.
In every interaction with a customer, you have multiple chances to earn their trust and loyalty. While you are entirely capable of building good relationships with customers, an MGA typically has insight and information you can share with your clients to lend to your expertise.
Customer service and retention go hand in hand, and the right MGA can help you earn more customers and keep them for the long haul. That is what it takes to build a solid book of business.
How an MGA Helps You Improve Service
No matter what industry you are in, good customer service is important. As you gain new customers, that is one thing they will especially be looking for.
What does it take for insurance agents and brokers to improve upon customer service? Customers want the right products and services. They want to be served promptly by people who know what they are talking about. Customers also want insurance agents and brokers who know their industry from top to bottom, and will help them reduce risks.
These characteristics are the exact same things you should expect from your MGA. The right MGA will have access to a wide variety of products and services your clients need. They will be able to tell you why they are the right products and services, so you can relay relevant information to your customers.
Your MGA will also be in the loop of the latest industry and compliance information. By sharing this information with your customers, they will know that you are looking out for their businesses and their best interests. Your customers are sure to notice you going out of your way in your efforts to adequately insure their businesses.
Relationships are important, and it is to your benefit to keep a good relationship with your MGA. They will educate you about industries of niche markets you are trying to build. MGAs are usually willing to meet with your staff and educate them as well, which is important because your staff is often responsible for answering incoming calls and emails. When you or your staff do not have a quick answer to a client’s pressing question, your MGA is bound to have it.
One of the other great ways MGAs help you improve customer service is they have the right technology to streamline everything, from the quoting process and lead generation to issuance and customer service. Older, legacy systems are not as agile or responsive to changing market conditions, and that can really lead to a downfall. The ease of the right technology is something that can get you off on the right foot with new customers. It will certainly help to differentiate you from competing insurance agents and brokers.
How an MGA Helps You Improve Retention
Beyond helping you build clientele, an MGA helps you retain the customers you worked so hard for to get. They have the right technology, pricing, administrative support, and authority to help you serve your customers well every day.
Technology helps you retain your clients in several ways. Software programs make easy work of requoting policies at renewal time. Moreover, MGAs have access to multiple companies, so brokers and agents can find the best pricing for their customers. Furthermore, MGAs usually have solid relationships with leading insurance companies in various industries, which will help give your agency credibility and brand recognition. This is an especially nice benefit if your agency is small.
When it comes to claims, commercial claims are usually quite complex. MGAs work with claims adjusters, as well as brokers and agents, to make sure claims are handled smoothly and professionally.
You or your staff must make changes to policies regularly. Customers may change locations, add locations, change coverages, or change their billing information. Therefore, you or someone in your office needs to keep client records updated, document claims, add coverages, and remove coverages as needed. The right technology makes quick work of these tasks, which benefits your staff, in addition to your customers.
MGAs usually have some underwriting authority. That means you can get policies issued more quickly and with less hassle.
Furthermore, MGAs tend to stay current with issues like updated regulatory compliance, new trends in an industry, industry innovations, and strategies for client retention. By partnering with an MGA, brokers, agents, and staff have access to continual education in the market.
From a risk standpoint, MGAs know niche markets inside and out. They often have ideas about how companies can reduce risks to keep employees safe and protect their businesses.
Finally, satisfied customers are happy to spread the word about the good relationships they have built with their brokers and agents. The hidden benefit of this is brokers and agents can expect to receive quality referrals.
An MGA Is Your “Go-To” Person for the Industry
A successful MGA has earned the trust of the insurance companies they represent. To maintain their trust, they must consistently perform for the insurance companies as well as for brokers and agents.
Most independent brokers and agents opened their own agencies because they wanted independence and control over their agencies. Since they are already at the top of the ladder, they do not have anyone to go to when they are uncertain, or when something goes awry. As experts in niche markets, MGAs are your “go-to” person, whether you are pursuing a niche in excavation, landscaping, greenhouses, or building trades.
It can be tough for brokers and agents to get into a niche market without the help and support of an MGA. It can be even tougher to compete with larger insurance companies without an MGA by their side.
One of the toughest parts of being an insurance broker or agent is lead generation and quoting. The technology knowledge MGAs bring to the table helps create efficiency in creating leads and quoting policies quickly, so insurance salespeople can strike while the iron is still hot.
Technology also gives brokers and agents access to a wider variety of insurance carriers and markets than they could reasonably access on their own. MGAs have requisite underwriting expertise, and they are a good resource for advising agents and brokers about underwriting guidelines for the companies they represent.
Overall, MGAs share not only in the responsibilities for customer service and claims, but also the risks that come with insuring businesses. With the help of an MGA, brokers and agents can improve efficiency, reduce costs, improve customer service, retain more clients, and most importantly, increase revenue.
Brokers, agents, and their staff need to communicate effectively with their customers. Responses must be timely and informational, whether they go out via a call, email, or text message. The consequences of not doing so costs brokers and agents in retention.
If you are looking for ways on how to improve customer service, NIP Group is invested in helping you. We have the knowledge and expertise to assist you in serving your customers well and retaining them. Call one of our experts at NIP Group for a quote today at 866-780-8076, where we serve over 25 industries.
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