How insurance agents can improve retention with a simple holiday card

Picture this: You come home after a long day, and there’s a stack of mail waiting for you. In that stack is a colorful envelope with your name handwritten on it and a First-Class stamp in the corner. How likely are you to open it? Pretty likely, right? Now, compare that to the 100 emails you’ve got sitting in your inbox—how many of those are you excited to open? Exactly.

According to USPS, 98% of people check their mail daily. A physical card is far more likely to be opened, read and remembered than a generic email.

We know that 80-90% of an insurance agency’s revenue comes from existing clients renewing their policies. This year, in a market where premiums are rising and retention is at risk, sending a holiday card could be the difference between keeping a client and losing them to a competitor.

If you’re still unsure about holiday cards, here are a few reasons why you should reconsider.

Agencies that send cards have higher retention

Insurance agencies that send holiday cards have an average Net Promoter Score (NPS®) four points higher than agencies that don’t. Every 10-point increase in NPS translates to a 2% increase in retention which is a lot of money for any book of business.

Cards are an inexpensive way to nurture relationships

Research shows that the average cost of acquiring a new customer for an insurance agency is $900. A personalized, handwritten card costs less than $2.40, postage included. It makes sense to allocate a small portion of your budget every year to make your current clients feel special and stick around.

Handwritten cards help you stand out from the crowd

More than 80% of the insurance agencies we work with send handwritten cards to their clients. Instead of relying on emails and social media posts for your holiday messages, try mailing cards—it’s very likely that your local competitors already are.

Cards help foster loyalty in an uncertain market

As premiums are rising, clients may start thinking about shopping around, unless they are invested in a relationship with you. People are more likely to stick with someone they believe cares about them, and not just when the premium payment is due. A simple holiday card is an excellent reminder that you care about your customers year-round.

This year, choose a holiday card over an email. It’s a small and inexpensive gesture that can secure your client base and help your agency thrive in uncertain times.