One of the most overlooked and profitable client is right under your nose…your existing customers.
Many of these loyal clients represent an untapped source of new business and the good news is that these clients already know you, trust you and you have a proven track record with them.
Cultivating your existing client base not only increases your business but enhances profitability by lowering the cost of customer acquisition and increasing retention. Customer retention is exponentially multiplied by every additional policy that each customer has with the agency. It also fosters loyalty to the agency and deters the customer from shopping with their “other” agent.
While there are no statistics on how many independent agencies are actively cross-selling to their customers, many experts say they’re not doing it as often as they should—in spite of the fact that their survival in today's customer-driven environment may depend on it.
Below you will find keys to prospecting and retaining your existing client base.
Know your customer – What are their needs, assets, concerns?
Identifying the answers to these fundamental questions will help you provide the appropriate coverages and policies for each customer’s individual needs. By knowing your customer and their needs, you can build a customer profile of their personal and economic data. Also, recognizing your customer’s “triggers”, such as when the customer’s child is about to turn 16, allows you the opportunity to provide invaluable information and advice on necessary additional coverages or policies.
Update customer information continually. Remember that knowing your customer’s needs and concerns of three years ago may not represent their current needs and concerns. Also, keeping an accurate, up-to-date client list containing both a mailing, phone and an e-mail address is an essential building block for any successful marketing initiative. This may sound easy, but it frequently is not.
Connecting with your customer on a regular basis not only secures that customer to your agency but also provides the best opportunity to cross sell new products or upsell existing coverages. Ask your client’s how they want to be contacted – mail, email, phone or text – and use this method. No one wants to receive a phone call at work when they have specifically told you that their preferred method of contact is email.
Act, React and Repeat
The challenge of any marketing campaign is that they are easy to start but hard to maintain. Therefore, it is essential that after you create and execute a marketing plan, you measure the response and adjust accordingly to sustain a repeatable model for growth. Be sure to be consistent. You can always accelerate your campaigns but you definitely want to avoid an inconsistent start-and-stop cycle. In any event, keep in mind that the more repeated and continuous your communications, the better your results are likely to be.
Written on July 17, 2017 by Peggy Corbett