Perhaps today more than ever independent insurance agents are exploring new methods of increasing revenue. Drip marketing, online lead generation, social media, SEO, the list goes on. But as agents focus on strategies to land new business many continue to look outward rather than leveraging their existing customer base.

Starting from ground zero when prospecting business is expensive. Reaching new audiences requires a traditional advertising budget and now a robust inbound marketing strategy. The advantage is had by direct writers and exclusive agency writers. It is no secret, they have the commercials and the budget for online advertising.

Your Distinct Advantage as an Independent Agent

Independent agents have a distinct advantage in their ability to leverage existing customers for new business. The edge is their advantage to manifest strong, personal relationships with clients. Therefore, agents should pay close attention to their strategy of looking internally to write more premiums – rather than only looking externally for new blood.

Referrals and Cross-Sales

An internal strategy should have two components – referrals and cross-sales. The most effective agents at realizing new business from existing clients have a consistent and long-term strategy of doing so. Fortunately there are methods of increasing referrals and cross-sales that run parallel to one another.

Measure your Client’s Net Promoter Score

It starts by identifying your customers that are likely to refer. This is done by implementing Net Promoter Score (NPS) survey. It is easy to implement and has a very high response rate. This quick metric is used by many of the nation’s top companies including Southwest Airlines, Intuit, and Apple to name a few. It will give you an instant picture of who your promoters are – those that are willing to give you a positive recommendation.

When agents know who is willing to refer them they can tailor content to encourage them to do so. The NPS allows you to personalize communication and send high quality communication, such as handwritten notes, while remaining cost effective.

Write New Business for Existing Clients

There is also a significant opportunity for writing new business with existing clients. According to a market review published in February of this year by Independent Insurance Agents and Brokers of America, Inc., Opportunities & Competitive Challenges for Independent Agents & Brokers the overwhelming majority of customers who shop for auto insurance online need homeowners or renters, and millions need umbrellas, in‐home business, watercraft, and other lines. Many also own businesses or influence business decisions.

Independent agents have an inherent edge over direct writers for writing multiple policies for customers. In the same market review direct response carriers write 18% of personal auto premiums, but only generate 5%, or $4.4 billion, of the $77 billion homeowners market. Today more people are willing to establish the relationship with an agent to act as an advisor to help them understand overall risk and protection.

The NPS also allows agents to more effectively cross-sell to their existing customers. If agents are aware who their loyal clients are they have more confidence in contacting them about additional products. The customer already established that they are satisfied with the agent and likely to refer – a followup phone call or email is likely to be well received.