Laura's Issue 6 Newsletter
Market to Customers First
Renowned computer gaming designer John Romero said, "In marketing I've seen only one strategy that can't miss – and that is to market to your best customers first, your best prospects second and the rest of the world last." In the last newsletter we talked about the importance of having a marketing calendar. Marketing entails creating a proactive plan; unfortunately the customers don't come otherwise. All resources are limited, including time and money. How do we know what marketing to prioritize? As John said, "market to your best customers first." Before we start looking for new customers we need to have processes in place to cement the relationship with the existing ones.
As a new agent in 1994 I created a business that was extremely successful at bringing in new customers. We had a sales machine.
Several years later a business owner said, "Wait until you have been in business for a few years. One day you will have 3,000 accounts and be losing 300 a year. Then you will work hard all day long just to break even."
I knew that an average business in my industry had 90 percent retention. I had never thought about the fact that if I had 3,000 clients, I would be losing 300 of them a year. I felt as I had been verbally slapped.
I went back to my business and looked at our retention number for the first time. It was below the industry average.
In Texas we have an expression: "You've got to dance with the one who brung you." The grammar may be wrong, but the point is dead on. Your primary emphasis must be on making existing customers repeat customers.
Unfortunately my office has focused less on retention processes in the last two years because of underwriting problems (we live in hurricane alley). It is easy to allow some core retention processes fall by the wayside when you are in survival mode.
Several months ago we began a tremendous focus on reviewing insurance for existing customers. When I worked for other companies in the past, the number one complaint I heard from customers was "I haven't heard from my agent in years." I do not believe customers care about hearing from me personally but they do care about whether or not we are contacting them on a consistent basis.
Each person in our office is assigned three customers to contact and review coverages with that day. The call is designed to accomplish four things:
1) Increase auto liability limits – most of our customers are underinsured
2) Cross sell
3) Obtain e-mail address to register customer for our Customer Care Center
4) Set an appointment for the customer to review their financial services with our specialist With a very manageable daily goal and specific criteria that are tracked, we are much more effective. As we review coverages we reduce the chances there will be a surprise at claim time and make sure that customers are getting any discounts they are eligible for.
What processes will you put into play that will increase the odds that your customers continue to do business with you?
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