Homeowner Renewal Dates

deeddata

Expert
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Contacting families that are nearing their first homeowners anniversary is a good avenue to write new homeowners policies and many agents find obviously that once they capture the home, the auto soon follows... any thoughts?

My company compiles property data on households that are within 90 days of their first homeowners renewal date. Many of these families were locked into their first policy by the bank or builder, meaning they are paying too much but most importantly, they have no rapport with their current agent, so they are more receptive to hearing from a new agent.

I can share some success stories and ideas on how to pull in these new homebuyers that are ripe for a switch, and I'd be curious as to how other agents are using a program like this.
 
I've posted previously on how I do this. I get a list from Haines of upcoming anniversary dates and the public record info on the home.

I generate a quote and mail it to them.

I get a 1% response rate, with an 80% closing ratio of the responses.

When you boil it down, by itself, its a break even proposition for first year business. It's a decent way to grow a book of business, but it is far more work than most people realize. The funny thing is, no matter how many times I say it is far more work than you think, people who try it come back and say they didn't realize how much work it would be.

You can outsource it, you will lose money. The whole trick is to automate it.

If you could figure out who pays their insurance through impounds and skip them, you would do very well. People who pay through impounds don't respond.

Dan
 
Agreed... this program works only if you work it. 1% seems on the low end. With our client base 2-5 percent responses are not uncommon if the campaign is directed right.

We can provide a list of phone numbers scrubbed against the do not call registry so that mail pieces are followed up with phone calls - this seems to work the best. The mail generates awareness and the phone call gets the conversation rolling. For example, a client sends a post card, calls the following week. "Who are you??", the household asks, and the client says, "It's Ben, I sent you a card last week"... "oh, that's right", and a conversation is started.

Once on the phone, it's a brief conversation to spark the interest of the household and set an appointment. The main thing is to not attempt to sell over the phone, but stick to the objective of setting the appointment. Once in front of these prospects, the closing ratio is very high.

What our clients is finding is a couple things:

1) These households, having been in their homes for under a year and oftentimes locked into their first policy by the mortgage company, have not taken a close look at their coverage needs. Being contacted by someone that has generated rapport with them, they are highly receptive to switching because they either are paying too much or have indadequate protection, or both.
2) The cross selling opportunities are plentiful. This should be obvious, but takes reminding to some agents I talk to. I've heard from agents, "I don't make much commission from fire policies", to which I say once you capture the home, you can sell your entire product line, and this is the case. Some agents I talk to say they won't even write the home without the auto.

People respond to repetition, it's like a little kid that begs for a new toy or a piece of candy - their parents finally give in. If you work this list, and use repetition, the response is 10 times or better the national average of a blanket mailer.

Lists almost never work... why? Because they are reaching families that are getting discounts, have a good relationship with their current agent, and have put a finger on their coverage needs. Yet you have everything going for you when you target SPECIFICALLY first year renewals.

If anyone's interested, shoot me a pm and I can research any areas of interest.
 
Why didn't you post this in 'offers'?

1% seems on the low end. With our client base 2-5 percent responses are not uncommon if the campaign is directed right.

I know a lot of people who do this type of program. Only sales guys claim a 2-5% response rate from the mailing. In my area, most are on the do not call list, so 'upping' this by calling is very limited.

Tell me why I need you vs why the data I get from Haines?

Dan
 
Well, I try to infuse some substance into my posts... I'm not lavisly praising my service with a link to a website. I set off to hopefully share some information, insight and experience.
 
Some of our clients love us, some of them hate us. Some of our clients hate us because their response is zero. I know of few "sales people" that can be so honest. Most of the time, it's in the execution of their marketing campaign. We are like the Home Depot - we only provide the tools to build the home (or I should say write the home). Some clients are adept at using the tools, others are not. I'm not claiming that 2-5 percent responses are typical, but not unheard of either, when executed right. I try to work with clients to make sure they are getting their ROI and not throwing money away, which also common.

In terms of seperating us from the rest of the pack, sure, a lot of agents do X Dates, but they're reaching settled households that are getting discounts, know their agent, etc. My father actually goes golfing with his agent. Why would he switch, even if he was paying too much? He wouldn't. Contrast this to a family that has been in their house for 10 months. A lot of them don't even know who their current agent is!

Also, the purchase date with a first year homeowner accurately reflects the renewal date. As you go back to 3, 4, 5, 10 years, the renewal date is skewed.

We don't have much of a sales pitch... it's "what would YOU do?"......

you've been in your home 10 months, you have no idea who your agent is, you haven't taken the time to put a finger on your coverage needs, although as a first year homeowner, you have a lot of protection needs. Your not getting discounts and have no loyalties. Then, another agent comes along that knows you by name... they take the time to get to know your coverage needs, and promise to save you a ton of money....."

What would you do? Chances are, you'd be receptive to learning more.

As for scrubbed phone numbers, yes, that's a problem in rural areas. In densely populated areas like California, Texas, and other locales, we have no problem generating a worthwhile amount of scrubbed numbers.

As for Haines, my understanding is you have to purchase a huge amount of X Dates and again, your reaching families that have been in their house for 10, 15, 20 years. The difference between first year renewals and 20 year X Dates is like night and day.
 
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