Is growing your builders risk book of business is part of your agency’s strategy for 2017? Congratulations! In addition to being a needed form of protection for clients’ construction sites, existing businesses or homes, builders risk also affords your business the opportunity to increase your revenue.
To meet your growth goals, of course, you’ll need clients. As an insurance agent, you already have potential builders risk insurance clients within arms’ reach: your existing client base.
Nurturing your existing client relationships can be a sound client retention strategy. It’s also a much more cost-effective method of finding builders risk cases than paid marketing activities. According to Lee Resources Inc., attracting a new customer costs five times as much as retaining one you already have. Additionally, according to Gartner Group, 80 percent of your company’s future revenue will come from just 20 percent of your existing customers. That’s not to say that you won’t get any return on your investment for more traditional marketing and advertising to reach out to new customers, but ignoring your current book of business would be a mistake.
Consider these potential opportunities in your existing client base:
- Homeowners insurance clients planning to renovate their homes may not know about builders risk insurance. Odds are good that you have clients in your current database who are planning to remodel. According to CNBC, nearly two-thirds of consumers are planning to remodel their homes.
- Business insurance clients expanding their structure or building a new store will need coverage to protect their investments.
- When helping clients through claims after losses due to a catastrophic event, agents have an added opportunity to discuss the importance of builders risk coverage, so when clients rebuild, they’re protected during construction.
Finding these opportunities starts with simple conversations that enable you to get to know your clients better. Whatever type of coverage your clients get from you currently, it’s possible that they are either planning an upcoming construction project themselves, or they know somebody who is.
To learn more about how you can meet your builders risk insurance goals through nurturing current relationships, download our free resource, How to Grow Your Business through Existing Client Relationships today.
This is intended as a general description of certain types of insurance and services available to qualified customers. Your policy is the contract that specifically and fully describes your coverage. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy.