Constantly recruiting and replacing so many agents can get pricey.
Is churn just part of the cost of doing business in insurance?
Or is it an unnecessary expense that can be avoided with better recruiting, mentoring, and coaching?
That’s what Bergen Wilde wanted to find out when he invited David Bryant to join him for a VanillaSoft webinar. David is the CEO of Brystra Insurance Services, a joint insurance brokerage and human resources (HR) consulting firm. Before that, he had a senior sales management role with responsibilities in both recruiting and training.
Bergen and David dive into why reducing churn benefits insurance companies. They also share strategies for developing a more long-term outlook to keep agents from leaving and turn them into better salespeople.
Churn is expensive, any way you slice it
When David was working in sales operations and management, he would often spend up to 90% of his time managing the recruiting pipeline, trying to squeeze in a few trainings whenever he could. All his effort went toward getting new hires in the door and into production, with very little spent on making sure they had what they needed to succeed.
David says he feels exhausted just thinking about the hours he put into each individual, only to replace them and start over. Apart from the cost of his time, there were additional costs: posting all the open positions on different job boards, paying for platforms to track applicant onboarding, and extra office overhead for desk space where new hires could study for licensing tests.
And that doesn’t even include the costs of leads: They aren’t cheap, and inexperienced agents burn through them quickly. In fact, David points out, “Insurance has one of the highest average customer acquisition costs of any industry nationally, trending at about $175 per client.”
But that’s not all. When agents leave, their clients tend to go with them, which can seriously hinder growth. “That was actually a big reason we kept recruiting: to bring people on to service the policies the prior associates had already closed,” David says.
Meanwhile, agents preferred to focus on existing relationships rather than prospecting, which further slowed client acquisitions. Overall, David estimates that failing to retain that client base cost the company around 15% in annual growth. “I’d probably attribute 50% of that loss to agent turnover rather than competitive issues,” he says.
How investing in people actually saves money
High churn rates mean that most associates working at any given time will be new. That’s a problem because veterans are much more efficient. They close more sales with fewer leads — or none at all. “To be honest, agents who have been in the business two years or longer don’t even ask us for leads,” David says. “They go out and find their own.”
But how do you stop the revolving door? Start by breaking down what it means to be a seasoned agent. What are they doing right? What’s the ideal model behavior?
“We look at the best-case scenario, then we work backward and set out a road map,” David explains. Improving net margin and reducing churn incrementally make it possible to convert more leads — then start buying fewer to begin with.
Next, ask: How can we use those dollars to reinvest back in our people? “Start with the basics, and then as you move along, you can refine and help people improve each quarter,” David advises. When agents see their leadership investing in them, they suddenly begin to see a future for themselves in the organization, which further helps with churn.
People aren’t going to be lured to other companies that offer them a few extra leads if they know they won’t be given the resources and support they need to be successful.
David now invests just a fraction of what he used to spend to manage churn on software licenses to make sure his agents have the right tools to do their job. He says that the investment “doesn’t have to break the bank.”
Put down rails to get agents on track
There’s an old saying that goes like this: “If you can’t measure it, you can’t manage it.” And David has found technology to be the key. Specifically, investing in a CRM platform is a great way to track opportunities and see how agents are performing.
David explains the many benefits of a CRM:
- Accountability: It allows managers to set activities that cannot be checked off until completed.
- Tracking: It automatically monitors renewal dates and when agents need to follow up after leaving a voicemail, making sure nothing is forgotten.
- Engagement: It provides a dynamic script that adapts based on how a call is evolving, helping even the greenest reps engage more effectively.
- Metrics: Most importantly, it creates metrics that give managers the tools to drive real improvement.
This is where a tool like VanillaSoft can make life easier for insurance agents. VanillaSoft’s platform streamlines communication, follow-up, and lead tracking, helping agents manage their day-to-day tasks more efficiently. It also improves engagement through dynamic scripting, keeping conversations relevant and fluid as they evolve.
For managers, VanillaSoft provides detailed metrics that offer insight into agent performance, allowing for targeted coaching and better decision-making.
Plus, the fact that new agents can be onboarded and start calling the same day is something that makes all the difference not only when it comes to to accelerating their productivity but also in reducing the learning curve and minimizing downtime.
Using this technology, David says, “Our one-on-one suddenly became much more coachable because you see the metrics and you can coach people towards the correct behavior.”
This is what David calls “putting down rails.” With the right tools and mentoring, new agents are able to get up to speed, overcome their fear of rejection, and build their skill sets.
David sums it up like this: “You need to invest in training new people. You need to give them leads so that they can get wins and opportunities. But if 90% of people in the room are new, you’re wasting money handing off those leads. However, if you’ve got 80% who are veterans running twice or three times the close ratios, they can just be so much more efficient.” That’s how you break the cycle of churn.
Tips for keeping your best insurance agents
- Invest in comprehensive onboarding and training — Equip new hires with the knowledge and skills they need to succeed from day one. This includes product knowledge, sales techniques, and systems training. A strong onboarding program sets the stage for long-term success and gives new agents the confidence they need to hit the ground running.
- Provide ongoing coaching and mentorship — Pair experienced agents with new hires to foster a supportive learning environment and accelerate their development. Shadowing is a great way to transfer knowledge and help your new agents learn tricks from their seasoned co-workers. Regular coaching sessions provide opportunities for feedback, skill development, and addressing individual challenges.
- Offer opportunities for career advancement — Create a clear path for growth within the agency to motivate agents and show them a future with your company. This could include leadership training, specialized roles, or opportunities to manage a team. Knowing they have room to grow encourages agents to invest in their careers with your agency.
- Recognize and reward performance — Acknowledge and appreciate agents’ achievements to boost morale and encourage continued success. This could involve bonuses, promotions, public acknowledgment, or other incentives that demonstrate your appreciation for their hard work.
- Foster a positive and collaborative work environment — Create a culture where agents feel valued, supported, and motivated to contribute their best work. Encourage teamwork, open communication, and a sense of community within the agency.
- Provide the right tools and technology — Invest in CRM software and other tools that streamline workflows, improve efficiency, and empower agents to excel in their roles. This allows agents to focus on building relationships and closing sales, rather than getting bogged down in administrative tasks.
In Conclusion
Instead of constantly chasing after new recruits, what if you could build a team of loyal, high-performing insurance agents who contribute to your agency’s success year after year? Shift your focus from replacement to retention, and invest in your agents’ onboarding and growth, you can create a more stable and profitable future for your insurance business.
